Web Wizard, Inc., has provided information technology services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts receivable method. The company entered into the following selected transactions during the first quarter of 2017:

1. During January, the company provided services for $40,000 on credit.
2. On January 31, the company estimated bad debts using 1 percent of credit sales.
3. On February 4, the company collected $20,000 of accounts receivable.
4. On February 15, the company wrote off a $100 account receivable.
5. During February, the company provided services for $30,000 on credit.
6. On February 28, the company estimated bad debts using 1 percent of credit sales.
7. On March 1, the company loaned $2,400 to an employee who signed a 6 percent note, due in six months.
8. On March 15, the company collected $100 on the account written off one month earlier.
9. On March 31, the company adjusted for uncollectable accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $1,200.
10. On March 31, the company accrued interest earned on the note.

1-a. For items (a) through (j), analyze the amount and effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to the account with a minus sign.)

-b. Prepare the journal entries for the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Show how the receivables related to these transactions would be reported in the current assets section of a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

3. Name the accounts related to Accounts Receivable and Note Receivable that would be reported on the income statement and indicate whether they would appear before or after Income from Operations.

Vance Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company’s estimator has been involved in a long-simmering dispute with the on-site work supervisors. The on-site supervisors claim that the estimator does not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and non-routine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that non-routine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square metres by $4,700 per thousand square metres to determine the bid price. Since our average cost is only $3,700 per thousand square metres, that leaves enough cushion to take care of the additional costs of non-routine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.”

To shed light on this controversy, the company initiated an ABC study of all of its costs. Data from the ABC system follow:

* The total number of jobs includes non-routine jobs as well as routine jobs. Non-routine jobs as well as routine jobs require estimating and setup work.

Required:

1. Perform the first-stage allocation of costs to the activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.)

2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square metres of each of the following jobs according to the ABC system:

a. A routine 1,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.)

total costs of jobs

average cost per thousand square meters

b. A routine 2,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.)

total cost of jobs

cost per thousand square meters

c. A non-routine 1,000-square-metre asbestos removal job. (Round your answers to 2 decimal places.)

total cost of jobs

cost per thousand square meters

Spencer is a 15-year old boy from an upper middle class family living in an affluent neighborhood in New York City. Spencer lives at home with his parent. Spencer has a history of depression, anxiety, and substance abuse. His first hospitalization occurred a year ago when he was 14 due to his threats to hurt himself while at school. Spencer has a history of abusing multiple substances, including marijuana and prescription pills. He describes his substance use as a way in which he can “numb” himself from his depression. Spencer has reported having a tumultuous relationship with his father whom he reports is verbally abusive (i.e. telling Spencer that he will never amount to anything). Spencer often avoids his father at home and most of their contact is reported as “screaming matches” Alternatively, Spencer is very close to his mother and has been open with her in voicing his feelings of depression and hopelessness. Spencer is also very open with his mother in reporting to her any times in which he has engaged with substance use, although he does not report any intention or desire to stop using. Spencer’s parents do not agree on how to approach Spencer’s escalating substance use and increased depression. His parents also report that it has become increasingly more challenging to monitor Spencer’s substance abuse when he is interacting with peers who also engage in substance use. Spencer’s father believes in “tough love” and sending Spencer off to military school or some other institution where Spencer will be “properly disciplined. “ Spencer’s father also reports that his wife is “too soft” and is in denial as to the extent to which Spencer is abusing drugs. In particular, Spencer’s father reports that his wife should limit Spencer’s interactions with peers, whom are also suspected to use substances and she should also not “give in” when Spencer refuses to attend school, particularly in cases when he is hung over from excessive drug use. Spencer’s mom in turn does not believe that she is being too soft on her son, but rather she feels helpless in what can be done to stop his drug use, as he is refusing to stop. She also believes that Spencer needs to be treated for his depression, as she attributes his drug use to his feelings of hopelessness. Therefore, she does not agree with her husband that Spencer is simply “acting out” and needs harsh discipline; however she is not certain how she may be able to get her husband to become more empathetic towards their son’s emotional challenges and be more engaged in finding therapeutic treatment that does not require sending Spencer out of the home.

1. What is the organizational structure of this family? Do you notice any examples of triangulation and cross-generational alliances? And how might alliances within the family’s structure contribute to maintaining the problem?

2. What is the hierarchy in the family structure? As therapist, who do you identify may have the most power and control in the family? Who may have the least? Is there an incongruent hierarchy within this family? Briefly describe

3. Briefly describe an alternative structure that you may present to this family ?

4. Describe some structural therapy techniques that you may use with this family in session in order to facilitate reorganization of the family structure. In your description, provide examples of how these techniques may be applied to this particular family’s presenting issue.

5. As a family therapist working with a family in which one or more members may not be motivated for therapy, what are some strategic therapy techniques that you might employ to help this family solve their problems? Briefly give an example of one or two strategic therapy techniques .

1. We previously discussed the assumptions that define both competitive and monopoly markets. Which of the following is/are assumptions that are present in competitive markets but not present in monopoly markets?
a. Firms are profit maximizers
b. Firms incur marginal costs
c. Price equals marginal revenue
d. Markets are efficient and maximize total surplus
e. c and d are both correct
2. Suppose that the manufacture of widgets involves large economies of scale. In other words, as the scale of production grows for a single firm, long run ATC falls. Suppose further that a single firm enters this market first and invests heavily in capital equipment. Is this market likely to evolve into a monopoly and if so why?
a. This market may indeed evolve into a “natural monopoly” because of the presence of economies of scale and an aggressive and well-financed first entrant
b. This market cannot evolve into a monopoly because of the absence of barriers to entry
c. This market will not evolve into a monopoly because firms desire to maximize total surplus for society and themselves
d. This market will evolve into a monopoly because the government will likely confer a monopoly right on the first entrant
3. True or false. The law of copyright provides an example of a government created monopoly.
a. True
b. False
4. Which of the following are differences between competitive and monopoly markets?
a. Monopoly markets under-produce from societies standpoint
b. Positive economic profits in the long-run are possible in a monopoly market
c. For competitive firms, price equals marginal revenue
d. All of the above are differences
5. Which of the following best explains the welfare costs (the inefficiency) of monopoly markets?
a. A monopolist maximizes profits
b. A monopolist under produces such that there are units not produced for which marginal costs are less than willingness to pay of consumers (some positive surplus transactions are not enjoyed)
c. A monopolist charges a price greater than what a competitive market would charge for the same good
d. None of the above explains the welfare costs imposed by monopolies
6. Following up on question 5 above, your answer demonstrates which of the following terms?
a. Perfect competition
b. Consumer surplus
c. Deadweight loss
d. Average total costs

what prohibits price discrimination

What is a reasonable price formula?

1. Good                    Quantity              Price in 1999                     Price in 2000

X                            10                          $5                                         $6

Y                            20                          $10                                      $10

Z                            5                            $6                                         $10

Assume year 2000 is the base year.

1. Calculate the market basket value for each year. What is the consumer price index in 1999?
2. What is the inflation rate between 1999 and 2000?

Show all calculations please.