The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2018 ($ in 000s): sales revenue, $18,500; cost of goods sold, $7,800; selling expenses, $1,460; general and administrative expenses, $900; interest revenue, $100; interest expense, $250. Income taxes have not yet been recorded. The company’s income tax rate is 20% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2018 ($ in 000s). All transactions are material in amount. Investments were sold during the year at a loss of $380. Schembri also had unrealized gains of $480 for the year on investments. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,900. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $700 in 2018 prior to the sale, and its assets were sold at a gain of $1,720. In 2018, the company’s accountant discovered that depreciation expense in 2017 for the office building was understated by $360. Negative foreign currency translation adjustment for the year totaled $400. Required: 1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2018, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2018. 2. Prepare a separate statement of comprehensive income for 2018.

1. At the start of the chapter, we talked about how risky and volatile airlines’ operations

were. Let’s examine this further. Go to finance.yahoo.com. Enter UAL for

United Continental Holdings in the “Get Quotes” box. Go to “Company” along

the left-hand margin.

2. Click on “Profile” in the left-hand column and write a one-paragraph description

of the company. (https://finance.yahoo.com/quote/UAL/profile?p=UAL)

3. Scroll down and click on the “Income Statement.” Describe the pattern of change

for “Total Revenue” and “Income from Continuing Operations” in one paragraph. (https://finance.yahoo.com/quote/UAL/financials?p=UAL)

4. Go to the “Balance Sheet.” In one sentence, describe the pattern of change in

stockholders’ equity and indicate whether this does or does not appear to be a

matter of concern. (https://finance.yahoo.com/quote/UAL/balance-sheet?p=UAL)

5. Click on “Analyst Estimates.” Do UAL’s earnings estimates appear to be more or

less promising for the future? https://finance.yahoo.com/quote/UAL/analysts?p=UAL

6. Finally, click on “Competitors.” How does UAL compare

11. Given the table below, what is the profit maximizing output for the producer in the short‑run?

Output - Total revenue - Total cost

           1                    2.00                                     1.00

           2                    4.00                                     1.50

           3                    6.00                                     2.50

           4                    8.00                                     4.50

           5                   10.00                                    7.00

     a. 1 unit

     b. 2 units

     c. 4 units

     d. 5 units

12. A competitive firm can incur losses but continue to operate in the short‑run if it at least able to cover its:

     a. total costs

     b. fixed costs

     c. variable costs

     d. average total costs

13. Shannon the sorghum farmer is one of 5,000 perfectly competitive farmers raising sorghum in the United States. After attending classes at Krannert Business School, Shannon decides to charge $6.00/bushel for her    crop, rather than the $5.00/bushel she is currently   receiving. If she produces 500 bushels, what will her total revenue be:

     a. $3000

     b. $2500

     c. $2000

     d. $0

14. A firm should shut down in the short run if:

     a. price is greater than average variable costs

     b. average fixed costs are greater than marginal revenue

     c. price is less than average variable costs

     d. total costs are greater than fixed costs

15. Mr. T's Golden Necklace Company faces the following costs:

               Quantity             Total Cost

                  1                   $120

                  2                    230

                  3                    330

                  4                    460

                  5                    600

Assuming Mr. T is a price‑taker, and the market price is $130 per necklace, how many necklaces should Mr. T. produce?

     a. 2

     b. 3

     c. 4

     d. 5

Pina Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.

Other data:

PART 1

Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

PART 2

Prepare an adjusted trial balance on August 31.

Q -1

A- Price elasticity of demand measures how responsive:

Select one:

a. sales are to a change in buyers' incomes.

b. sales are to changes in the price of a related good.

c. suppliers are to price changes.

d. quantity demanded is to a change in price.

B-

If 20 units are sold at a price of $50 while 25 units are sold at a price of $40, then the price elasticity of demand for this good using the midpoint formula is:

Select one:

a. price-elastic

b. one in absolute terms.

c. perfectly price-inelastic.

d. price-inelastic.

