Sarasota Windows manufactures and sells custom storm windows for three-season porches. Sarasota also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sarasota enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,440 and chooses Sarasota to do the installation. Sarasota charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Sarasota $2,040 (which equals the standalone selling price of the windows, which have a cost of $1,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Sarasota completes installation on October 15, 2020, and the customer pays the balance due.

Sarasota estimates the standalone selling price of the installation based on an estimated cost of $420 plus a margin of 30% on cost.

Prepare the journal entries for Sarasota in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)

show work and explain

Anthony, one of your cousins, is operating a very successful luxury nail salon called An-Toe-Nail. Other than that, Anthony is also work part-time as a freelancer graphic designer.
In 2020, Anthony have the income from his designing job of $100k and the revenue from the An-Toe-Nail salon is $800k. During 2020, below are items that Anthony spend money on:

• Anthony purchased a new car in Jan 2020 which cost $60k. The car is his main vehicle for the year which he will use to drive to and from work.
• Employee salary: $300k in total, paying for 6 nail technicians, each $50k/year.
• Utilities cost: $10k
• Supplies (nail polishes, glitter, chemical, etc.): $10k
• Nail salon equipment: $50k. Anthony told you that these equipment need to be purchased new every year for some reason. Since the nail salon is a luxury one, he spent twice the money to buy this luxury equipment (the similar but lower quality equipment only cost $25k).

Anthony asks for your help in figuring out his taxable income for 2020 before the standard deduction. As a tax expert, you understand that what he means was to help him calculate his AGI.

1. What is Anthony Gross income in 2020? (Show calculation and explanation if needed)
2. What is Anthony Deduction for AGI in 2020? Show calculation and explanation. Answer without explanation will result in no credit
3. Provided that AGI = Total Gross income – Total Deduction for AGI. What is Anthony AGI for 2020?

Problem 13-12

Pronghorn Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Pronghorn uses two sales promotion techniques—warranties and premiums—to attract customers.

Musical instruments and sound equipment are sold with a 1-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 1% of sales.

The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $20 for an MP3 player. Pronghorn pays $33 for each player and estimates that 50% of the coupons given to customers will be redeemed.

Pronghorn’s total sales for 2020 were $7,570,000—$5,898,000 from musical instruments and sound reproduction equipment and $1,672,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $97,500 during 2020 ($45,000 of the work is related to pre-2020 sales). A total of 6,340 players used in the premium program were purchased during the year and there were 1,126,000 coupons redeemed in 2020.

The balances in the accounts related to warranties and premiums on January 1, 2020, were as shown below.

Pronghorn Music Emporium is preparing its financial statements for the year ended December 31, 2020. Determine the amounts that will be shown on the 2020 financial statements for the following.

WildhorseCorporation is preparing earnings per share data for 2020. The net income for the year ended December 31, 2020 was $410,000 and there were 59,700 common shares outstanding during the entire year. Wildhorse has the following two convertible securities outstanding:

Both convertible securities were issued at face value in 2017. There were no conversions during 2020, and Wildhorse’s income tax rate is 22%. The preferred shares are cumulative. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately.

Calculate Wildhorse’s basic earnings per share for 2020. (Round answer to 2 decimal places, e.g. 15.25.)

Python 3

A simple way to encrypt a file is to change all characters following a certain encoding rule. In this question, you need to move all letters to next letter. e.g. 'a'->'b', 'b'->'c', ..., 'z'->'a', 'A'->'B', 'B'->'C', ..., 'Z'->'A'. For all digits, you need to also move them to the next number. e.g. '0'->'1', '1'->'2', ..., '9'->'0'. All the other symbols should not be changed.

1. Write a function encrypt with the following requirements:

• the function takes a string argument, which is a file name.
• read the csv file.
• replace all characters uisng the rule above.
• write the content to a new file named "encrypted.csv".

2. Call the function with the file name "business-price-indexes-june-2020-quarter-csv-corrected.csv"

--2020-10-16 19:32:31-- https://www.stats.govt.nz/assets/Uploads/Business-price-indexes/Business-price-indexes-June-2020-quarter/Download-data/business-price-indexes-june-2020-quarter-csv-corrected.csv Resolving www.stats.govt.nz (www.stats.govt.nz)... 45.60.11.104 Connecting to www.stats.govt.nz (www.stats.govt.nz)|45.60.11.104|:443... connected. HTTP request sent, awaiting response... 200 OK Length: 11924606 (11M) [text/csv] Saving to: ‘business-price-indexes-june-2020-quarter-csv-corrected.csv’ business-price-inde 100%[===================>] 11.37M 4.56MB/s in 2.5s 2020-10-16 19:32:34 (4.56 MB/s) - ‘business-price-indexes-june-2020-quarter-csv-corrected.csv’ saved [11924606/11924606]

Sunny Corporation expects to have the following balances on July 1, 2020: Cash, $3,000; Accounts receivable, $135,000; and Accounts payable, $100,000. Its budgeted sales, merchandise purchases, and various expenses for the next three months follow.

20% of the sales are for cash. Of the remaining credit sales, 30% are collected in the same month as the sale, and 70% are collected the month following the sale.

