ABC (American bread company) is a competitor in the product market, but a monopsonist in the labor market. ABC's production function is Q = 30L - 0.5L² . Market demand for bread is Q = 1000 - 5P and supply is Q = -20 + 250P. The market supply of labor is W = 2L.

1. Derive the unconditional demand for labor for ABC.

2. Suppose ABC does not exploit its monopsony power (acts as a competitor in the labor market). Compute the equilibrium W and L, Employee Surplus(ES) and Economic Rent(ER).

3. Suppose ABD DOES exploit its monopsony power. Compute the equilibrium W and L, Employee Surplus(ES) and Economic Rent(ER).

4. Find the DWL resulting from ABS's exploitation of monopsony power.

5. If the government imposes full coverage minimum wage at $35, what is L, ES, ER now? Who gains who loses compared to when ABC exploits its monopsony power. What is the "net" gain?  

An investor is provided with the following information on American put and call options on a share of a company listed on the London Stock Exchange:

• Call price (c₀) = 33p
• Put price (p₀) = 49p
• Exercise price (X) = 480p
• Today: 11 June 2019
• Expiry date: 20 December 2019
• Current stock price (S₀) = 458p
• Risk-free interest rate (r) = 2.4%
• The company pays no dividends.

Draw a graph showing the prices at expiry of a fiduciary call and another one showing a protective put, including all of their components, in relation to the price of the stock in a range between 350p and 600p.

Company to be used for this exercise is 3M.

• The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods

1.    Corporate Level Strategy (Chapters 9 & 10)

1.1.    What is the organization’s corporate-level strategy? Related vs. Unrelated

1.2.    If it operates in more than one business, do the businesses share or trade resources?

1.3.    What are the connections among the different businesses?

1.4.    What has been the primary mode of diversification: acquisition, joint-venture, or internal growth?

1.5.    What is your assessment of its growth mode?

1.6.    If the organization operates in one business, could it gain value through diversification?

1.7.    If so, which businesses would you recommend and how can it create value?

What mode of diversification and growth would you recommend?

The history of American popular musical styles such as Jazz and Rock and Roll is an exploration of the fusion of many earlier genres and styles.

For each listening example make a list of major features. What features from each seem to be continued on in later musical styles and even in the music you might listen to today?

West African Drumming:

https://www.youtube.com/watch?v=6dFtlcqGW50 (Links to an external site.)Links to an external site.

Stephen Foster -1851:

https://www.youtube.com/watch?v=uQjGlyRm8ek (Links to an external site.)Links to an external site.

Ragtime 1904:

https://www.youtube.com/watch?v=sE86FR2SzBo (Links to an external site.)Links to an external site.

Spiritual - 1909

https://www.youtube.com/watch?v=GUvBGZnL9rE (Links to an external site.)Links to an external site.

City Blues - 1925:

https://www.youtube.com/watch?v=ZxQncVvsuyg (Links to an external site.)Links to an external site.

Country Blues - 1936:https://www.youtube.com/watch?v=iigXKpgrfYo (Links to an external site.)Links to an external site.

Big Band Swing 1943:

https://www.youtube.com/watch?v=qDQpZT3GhDg (Links to an external site.)Links to an external site.

Rhythm and Blues -1947:

https://www.youtube.com/watch?v=Xo9auUfitVA (Links to an external site.)Links to an external site.

Bluegrass - 1950's

https://www.youtube.com/watch?v=665XeIyMgak (Links to an external site.)Links to an external site.

Bebop - 1950:https://www.youtube.com/watch?v=LphuCadyQi0 (Links to an external site.)Links to an external site.

Western Swing - 1951:

https://www.youtube.com/watch?v=ZFef08YZ6qk&list=RD0C08jmN1sM8&index=3 (Links to an external site.)Links to an e

Soul - 1954:

https://www.youtube.com/watch?v=CnI_LuCJ4Ek (Links to an external site.)Links to an external site.