C-

On a downward-sloping, straight-line demand curve, total revenue is the greatest where the price elasticity of demand is:

Select one:

a. the most inelastic.

b. unit-elastic.

c. normal.

d. the most elastic.

D-

Opera Estate Girls’ School is considering increasing its tuition fees to raise revenue. If the school believes that raising tuition fees will increase revenue, it is assuming that the price elasticity of demand for attending the school is:

Select one:

a. perfectly elastic.

b. inelastic.

c. unit-elastic.

d. elastic.

E-

Price-inelastic supply occurs whenever the price elasticity of supply value is:

Select one:

a. negative.

b. positive and greater than one.

c. positive and less than one.

d. positive and greater than five.

F-

If the current market price of beer is $10 per six-pack and a price floor of $12 per six-pack is imposed, then:

Select one:

a. there will be a surplus of beer in the market at the price floor.

b. quantity demanded of beer will rise.

c. $12 per six-pack is the maximum legal price that can be charged.

d. All of the options are correct.

Stuart Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Stuart expects sales in January year 1 to total $260,000 and to increase 10 percent per month in February and March. All sales are on account. Stuart expects to collect 68 percent of accounts receivable in the month of sale, 25 percent in the month following the sale, and 7 percent in the second month following the sale.

Required

1. Prepare a sales budget for the first quarter of year 1.

2. Determine the amount of sales revenue Stuart will report on the year 1 first quarterly pro forma income statement.

3. Prepare a cash receipts schedule for the first quarter of year 1.

4. Determine the amount of accounts receivable as of March 31, year 1.

Prepare a sales budget for the first quarter of year 1.

Determine the amount of sales revenue Stuart will report on the year 1 first quarterly pro forma income statement.

Prepare a cash receipts schedule for the first quarter of year 1. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.

Determine the amount of accounts receivable as of March 31, year 1. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

1.Omar Industries manufactures two products: Regular and Super. The results of operations for 20x1 follow.

Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed.

If Omar Industries eliminates Regular and uses the available capacity to produce and sell an additional 1,300 units of Super, what would be the impact on operating income?

Multiple Choice:

• $73,000 increase
• $58,000 increase
• $99,000 increase
• $55,000 increase
• None of the answers is correct.

2.Howard Enterprises, which has three departments, recently reported the following results:

The company incurred variable operating costs as well as $38,000 of fixed operating costs. The $38,000 amount was allocated to A, B, and C on the basis of sales revenue and is included in the cost figures noted above. Which department(s), if any, should be closed if none of the fixed operating costs can be avoided?

Multiple Choice:

• None of the departments should be closed.
• Department B.
• Department C.
• Department A.
• Departments B and C.

The following annual per unit cost data at an activity level of 4,000 units has been provided below. The company produces and sells only one product.:

The relevant range is 2,500 - 5,500 units. You will be given facts for three different options. Using the facts given, calculate amounts as directed below. Take each option independent of the others (start with the original information given for each).  

You must enter your answer in the following format: $x,xxx

At the current level of activity, calculate the following:

Total sales revenue

Total contribution margin

Total fixed expenses

The company is considering a price reduction approach to increase net income. The company believes that a 10% reduction in sales price will increase volume by 20%. Simultaneously, there will be a change in suppliers for direct material that will result in lowering direct material costs by 15%. Calculate the following:

Total sales revenue

Total contribution margin

Total fixed expenses

The company is also considering an approach that will not alter sales price. The company believes that by laying off non-productive workers they can reduce direct labor to 4% of sales. Combined with a $4,000 increase in advertising per month, they estimate sales will increase 2% over current sales.  Calculate the following:

Total sales revenue

Total contribution margin

Total fixed expenses

QUESTION 1

The impact on the labor market due to an increase in the minimum wage:

1 points   

QUESTION 2

An upward-sloping supply curve of labor illustrates that the:

1 points   

QUESTION 3

Which of the following would cause the equilibrium price of labor to increase?

1 points   

QUESTION 4

Both wages and employment can increase at the same time as long as the: