Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.

Required:

Prepare a multiple-step income statement with earnings per share disclosure. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

1) Which of the following statements is true?

• A. A change in the market price can only shift the demand curve.
• B. A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
• C. If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
• D. If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
• E. An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply.

2)

Two researchers estimated how the price elasticity of demand for coal in China has changed from 1998 to 2012. Without reading their peer-reviewed paper, can you predict their findings?

• A. Yes, price elasticity of demand became more elastic over time.
• B. Yes, price elasticity of demand became less elastic over time.
• C. Yes, price elasticity of demand became less elastic as coal has more substitutes.
• D. No, without knowing the initial elasticity classification we are unable to determine how elasticity changed.

3) Since November 2016, Arabica coffee bean prices have continually fallen. Brazil is the world's leading producer of Arabica beans. What would happen in the labor market for Brazilian coffee bean farmers.

• A. Labor demand shifts rightward due to increased human capital resulting in a higher marginal revenue product (MRP). Equilibrium wage and equilibrium quantity of labor both increase.
• B. Labor supply shifts rightward due to increased population. Equilibrium wage decreases and equilibrium quantity of labor increases.
• C. Labor demand shifts leftward due to decreased inputs resulting in a lower marginal revenue product (MRP). Equilibrium wage and equilibrium quantity of labor both decrease.
• D. Labor supply shifts leftward due to a change in demographics. Equilibrium wage increases and equilibrium quantity of labor decreases.
• E. Labor demand shifts leftward due to decreased prices resulting in a lower marginal revenue product (MRP). Equilibrium wage and equilibrium quantity of labor both decrease.

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Use for 4-5

4) (TABLE)

According to the table above, from February 2018 to November 2018 the U.S. dollar has ________ in value compared to the Chinese yuan and the Chinese yuan has ________ compared with the U.S. dollar which is ________ with the United States increasing tariffs on imports from China.

• A. appreciated; depreciated; consistent
• B. appreciated; depreciated; inconsistent
• C. depreciated; appreciated; consistent
• D. depreciated; appreciated; inconsistent
• E. appreciated; appreciated; consistent

5) (TABLE)

Ceteris paribus, IF the U.S. dollar appreciates relative to the Chinese yuan, then tourists from China are ________ likely to visit the U.S., Chinese exports will ________, Chinese imports will ________, and Chinese net exports will ________.

• A. less; increase; decrease; decrease
• B. less; decrease; increase; increase
• C. more; decrease; increase; increase
• D. less; increase; decrease; increase
• E. None of the above.

"

This report is primarily intended to analyze and present the potential financial success and profitability of Zivago Private Limited, an online media portal which is proposed to be launched in the local market in Singapore. The content of the report mainly highlights the following points: A brief description of the services to be provided by the company, identification of the target consumer group, the proposed marketing and advertising strategies based on an overall market research covering the prominent global and local competitors and the potential revenue model that will be implemented following the same.

Zivago has been conceived to be a comprehensive online medial portal where viewers can watch their favourite commercial shows, movies, documentaries, live features covering a wide range of categories such as drama, comedy, suspense/myestery, sports, news and journalism and much more. Aside from the popular local shows and movies, the portal also contains various programmes from almost over 25 countries in different languages and substitles. Additionally, Zivago also features original shows in all these languages that are produced exclusively by Zivago and presenting popular actors/actresses from the local media insustry.

Based on a private and other government conducted market and consumer studies in Singapore, it has been estimated that more than half of the consumers in the media industry is increasingly preferring online videos and private streaming. In this regard, viewership is not only limited to only popular local shows but majorly include foreign ones as well. However, in this regard, only few portals have been able to access the international entertainment arena and although few have, they are not able to cater to the ethnically diversed population group in the country which includes native Chinese Singaporean, Malay, Bangaladeshi, Indian and various Middle Eastern. As an example, VIU an Starhubs predominantly feature some of the popular Japanese and Chinese drama based shows but not much services considering the diversed population group. The main impediments in this case are lack of penetration into the international media market and language barrier. Zivago is intended to address both the issues and in the process generate higher viewership.

Secondly, the studies indicate that the OTT viewership in Singapore has steadily increased among children and young adults and the most popular genres include drama, movies, sports, animation/cartoons and other entertainment and variety. In this context, Zivago specifically targets the children audiences and sports viewers by streaming various South Asian animation and cartoon shows and popular global sport events such as NFL,NBA,American Football etc. Such services are very much limited and expensive both by local and global competitors.