Rock and Roll - 1955:

https://www.youtube.com/watch?v=ZgdufzXvjqw (Links to an external site.)Links to an external site.

There is a great deal of talk about the liberal bias of the media in American politics. To what extent is the media liberal? To what extent, do you think, it is biased? Considering the growing importance of conservative talk and news enclaves that support conservative causes, describe the ways in which discussions of a liberal bias in the media might be qualified? What other factors might mitigate the liberalism of the media?

explain the concept of diversity as it describes the American people, the impact of a more diverse population in the United States as it relates to community health efforts, and the importance of the 1985 landmark report The Secretary’s Task Force Report on Black and Minority Health. Why is this important for you to know in your prospective career field?

Volkswagen in Russia In the mid-2000s, Volkswagen announced that it would invest directly in automobile production in Russia. The decision to invest was driven by a number of factors. Russia’s economy was growing rapidly at the time and living standards were rising, while the level of car ownership per capita was still low by European standards. This suggested that demand for cars would grow rapidly going forward. Indeed, forecasts predicted that by 2020, Russia would surpass Germany to become the largest car market in Europe. Moreover, Volkswagen’s global rivals, including most notably Toyota, General Motors, and Ford, were also investing in production facilities in Russia, so Volkswagen felt that it had to make direct investments in order to avoid being preempted by its rivals. The Russian government also createdPage 238 incentives for carmakers to invest directly in Russian production facilities, allowing them to avoid import tariffs and a punitive tax on imports of parts if they produced at least 25,000 cars in the country. In 2011, the government announced that it would keep tariffs on imported components at 0.3 percent if a foreign automaker built at least 300,000 in the country by 2020 and produced 60 percent of the value of the car locally. Spurred on by such incentives, in 2007 Volkswagen opened a plant in Kaluga, 160 miles southwest of Moscow, to build some of its VW and Skoda car brands. The plant was projected to have a peak capacity of 150,000 units a year and employ 3,000 people. Initially all vehicles at the plant were assembled from semi-knocked-down kits imported from Germany. In October 2009, however, the plant launched full-scale production, including welding and painting of vehicles. In October 2011, Volkswagen announced that, together with a local partner, GAZ Group, it would open a second plant near St. Petersburg, as it strove to reach the 300,000 units of local production by 2020. In 2013, Volkswagen made an additional investment in Kaluga when it pledged 300 million euros to build an engine plant near to its assembly operation. The engine plant opened in September 2015. All told, by this point Volkswagen had invested over $1 billion in production in Russia. General Motors and Toyota had also announced investments of over $1 billion to boost Russian production up to 300,000 units by 2020, and Fiat had indicated that it would make investments to bring its Russian production up to 300,000 as well. In total, foreign carmakers had invested over $5 billion in Russian assembly operations by 2014. Meanwhile, analysts continued to predict that the Russian car market would grow at a healthy pace and exceed that of Germany by 2020. In 2014, however, the market took a sharp turn for the worse. Russia is a major oil producer. Since the mid-2000s, much of the country’s economic growth had been powered by high oil prices. In the second half of 2014, however, global oil prices started to fall rapidly as increased production in America and weak demand in China conspired to create a global glut of oil. By early 2016, oil prices had fallen 80 percent from their peak. To make matters worse, following hard on the heals of its hostile takeover of the Crimea region from Ukraine, Russia had become embroiled in a smoldering civil war in eastern Ukraine. Western nations responded to what they perceived as Russian aggression by imposing sanctions on Russia. Hit by these twin blows, the Russian economy weakened significantly in 2014 and 2015, and the ruble declined precipitously, losing 50 percent of its value against the U.S. dollar. Suddenly the bright hopes that foreign automakers had for the Russian market seemed to be tarnished. Faced with falling demand, Volkswagen cut production at its Kaluga plant to 120,000 vehicles from a planned 150,000. With the new engine plant scheduled to come on line and no resolution to Russia’s economic crisis insight, Volkswagen’s excess capacity problem may get worse. Looking forward, Volkswagen has to decide whether to keep investing in Russia in order to hit the magic 300,000 local output figure by 2020 or to pull back from a market whose future suddenly looks highly uncertain. At this point, it looks as if Volkswagen is staying the course. In late 2015, a Volkswagen board member noted that “We need to continue to strengthen our partnership (in Russia) despite the current situation”.* Sources: Sarah Sloat, “Volkswagen to Halt Production at Russian Plant for 10 Days,” The Wall Street Journal, September 7, 2014; Clare Nuttall, “Foreign Car Firms Invest Heavily in Russia,” The Telegraph, April 28, 2011; Staff reporter, “Volkswagen Russia Shows the Way,” Automotive Supply Chain, July 2, 2013; Staff reporter, “Volkswagen Slashes Car Production at Russian Plat,” Reuters, September 7, 2014.