All merchandise is purchased on credit. 20% of the balance is paid in the month of the purchase, and the remaining 80% is paid in the month following the purchase. All other cash expenses are paid in the month incurred. Included in the payroll, rent, and other expenses is $10,000 of depreciation expense.

The company requires a minimum cash balance of $10,000. If cash falls below $10,000, the company borrows on a line of credit with an annual rate of interest of 12% to bring the balance to $10,000. If cash is above $10,000, the company repays as much as possible on any outstanding line of credit but does not allow cash to fall below $10,000. On July 1, the line of credit has a $0 balance.

Complete the following blanks to prepare the cash budget. If a blank has an amount of $0, you are required to enter 0. Note: You have schedules provided below the cash budget that will need to be completed to enable you to prepare certain calculations needed for the cash budget.

Sunny Corporation

Cash Budget

July, 2020 - September, 2020

Schedule to Calculate Cash Sales and Credit Sales

Cash Receipts

Cash payments for Merchandise Purchases

Successful business managers need to possess a high level of confidence to succeed and meet the many challenges they face in a fast paced and evolving business climate. There is a razor sharp line that exists between being confident in what we do, and slipping across this fine, hazy line into being overconfident.

We don’t notice this innocent looking trap until we’ve fallen into it. Not only were we not paying attention, we also miscalculated by assuming the way was clear. Making assumptions or jumping to a false conclusion stems from overconfidence. It often leads to calamity, or a very bad case of ‘Oops!’

RJR Nabisco was having a bad year with its stock performance. The CEO of the company, Ross Johnson thought that this was an opportune time to attempt a leveraged buyout to increase the shareholder’s value of the stock. He, and his management group, entered into negotiations with the board of directors’ special committee that had been assigned with the particular task of finding ways to maximize the shareholder value.

Since he was the CEO of Nabisco, Johnson was confident, that because of his close ties to the company; his buy out attempt would be the proverbial ‘no-brainer’. His overconfidence led him to fall into the trap of making assumptions and jumping to an erroneous conclusion.

His first mental lapse was to assume that his company connections would automatically give him the ‘go-ahead’ to make the buy-out happen. He made the second mistake of assuming that his investment bankers would simply have to put the financing in place, and that the RJR board of directors would also give him the power to manage the buyout. So, together with his main financial partner, Shearson Lehman Hutton, he offered an initial buyout price of $75.00 U.S./share.

The initial offering meant that his management team would only have to put up $20 million dollars or 8.5% of the total offer. If the board acceded to this offer then Johnson’s management team would receive 18% of the company’s total equity. Johnson was also insisting that the 18% would be divided equally amongst the 15,000 personnel who were employed for RJR Nabisco. However, he neglected to mention that in reality, only six names actually appeared as the real beneficiaries of the transaction – a real but unintentional ‘Oops!’

So stroked by his overconfidence in closing the buyout he moved ominously close to the waiting banana peel because he wasn’t paying attention to several occurrences that were transpiring in the meantime. First, the board never discussed or made any concessions with Johnson or his financiers. Johnson also never even conceived there were any other players who might also be interested in buying Nabisco. In truth, he had so alienated the board with his attitude that they eventually awarded the buyout bid to an investment banking firm, Kohlburg, Kravis, and Roberts (KKR) for $109 million dollars. One might think they were making the higher bid, right?

Wrong! KKR’s bid was actually lower than Johnson’s bid. The board was so ticked off at Johnson that they took the loss instead because they appreciated KKR’s negotiation flexibility, and believed that KKR would have a more positive influence on the company rather than Johnson’s ‘arrogance and overconfidence’. So the moral of the story is that when you become overconfident and full of yourself, just remember the higher you elevate yourself, the more painful the fall will be when it comes.

1.    Explain how this case study is an example of the non-rational escalation of commitment bias (ch. 4) and the irrational optimism bias.

2.    How did overconfidence and feelings of superiority bring about Johnson’s loss? These biases are discussed in (ch. 5).

3.    Summarize some things Johnson could have done to prevent this error. Use the information in ch. 6 under “Confronting your own biases,” to help you answer the question.

4.    As a leader, would you rather mentor someone who is overconfident, or who lacks confidence? Explain why. How do you think you would approach it? I am looking for your ideas and opinions. You do not need to access outside sources for this question.

2) China’s real per capita GDP has been growing significantly faster than that in the U.S. – China’s growth rate was about 10% several years ago, compared to about 3% for the U.S.

a) Using the Solow growth model (with no technological progress), is there reason to believe this disparity in growth rates will disappear in time? What about the disparity in income levels per person?

b) How is your conclusion affected if you were told that China has a higher saving rate than the U.S.?

c) What if the saving rates are the same, but China has a higher population growth rate?

John wants to estimate the market potential for a low-carbohydrate fruit juice in the U.S. His research shows that 50% of the population of the U.S. drinks fruit juice; 10% of all fruit juice drinkers are interested in low-carb juice; the amount of fruit juice consumed per month by those who drink juice is 2 gallons; and the average price per gallon is $5. Assuming that the total population of the U.S. is 300 million, the market potential for low-carb fruit juice per year estimated by John is

• $1500 million

• $15 million

• $1800 million

• $750 million

• $18 million