The concept of “Quality of Earnings” is widely recognized in the relevant finance and accounting literature.

a) Explain this concept comprehensively.

b) How Earnings quality relate to Market pricing of the stocks traded based on empirical evidence available?

c) Apply this concept and its applications in the Palestinian context.

Consider an exchange-traded call option contract to buy 500 shares with a strike price of $50 and maturity in four months. Explain how the terms of the option contract change when there is

1. A 10% stock dividend
2. A 10% cash dividend
3. A 5-for-1 stock split

Essay writing five to six paragraphs and with cited work at least five sources.

what was the Afroeurasian trade network? Use specific examples of who was involved, what they traded. Explain the deterioration of the Afroeurasian trade network which existed from the 12th -14th century.

An investor is considering an exchange traded fund with 12% expected return and 24% standard deviation. What will be his expected return, if his risk aversion coefficient is 4? The risk free rate is 2%. The investor maximizes his utility.

ABC Company has three divisions, J, P, and W. The following
information is available for the most recent month:

ABC Company:
Sales revenue .............. $513,000
Total fixed costs .......... $125,320
Net income ................. $ 57,300

Division J:
Sales revenue .............. $163,000
Segment margin ............. $ 20,810

Division P:
Contribution margin ........ $ 30,150
Traceable fixed costs ...... $ 14,270
Variable cost ratio ........    85% of sales in Division P

Division W:
Variable costs ............. $ 41,720
Segment margin ............. $ 67,370

Calculate the traceable fixed costs reported by Division J
during the most recent month.

ABC Company has three divisions, J, P, and W. The following
information is available for the most recent month:

ABC Company:
Sales revenue .............. $513,000
Total fixed costs .......... $125,320
Net income ................. $ 57,300

Division J:
Sales revenue .............. $163,000
Segment margin ............. $ 20,810

Division P:
Contribution margin ........ $ 30,150
Traceable fixed costs ...... $ 14,270
Variable cost ratio ........    85% of sales in Division P

Division W:
Variable costs ............. $ 41,720
Segment margin ............. $ 67,370

Calculate the traceable fixed costs reported by Division J
during the most recent month.

ABC Company has three divisions, J, P, and W. The following
information is available for the most recent month:

ABC Company:
Sales revenue .............. $513,000
Total fixed costs .......... $125,320
Net income ................. $ 57,300

Division J:
Sales revenue .............. $163,000
Segment margin ............. $ 20,810

Division P:
Contribution margin ........ $ 30,150
Traceable fixed costs ...... $ 14,270
Variable cost ratio ........    85% of sales in Division P

Division W:
Variable costs ............. $ 41,720
Segment margin ............. $ 67,370

Calculate the traceable fixed costs reported by Division J
during the most recent month.

Select at least 4 or 5 of the highest revenue-producing products your firm currently offers to the marketplace or 4 or 5 of the highest revenue-producing companies that it currently operates, and then construct a BCG Matrix using relative market share and market growth rate as your two variables of interest. Identify each of the products (or companies) in your matrix as either a star, question mark (problem child), cash cow, or dog. Finally, for each product (or company) in the matrix, offer your opinion as to the likelihood that it will still be located in the same quadrant five years from now.

Company: Kohl's

Chapter 2, #4

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.   

Information necessary to prepare the year-end adjusting entries appears below.

1. Depreciation on the office equipment for the year is $10,300.
2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $900.
3. On October 1, 2021, Pastina borrowed $50,600 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
4. On March 1, 2021, the company lent a supplier $20,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
5. On April 1, 2021, the company paid an insurance company $6,600 for a two-year fire insurance policy. The entire $6,600 was debited to prepaid insurance.
6. $560 of supplies remained on hand at December 31, 2021.
7. A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
8. On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent.

5. Prepare closing entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

1. revenue accounts

2. expense accounts

3. dividend accounts