Currently, 11 states have legalized marijuana or cannabis for recreational use. Four more states, 1
including Arizona and New Jersey, are voting to legalize and tax recreational marijuana sales recently . The motivation for legalization includes allowing the government to use police resources against more serious crimes, removing illegal drug dealers, raising tax revenue, and treating addiction as a public health issue instead of a criminal issue.
Question 1
a. Taxing legal marijuana sales is attractive at a time when states are looking for ways to increase their
tax revenues. Illinois has collected more than $100 million in recreational marijuana tax revenue
2 since legalizing sales on Jan 1 this year .
Different states have different approaches toward taxing legal marijuana. Some states adopt an approach like a typical sales tax where the consumer pays a tax on the purchase price. For example, in Oregon, a consumer pays a tax of 17% of the purchase price.
Suppose the recreational marijuana market is perfectly competitive. Use a diagram to discuss the impact of the sales tax on marijuana in Oregon. (18%)
b. A major argument for legalization and taxation as a rational solution to illegal marijuana use is that
high tax would discourage users from consuming. Using over 23,000 actual transaction data,
3 economists have found that the price elasticity of demand for marijuana was about 0.70. Interpret
the price elasticity of demand. Is the demand for marijuana price elastic or inelastic? Does it make sense? If the government wants to reduce marijuana consumption by 20%, by how many percent the marijuana price must increase? (8%)
In: Economics
Summary:
Mick is a project manager at Zarlink, a multinational manufacturer of semiconductors for a variety of high-technology military, medical and consumer applications. Mick is also a part-time MBA student at his local university. As part of his MBA, Mick has to complete a dissertation on a management topic of his choice. Since Mick had recently been selected to embed a new quality management system called TS 16949 into his manufacturing site at Swindon in the West of England it seemed sensible that he chose to study quality for his dissertation. Mick’s particular fascination was his firm belief that the route to high-quality process in organizations was not through introducing specific techniques but through ensuring that quality was embedded in everything done at Zarlink: part of the lifeblood of the organization. ‘Quality is even about more than people’s attitudes’ said Mick; ‘it’s about their beliefs. Quality must be a way of life and dominate the thoughts of everyone in the organization, irrespective of their job.’ Mick wanted to use his dissertation as a way not only of obtaining his MBA but also of learning how he could be more effective in introducing embedded quality at Swindon.
Mick started off his research by searching the quality literature. There was no shortage of this. But soon Mick realized that he was concerned with that branch of the quality literature that dealt with the ‘soft’ issues of organizational culture change. He became rather disenchanted with much of the literature because it was largely prescriptive. ‘I was dubious about a lot of what the gurus were saying,’ said Mick. ‘They seemed to be saying that if you get your employees to believe this and do that then everything will be fine. I was skeptical of this because I knew through my MBA studies that the success of certain techniques is usually contingent upon the individual circumstances of the organization.’ Nonetheless Mick became attracted to the idea that embedding certain core values in the organization was a good way of achieving quality goals. The problem was that he did not know which core values were appropriate for his site. Therefore his research question became: ‘What are the core values that need to be adopted in Zarlink, Swindon, if embedded quality is to become a success?’
More specifically, Mick’s research objectives were:
to identify general constructs that constitute ‘embedding quality’ within an organization;
to compare these beliefs with those espoused by a sample from the senior Zarlink Management team;
to establish the behaviors and attitudes of the current workforce towards the quality management system at the Zarlink foundry, Swindon;
to propose a framework of core values to facilitate the embedding of quality into Zarlink, Swindon.
Having used the literature to refine his research question and objectives Mick then turned his attention to collecting primary data within Zarlink. Initially he thought of using a positivist approach based on a questionnaire using qualitative data, but discussions with Philippa, his tutor, convinced him that there were other ways of collecting data. Mick began to think more deeply about his research strategy, and thought that the advantage of triangulating his data by using multi-method would convince not only his examiners that his data were valid but also the managers at Zarlink who he was hoping would give him the go-ahead to introduce his ideas.
Mick’s first research objective had been met by his coverage of the literature. This had been useful in concentrating his mind on embedded quality, but it only took him a limited way. The second and third objectives would lead to a much more meaningful management dissertation.
