FOR BOTH QUESTIONS PLEASE USE THE FOLLOWING TABLE. This data pertains to a pure competition firm where the market price is $30 per unit.

QUESTION ONE. PLEASE ANSWER THE FOLLOWING QUESTION. [FOR FULL CREDIT YOU MUST SHOW ALL COMPUTATIONS].

QUESTION TWO. PLEASE ANSWER THE FOLLOWING QUESTION. [FOR FULL CREDIT YOU MUST FULLY AND CLEARLY EXPLAIN YOUR ANSWER].

Company A sells blankets. The following transactions occurred during March:

The journal entries for March 25 include a credit of $4,200 to which account?

Select one:

a. accounts payable

b. cost of goods sold

c. inventory

d. sales revenue

Company A sells blankets. The following transactions occurred during March: Mar 3 Placed an order on credit with the blanket supplier for 100 blankets at a price of $70 each. Mar 7 Hired a new employee. The employee will earn $80,000 per year plus benefits. Mar 17 Received the order placed on March 3. No payment is yet made to the supplier. Mar 25 Sold 60 of the blankets purchased on March 3. The sale was on credit. Mar 28 Received half of the payment for the March 25 sale. There were five events in the month of March. How many of them do not require a journal entry to be made? Select one: a. One b. Two c. Three d. Four

Johnson Inc. is a wholesale company selling special parts for the automotive industry. The company uses weighted-average and a perpetual inventory system. Its inventory records for part SA-123 show the following transactions for the month of May 2020:

Required:

1. Assuming Johnson Inc. makes all sales and purchases of inventory on account, prepare the journal entries for each of the above listed transactions.

Firm X is considering an investment which will generate the sale of 30,000 units in Year 1. The Unit Price is $100 and COGS for the year is projected to be $ 2,000,000. S,G,& A will be 10% of …Sales and the Interest Expense will be $ 100,000. The Corporate Income Tax Rate is 30% In Year 2, unit sales will be 40,000 units. COGS is projected to be $ 3,000,000 for the second year. All other base data is forecasted to be the same as in Year 1. In Year 3, Net Income is projected to grow at a rate of 10% vs. ..prior year… The project’s Salvage Value will be $ 20,000 and other similar projects generate a 10 % rate of return. If the required initial investment is $ 1,500,000, should this project be pursued ? Why or why not ?

Ford Motor Company just paid a dividend of $1.80 per share and its stock has a beta of 1.2. Risk free rate is 4% and expected return of the stock market is 12%. Ford wants to change its dividend policy to one of the two alternatives, what will be today’s stock price under each situation?

1. Keep plowback ratio at 100% for the next 5 years. At the end of the sixth year, Ford will pay a $3 per share dividend and after that future dividend will increase 8% per year indefinitely
2. Decrease its dividend by 5% next year, then another decrease by 10% in year two. After that, the dividend will increase at a rate of 8% per year indefinitely.

Consider two companies A and Bsharing a market by producing identical goods (or highly substitutable goods). Company A’s marginal cost is MC=20and company B’s marginal cost is MC=10. Market demand is known to be P=100-0.001Q.

1. Find profit maximizing level of Q_Aand Q_Bunder oligopoly setting.
2. Determine the market price.
3. Determine the revenue of company A and B.
4. Determine the profit of company A and B.
5. Find collusive level of profit maximizing output for A and B(Under collusion A and B share the same MC=10and share the market equally).
6. Using a simple game theory method, show that the collusive outcome is not sustainable. Be sure to construct a 2x2 matrix with correct payoffs.

decor Ltd has the following figures regarding its inventory. cost price per unit $50 per unit , . storage cost per unit $5 per unit,    annual usage 100 000 units, normal delivery time $2.5 weeks, insurance cost per unit $5 per unit, interest rate is 9%, ordering cost per unit $80, safety stock 5000 unit. There are 50 normal working weeks per year and four weeks per month. REQUIRED: 1. calculate the economic order quantity(EOQ). 2. calculate the number of orders per year. 3. determine the odering cost per year

Use the following information to answer question 4 to 6:

Amazon buys a Mexico Peso put option (contract size: 500,000 Peso) at a premium of $0.0082/Peso. The exercise price is $0.054/Peso:

4.If the spot at expiration is $0.062/Peso, what is the Amazon’s profit?

a. $4,100 loss

b. $100 loss

c. $4,000 loss

d. $8,100 loss

5.If the spot at expiration is $0.050/Peso, what is the Amazon’s profit?

a. $2,000 loss

b. $4,100 loss

c. $2,100 loss

d. $6,100 loss

6.If the spot at expiration is 0.042/Peso, what is the Amazon’s profit?

a. $1,500 gain

b. $1,900 gain

c. $6,000 gain

d. $10,100 gain

Healthier Living Company manufactures two products, toaster ovens and bread machines. The following data are available:

Healthier Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Healthier Living's production capacity is 1,800 machine hours per month. Marketing limitations indicate that Healthier Living can sell a maximum of 5,000 toasters a month, and 4,000 bread machines per month. Which product and how many units should the company produce in a month to maximize profits? Please show all your work.