Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]

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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021:

($ in millions)

Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022:

($ in millions)

4-a. Determine Lakeside’s pension expense for 2019. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
  

4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

2. Determine the new gains and/or losses in 2021 and prepare the appropriate journal entry(s) to record them. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

P15-17 Partnership Formation, Operation, and Changes in Ownership LO 15-3, 15-4, 15-5, 15-6 The partnership of Jordan and O’Neal began business on January 1, 20X7. Each partner contributed the following assets (the noncash assets are stated at their fair values on January 1, 20X7): Jordan O’Neal Cash $ 61,400 $ 50,900 Inventories 80,200 –0– Land –0– 131,500 Equipment 101,100 –0– The land was subject to a $50,300 mortgage, which the partnership assumed on January 1, 20X7. The equipment was subject to an installment note payable that had an unpaid principal amount of $21,100 on January 1, 20X7. The partnership also assumed this note payable. Jordan and O’Neal agreed to share partnership income and losses in the following manner: Jordan O’Neal Interest on beginning capital balances 3 % 3 % Salaries $ 13,500 $ 13,500 Remainder 60 % 40 % During 20X7, the following events occurred: 1. Inventory was acquired at a cost of $31,300. At December 31, 20X7, the partnership owed $7,400 to its suppliers. 2. Principal of $6,800 was paid on the mortgage. Interest expense incurred on the mortgage was $2,100, all of which was paid by December 31, 20X7. 3. Principal of $3,300 was paid on the installment note. Interest expense incurred on the installment note was $2,100, all of which was paid by December 31, 20X7. 4. Sales on account amounted to $162,500. At December 31, 20X7, customers owed the partnership $21,900. 5. Selling and general expenses, excluding depreciation, amounted to $34,100. At December 31, 20X7, the partnership owed $6,800 of accrued expenses. Depreciation expense was $6,600. 6. Each partner withdrew $220 each week in anticipation of partnership profits. 7. The partnership’s inventory at December 31, 20X7, was $21,600. 8. The partners allocated the net income for 20X7 and closed the accounts. Additional Information On January 1, 20X8, the partnership decided to admit Hill to the partnership. On that date, Hill invested $93,480 of cash into the partnership for a 20 percent capital interest. Total partnership capital after Hill was admitted totaled $452,000. Required: a. Prepare journal entries to record the formation of the partnership on January 1, 20X7, and to record the events that occurred during 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round the final answers to nearest dollar amount)

Physiology

☆Acid-base balance Normal plasma pH ranges from 7.35-7.45, changes in plasma pH may disturb metabolism and many body functions.

1- Describe in detail the role of the kidney in adjusting blood pH either in acidosis or alkalosis.

2- Differentiate between metabolic and respiratory acidosis and alkalosis.

3- Explain in full details the endocrinal causes of metabolic acidosis.

4- Formulate a case for a patient with metabolic acidosis demonstrating possible signs, symptoms and laboratory investigations.

5- Referring to five recent publication (2015-2020), explain the pathophysiology and treatment of diabetic ketoacidosis.

6- Construct 5 MCQ about Addison's disease

E6-4 Analyzing Changes in Price, Cost Structure, Degree of Operating Leverage [LO 6-4, 6-5]

Cove’s Cakes is a local bakery. Price and cost information follows:

Required:
1. Calculate Cove’s new break-even point under each of the following independent scenarios: (Round your answer to the nearest whole number.)

a. Sales price increases by $1.50 per cake.



b. Fixed costs increase by $475 per month.



c. Variable costs decrease by $0.25 per cake.



d. Sales price decreases by $0.40 per cake.



2. Assume that Cove sold 355 cakes last month. Calculate the company’s degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.)



3. Using the degree of operating leverage calculated in Requirement 2, calculate the change in profit caused by a 6 percent increase in sales revenue. (Round your final answer to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

Suppose the US economy is in recession. The unemployment rate is 7% and the Federal Reserve Bank is considering using monetary policy to expand output. Assume the bank knows, with certainty, that:

i.             absent changes in monetary policy, unemployment will still be 7% next year;

ii.           the natural rate of unemployment is 5%;

iii.          from Okun's law, 1% more output growth for a year leads to a 0.4% reduction in the unemployment rate.

Also assume the bank can effectively use monetary policy to increase output growth rates as desired, i.e., the interest rate is sufficiently far away from the zero lower bound. However, the bank is uncertain about the effect that changes in its policy rate, the Official Cash Rate (OCR), have on output growth. To inform its decisions, the monetary policy committee summons the research department to produce predictions of the one-year response of US output growth to a decrease of 1% in the OCR. The research department, using three different macroeconometric models, presents the results from three different models:

Model (a): output growth is predicted to increase by 1.0% (moderate monetary transmission channel)

Model (b): output growth is predicted to increase by 0.6% (weak monetary transmission channel)

Model (c): output growth is predicted to increase by 2.0% (strong monetary transmission channel)

The research department further informs that each model prediction is equally likely, and that effects for OCR changes different than -1% are proportional to these predictions, e.g.: a decrease of 2% in the OCR is predicted to increase output growth by 2% according to model (a), 1.2% according to model (b), and 4% according to model (c), and so on.

Using the scenario information above answer the following questions.

Note: for the numerical questions, please provide a numerical answer in percentage points, e.g., 1 for 1%, -2 for -2%, etc.

