Sheridan Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $37,500 would have been the same under either the conventional retail system or the LIFO retail system.

On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to 0 decimal places, e.g. 28,987.)

The following tables summarizes the 2019 income statement and end-year balance sheet of Drake’s Bowling Alleys. Drake’s financial manager forecasts a 10% increase in sales and costs in 2020. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year.

^a Assets at the end of 2018 were $3,600,000.

^b Debt at the end of 2018 was $620,000.

a. What is the implied level of assets at the end of 2020? (Do not round your intermediate calculations. Enter your answer in thousands.)

b. If the company pays out 50% of net income as dividends, how much cash will Drake's need to raise in the capital markets in 2020? (Do not round your intermediate calculations. Enter your answer in thousands.)

c. If Drake's is unwilling to make an equity issue, what will be the debt ratio at the end of 2020? (Do not round your intermediate calculations. Round your answer to 2 decimal places.)

Sweet Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,100 would have been the same under either the conventional retail system or the LIFO retail system.

On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to 0 decimal places, e.g. 28,987.)

The following tables summarizes the 2019 income statement and end-year balance sheet of Drake’s Bowling Alleys. Drake’s financial manager forecasts a 15% increase in sales and costs in 2020. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 3% of debt at the start of the year.

^a Assets at the end of 2018 were $2,600,000.

^b Debt at the end of 2018 was $520,000.

a. What is the implied level of assets at the end of 2020? (Do not round your intermediate calculations. Enter your answer in thousands.)

b. If the company pays out 50% of net income as dividends, how much cash will Drake's need to raise in the capital markets in 2020? (Do not round your intermediate calculations. Enter your answer in thousands.)

c. If Drake's is unwilling to make an equity issue, what will be the debt ratio at the end of 2020? (Do not round your intermediate calculations. Round your answer to 2 decimal places.)

Tamarisk Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,900 would have been the same under either the conventional retail system or the LIFO retail system.

On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to 0 decimal places, e.g. 28,987.)

Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMs) of desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to be:

Qd_desktop = 1600 - 2P_desktop + 0.6M (in millions of units), where P_desktop is the price of a desktop system and M is consumer income.

The same article reported that the incomes of the desktop system’s primary consumer demographic would increase 4.2 percent this year to $61,300 and that the selling price of a desktop would decrease to $980, both of which the CEO viewed favorably for Viking. In a related article, the CEO read that the upcoming year’s projected demand for 512 MB desktop memory modules is:

Qd_memory = 11,200 - 100P_memory - 2P_desktop (in thousands of units), where P_memory is the market price for a 512 MB memory module and P_desktop is the selling price of a desktop system.

The report also indicated that five new, small start-ups entered the 512 MB memory module market bringing the total number of competitors to 100 firms. Furthermore, suppose that Viking’s CEO commissioned an industry-wide study to examine the industry capacity for 512 MB memory modules. The results indicate that when the industry is operating at maximum efficiency, this competitive industry supplies modules according to the following function:

Qs_memory = 1000 + 25P_memory + N where P_memory is the price of a 512 MB memory module and N is the number of memory module manufacturers in the market.

Viking’s CEO provides you, the production manager, with the above information and requests a report containing the market price for memory modules and the number of units to manufacture in the upcoming year based on the assumption that all firms producing 512 MB modules supply an equal share to the market.

Round to 2 decimals

A) Market Price for Memory Modules ($):

B) Number of units to manufacture (thousand):

How would your report change if the price of desktops were $1,080?

C) Market Price for Memory Modules ($):

D) Number of units to manufacture (thousand)

Please clearly indicate what number goes with what letter!

Viking InterWorks is one of many manufacturers that supplies memory products to original equipment manufacturers (OEMs) of desktop systems. The CEO recently read an article in a trade publication that reported the projected demand for desktop systems to be:

Qd_desktop = 1600 - 2P_desktop + 0.6M (in millions of units), where P_desktop is the price of a desktop system and M is consumer income.

The same article reported that the incomes of the desktop system’s primary consumer demographic would increase 4.2 percent this year to $61,300 and that the selling price of a desktop would decrease to $980, both of which the CEO viewed favorably for Viking. In a related article, the CEO read that the upcoming year’s projected demand for 512 MB desktop memory modules is:

Qd_memory = 11,200 - 100P_memory - 2P_desktop (in thousands of units), where P_memory is the market price for a 512 MB memory module and P_desktop is the selling price of a desktop system.

