Show how you arrived at the totals by Line item on the GST/HST return by completing the following

Additional information--$1,400 HST installment was paid to the CRA for this quarter (Hint—line 110)

42. Besides just offering low prices, how can could a firm make their product or service more inelastic?

A. Offering WOW customer service and studying new ways to generate repeat business
   B. Improving the quality of the product or service
   C. Offering loyal customers some type of reward like free air and hotel travel to Las Vegas   
   D. All of the above

43. Which item below represents a non-price marketing strategy?   

Sending thank you cards to your customers thanking them for their loyalty
B. Improving the customer service
C. Offering a one-year money back guarantee   
D. All of the above

44. Why do local governments like to tax inelastic goods such as liquor and cigarettes?

A. Inelastic goods tend to be price insensitive.
B. Consumers can’t easily stop using inelastic goods
C. The government has an easier time collecting more tax revenue
D. A, B and C are all correct responses.

45. A product or service will become more elastic over time because:

A. This is a false statement. Over time products become more inelastic
B. With more time consumers can look for substitute goods or services
C. The inflection point of the demand curve will point up
D. All of the statement above are false
46. When Coca-Cola put real cocaine in their drink in the early 1900s, then what did they create?

A. A more inelastic demand curve
B. A more elastic demand curve
C. A new equilibrium point on the total revenue curve
D. A new equilibrium point on the Production Possibilities Curve
49. The source of all economic problems comes from what?

   A. Greedy people
   B. Scarcity
   C. The fact that people don’t have enough money to buy what they need
   D. The fact that government charges too much in taxes

1. Types of groups and teams (Connect, Perform)

Use your knowledge of groups and teams to answer the following questions.

Please select the answer that best completes the sentence.

In business organizations, most employees work in --------------- .

For each example presented in the following table, identify the concept being illustrated.

Match each description with the corresponding job design term that best describes it.

For this activity, I want you to GO OUTSIDE. You don't have to go far. Find a city park. Find a patch of grass. Find your backyard. Find your local playground. But find somewhere where maybe there is some vegetation and some nonhuman animals.

Step 1. Look around you. Make careful observations. What do you see? What kinds of phenomena define the landscape that you see before you? What kinds of organisms travel along with it? How does water move through it (think precipitation, how does water get into the ground? Where is the closest water body where a drop of water might end up?) What kinds of things can't you see that you might be curious about? Don't limit yourself or your thinking. Stretch your mind. Include the land, the sky, the soil, etc. Observe the big picture as well as the tiny picture.

Below, briefly describe the environment around you. Remember the environment includes the atmosphere, biosphere, lithosphere (the ground) and the hydrosphere (lakes, oceans, rain):

Step 2. Now write your observations in the form of scientific questions. Scientific questions are those that can be addressed using observation and hypothesis testing. Write at least ten scientific questions. Think big, think small, and everywhere in between.

Step 3. Pick the question that you think would be the easiest to address using the scientific method and try to form two different possible answers. Frame them in the form of scientific hypotheses: your best guess given your current knowledge of the natural world.

Question picked:

Hypothesis 1:

Hypothesis 2:

Step 4. Now, as best you can, write a paragraph describing an experiment or study you could run to address your question. In your study, tell me what the independent and dependent variables are. What sort of things should be controlled for?

The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 without donor restrictions and $300,000 with donor restrictions. The $300,000 is composed of $200,000 with purpose restrictions and $100,000 that must be held permanently.

The following transactions occurred during the year.

