a) Colbert sells 3D printer systems. Recently, Colbert provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Colbert sells Lyle Cartright a 3D system, receiving a $5,000 zero-interest-bearing note on January 1, 2020. The cost of the 3D printer system is $4,000. Colbert imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2020, and compute the total amount of revenue to be recognized in 2020.

b) Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows.

Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30.

The township has conducted a survey of its 100 residents to determine their willingness to pay for investments to improve groundwater quality. It was found that all residents have identical preferences. The marginal willingness to pay for water quality by each individual is estimated to be: MWTP = 25 - 5Q, where MWTP stands for marginal willingness to pay in dollars and Q is a measure of water quality. The marginal cost of water quality is estimated to be MC = 750Q, where MC is in dollars.

a) What is the equation for the aggregate MWTP for water quality for Cremona?

b) What is the efficient quality of water quality? Briefly explain why is this considered the efficient quantity?

c) Currently Q =0. What is the total benefit to households of moving from Q=0 to the efficient level of water quality? Describe your calculations.

d) What is the total cost of supplying the efficient level of water quality? Describe your calculations.

e) What is the net economic surplus from supplying the efficient level of water quality?

f) What is the efficient price that should be charged to each of the 100 rural residents for each unit of improved water quality? Briefly explain your logic.

Calgari Clothing is a division of A&B Industries and manufactures high-quality silk ties that are marketed under a number of brand names. As an internal auditor for A&B, you have been assigned to review Calgari’s controls over purchasing and have determined that there are a number of controls in place. You have decided to test the operating effectiveness of the following control: Vendor invoices are agreed to receiving reports and purchase orders for product, quantity, and price. You also have decided to apply attribute sampling in your tests. Applicable sampling tables are presented on the following pages.

A. Clearly state how you would test the operating effectiveness of the control identified above.

B. Assume that you expect a 2% deviation rate in the sample and that you will tolerate a deviation rate of 7% at a 5% risk of assessing control risk too low. What is the appropriate sample size for your audit test?

C. Assume that the correct sample size is 100. Assume further that you properly tested the 100 sample items and found three items for which there was no purchase order. Evaluate your sample results and indicate what, if any, further action you should take.

A unit of inventory costs a company $40. Annual carrying costs are 1% for interest charges, 1% for insurance, 2% allowance for obsolescence, $2 per unit for building overheads, $1.50 per unit for damage and loss, and $4 per unit for miscellaneous costs. Annual demand for the item is constant at 1000 units and each order costs $100 to place.

1. Calculate the economic order quantity and the total costs associated with stocking the item
2. If the supplier of the item will only deliver batches of 250 units, how are the inventory carrying costs affected?
3. If the supplier relaxes his order size requirement, but the company has limited warehouse space and can stock a maximum of 100 units at any time, what would be the optimal ordering policy and associated costs?

Use the $40 price to convert dollar cost to percentages. Remember to think carefully about which costs should and should not be included in the calculation of inventory carrying cost percentage. You have to do this calculation before you can calculate EOQ. The rule is only include those costs which vary directly with inventory levels.

Use Excel to show all the answer.

Consider the following IS-LM model with a banking system:

Consumption:

C = 7 + 0.6Y_D

Investment:

I = 0.205Y − i

Government expenditure:

G = 10

Taxes:

T = 10

Money demand: M^d / P = Y / i

Demand for reserves:

R^d = 0.375D^d

Demand for deposits:

D^d = (1 − 0.2)M^d

Demand for currency:

CU^d = 0.2M^d

This says that consumers hold 20% (c = 0.2) of their money as currency and the required reserve ratio is 37.5% (θ = 0.375). Demand for central bank money (H^d) is the total amount of currency being demanded plus the total demand for reserves. Suppose the price level is P = 1 and that the initial supply of central bank money is $100.

1.Solve for the money multiplier. Explain your work.

2.Solve for equilibrium output and the equilibrium interest rate at the initial supply of central bank money (ie. $100).

3.Suppose that the central bank sells $80 worth of bonds using open market operations. Solve for the new equilibrium output.

4.Solve for the the new equilibrium interest rate after the open market operations and use an IS-LM graph to explain what happened.