Question: Volkswagen has signaled that it is going to stay the course in Russia, despite current political and economic headwinds. Why do you think it made this decision? What are the pros and cons of this decision?

Andy’s Co. is a manufacturing firm of a computer hardware device. Its sales forecasts for the year 2020 is as follows:

The company will start its business this year with $30,000 of cash balance. As of Q4 of the fiscal year 2019, it does not have any material, work in progress, or finished goods inventories. The company currently has no debt and entirely owned by shareholders. The balance sheet of Andy’s Co. as of the end of the year 2019 is as follows:

Direct material costs per unit are $150. Each unit requires three direct labor hours to be completed. The hourly wage is $40. For the year 2020, the company expects the variable overhead to be $136,000. The company allocates variable overhead by direct labor hours. Fixed overhead is expected to be $204,000, including the depreciation of the equipment ($47,500). The company will evenly allocate the fixed overhead for each quarter.

At the beginning of the year 2020, the company will invest in $95,000 for the equipment.

The company supplies products with no material selling and administrative expenses. Their products are immediately picked up by other manufacturers in the complex for cash. Due to the highly efficient just-in-time inventory management system, the company does not hold materials inventories. All materials are purchased just enough to be used in production each quarter. The company also does not hold work in progress inventories. However, they keep 10% of next quarter’s sales as ending inventories of finished goods.

The company also engages in flexible cash management. They require a minimum balance of zero. Whenever they run short of cash, they can borrow from a partnered venture capital at the quarterly interest rate of 2%. They obtain the short-term loan at the beginning of the quarter, and they repay both principal and interest at the end of the quarter if they have enough cash.

The company will incur 20% of taxable income (operating income less interest expenses) as tax expenses but will pay the income taxes in the year 2021.

5) Complete the overhead budget including the cash disbursement for Andy’s Co. for the fiscal year 2020

6) Complete the cost of goods manufactured budget for Andy’s Co. for the fiscal year 2020

7) Complete the cost of goods sold budget for Andy’s Co. for the fiscal year 2020

8) Complete the cash budget for Andy’s Co. for the fiscal year 2020

9) Complete the income statement for Andy’s Co. for the fiscal year 2020

10) Complete the balance sheet for Andy’s Co. for the fiscal year 2020

11) An alternative plan for operation requires more investment in the equipment. If the company can invest $210,000 instead of $95,000 in the equipment at the beginning of the year 2020, the company can reduce direct labor hours required for each unit to 2 hours. The depreciation of the equipment will be $105,000 for the year 2020. Calculate the impacts of the additional investment on net income and operating cash flows for the year 2020. You can present an alternative income statement, cash budget, and balance sheet.

12) The executives of Andy’s Co. are debating over whether to invest $95,000 or $210,000. The market analysts suggest that the demand for the products will be at a similar level over the next few years. Based on the sales forecasts of the market analysts, provide advice to the executives. Support your advice quantitatively.