The second objective involved conducting interviews with key managers in order to ‘test’ the ideas that Mick had developed about core values as a result of the literature review. The managerial sample he chose comprised managers from other Zarlink sites in the world who had an excellent reputation for embedding quality. At the same time Mick thought it important to include those managers who were concerned with implementing quality at Swindon. Mick conducted six interviews across three sites: one in Canada and one in southern England in addition to the third in Swindon. In each site he interviewed the foundry director and the quality manager. These were the key managers concerned with quality. The non-Swindon managers were interviewed by telephone, and the Swindon managers were interviewed face to face by Mick. He hoped this phase of data collection would give him a very clear idea of Zarlink’s view of quality.
In order to meet the third objective he decided to collect data in two ways. The first was to conduct what he called a ‘gap analysis. The purpose of this was to establish the current behaviors concerned with quality – that is, what people actually did in their working lives. This would tell Mick what was being done well and what was being done badly, or not at all, and therefore identify what needed to be done to embed quality. In order to do this Mick designed an audit form based on a purpose-made audit that had been used before in similar organizations. This was administered in all departments of Zarlink, Swindon. Ten of Mick’s colleagues were responsible for carrying out the audit. This involved Mick in training them in its use in order to achieve reliability. Mick was opportunistic in the second way he collected data in respect of the third objective. He was fortunate that a general employee attitude survey was imminent. He decided to insert a subsection in this survey that consisted of questions to establish employees’ attitudes to quality. This went to each of the 130 employees at Swindon.
Mick was confident that his research strategy would yield rich, valid and reliable data on management beliefs and employee attitudes and practice, which would enable him to propose a framework of core values to facilitate the embedding of quality into Zarlink, Swindon. This would enable him to make a valuable contribution to the well-being of Zarlink and pass his MBA!
Discussing the case and incorporating answers to the questions below. It is important to address each of the questions presented. Respond to these questions in an essay format using APA style of writing, and use at least 5 peer-reviewed references.
Question:
1 Which type(s) of research strategy is Mick employing?
2
In what other ways could Mick have used the literature to refine
his research
question?
3
In what other ways might Mick have achieved his research
aim?
In: Operations Management
Wildhorse Co. had net income of $175240 and paid dividends of $40000 to common stockholders and $19000 to preferred stockholders in 2020. Wildhorse Co.’s common stockholders’ equity at the beginning and end of 2020 was $862000 and $1370000, respectively. Wildhorse Co.’s return on common stockholders’ equity was
11.00%.
14.00%.
10.00%.
16.00%.
In: Accounting
Sheffield Corp. had net income of $163625 and paid dividends of $48500 to common stockholders and $16500 to preferred stockholders in 2020. Sheffield Corp.’s common stockholders’ equity at the beginning and end of 2020 was $890000 and $1250000, respectively. Sheffield Corp.’s return on common stockholders’ equity was
13.75%.
10.75%.
9.75%.
15.75%.
In: Accounting
Answer
$_______________
In: Accounting
In: Civil Engineering
P4-20: Integrative: Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided below to prepare the financial plans.
The following financial data are also available:
|
Assets |
Liabilities and stockholders’ equity |
|||
|
Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 |
||||
|
Sales revenue |
$800,000 |
|||
|
Less: Cost of goods sold |
600,000 |
|||
|
Gross profits |
$200,000 |
|||
|
Less: Operating expenses |
100,000 |
|||
|
Net profits before taxes |
$100,000 |
|||
|
Less: Taxes (rate = 21%) |
21,000 |
|||
|
Net profits after taxes |
$ 79,000 |
|||
|
Less: Cash dividends |
20,000 |
|||
|
To retained earnings |
$ 59,000 |
|||
|
Red Queen Restaurants Balance Sheet December 31, 2019 |
||||
|
Cash |
$ 32,000 |
Accounts payable |
$100,000 |
|
|
Marketable securities |
18,000 |
Taxes payable |
20,000 |
|
|
Accounts receivable |
150,000 |
Other current liabilities |
5,000 |
|
|
Inventories |
100,000 |
Total current liabilities |
$125,000 |
|
|
Total current assets |
$300,000 |
Long-term debt |
200,000 |
|
|
Net fixed assets |
350,000 |
Total liabilities |
$325,000 |
|
|
Total assets |
$650,000 |
Common stock |
150,000 |
|
|
Retained earnings |
175,000 |
|||
|
Total liabilities and stockholders’ equity |
$650,000 |
|||
Please show your work. It does not help me if you just provide the answers.