Compute the fair value of a chooser option which expires after n = 10n=10 periods. At expiration the owner of the chooser gets to choose (at no cost) a European call option or a European put option. The call and put each have strike K = 100K=100 and they mature 5 periods later, i.e. at n = 15n=15

Instructions: Quiz Instructions: Option Pricing in the Multi-Period Binomial Questions 1-8 should be answered by building a 15-period binomial model whose parameters should be calibrated to a Black-Scholes geometric Brownian motion model with: T = .25T=.25 years, S_{0} = 100S 0 ​ =100, r = 2\%r=2%, \sigma = 30\%σ=30% and a dividend yield of c = 1\%.c=1%. Hint Your binomial model should use a value of u = 1.0395...u=1.0395.... (This has been rounded to four decimal places but you should not do any rounding in your spreadsheet calculations.) Submission Guidelines Round all your answers to 2 decimal places. So if you compute a price of 12.9876 you should submit an answer of 12.99.

This is messy - the problem was provided in excel and I have copied to Word. There is a similar problem answered, but I need excel formulas.

Saxum Vineyard, in Paso Robles, CA, is one of the more than 8,000 wineries in the United States. While Saxum produces a number of different kinds of wine, they focus their production on Syrah (also known as Shiraz). Saxum sells their wines all over the United States. Suppose you manage a vineyard like Saxum and want to determine how much you should charge for your Syrah. Suppose the market demand function for Syrah is as follows.

QD = 200 - 38.18PO + 8.35PS - 2Pc + 10Inc + .8TS + .5M21

Where QD is monthly demand for bottle of Syrah (in millions), PO is the price of Syrah in the market, PS is the average price of substitute bottles of wine (other varieties), Pc is the average price of a pound of cheese and is used to gauge the price of complementary goods, Inc is the average US per capita income (in thousands), TS is the number of wine trade shows and competitions each year in which firms can attend to market their wines, and M21 is the number (in millions) of millennials in the US over the age of 21. This last variable is included to capture a change in consumer preferences; millennials are drinking wine at a much higher rate than previous generations.

The market for Syrah also has supply, produced by wineries similar to Saxum Vineyard and your winery, which can be stated as follows.

QS = -100 + 22.93PO - 5PPI - 10PS + 8Temp + 1Sup

Where QS is monthly supply of bottles of Syrah (in millions), PO is the price of Syrah in the market, PPI is the Producer Price Index (an index used to gauge changes in the costs of production in the US), PS is the price of substitute wines which could easily be produced instead of Syrah, Temp is the expected temperature during the harvest season for grapes, and Sup is the number of wineries that supply Syrah in the market (in thousands).

Using the market supply and demand functions for Syrah given, fill in the template provided with the coefficients for each function. Using the information below, fill in the values for each of the variables except Price of Syrah.

Demand:

-Price of Substitutes: $18

-Price of Cheese: $15

-Income: $53,000

-Trade Shows/Competitions: 3

-Millennials = 45 million

Supply

-PPI: 111

-Price of Substitutes: $18

-Temperature: 60

-Number of Suppliers: 8,000

Market Demand

                                          Coefficient         Values

Intercept                          ?                          ?

Price of Syrah                  ?                          ?

Price of Substitute         ?                          ?           

Price of Cheese               ?                          ?

Income                             ?                          ?

Trade Shows                    ?                          ?           

Millenials                         ?                          ?

Market Supply

                                         Coefficients        Values

Intercept                          ?

Price of Syrah                  ?                          ?

PPI                                    ?                          ?

Price of Substitute          ?                          ?

Temperature                    ?                          ?

Suppliers                          ?                          ?

1. When the price of Syrah increases by $1, what is the effect on quantity demanded and quantity supplied?

2. How much does a $1 decrease in the price of substitute bottles of wine shift the demand and supply curves?

3. Suppose that the price of Syrah is currently $22 per bottle. How many bottles will be demanded and supplied monthly? Is there a shortage or surplus and of how much?

4. If the market price of Syrah falls to $16 per bottle, how many bottles will be demanded and supplied monthly? Is there a shortage or surplus and of how much?

5. Trying prices in $1 increments between $16 and $22, at what price and quantity does the market equilibrium occur?

6. Suppose that the PPI increases to 123.222. If the price of wine stays at $20 per bottle, what quantity will be supplied in the market, and will the increase in the PPI create a shortage?

7. With the increase in PPI to 123.222, at what price will the market be in equilibrium? What quantity will be demanded and supplied at this price?

