ABC reports the following accounts and balances at December 31, 2017:
Accounts Payable $22,800
Accounts Receivable 18,800
Cash 24,400
Land 82,400
Machine 129,200
Merchandise Inventory 63,600
Long-term Note Payable 79,200
Short-term Note Payable 14,400
Paid-in Capital 200,000
Retained Earnings ?
Sales Revenue 122,000
Cost of Goods Sold 80,000
Operating Expenses 40,000
Required:
Prepare a balance sheet at December 31, 2017 Also, prepare an income statement for the year ended December 31, 2017. Ignore depreciation expense and interest expense.
In: Accounting
Short Answer **Answer any 2 of the following 3 questions in no more than a paragraph.
True or false? A firm looking to maximize revenue will never, ever set their price where their demand curve is elastic.
A politician shouts to thunderous applause, “To help fight racial discrimination, this city needs rent control! At mandatory low rents, landlords will not be able to afford to discriminate based on things like race or religion.” Comment on this assertion.
A talk radio host asserts, “Sales taxes aren’t paid by businesses -- they’re simply passed along to consumers.” Under what circumstances is this largely true?
In: Economics
3. Selected accounts from the December 31, 2015, adjusted trial balance of the Hodges Company are shown below.
|
Debit |
Credit |
|
|
Inventory, January 1, 2015 |
$30,000 |
|
|
Sales Revenue |
$90,000 |
|
Sales Returns and Allowances |
3,000 |
|
Purchases |
40,000 |
|
Freight-In |
2,500 |
|
Selling Expenses |
14,000 |
|
Administrative Expenses |
8,000 |
|
Bad Debts Expense |
500 |
|
Depreciation Expense-Building |
1,500 |
|
Interest Expense |
2,000 |
|
Income Tax Expense |
2,200 |
|
Dividends |
2,100 |
On December 31, 2015 the inventory was $18,000.
Required: Prepare a 2015 income statement for the Hodges Company.
ANSWER:
In: Accounting
1. In accounting its important to understand that there may be events that occur that are not business transactions. Please give us an example of a business transaction that affects the accounting equation. Remember that the expanded accounting equation is: Assets = Liabilities + Owner's Equity + Revenue - Expenses. Please be sure that you provide this transaction in General Journal format. Additionally give us an example of an event that is not an accounting transaction.
2. Please let us know what you are doing to get those rules of debit and credit memorized. Please let us know if you have any hints to help us with this process.
In: Accounting
1. What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?
a. The cost of manufacturing corporate jets rises.
b. Reduced corporate earnings lead to cuts in travel budgets and increase the share of expenditures on corporate jet travel.
2. 3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies (in the language of economics) on
a. The price elasticity of demand on 2-D movies
b. The total revenue of movie theater box offices
In: Economics
Answer the following questions and show all working.
1. Using the information below for a monopoly firm, calculate TR, TC, ATC and Profits: (8)
|
Quantity |
Price |
Total Revenue |
Total Cost |
ATC |
MR |
MC |
Profits |
|
0 |
17 |
0 |
0 |
||||
|
1 |
16 |
16 |
4 |
||||
|
2 |
15 |
14 |
6 |
||||
|
3 |
14 |
12 |
8 |
||||
|
4 |
13 |
10 |
10 |
||||
|
5 |
12 |
8 |
12 |
(a) What is the monopolist’s profit maximizing level of output and price? (2)
(b) At what output and price would allocative efficiency be achieved? Why? (3)
In: Economics
Describe the communications objectives.
Select at least three online media and describe in detail how these media will appeal to your two targeted market segments.
Develop a message to be delivered through the three online media.
The message should contain the key information you want to communicate to your target markets and might include benefits of the product or service, key features, prices and promotions, and where to buy.
Develop a budget for message development and placement of the message for 12 months in each of the three media.
Identify how you will measure the performance of each media, including revenue and e-marketing performance measures.
In: Economics
A 10-yr project has an initial cost of $400,000 for fixed assets. The fixed assets will be depreciated to a $0 book value using a 20-yr straight line depreciation method.
Each year, annual revenue is $50,000 and cost is $15,000.
After 10 years, you will terminate the project. You expect to sell the the fixed assets for $250,000.
The project is financed by 40% equity and 60% debt. The required rate of return on equity is 12% and the borrowing cost is 4%.
Assume the tax rate is 25%.
What is the project's NPV?
Group of answer choices
-51,056
-21,937
29,441
43,662
In: Finance
"The A.M.I. Company is considering installing a new process machine for the firm's manufacturing facility. The machine costs $529,000 installed, will generate additional revenue of $90,000 per year, and will save $61,000 per year in labor and material costs. The machine will be financed by a $263,000 bank loan repayable in three equal annual installments with a 4% interest rate. The machine will be depreciated using seven-year MACRS. The useful life of the machine is 10 years when the machine will be sold for $20,000. The marginal tax rate is 33%. Compute the IRR of the investment. Enter your answer as a percentage between 0 and 100."
In: Finance
"The A.M.I. Company is considering installing a new process machine for the firm's manufacturing facility. The machine costs $529,000 installed, will generate additional revenue of $90,000 per year, and will save $61,000 per year in labor and material costs. The machine will be financed by a $263,000 bank loan repayable in three equal annual installments with a 4% interest rate. The machine will be depreciated using seven-year MACRS. The useful life of the machine is 10 years when the machine will be sold for $20,000. The marginal tax rate is 33%. Compute the IRR of the investment. Enter your answer as a percentage between 0 and 100."
In: Finance