In: Finance
Other data:
Accrued but unrecorded and uncollected consulting fees earned at December 31 amount to: $27500.
The company determined that $16500 of previously unearned consulting fees had been earned at December 31.
Office supplies on hand at December 31 total $330
The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years.
The company prepaid its nine-month rent agreement on June 1, 2020.
The company prepaid its six-month insurance policy on December 1, 2020
Accrued but unpaid salaries total $13200 at December 31,2020.
On September 1, 2020, the company borrowed $66000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due March 31, 2021.
Account Debit Credit
Cash 304,150
Accounts Receivable 99,000
Office supplies 880
Prepaid rent. 3,960
Unexpired insurance 1,650
Office equipment 79,200
Accumulated depreciation: office equipment 26,400
Accounts payable 4,400
Notes payable (due 3/1/12) 66,000
Interest payable 660
Income taxes payable 9,900
Dividends payable 3,500
Unearned consulting fees 24,200
Capital stock 220,000
Retained earnings 44,000
Dividends 3,500
Consulting fees earned 550,000
Rent expense 16,170
Insurance expense 2,420
Office supplies expense 4,950
Depreciation expense: office equipment 12,100
Salaries expense 363,000
Utilities expense 5,280
Interest expense 3,300
Income taxes expense 49,500
Totals 949,060 949,8060
Instructions:
In: Accounting
Integrative: Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided below to prepare the financial plans.
The following financial data are also available:
The firm has estimated that its sales for 2020 will be $900,000.
The firm expects to pay $35,000 in cash dividends in 2020.
The firm wishes to maintain a minimum cash balance of $30,000.
Accounts receivable represent approximately 18% of annual sales.
The firm’s ending inventory will change directly with changes in sales in 2020.
A new machine costing $42,000 will be purchased in 2020. Total depreciation for 2020 will be $17,000.
Accounts payable will change directly in response to changes in sales in 2020.
Taxes payable will equal one-fourth of the tax liability on the pro forma income statement.
Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged.
Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method.
Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach.
Analyze these statements, and discuss the resulting external financing required.
Red Queen Restaurants Income Statement for the Year Ended December 31, 2019
Sales revenue $800,000 Less: Cost of goods sold 600,000 Gross profits $200,000 Less: Operating expenses 100,000 Net profits before taxes $100,000 Less: Taxes (rate = 21%) 21,000 Net profits after taxes $ 79,000 Less: Cash dividends 20,000 To retained earnings $ 59,000Red Queen Restaurants Balance Sheet December 31, 2019
Assets Liabilities and stockholders’ equity Cash $ 32,000 Accounts payable $100,000 Marketable securities 18,000 Taxes payable 20,000 Accounts receivable 150,000 Other current liabilities 5,000 Inventories 100,000 Total current liabilities $125,000 Total current assets $300,000 Long-term debt 200,000 Net fixed assets 350,000 Total liabilities $325,000 Total assets $650,000 Common stock 150,000 Retained earnings 175,000 Total liabilities and stockholders’ equity $650,000LG 5
In: Accounting
Assuming that Mccphae Corporation has done each of the following in preparation for its fiscal year-end December 31, 2020 statements, and no adjustments or corrections were made except as noted, what would be the effect of each on: (a) total assets on December 31, 2020? (b) total liabilities on December 31, 2020? (c) owners’ equity on December 31, 2020? (d) cash on December 31, 2020? Circle U/S for understate, O/S for overstate, or NE for no effect. Treat each item independently and ignore income tax effects. 1. No entry for accrued interest on a note payable was made. The $60,000 note was issued on March 1, 2020 and accrues 8% interest annually. The interest will be paid on March 1, 2021. (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE 2. Insurance of $6,000 was prepaid on November 1, 2020 for the six months beginning November 1 and recorded as “Prepaid Insurance.” On December 31, 2020, the following adjustment was made: Insurance Expense $2,000 Cash $2,000 (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE 3. Employee wages of $100,000 were earned in December, but will be paid in January of 2021. No entry was recorded. (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE 4. Depreciation of factory equipment for $200,000 was not recorded. (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE
In: Accounting