As internet and social media is gaining ever increasing prominence in Singapore, the company is looking to rely on digital marketing for marketing and promotional services. The studies reveal that Youtube, Facebook and Instagram users in Singapore are highest among the OTT viewers in Southeast Asia. Zivago mainly relies on online advertising and e-marketing through these social media and online platforms which features the most popular shows and promos and a brief description of the membership details. Zivago also conducts various promotional activities in local shopping malls and popular commercial centres across the city which will be featured at the official Facebook and Youtube page. A one minute promo of all the popular shows and movies will be displayed in the official Youtube page and Zivago online app which can be downloaded for free in both Playstore and IOS.

Zivago follows Subscription Revenue Model under E-commerce Revenue Model System. Unlike most other local and global counterparts including Zulu and Netflix, Zivago offers a free viewing of all its original shows for one week in the app as well in its Youtube and Facebook page, All the trailers and initial promos will also be available in app, Youtube and Facebook. The viewers can choose if they would like to continue watching further and subcribe.Under the subscription model, a free one month trial period is provided to potential viewers where they can watch unlimited shows (both original and local/global), movies and all other available contents. Following the expiration of the trial period, 3 subscription options will be provided based on monthly, 6 moths and yearly basis at reasonale pricing that are evidently less than some of the popular portals such as Netflix, VIU, HULU and Starhubs."

Using the report, answer the question mentioned below:

The Strategy: From your channel description, do the following:

Include at least THREE (3) traditional and new media strategies.
(i) Evaluate the possible risks of such a service. Explain how you can effectively mitigate these risks.

"

This report is primarily intended to analyze and present the potential financial success and profitability of Zivago Private Limited, an online media portal which is proposed to be launched in the local market in Singapore. The content of the report mainly highlights the following points: A brief description of the services to be provided by the company, identification of the target consumer group, the proposed marketing and advertising strategies based on an overall market research covering the prominent global and local competitors and the potential revenue model that will be implemented following the same.

Zivago has been conceived to be a comprehensive online medial portal where viewers can watch their favourite commercial shows, movies, documentaries, live features covering a wide range of categories such as drama, comedy, suspense/myestery, sports, news and journalism and much more. Aside from the popular local shows and movies, the portal also contains various programmes from almost over 25 countries in different languages and substitles. Additionally, Zivago also features original shows in all these languages that are produced exclusively by Zivago and presenting popular actors/actresses from the local media insustry.

Based on a private and other government conducted market and consumer studies in Singapore, it has been estimated that more than half of the consumers in the media industry is increasingly preferring online videos and private streaming. In this regard, viewership is not only limited to only popular local shows but majorly include foreign ones as well. However, in this regard, only few portals have been able to access the international entertainment arena and although few have, they are not able to cater to the ethnically diversed population group in the country which includes native Chinese Singaporean, Malay, Bangaladeshi, Indian and various Middle Eastern. As an example, VIU an Starhubs predominantly feature some of the popular Japanese and Chinese drama based shows but not much services considering the diversed population group. The main impediments in this case are lack of penetration into the international media market and language barrier. Zivago is intended to address both the issues and in the process generate higher viewership.

Secondly, the studies indicate that the OTT viewership in Singapore has steadily increased among children and young adults and the most popular genres include drama, movies, sports, animation/cartoons and other entertainment and variety. In this context, Zivago specifically targets the children audiences and sports viewers by streaming various South Asian animation and cartoon shows and popular global sport events such as NFL,NBA,American Football etc. Such services are very much limited and expensive both by local and global competitors.

As internet and social media is gaining ever increasing prominence in Singapore, the company is looking to rely on digital marketing for marketing and promotional services. The studies reveal that Youtube, Facebook and Instagram users in Singapore are highest among the OTT viewers in Southeast Asia. Zivago mainly relies on online advertising and e-marketing through these social media and online platforms which features the most popular shows and promos and a brief description of the membership details. Zivago also conducts various promotional activities in local shopping malls and popular commercial centres across the city which will be featured at the official Facebook and Youtube page. A one minute promo of all the popular shows and movies will be displayed in the official Youtube page and Zivago online app which can be downloaded for free in both Playstore and IOS.

