US-China Trade War

Research and explain the factors that you believe to have contributed to the trade dispute between the USA and China.

Give your opinion on whether there can be any winners or losers resulting from this conflict.

Why do US private sector unions typically oppose free trade agreements? From a historical perspective, why does the Democratic party oppose free trade while Republicans typically support it? What are the arguments.

Utilizing ONLY the information from all three chapters, explain how management has changed over the past 100 years. State five factors affecting the change and has led us to a global business environment.

What are two areas that you believe are primary contributors to the '08-'09 financial crisis for both the US and Iceland? Hello! Please help explain the two areas from an economic standpoint (preferably Macro but anything will do).

1. In 1986, Scott Stillinger developed the Koosh ball and founded OddzOn Products, Inc. to sell the toy. Assume that the Koosh ball production function is: Q = L*(32-L) Which would make the marginal product of labor equal to: MPL = 32-2L The minimum wage is $7.25 and the price of a Koosh ball is $3.50. a. If Stillinger is a profit-maximizing employer, how many workers will he hire? Show your work and briefly explain why this is the optimal number of workers.

b. Assume that in the long run Stillinger begins employing more capital. If the price of capital is cheaper than workers, what will happen to labor demand? Briefly explain using scale and substitution effects.

CASE 2 – 4 MARKETING - SIMPLY SHOES Founded in 2003, Simply Shoes had grown to six similar sized outlets by 2014, and was headquartered in Winnipeg Manitoba. For the past year, management had been debating the value of the money being spent on advertising and promotions. Mathew Micheli, the controller emphatically stated, “I am of the opinion that we should simply stop advertising altogether.” Mathew stated, “We are facing tough times and all that money would simply go to our bottom line and Bob has not shown us that it really pays for itself.” “Well I don’t know how I can convince you, Mathew,” stated Bob Merlin, the marketing manager, “but I can’t imagine maintaining our market share without advertising. All our major competitors spend about the same percentage of their sales on marketing as we do, as best as we can figure. How would our customers find out about our special sales? No we should not cut our advertising budget – we should increase it by 30 per cent. “That’s a lot more money, about $285,000 if I’m not mistaken,” stated Jasmine Kilby, manager of stores. “Why not put more emphasis on direct mail campaigns or even do a better job on our in store signage and displays”. We’ve got about 53,000 names in our customer data base, and they are almost evenly distributed between our six outlets. It would cost about $1.00 to mail each customer a letter, which would be a lot cheaper than our advertising, and would probably be much more effective as well. Not to mention, our in-store merchandizing can be done for around $28,000 per event, and about $10,000 in production and $2,000 per store to implement. “I’m tired of these disagreements,” stated Janet Jones, president. “It’s time we resolved this issue. We’ve got our big Father’s Day event coming up in six weeks and there are several items that we were going to promote heavily. Then there is the Canada Day sale shortly after that. Let’s try some testing of these ideas around these two week-long events to find out which way is the best to spend our advertising, direct mail, and merchandizing dollars. Now, I know that none of our store managers or buyers will want nothing short of a full ad and promotional effort in their areas. I think we can convince then otherwise if we have a good test design to offer them. We had originally set aside $40,000 for advertising and $28,000 for merchandizing for these two events. Bob, would you please design a couple of effective tests and get back to me by the end of the week.

Question: Prepare an executive summary of this case study

CASE 2 – 4 MARKETING - SIMPLY SHOES

Founded in 2003, Simply Shoes had grown to six similar sized outlets by 2014, and was headquartered in Winnipeg Manitoba. For the past year, management had been debating the value of the money being spent on advertising and promotions.

Mathew Micheli, the controller emphatically stated, “I am of the opinion that we should simply stop advertising altogether.” Mathew stated, “We are facing tough times and all that money would simply go to our bottom line and Bob has not shown us that it really pays for itself.”

“Well I don’t know how I can convince you, Mathew,” stated Bob Merlin, the marketing manager, “but I can’t imagine maintaining our market share without advertising. All our major competitors spend about the same percentage of their sales on marketing as we do, as best as we can figure. How would our customers find out about our special sales? No we should not cut our advertising budget – we should increase it by 30 per cent.

