Draw a graph with the following information: The world price of soybeans is $2.00 per bushel with a domestic supply of 60 Q/million bushels and a domestic demand of Q/millions bushels. The importing country is small enough not to affect the world price.

A. Suppose government puts a tariff of $0.25 per bushel on soybean imports. How much will the tariff reduce imports? Draw the new graph.

B. Given a tariff of $0.25 per bushel on soybean imports, how much will domestic production increase?

C. How much revenue will the government raise from a $0.25 per bushel tariff on soybean imports?

Early in 2022, Blossom Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2021 and 2022 are shown below.

Determine the inventory turnover for 2021 and 2022. (Round answers to 1 decimal place, e.g. 5.1.)

Determine the days in inventory for 2021 and 2022. (Round answers to 1 decimal place, e.g. 5.1.)

1. In addition to requiring that the accounting equation remain in balance, the double-entry system also requires that:

the number of asset accounts must equal the number of liability and stockholder's equity accounts.

for any transaction, only two accounts are affected.

for any transaction, both sides of the accounting equation are affected.

the total dollar amount of debits must equal the total dollar amount of credits.

2.Which of the following would eventually cause Retained Earnings to decrease?

Receiving contributions from investors

Earning unearned revenue

Billing customers for services provided

Using up supplies

Instructions:

Prepare a multiple step income statement and a statement of owner’s equity for the year ended December 31, 2018 and a classified balance sheet as of December 31, 2019.

The trial balance before adjustment of Culver Inc. shows the following balances.

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,700 credit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Molly Restaurant had the following transactions for the month of May, 2015:

         i.            Purchased stove for $3,000

       ii.            Purchased Mixers for $1000

     iii.            Petrol cost for Delivery Vehicles, $800

     iv.            Paid $300 to add Spoiler to Delivery Van and $200 for repairs.

       v.            Purchased another stove for $5,000

     vi.            Incurred expenses of $400,000 to add a room to the restaurant

    vii.            Repainted the restaurant for $300

Management would like to better understand the nature of each transaction.

You are required to:

a.        Classify the following items into Capital and Revenue Expenditure.

b.       Briefly explain your reason for each classification to management.

Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,780 at the beginning of 2021 and a $23,410 credit balance at the end of 2021 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2021 would have included bad debt expense of $18,100 and revenue of $3,200 from the collection of previously written off bad debts.

Required:

Determine bad debt expense for 2021 according to the allowance method.

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000 and for proposal B, $70,000. The variable cost for A is $12.00 and for B is $10.00 . The revenue generated by each unit is $20.00.

What is the break-even point in dollars for proposal A is you add $10,000 installation to the fixed cost?

What is the break-even point in dollars for proposal B is you add $10,000 installation to the fixed cost?

What volume (in units) of output would the 2 alternatives yield at the same profit?

Total sales of ABC Corp. is $100 M and net income is $11.5M. The manager belives that eliminating the group marginal customers which constitutes 10% of the total sales, will increase the performance of the company. Distribute the revenue and expenses of BC Corp. between the marginal customers and credible customers, based on income statement, indicate whether the company should eliminate marginal customers or not, in terms of net profit margin.

Percentage of sales total/ fixed/ variable

Cost of sales (%) 70/ - /70

Overhead cost (%) 15/ 8/ 7

Collection exp.(%) 1 /-/ 1

Other exp. (%) 2.5/2/ 0.5