Zivago follows Subscription Revenue Model under E-commerce Revenue Model System. Unlike most other local and global counterparts including Zulu and Netflix, Zivago offers a free viewing of all its original shows for one week in the app as well in its Youtube and Facebook page, All the trailers and initial promos will also be available in app, Youtube and Facebook. The viewers can choose if they would like to continue watching further and subcribe.Under the subscription model, a free one month trial period is provided to potential viewers where they can watch unlimited shows (both original and local/global), movies and all other available contents. Following the expiration of the trial period, 3 subscription options will be provided based on monthly, 6 moths and yearly basis at reasonale pricing that are evidently less than some of the popular portals such as Netflix, VIU, HULU and Starhubs."

Using the report, answer the question mentioned below:

The Strategy: From your channel description, do the following:

(i) Formulate your promotional strategy. How will you make your channel known?

a) Suppose that you learned the demand curve for your company's product is given by the following table:

​

Refer to Table 1. For your company, what is the average revenue and the marginal revenue when 14 units are produced and sold?

b) Continue from Table 1 in question (a), your company is  MOST LIKELY to be in which type of market structure?

Jenny Jones operates a T-shirt distribution business as a sole proprietor. The following is

Jenny’s income statement, for the calendar year ended December 31. Jenny is registered for

HST purposes. All numbers shown below are excluding HST.

Statement of Income

For the year ended December 31

Gross revenue $60,000

Cost of goods sold (10,000)

Gross profit 50,000

Expenses

Accounting & legal $2,000

Advertising 800

Golf dues 3,000

Reasonable estimated bad debt expense 2,000

Business taxes and insurance 1,000

Amortization of fixed assets 8,000

Cycle Safety Program 1,200

Interest 7,800

Meals and entertainment 4,000

Office rent 3,200

Salaries and wages – staff 6,000 (39,000)

Net income per financial statements $11,000

Notes:

1. Legal fees include $500 of estimated fees for a pending lawsuit against Jenny for the

sale of distasteful T-shirts.

2. Accounting fees include the purchase of a $1,200 computerized cash register.

3. Interest expense includes $3,000 paid to the CRA for late instalment interest.

4. The Cycle Safety Program cost was for Jenny, who is an active environmentalist and

rides her bicycle to work every day.

5. Included in the cost of goods sold is $3,200 paid for shelving and lighting in her sales

showroom.

6. A sale of Disney logo rights is not included in the financial statements. Jenny actively

trades rights for t-shirt logos. Net proceeds from the sale of the Disney rights were

$15,000, and the cost of the Disney logo rights to Jenny was $6,800.

Required:

1. Compute Jenny’s income from business for tax purposes, before CCA, for the year

ended December 31.

2. For any item of expense that is not included in your adjustments, list it and explain why

no adjustment is needed.

The following account balances were included in the trial balance of Twain Corporation at June 30, 2017.

The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding.

Using the multiple-step form, prepare an income statement for the year ended June 30, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.)

Using the single-step form, prepare an income statement for the year ended June 30, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.)

Decompose the Income Statement into labor and facility sustaining cost pools. Divide the cost pools into activity centers at the ratio of 40% for the BOH and 60% for the FOH. Display in the table.

4. Based on the calculation from #3, calculate cost pool rates

50. Total hours worked FOH = 800 hours
50. Total hours worked BOH = 600 hours

5. Calculate an allocation value per menu item for the Facility Sustaining cost pool. The number of menu items sold during the month = 2,000.

6. Last week, 9.75 bottles of 1L Jack Daniel was used. The POS system recorded sales of 102 drinks. If the standard drink size is 1.50 oz, how many potential drinks should have been sold last week?

7. Last week, 9.75 bottles of 1L Jack Daniel was used. The bar pays $25 per bottle and the POS system recorded sales of 98 drinks. If the standard drink size is 1.30 oz and is sold for $6.00 per drink, what is the actual cost % of Jack Daniel?

8. The Night Owl Bar sold 189 of Chivas Regal last month generating sales of $897.75. A bottle of Chivas Regal costs $38.95, with a bottle size of 1.5L. A standard drink size of 1.20 oz is sold for $6.25. The bar sells 32 brands and 9 categories. If the total liquor CM is $17.762.42 and total CM for Whisky category is $1.723.51, what is the profit factor for Whisky category?

Problem 4-4

The following account balances were included in the trial balance of Coronado Corporation at June 30, 2017.

The Retained Earnings account had a balance of $325,990 at July 1, 2016. There are 76,170 shares of common stock outstanding.

Using the multiple-step form, prepare an income statement for the year ended June 30, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.)

Using the single-step form, prepare an income statement for the year ended June 30, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.)