“That’s a lot more money, about $285,000 if I’m not mistaken,” stated Jasmine Kilby, manager of stores. “Why not put more emphasis on direct mail campaigns or even do a better job on our in store signage and displays”. We’ve got about 53,000 names in our customer data base, and they are almost evenly distributed between our six outlets. It would cost about $1.00 to mail each customer a letter, which would be a lot cheaper than our advertising, and would probably be much more effective as well. Not to mention, our in-store merchandizing can be done for around $28,000 per event, and about $10,000 in production and $2,000 per store to implement.

“I’m tired of these disagreements,” stated Janet Jones, president. “It’s time we resolved this issue. We’ve got our big Father’s Day event coming up in six weeks and there are several items that we were going to promote heavily. Then there is the Canada Day sale shortly after that. Let’s try some testing of these ideas around these two week-long events to find out which way is the best to spend our advertising, direct mail, and merchandizing dollars. Now, I know that none of our store managers or buyers will want nothing short of a full ad and promotional effort in their areas. I think we can convince then otherwise if we have a good test design to offer them. We had originally set aside $40,000 for advertising and $28,000 for merchandizing for these two events. Bob, would you please design a couple of effective tests and get back to me by the end of theweek.”

qqquQuestion: Prepare an executive summary of this case study

Q

Venice InLine, Inc., was founded by Russ Perez to produce a specialized in-line skate he had designed for doing aerial tricks. Up to this point, Russ has financed the company with his own savings and with cash generated by his business. However, Russ now faces a cash crisis. In the year just ended, an acute shortage of high-impact roller bearings developed just as the company was beginning production for the Christmas season. Russ had been assured by his suppliers that the roller bearings would be delivered in time to make Christmas shipments, but the suppliers were unable to fully deliver on this promise. As a consequence, Venice InLine had large stocks of unfinished skates at the end of the year and was unable to fill all of the orders that had come in from retailers for the Christmas season. Consequently, sales were below expectations for the year, and Russ does not have enough cash to pay his creditors. Well before the accounts payable were due, Russ visited a local bank and inquired about obtaining a loan. The loan officer at the bank assured Russ that there should not be any problem getting a loan to pay off his accounts payable—providing that on his most recent financial statements the current ratio was above 2.0, the acid-test ratio was above 1.0, and net operating income was at least four times the interest on the proposed loan. Russ promised to return later with a copy of his financial statements. Russ would like to apply for a $120,000 six-month loan bearing an interest rate of 10% per year. The unaudited financial reports of the company appear below. Venice InLine, Inc. Comparative Balance Sheet As of December 31 (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 107.1 $ 230.0 Accounts receivable, net 85.0 75.0 Inventory 260.0 180.0 Prepaid expenses 40.0 68.0 Total current assets 492.1 553.0 Property and equipment 425.0 250.0 Total assets $ 917.1 $ 803.0 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 261.0 $ 180.0 Accrued liabilities 25.0 15.0 Total current liabilities 286.0 195.0 Long-term liabilities .0 .0 Total liabilities 286.0 195.0 Stockholders' equity: Common stock and additional paid-in-capital 150.0 150.0 Retained earnings 481.1 458.0 Total stockholders' equity 631.1 608.0 Total liabilities and stockholders' equity $ 917.1 $ 803.0 Venice InLine, Inc. Income Statement For the Year Ended December 31 (dollars in thousands) This Year Sales (all on account) $ 680.0 Cost of goods sold 422.0 Gross margin 258.0 Selling and administrative expenses: Selling expenses 83.0 Administrative expenses 142.0 Total selling and administrative expenses 225.0 Net operating income 33.0 Interest expense – Net income before taxes 33.0 Income taxes (30%) 9.9 Net income $ 23.1 Required: 1a. Based on the above unaudited financial statement of the current year calculate the following. (Round your answers to 2 decimal places.) 1b. Based on the statement made by the loan officer, would the company qualify for the loan? Yes No 2. Last year Russ purchased and installed new, more efficient equipment to replace an older heat-treating furnace. Russ had originally planned to sell the old equipment, but found that it is still needed whenever the heat-treating process is a bottleneck. When Russ discussed his cash flow problems with his brother-in-law, he suggested to Russ that the old equipment be sold or at least reclassified as inventory on the balance sheet because it could be readily sold. At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $99,000. The bank does not require audited financial statements. a. Calculate the following if the old machine is considered as inventory. (Round your answers to 2 decimal places.) b. Based on the 2a above would the company qualify for the loan? Yes No c. Calculate the following if the old machine is sold off. (Round your answers to 2 decimal places.) d. Based on the 2c above would the company qualify for the loan? Yes No

P4-4B Allesnik Advertising Agency was founded in January 2017. Presented here are both the adjusted and unadjusted trial balances as of December 31, 2017.