The report also indicated that five new, small start-ups entered the 512 MB memory module market bringing the total number of competitors to 100 firms. Furthermore, suppose that Viking’s CEO commissioned an industry-wide study to examine the industry capacity for 512 MB memory modules. The results indicate that when the industry is operating at maximum efficiency, this competitive industry supplies modules according to the following function:

Qs_memory = 1000 + 25P_memory + N where P_memory is the price of a 512 MB memory module and N is the number of memory module manufacturers in the market.

Viking’s CEO provides you, the production manager, with the above information and requests a report containing the market price for memory modules and the number of units to manufacture in the upcoming year based on the assumption that all firms producing 512 MB modules supply an equal share to the market.

Instructions: Enter your responses rounded to two decimal places.

Market price for memory modules: $

Number of units to manufacture: thousand


How would your report change if the price of desktops were $1,080?

Market price for memory modules: $

Number of units to manufacture: thousand


What does this indicate about the relationship between memory modules and desktop systems?

Ava Miller has just completed the second year of operating her veterinary clinic. You have been retained by Ava for tax assistance and advice. At a recent meeting, you gathered information on her practice, which is presented below.

For the year ended December 31, 2020, the clinic showed a profit of $123,700, as follows:

Included in the above is depreciation/amortization expense of $23,000 on fixed assets and amortization of development costs of $4,400. Additional information for 2020 is outlined below.

1.        On February 28, Ava purchased a competitor’s business and merged it with her own. The following assets were acquired:

2.        During the year, Ava designed and patented a new surgical instrument. On July 1, a legal fee of $4,000 was paid for the patent (life of 20 years) registration; this amount is included in administration expenses. In October, $16,000 was spent on consultants to research metal alloys, and this cost is being amortized as development costs in the financial statement.

3.        Professional services revenue includes the value of unbilled services compiled from a work-in-progress file. At December 31, unbilled services amounted to $16,000, compared with $2,100 at the same time last year. In 2019, Ava had made an election under section 34 of the Income Tax Act to exclude work in progress from income.

4.        Some of the items included under administrative and other expenses are as follows:

5.        The income statement includes a cost of $3,150 for attending three conventions during the year. Convention #1 ($750) was in July. Conventions #2 ($1,350) and #3 ($1,050) were both in December. Each convention includes a cost of ($100) for meals. For each of the December conventions, the airfare of ($200) was included in accounts payable at the end of the year.

6.        Vehicle costs include operating costs of $2,400 for the automobile (including $400 for car parking). The automobile was driven 24,000 km. Of this, 12,000 km was for customer travel, 2,000 km was for travel between her home and the clinic, and 10,000 km was for personal travel.

7. Ava expects that a number of the new manufactured surgical instruments will be returned for modification, which she will do at no extra cost to the customer. The income statement includes a $2,000 deduction based on her estimate of the returns. As of December 31, $800 of costs were incurred for returned items.

8. Ava moved from rented premises to new rented premises on February 28, with 20 months remaining on the old lease. The landlord accepted a payment of $8,000 in exchange for cancelling the lease. The accounting records have amortized this cost over the remainder of the lease term and accordingly have deducted $4,000 as rent expense.

9. Capital cost allowance (CCA) for tax purposes has been correctly calculated as $15,000.

Required: Determine Ava’s net income from business for tax purposes for 2020 taxation year.

Three different companies each purchased trucks on January 1, 2018, for $82,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 79,000 miles in 2018, 56,000 miles in 2019, 51,000 miles in 2020, and 71,000 miles in 2021. Each of the three companies earned $71,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. d-1. Calculate the retained earnings on the December 31, 2021, balance sheet?

Retained Earnings

Company A

Company B

Company C

can you please summarize it, relate any theory from the text ( INTERNATIONAL BUSINESS ENVIRONMENTS OPERATIONS 16^th EDITION ) that applies, and include a few sentences of your reaction or questions that the article has created for you. in 3-4 paragraphs

ARTICLE :- Chinese Drone Maker Plows Into Agriculture; DJI to launch crop-spraying drone in effort to expand into farming sector

China's SZ DJI Technology Co., the world's top consumer-drone maker, is setting its sights on the agriculture industry with the launch of a crop sprayer that will test whether farming is fertile ground for drone technology. Drones would improve pesticide application on hilly or wet land that is difficult to access and would limit farmworkers' exposure to chemicals, said Even Pay, a Beijing-based agriculture consultant who has studied Chinese farming methods.

