Locate the financial statements of Microsoft's segmented financial information. Prepare an overview of what is revealed about the company through its segmented data. Discuss the benefits of reporting financial information this way.

We report our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The segment amounts included in MD&A are presented on a basis consistent with our internal management reporting. All differences between our internal management reporting basis and accounting principles generally accepted in the United States of America (“GAAP”), along with certain corporate-level and other activity, are included in Corporate and Other.

SEGMENT RESULTS OF OPERATIONS

1. Classify each of these transactions as an asset, a liability, or neither for each of the “players” in the money supply process – the Federal Reserve, the banking system, and nonbank public.

a) You take a $10,000 loan from Bank One to buy an automobile

b) You deposit $400 into your checking account at the First National Bank of Huntsville

c) The Fed provides an emergency loan to a bank for $ 1 million

d) A bank borrows $500,000 in overnight loans from another bank

e) You use your debit card to purchase a meal at a restaurant for $50

2. Suppose that Mr. Justin Bieber deposits $5,000 in his checking account at Santa Monica Bank. How does this transaction affect the monetary base? Show the changes in the balance sheets for Mr. Bieber, the bank, and the Fed.

3. What are the major differences between a discount loan and an open market purchase with respect to their respective effects on monetary base? Explain using an example and showing the relevant changes in the balance sheets of the Fed and the Banking System. Between these two actions, is one preferred to the other by the Fed? Why or why not?

4. As the bankers’ bank, the Federal Reserve Banks operate the payments system in the United States? What are the different components of the payments system that they operate? Briefly describe.

5. What are the main arguments against central bank independence? Is the Fed independent? How do you know? Explain.

Please use APA style for all aspects of this question. You must cite all course materials in-text; improper or missing citations will receive a zero grade and/or a formal investigation of academic misconduct. You are not allowed to use internet materials, quotations from outside readings or any “cut and paste” learning materials in any of your written answers. Write in your words only and draw on required course materials only.

1. Proponents of globalization like neoliberalists argue their approach to economic development can best lift countries out of poverty. Advocates of alternative theories and approaches like Bejing’s approach to economic development purported by Dambisa Moyo OR sustainable development are critical of neoliberalism. Define ONE alternative approach to economic development and explain ONE way it improves upon neoliberalism. Here, choose Bejing’s approach to economic development purported by Dambisa Moyo in her TED talk, Is China the New Idol for Emerging Economies? (Module 5) OR sustainable development (Module 6). For example, why does Dambisa Moyo think that Bejing’s approach to development is more appealing to poor countries than that of the United States? OR, why do proponents of sustainable development argue it is a superior approach to sustainable and equitable development than neoliberalism? Use specific empirical evidence and examples to demonstrate why the alternative approach is better.

Problem 6-20A Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income [LO6-1, LO6-2, LO6-3] High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 36,000 Units sold 31,000 Selling price per unit $79 Selling and administrative expenses: Variable per unit $2 Fixed per month $ 563,000 Manufacturing costs: Direct materials cost per unit $16 Direct labor cost per unit $8 Variable manufacturing overhead cost per unit $2 Fixed manufacturing overhead cost per month $ 540,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for May.

Read the following case: An individual, Sam Rice, was injured while using a survival knife manufactured by the BearArms Knife Company. Sam is a resident of the state of Iowa. He was injured in the state of Iowa, where he was using the knife to whittle a wooden cup. The BearArms Knife Company is located in the State of Delaware. It sells its knives to retail stores throughout the United States. Sam bought his knife at Paul's Discount in Iowa City. Sam’s injuries cost him – in terms of doctor’s bills and missed income from not being able to work – well over $200,000.

Sam sued BearArms Knife Company in Iowa state court for negligence. BearArms Knife Company did not, however, respond to or otherwise contest Sam’s lawsuit, and Sam was awarded $425,000 in damages by the trial court.

Based on the legal information that you learned in this chapter, write a 1-2 sentence answer for each of the following questions.

1. What type of judgment did the trial court award against BearArms Knife Company?

2. Which court(s)--state and/or federal courts--would have jurisdiction over Sam’s lawsuit against BearArms Knife Company?

3. Explain the reasoning for your answer to question “2”.

4. What state law would Rice have invoked in trying to show that the Iowa state court had personal jurisdiction over BearArms Knife Company?

Determining Market-Based and Negotiated Transfer Prices

Clanahan, Inc., has a number of divisions around the world. Division US (in the United States) purchases a component from Division N (in the Netherlands). The component can be purchased externally for $24.60 each. The freight and insurance on the item amount to $2.45; however, commissions of $2.60 need not be paid.