1. Charged students $1.2 million for tuition and fees.
2. Received a donation of equity investments that had cost the owner $100,000 but is worth $300,000 currently. According to the terms of the gift, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent.
3. Received a cash donation of $700,000 that must be spent to acquire laboratory equipment.
4. Awarded scholarships to students in the amount of $100,000.
5. Paid salary expenses of $149,000 (teaching), $80,000 (research), $50,000 (administrative), and $40,000 (fundraising).
6. Learned that a tenured faculty member is contributing his services for this year and will not accept his $80,000 salary. His time is 70 percent teaching and 30 percent research.
7. Spent $200,000 of the money in (c) on laboratory equipment. The donor had made no specifications about the recording of the acquisition. The equipment is used 80 percent of the time for research and 20 percent of the time for teaching.
8. Learned that the investments in (b) are worth $339,000 at the end of the year.
9. Received cash dividends of $9,000 on the investments in (b).
10. Computed depreciation expense for the year on the equipment in (g) as $32,000.
11. The school’s board of trustees votes to set aside $100,000 of previously unrestricted cash for the future purchase of library books.
12. Received an unconditional promise of $10,000 halfway through the year. The school expects to collect the money in three years. The $10,000 future payment has a present value of $7,513 based on a reasonable annual interest rate of 10 percent.
13. Received an art object as a gift. It is worth $70,000. For financial reporting, it qualifies as work of art/museum piece. The school prefers not to record such gifts unless required.
14. Paid utilities and other general expenses of $83,000 (teaching), $45,000 (research), $43,000 (fundraising), and $50,000 (administrative).
15. Received free services from alumni who come to campus each week and put books on the shelves in the library. Over the course of the year, the school would have paid $103,000 to have this work done.
16. Near the end of the year, the school received a pledge of $40,000 to be collected in two years. It is judged to be conditional and has a present value of $31,200.

Determine the end-of-year balances for net assets without donor restrictions and net assets with donor restrictions by creating a statement of activities for the period. The school has two program services: education and research. It also has two supporting services: fundraising and administration.

-Compound interest is interest paid not only on the initial investment but also on any interest accumulated in prior periods.

True or false

-Jake purchased 100 shares of ABC stock at $42.50 per share. After seven months, he sold all of his shares at a price of $39.75 a share. Jake received a total of $1.10 per share in dividends during the time he owned the shares. Jake's holding period return is

A. -3.9%.

B. -2.8%.

C. 4.2%.

D. 9.1%.

-The coefficient of variation is used to compare assets with varying rates of return.

True or false

-An ordinary annuity has cash flows that occur at the ________ of each time period and are ________ in amount.

A. beginning; constant

B. beginning; variable

C. end; constant

D. end; variable

-The risk of an asset can be measured statistically on an absolute basis by the coefficient of variation and on a relative basis by the standard deviation.

True or false

-The stated rate of interest is equal to the true rate of interest only when

A. the simple interest method is used.

B. interest is compounded continuously.

C. interest is computed semi-annually.

D. interest is computed monthly.

When the cost of an investment exceeds the present value of its benefits, the investor would be earning a rate of return

A. greater than the discount rate.

B. equal to the discount rate.

C. equal to the compounded rate.

D. less than the discount rate.

In investment theory, the rate of return that could be earned in an inflation-free, perfect world where all outcomes are known and certain is known as the

A. absolute return.

B. required rate of return.

C. real rate of return.

D. expected rate of return.

-The yield is the rate of return that causes a project to have a zero net present value.

true or false

Which one of the following statements is correct?

A. A capital loss is computed as the reduction in the value of an investment minus the income received from that investment.

B. The total return from an investment is equal to the capital gain minus the current income.

C. A capital gain is equal to the amount paid for an investment minus the proceeds received from the sale of that investment.

D. Current income is cash or near-cash that is periodically received as a result of owning an investment.

-The yield assumes you earn the yield rate of return on all income received during the holding period.

True or false

Investors who favor risk free and low risk investments may still be subject to purchasing power risk.

True or false

Most investors are risk-seeking.

True or false

The financial concept of time value of money is dependent upon the opportunity to earn interest over time.

True or false

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.

There are several transactions occurred in March. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.

Possible account type: Cash, Accounts Receivable, Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings

Transaction 1: On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $23,000 in exchange for shares of stock. A few of their friends also purchased stock for $13,000 that was deposited in The Wire account.

Transaction 2: The company quickly acquired $43,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

Transaction 3: A one-year store rental lease was signed on March 1 for $1,200 per month, and rent for the first 4 months was paid in advance. (Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.)

Transaction 4: The owners paid $2,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $6,000 for some advertising in local newspapers. (Note: Combine both transactions into one entry.)

Transaction 5: Sales were $60,000. Cost of merchandise sold was 70% of sales. 25% of sales were for cash. (Note: Record the complete entry for the sales first and the complete entry for the expenses second.)

