Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportation/delivery company.

Answer each of the following questions.

(a)

Calculate the accounts receivable turnover and the average collection period for 2022 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

1. A company is evaluating the addition of equipment to its present operations. They need to purchase equipment for $160,000. The 5-year MACRS GDS recovery method (see table 7.3) is appropriate for the investment and the total tax rate is 40%. Gross revenue is expected to be $30,000/YEAR while maintenance cost is expected to be $5,000/YEAR. It is expected that operations will shut down by the end of the 4^th year with a salvage value of $20,000.

Part A:

Draw a before tax cash flow diagram

Part B:

Use a table to show the development of the after-tax cash flow

Part C:

If the after-tax MARR is 12%, is the investment profitable?

For fiscal 2019, Victor Town levied a property tax of $350,000 that was expected to be 95% collectible. By fiscal year end, cash collection is $318,000 and the town declares the uncollected amount as delinquent. Of the delinquent taxes, $8,700 is estimated to be collected within 60 days of year end and the rest is uncollectible. In fiscal 2020, Victor Town collects $9,200 of the delinquent taxes and writes off the remaining delinquent taxes.

a. Prepare the journal entries to record all the property tax transactions in fiscal 2019.

b. Determine the amount of tax revenue reported for fiscal 2019.

c. Prepare the journal entries to record the collection and write-off of delinquent taxes.

Two alternative machines will produce the same​ product, but one is capable of​ higher-quality work, which can be expected to return greater revenue. The following are relevant data. Determine which is the better​ alternative, assuming repeatability and using SL​ depreciation, an​ income-tax rate of 23%, and an​ after-tax MARR of 8%.

1) Calculate the AW value for the Machine A.

2)Calculate the AW value for the Machine B.

The market for a product has the following inverse demand and supply functions

P_d= 120 - Q_d

P_s   = 0.5Q_s.

1. Suppose the state government levies a tax of $15 on each unit sold, imposed on the consumers. Find the prices that consumers pay (Pd) and the producers receive (Ps) and the new quantity traded in the market, Q**. Show on your diagram.
2. What is the incidence of the tax on consumers and what on producers.
3. How much money does the state government collect as tax revenue? Calculate how much of the tax burden falls on the producers and how much on the consumers.
4. Find the new consumer and producer surplus. If there is a deadweight loss find it

Ivanhoe provides testing services to school districts that wish to assess students’ reading and mathematical abilities. Last year Crane evaluated 30,000 math tests and 10,000 reading tests. An income statement for last year follows.

(a)

What is Ivanhoes breakeven point in sales dollars?

Schneider's Bakery sells cakes. At a price of $20 per cake, it sells 500 cakes per week. At a price of $40, it sells 300 cakes per week.

(a) (2.5 points) Find a linear demand function ?(?)D(x) that models this situation.

(b) (2.5 points) Find the elasticity of demand.

(c) (2.5 points) Find ?(20)E(20) and ?(50)E(50), and explain what these numbers represent.

(d) (2.5 points) Using the linear demand function from part (a), find the price ?x that results in unit elasticity, and explain what this number represents. Also, determine the weekly revenue at this price.

1.

f the supply of labor falls in the shrimping industry, firms will _______ employment and the wage rate will _______ until MRP equals the new wage.

2.

Is WidgetWorks at its profit-maximizing output level if an extra worker is hired and is paid $24 per hour to produce six products that sell for $10 each in a perfectly competitive market?

Suppose that a local firm faces the following demand curve: Q = 70 - (1/11)P

The firm had to make an upfront investment of $2000 and it costs them $220 to produce each unit of output.

1) Graph the demand curve

2) Derive expression for marginal revenue. Graph it on the same figure as (1).

3) Derive expressions for the average cost and marginal cost. Graph on the same figure as (1) and (2).

4) Which Q should the firm produce and what price P should it charge to maximize profit?

5) Calculate profit, Can you use the figure from (1) to show it graphically?