Required:

Round your answers to the nearest cent.

1. Calculate the transfer price using the comparable uncontrolled price method.
$ fill in the blank 1per unit

2. Suppose that there is no outside market for the component that Division N transfers to Division US. Further assume that Division US sells the component for $27.30 and normally receives a 30 percent markup on cost of goods sold. Calculate the transfer price using the resale price method.
$ fill in the blank 2per unit

3. Now assume that there is no external market for the component transferred from Division N to Division US, and that the component is used in the manufacture of another product (i.e., it is not resold). Calculate the transfer price using the cost-plus method. Further assume that Division N’s manufacturing cost for the component is $18.50.
$ fill in the blank 3per unit

4. What if commissions avoided were $2.90 per unit?

What would be the comparable uncontrolled price?
$ fill in the blank 4per unit

What affect would this have on the resale price?

What affect would this have on the cost-plus price?

A company called Worldwide Development Ltd from Europe, had an electronic software manufacturing plant built for them by Electronic Merchandise Ltd, a company from the United States of America (USA). The amount that Worldwide Development Ltd owes to Electronic Merchandise Ltd for the manufacturing plant is $10,000,000. Worldwide Development Ltd Electronic agreed to pay Electronic Merchandise Ltd six months from now for the manufacturing plant. The current spot rate is €0.8573/$, the three month forward rate is €0.8617/$ and the six month forward rate is €0.8650/$. The annual interest rate is 0.2% in the USA and 2.0% in Europe. Electronic Merchandise Ltd can buy a six-month call or put option on $ at the strike price of €0.8649/$. The premium for put and call options are the same, namely €0.03 per $.

i. Should Electronic Merchandise Ltd enter into a put or call option? (Specify put or call and on what currency in the space provided below.)

ii. Compute the expected total future dollar cost (premium plus strike) of meeting this obligation if the option hedge is entered into by Electronic Merchandise Ltd. Show your workings and the correct answer as follows in the space provided below:

Premium:

Strike price:

Total cost:

One of the following answers will be correct for the total future dollar cost:

a. € 8,952,000.00

b. € 8,949,300.00

c. € 11,865,030.29

d. € 11,862,330.29

PLEASE SHOW THE EXPLANATION!!

1. Which of the following is consistent with advocates of rational expectations? If consumers fully anticipate an increase in interest rates, then

Real GDP will increase by the value of the multiplier

Real GDP will decrease by the value of the multiplier

Real GDP will not change

Price level will increase

Unemployment will increase

2. Fiscal policy is limited when the slope of the

AS curve is more vertical so the multiplier is more effective

As curve is more vertical hence the multiplier is less effective

As curve is more horizontal so the multiplier is more effective

AD and AS curves are more horizontal so the multiplier is more effective

AD curve is more vertical so the multiplier is more effective

3. If productivity rises in the United States, we expect that

The short-run Philips curve will shift left

The short-run Philips curve will shift right

The long-run Philips curve will shift right

There will be a movement to the right along the short-run Philips curve

There will be a movement to the left along the short-run Philips curve

4. If congress engages in contractionary fiscal policy, we can expect that

The short-run Philips curve will shift left

The short-run Phillips curve will shift right

The long-run Philips curve will shift right

There will be a movement to the right along the short-run Philips curve

There will be a movement to the left along the short-run Philips curve

Assume that the spot price of the Canadian dollar, CAD, is 0.7140 USD (USD per CAD). Assume also that the CAD/USD exchange rate has a volatility of 12% per annum. The risk-free rates of interest in Canada and the United States are 0.50% and 0.80% per annum, respectively. Exchange rate between USD and CAD (Canadian dollar) is 0.7140.

1. What is the value of a European CALL Option with maturity of 6-month to buy one CAD for 0.7100USD. (In other words, if K=0.7100USD per CAD, what is the call option value)

2. Using the put-call parity condition for European currency options, find the value of a European put option (with maturity of 6-month and the same exercise price as the call option) to sell one Canadian dollar, CAD, for 0.7100USD?

(If you wish, you can find out the value of put option using BSM formula and see if you get the same result as using the put-call parity. If you don not get the same results, then you must have made a mistake in calculating the put option using the BSM formula. However, the numbers are so close and you can make rounding along the way may give rise to different results. So, as long as you get quite close numbers, then it should be fine)

Please show your work!