China's SZ DJI Technology Co., the world's top consumer-drone maker, is setting its sights on the agriculture industry with the launch of a crop sprayer that will test whether farming is fertile ground for drone technology.

DJI, which helped kick-start the global craze for drones with its $1,000 easy-to-fly devices, has unveiled an eight-rotor drone priced at roughly $15,000 that is designed to spray pesticides on crops, a spokesman said. DJI said the drone, which has a 2.6-gallon spray tank and a typical takeoff weight of about 49 pounds, can fly for about 12 minutes.

It can spray pesticides on seven to 10 acres of farmland an hour, depending on how much it needs to climb, descend or turn to follow the terrain.

The battery-powered DJI Agras MG-1 will be available first in China and South Korea, though the company didn't specify exactly when it would go on sale. In China, DJI was taking preorders Friday. The drone is expected to be available in other markets later, the company said.

Shenzhen-based DJI has found success selling drones to consumers and filmmakers since 2013, with revenue expected to exceed $1 billion this year.

The company, which is valued at roughly $8 billion based on its latest funding round, is now betting it can parlay that success into farming. Its push into the sector could open the way for other drone makers--or prove that agriculture isn't the cornucopia for unmanned aircraft that some had hoped.

The Association of Unmanned Vehicle Systems International, the largest drone trade group, has touted farming as the biggest potential market for drones, by far. In a 2013 report, the Arlington, Va.-based group forecast that agriculture would account for 92% of an estimated $82 billion economic impact from commercial drones in the U.S. between 2015 and 2025.

But even as the commercial use of drones has taken off world-wide, agriculture is far from capturing such a large share of the market. Fewer companies are applying for U.S. Federal Aviation Administration approvals to use drones on farms than for activities such as filmmaking, mapping and industrial inspection, according to recent studies.

The FAA began regularly approving drones for commercial use in September 2014. Just 90 of the FAA's first 1,355 approvals were for agriculture, according to Piper Jaffray Investment Research--well behind the 670 approvals for aerial filming. The FAA has approved most applications it receives.

Much of the promise for agricultural drones has been in their ability to collect large-scale aerial data on crops. The information helps farmers more precisely tend to their fields, adding or reducing irrigation or pesticides where necessary. So far, agricultural drones have failed to live up to their promise because giving farmers actionable data on their crops is far more complex than making a map or filming a movie, analysts said.

Commercial-drone maker Kespry Inc., based in Menlo Park, Calif., said it originally considered targeting agriculture as its top initial market, but ultimately decided on construction.

"To serve that market we need real expertise--agronomists who can combine the data with information on weather and local pests, and provide real recommendations," said Kespry founder and Chief Executive Paul Doersch. "For us to scale it didn't make sense."

Despite the complexities, DJI isn't the only drone maker betting on farming to diversify its revenue stream. Henri Seydoux, CEO of Paris-based Parrot SA, which has quickly captured the lower end of the consumer-drone market , said his company will collect data on 200,000 acres for farmers in France this year. Still, commercial drones earned Parrot just [euro]5.6 million ($6 million) in the third quarter, compared with [euro]44.4 million on consumer drones.

Agricultural drones "are at an early phase," Mr. Seydoux said. "It's true for all the commercial spaces. There is a lot of expectation but still not a big result."

DJI is making a different bet on agriculture: spraying crops instead of inspecting them. In China, chemicals are often administered on foot by backpack-wielding workers. Drones would improve pesticide application on hilly or wet land that is difficult to access and would limit farmworkers' exposure to chemicals, said Even Pay, a Beijing-based agriculture consultant who has studied Chinese farming methods.

Japanese farmers have used large gasoline-powered unmanned helicopters made by Yamaha Motor Co. since the early 1990s to spray their fields. Yamaha began selling the drones to South Korean farmers in 2005.

The FAA in May approved the drone for limited use in the U.S., and the company is considering whether to introduce it in the country.

Analysts said DJI's crop-spraying drone will likely struggle to win over Western farmers who generally tend to larger areas. Large U.S. farms have for decades used small planes that can carry hundreds of gallons of pesticide to spray their fields. The planes are efficient at covering large areas and relatively inexpensive to hire.

Robert Blair, an Idaho farmer and vice president of agriculture for commercial-drone company Measure LLC, said he is bullish on drones that collect data on crops but skeptical about crop-spraying drones like DJI's that can carry only a few gallons of pesticide. "It's a niche market," he said.