1) If a price that a perfectly competitive firm is able to get is above its average variable cost but below its average total cost then

a. The firm will suffer economic losses and should shut down immediately

b. The firm will be able to earn economic profit as soon as it can increase the size of its factory

c. The firm will suffer economic losses but should continue to operate

d. None of the above

2) In the short run, if price falls, the firm will respond by

a. Shutting down regardless of how high its variable costs are

b. Equating average variable cost to marginal revenue

c. Reducing along its marginal cost curve as long as marginal revenue exceeds average variable cost

d. None of the above

3) Suppose a competitive firm is in equilibrium then the price of one of its inputs falls. What will happen?

a. The firm will hire more of the lower priced input

b. The firm will produce more output

c.The firm cost curves will downward

d. All of the above

4. A competitive industry will be in a long run equilibrium when

a. Each firm in the industry is earning zero economic profit

b. No entry or exit occurs

c.The total quantity produced at the prevailing price equals the total quantity consumers want to purchase

d. All of the above

5. In an increasing cost competitive industry, if prices rises above its long run equilibrium level which of the following will occur as the industry adjusts to a new long equilibrium ?

a. Firms will exit the industry

b. Economic profits will exits

c. Input prices will rise only when firms leave the industry

d. Price will return to its original level

6.The marginal revenue curve of a monopolist lies below the demand curve ( in the absence of price discrimination) becaus

a. The demand curve is unit elastic

b. The monopolist must lower price on all units sold in order to sell additional units

c. The monopolist is a price taker

d. The marginal revenue curve coincides with the average revenue curve

7. The demand curve for a monopolist's slopes downward because

a. Profit per unit declines

b. Demand elasticity is greater than one in the portion of the demand curve where the monopolist operates

c.It price discriminates

d. It faces the market demand curve

8. If a monopolist's is operating in the elastic portion of its demand curve then

a. An increase in price will increase total revenue

b. An increase in price will decrease total revenue

c. Marginal revenue is negative

d. An increase in price will leave total revenue unchanged

9. Marginal revenue is negative when

a. The demand curve is downward sloping

b. Demand curve is elastic

c. Demand curve is inelastic

d. Demand is unit elastic

10. The lerner index

a. Measures the monopoly power as the markup of price over average cost

b. Measures the monopoly power as the markup of price over marginal cost

c. Measures the market share of a firm

d. Measures the market capitalization of a firm

11. Compared to a competitive industry, ceteris paribus a standard monopoly firm

a. Sells more units and charges a higher price

b. Sells the same amount of units but at a higher price

c. Does not try to maximize profits as do firms in competitive industry

d. Restricts output and charges a higher price

12. A monopoly will produce the efficient rate of output if it

a. Engages in perfect price discrimination

b. Engages in no price discrimination

c. Engages in third degree price discrimination

d. Is regulates and average cost pricing is enforced

13. Which of the following types of mergers directly reduces the number of competitors in an industry?

a. Congolomerate

b. Horizontal

c. Vertical

d. Bivariate

14. Why do gas stations near airport often charge more for gasoline ?

a. They have higher costs

b. They are inconvenient

c. They face a smaller elasticity of demand

d. They must pay the airport agency for space

15. The deadweight loss due to monopoly restriction of output occurs over units of output

a. For which the willingness to pay would be greater than MC but don't get produces

b. For which the willingness to pay is greater than MC and do not get produced

c. Up until the profit maximizing level of output

d. For which the willingness to pay is less than MC but don't get produced

16. First degree discrimination

a. Is perfect because consumers benefit the most

b. Is called first degree because it does not apply to resale of products

c. Is also known as perfect price discrimination

d. Is the easiest form of price discrimination

Calculate the planar densities of atoms in the following cases:

      Draw the exact atomic arrangements in each case and put down the dimensions.

      Cu             FCC                 100                  110            111                  r (Å) = 1.267

      Al              FCC                 100                  110            111                              1.432

      Au             FCC                 100                  110            111                              1.442

      Ba              BCC                100                  110            111                              2.176

      Fe              BCC                100                  110            111                              1.241

      Nb             BCC                100                  110            111                              1.426

For each of the two companies, analyse their ability to successfully manage each of their categories of expenses in 2019 as compared to 2018. Use three profit margin ratios to support your answer and explain any change in the ability of each company to control costs. Note: ensure that you analyse in this question, not just describe the ratio values. (300 words)