Transaction 6: Wages and salaries in March were $10,300, of which $8,000 was actually paid to employees.

Transaction 7: Miscellaneous expenses were $1,000, all paid for with cash.

Transaction 8: On March 1, fixtures and equipment were purchased for $4,000 with a downpayment of $1,000 and a $3,000 note, payable in one year. Interest of 5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 9 years with no expected salvage value. (Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.)

Transaction 9: Cash dividends totaling $3,400 were paid to stockholders on March 31.

William is a restaurant owner. He has 5 restaurants in Virginia, Maryland and DC. He is going through an extremely tough time due to Coronavirus crisis.

He had to shut down his restaurants, as ordered by authorities.
His restaurants are allowed to serve “take away” orders, however the revenue is very low to cover his costs.

William’s restaurants are located within a 45 minutes radius. Financial information is shown below;

A typical Profit & Loss Statement of one of his restaurants, before the crisis, is shown below;

Before the crisis, monthly revenue per restaurant was around $120,000. Now, with take-out only, revenue is down to $10,000 per month per restaurant.

William is aware that his business is rapidly burning cash and he will run out of cash in about 3 months.

William is still very young, therefore retiring or selling the business is not an option for him.

William needs help to make tough decisions. He has heard about you, a bright business professional and you agreed to consult him.

Your Task

Your task is to help William to take the following decisions.

Please provide an answer to each of them and explain why.

1. Should William close restaurants? If yes, for how long? And what should he do after that? Why?

If not, should he continue take away only? Why?

2. Before the crisis, the fair market value for each of his restaurants would be about $1 million. An investor, who is trying to make advantage of the crisis, offered to buy his restaurant in DC for only $100,000.

Would you recommend William to sell or not? Why?

3. Just before the crisis, William was making expansion plans. He was about to sign a lease agreement for a new restaurant near Tysons Corner, which is a booming area with many residential units being developed. It is almost certain, in 2 years’ time, this area will be a hot spot for a restaurant.

Should William sign the lease agreement? What should he do? Why?

4.William is aware if does nothing, he will run out of cash in 3 months. What actions should he immediately take? List your recommendations.

Think as if this is your family business.

Your answers should include numbers.

Milligan Companies, Inc (MCI)is a private company which owns five auto parts stores Houghton. MCI has gone from two auto parts stores to five stores in the last three years, and it plans on continued growth. Sheila and Walter own the majority of the stock. Sheila is the chairman of the board and the CEO. Walter is the COO as well as the CFO. Shares not owned by Sheila and Walter are owned by friends and family who helped get MCI started. Sheila started the company with one store after working in an auto parts store. To date, she has funded growth from an inheritance and investments from a few friends. They are thinking about expanding by several more stores in the near future.
MCI employs 20 full time staff. These workers are employed in store management, parts delivery and accounting. About 40% of MCI is retail walk-in business and the other 60% is regular customers where MCI delivers parts and bills these customers on account. During peak periods, MCI also uses part-time employees.
Your accounting firm ACC4100, is conducting the annual audit for the year ended December 31, 2020. Your audit team discovers numerous misstatements, mostly caused by human error and weak internal control. In aggregate, the misstatements are material, but management agrees to make your recommendation adjustments. Also, during 2020, MCI changed its method of valuing inventory from a weighted-average method to FIFO. When Sheila opened the first store, she thought the easiest way to value inventory was to use an average cost for each category of items. As the company grew, they never revised this practice. Now that the company is significantly larger with multiple stores, Sheila realize they need to be more focused on tracking inventory costs because of the impact of their profit margin.   The change was made to FIFO because it is more commonly used in the industry.
Your team concludes fieldwork on March 1, 2021 and Sheila is planning to provide the auditing financial statements and audit report to its lenders on March 6, 2023
A.      Does KCI have a justified change in accounting principle? If so, how should the change be presented in the financial statements?
B.      Assuming KCI has a justified change in accounting principle and has accounted for the change properly, draft the report that the CPA will issue.
C.      If management does not make agree to make the adjustments to correct the financial statements, and does not properly present the change in accounting principle in the financial statements. What reporting options does the CPA firm have?