ALLESNIK ADVERTISING AGENCY

Trial Balance

December 31, 2017

Instructions

(a)Journalize the annual adjusting entries that were made.

(b)   Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31.

Venice InLine, Inc., was founded by Russ Perez to produce a specialized in-line skate he had designed for doing aerial tricks. Up to this point, Russ has financed the company with his own savings and with cash generated by his business. However, Russ now faces a cash crisis. In the year just ended, an acute shortage of high-impact roller bearings developed just as the company was beginning production for the Christmas season. Russ had been assured by his suppliers that the roller bearings would be delivered in time to make Christmas shipments, but the suppliers were unable to fully deliver on this promise. As a consequence, Venice InLine had large stocks of unfinished skates at the end of the year and was unable to fill all of the orders that had come in from retailers for the Christmas season. Consequently, sales were below expectations for the year, and Russ does not have enough cash to pay his creditors.

Well before the accounts payable were due, Russ visited a local bank and inquired about obtaining a loan. The loan officer at the bank assured Russ that there should not be any problem getting a loan to pay off his accounts payable—providing that on his most recent financial statements the current ratio was above 2.0, the acid-test ratio was above 1.0, and net operating income was at least four times the interest on the proposed loan. Russ promised to return later with a copy of his financial statements.

Russ would like to apply for a $120,000 six-month loan bearing an interest rate of 3% per year. The unaudited financial reports of the company appear below:

Required:

1-a. Based on the above unaudited financial statement of the current year calculate the following.

Current ratio

Acid-test ratio

Ratio of net operating income to loan interest

1-b. Based on the statement made by the loan officer, would the company qualify for the loan?

2. Last year Russ purchased and installed new, more efficient equipment to replace an older plastic injection molding machine. Russ had originally planned to sell the old machine but found that it is still needed whenever the plastic injection molding process is a bottleneck. When Russ discussed his cash flow problems with his brother-in-law, he suggested to Russ that the old equipment be sold or at least reclassified as inventory on the balance sheet because it could be readily sold. At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $79,000. The bank does not require audited financial statements.

a. Calculate the following if the old machine is considered as inventory.

b. Based on the 2a answer would the company qualify for the loan?

c. Calculate the following if the old machine is sold off.

d. Based on the 2c answer would the company qualify for the loan?

Complete this question by entering your answers in the tabs below.

• Req 1A
• Req 1B
• Req 2A
• Req 2B
• Req 2C
• Req 2D

Based on the above unaudited financial statement of the current year calculate the following:

Current ratio

Acid-test ratio

Ratio of net operating income to loan interest

(Round your answers to 2 decimal places.)

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Last year Russ purchased and installed new, more efficient equipment to replace an older plastic injection molding machine. Russ had originally planned to sell the old machine but found that it is still needed whenever the plastic injection molding process is a bottleneck. When Russ discussed his cash flow problems with his brother-in-law, he suggested to Russ that the old equipment be sold or at least reclassified as inventory on the balance sheet because it could be readily sold. At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $79,000. The bank does not require audited financial statements. Calculate the following if the old machine is considered as inventory. (Round your answers to 2 decimal places.)

Show less

Last year Russ purchased and installed new, more efficient equipment to replace an older plastic injection molding machine. Russ had originally planned to sell the old machine but found that it is still needed whenever the plastic injection molding process is a bottleneck. When Russ discussed his cash flow problems with his brother-in-law, he suggested to Russ that the old equipment be sold or at least reclassified as inventory on the balance sheet because it could be readily sold. At present, the equipment is carried in the Property and Equipment account and could be sold for its net book value of $79,000. The bank does not require audited financial statements. Calculate the following if the old machine is sold off. (Round your answers to 1 decimal place.)

Show less