What is the output growth rate needed to lower the unemployment rate to the natural rate of unemployment?

Santana Rey expects second-quarter 2020 sales of Business Solutions’s line of computer furniture to be the same as the first quarter’s sales (reported below) without any changes in strategy. Monthly sales averaged 39 desk units (sales price of $1,200) and 15 chairs (sales price of $450).

* Reflects revenue and expense activity only related to the computer furniture segment.
† Revenue: (117 desks × $1,200) + (45 chairs × $450) = $140,400 + $20,250 = $160,650
‡ Cost of goods sold: (117 desks × $700) + (45 chairs × $200) + $28,500 = $119,400

Santana Rey believes that sales will increase each month for the next three months (April, 47 desks, 27 chairs; May, 51 desks, 30 chairs; June, 55 desks, 33 chairs) if selling prices are reduced to $1,080 for desks and $400 for chairs and advertising expenses are increased by 10% and remain at that level for all three months. The products’ variable cost will remain at $700 for desks and $200 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $9,500 and other fixed expenses will remain at $5,500 per month.

Required:
1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month.
2. Recommend whether Santana should implement the proposed changes. Hint: Compare quarterly income for the proposed April-May-June period to the quarterly income for the January-February-March period.

Tamara has 80 hours per week that she can allocate to work or leisure. Her job pays a wage rate of $20 per hour, but Tamara is being taxed on her income in the following way. On the first $400 that Tamara makes, she pays no tax. That is, for the first 20 hours she works, her net wage (what she takes home after taxes) is $20 per hour. On all income above $400, Tamara pays a 75% tax. That is, for all hours above the first 20 hours, her net wage rate is only $5 per hour. Tamara decides to work 30 hours. Her indifference curves have the usual shape.

The government changes the tax scheme in a few ways. First, now only the first $100 of income is tax-exempt. That is, for the first 5 hours she works, Tamara's net wage rate is $20 per hour. Second, the government reduces the tax rate on all other income to 50%. That is, for all hours above the first 5 hours, Tamara's net wage rate is now $10. After these changes, Tamara finds herself just as well off as before so that her new optimal choice is on the same indifference curve as her initial optimal choice.

Draw Tamara's new time allocation budget line on the same diagram as her initial time allocation budget, with income on the vertical axis. Also illustrate her optimal choice. Bear in mind that she is equally as well off (on the same indifference curve) as before the tax changes occurred. Choose the correct statement.

A. At her new optimal choice, Tamara consumes less leisure and has more income.

B. At her new optimal choice, Tamara consumes less leisure and has less income.

C. At her new optimal choice, Tamara consumes more leisure.

D. At her new optimal choice, Tamara consumes the same amount of leisure.

Consider a block of size 30 mm x 20 mm x 10 mm made of two metallic materials, the stronger material for the bottom half of the block and the weaker material for the top half. The displacements of 8 material points of the block have been measured after certain loading and they are given in the Table below.

(a) Determine the distributions of displacements, strains and stresses in the block, in the xyz co-ordinate system. Choose two suitable isotropic materials.

(b) Determine the stresses at the corner points of the plane at the interface of the two materials. Using these values, determine the stress distributions over that plane, and determine the maximum value of all these stresses (and its type and direction of action). Also determine the maximum value of the principal stress on this plane.

(c) Determine the stresses and strains in the directions of any two diagonals of the block, at each of the corner points of the block. Calculate also the changes in the lengths of these two diagonals.

Determine the changes in the maximum shear stress and octahedral shear stress at each of the corner points of the interface plane, and the changes in the lengths of the two diagonals after deformation due to a +10% change in material properties. Which property has more influence on the octahedral shear stress at each corner point of the interface?

Check whether the interface will fail using Tresca and von Mises failure criteria.

The elasticity of the top material is 105 GPa, G = 39 GPa, v=0.346. Bottom material E = 195 GPa, G = 77 GPa, v = 0.27

1. Knowing what you know about the functions of money and other desirable properties, including liquidity and acceptability, differentiate the Rai stone of the island of Yap from the bitcoin. (4)

2. Describe the three basic tools used by the Fed to change the money supply. Which of these tools is most relied on in practice? Least relied on? Why? (3)

3. How can the Fed increase the money supply? How can the Fed decrease the money supply? Be specific by explaining why the Fed would make these changes and what the over-all effect is. (3)

4. Discuss the determinants of the equilibrium interest rate and how it may change. What can the Fed do to change the interest rate? (3)

5. If the required reserve ratio = 20% and you deposit $500 into your bank account, how much of it will the bank have to set aside in its required reserve account?__________ How much will be left over to place into excess reserves (ER)?__________. Now, once ER changes occur, how much money can ultimately be created by our banking system? __________. (3)

6. Now what if the required reserve ratio is changed to 10% and you deposit $500 into your bank account, how much of it will the bank have to set aside in its required reserve account?__________ How much will be left over to place into excess reserves (ER)?__________. Now, once ER changes occur, how much money can ultimately be created by our banking system? __________. (3)

7.  Address the inside and outside lags associated with fiscal and monetary policy.  If one policy suffers more significant lags, why use it? (3)

8.  Read "Did the Fed Cause the Great Recession?" (Pages 454-455).  Provide your thoughts on this historical downturn in our economy.  Distinguish the culprit(s).  How is the banking crisis a strong case for moral hazard? (3)