1. You are the chief financial officer of a firm. You determine that when your firm increased prices by 1%, the quantity demanded by your customers decreased by 0.1%. Demand facing your firm must be _________ and you should _________ in order to maximise total revenue.

(a) elastic; increase prices

(b) elastic; decrease prices

(c) inelastic; decrease prices

(d) inelastic; increase prices

(e) unit-elastic; leave prices unchanged

2. In a competitive market where the government has introduced a price floor above the equilibrium price, one might expect:

3. Explain why firms in perfect competition and monopolistic competition markets earn zero economic profits in the long run, while monopoly firms can earn positive economic profits in the long run.

Transaction 2

TeleCo, a customer of CoAx, entered into a binding written agreement to purchase 1,500 feet of fiber-optical cable for $3 per foot. TeleCo’s shipping terms are freight on board (FOB) shipping point. CoAx collected payment before the order was shipped. Title transfers upon delivery to the carrier, and TeleCo will insure the product while it is in transit. Instead of using a third-party shipper such as FedEx and UPS, CoAx has decided to use its own logistics subsidiary, DeliveryAx, to deliver the cable to TeleCo.

* CoAx acquired 100 percent ownership interest in DeliveryAx in the previous year. DeliveryAx provides an array of shipping services to third-party customers outside the cable industry. Only 2 percent of DeliveryAx’s shipping revenue is expected to be derived from transactions with CoAx in the current year. Case 16-2c: The Cable Guys Page 2 Copyright 2015 Deloitte Development LLC All Rights Reserved.

1. Summarize transaction 2 in bullet points

1. New England Co. had net cash provided by operating activities of $351,000; net cash used by investing activities of $420,000; and cash provided by financing activities of $250,000.

New England's cash balance was $27,000 on January 1.
What was New England's cash balance at the end of the year?

A. $40,000
B. $208,000
C. $248,000
D. $27,000

2. In a statement of cash flows, cash receipts from sales of inventory to customers should generally be classified as cash inflows from

A. investing activities
B.operating activities
C.financing activities
D.selling activities

3. Which of the following is a contra account?

A. Premium on bonds payable
B.Allowance for doubtful accounts
C.Patents
D.Unearned revenue

Berne Company (lessor) enters into a lease with Fox Company to lease equipment to Fox beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

1. The lease term is 4 years. The lease is noncancelable and requires annual rental payments of $50,000 to be made at the end of each year.

2. The equipment costs $130,000. The equipment has an estimated life of 4 years and an estimated residual value at the end of the lease term of zero.

3. Fox agrees to pay all executory costs.

4. The interest rate implicit in the lease is 12%.

5. The initial direct costs are insignificant and assumed to be zero.

6. The collectibility of the rentals is reasonably assured, and there are no important uncertainties surrounding the amount of unreimbursable costs yet to be incurred by the lessor. Required: 1. Next Level Determine if the lease is a sales-type or direct financing lease from Berne’s point of view (calculate the selling price and assume that this is also the fair value). 2. Prepare a table summarizing the lease receipts and interest revenue earned by the lessor. 3. Prepare journal entries for Berne, the lessor, for the years 2016 and 2017.

Required:

The price of a non-dividend-paying stock is $74. A three-month American call option on the stock with a strike price of $70 is selling for $9. What is the intrinsic value (IV) of this call option?

Given n=10, x=20,∝=0.01: Based on the data the regression equation is given by y=70+1.03x, y ̅=74 and r=.25. What is the best predicted value for x?

Problem 2

The Dunbar zoo operates a drive-through tourist attraction in hamilton. The selected accounts appearing below reflect balances on January 1 , 2017.

Prepaid Rent (expires on Nov 30,2017) 11,000

Prepaid Insurance (expires on Sep 30,2017) 9,000

Car 30,000

Accumulated Amortization - Car 2,000

Unearned Ticket Revenue 15,000

Other Data

-On December 1, 2017 the Zoo renewed the contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018.

-On October 1, 2017, the zoo renewed the insurance policy for six months and paid $6,000. The full amount was record as an expense.

The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017. it was determined that $4,000 of the tickets sold in advance were not used by customers.

A utility bill for $2,000 was received on December 31,2017 for the amount of utility used up during November and December 2017. The bill is due on jANUARY 15,2018.

On December 1, 2017, the zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The zoo paid $4,000 in advance and recorded it as an asset.

Required

Prepare the adjusting entires that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type “NO ENTRY” in the appropriate space.

Explain how a revenue journal might to modified for the following specific business. Discuss the process of posting from revenue journal to general ledger.

This assignment will require you to do outside research. Research a company that you feel provided the best rewards - do NOT use GOOGLE as your example as we have talked about this in class already. In your 1-2 page double spaced paper identify the company and explain in your own words why you think this company rewards its employees effectively. What do you feel is the benefit to the employee, the company, and to its customers by offering these rewards?

roblem 5-3A Record transactions related to accounts receivable (LO5-3, 5-5) [The following information applies to the questions displayed below.] The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations. June 12, 2018 Provide services to customers on account for $41,000. September 17, 2018 Receive $25,000 from customers on account. December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2019 Provide services to customers on account for $56,000. May 20, 2019 Receive $10,000 from customers for services provided in 2018. July 2, 2019 Write off the remaining amounts owed from services provided in 2018. October 19, 2019 Receive $45,000 from customers for services provided in 2019. December 31, 2019 Estimate that 45% of accounts receivable at the end of the year will not be received. References Section BreakProblem 5-3A Record transactions related to accounts receivable (LO5-3, 5-5) 11.value: 0.27 pointsRequired information Problem 5-3A Part 1 Required: 1. Record transactions for each date

what is the Pure-play e-tailers ? and example ?

1. Give a basic background about it

2.What is the revenue model for it?

3. What is the value proposition for it?

4. What is the type of revenue model?