PLEASEEEEEEE ANSWER IT ALL PLEASEEEE!!!!

Differentiate the following;
1. Relevance vs. faithful representation
2. Predictive Value vs. confirmatory value
3. Neutrality vs free from error
4. Comparability vs Verifiability
5. Timeliness vs understandability

Enumerate the Following;
1. Fundamental Characteristics
a)
b)

2. Components/Aspects to Fundamental Characteristics
a)
b)
c)
d)
e)
f)

3. Enhancing Characteristics
a)
b)
c)
d)

Enumerate the Major steps in Accounting Cycle
a)
b)
c)
d)
e)
f)
g)
h)
i)

Enumerate the different kinds of Source Documents
1.
2.
3.
4.
5.
6.
7.

Differentiate Accountable and Non-Accountable events

Differentiate General Journal vs General Ledger

Identification
1. Means that the information must possess predictive and/or confirmatory value,
typically both. _________________
2. It is the ability of the accounting data to predict or forecast values for decision
making. ______________
3. Implies that different knowledgeable and independent measures would reach
consensus. ____________
4. There are no errors or omissions in the description of the amount of the process used
to report the amount._________________________
5. Exists when there is agreement between measure or description and the
phenomenon it purports to represent. _______________________________________
6. Depends on a company’s particular situation and is based on the nature or magnitude
of the item that is being reported. _________________________________.
7. Ability to confirm or change the values that were predicted.
________________________
8. Can be achieved if uniform standard or process is being followed all through the years
of the company to compare the accounts being measured with such.
_____________________________
9. Users must be able to comprehend the information within the context of the decision
being made. _____________________
10. Information is available to users early enough to allow them to use it for their
decision making. __________________________________________
11. Includes ALL the information necessary for faithful representation of the economic
phenomena that it purports to represent. ____________________________
12. A financial accounting standard, states that process is free from bias.
13. Process that includes identifying, collecting and analyzing documents and
transactions, recording the transactions on the journals, posting the journalized
amounts to accounts in the general and subsidiary ledgers.
_____________________________
14. Are transactions that transpired in a given accounting period wherein such have
affected the assets, liabilities or the equity of the business.
_____________________________
15. Are events that though transpired in the ordinary course of doing business, such
cannot affect the assets, liabilities or equity at that given date.
__________________________
16. Important to bookkeeping and accounting process because they serve as physical
evidence that a financial transaction actually occurred.
____________________________
17. These are documents listing goods or services provided, as well as their prices.
___________________
18. These are documents confirming that cash or goods have been received.
____________________
19. A document issued by the seller of goods or services to the buyer, reducing the
amount that the buyer owes to the seller under the terms of an earlier invoice.
___________________________
20. Those receipts that are machine validated and are issued to buyers.
__________________________
21. Is a specialized accounting journal and it is referred to as the main entry book used in
accounting system tokeep track of the sales of items when cash is received.
___________________________________
22. Is a specialized accounting and it is also a prime entry which is used in an accounting
system to keep track of the orders of items placed using accounts payable.
__________________________________
23. A specialized accounting journal to keep up the sale of items that customers have
purchased on account._______________________________
24. Is a set of numbered accounts a business uses to keep track of its financial transactions to prepare financialreports. It summarizes each type of assets, liabilities,
equity, revenue and expenses.___________________________
25. A record kept by internal accountants to all financial expenditures made by the
company._________________________

Match the qualitative characteristics below with the following statements.

1. Relevance
2. Faithful representation
3. Predictive value
4. Confirmatory value
5. Comparability
6. Completeness
7. Neutrality
8. Timeliness

(a) Quality of information that permits users to identify similarities in and differences between
two sets of economic phenomena.
(b) Having information available to users before it loses its capacity to influence decisions.
(c) Information about an economic phenomenon that has value as an input to the processes used
by capital providers to form their own expectations about the future.
(d) Information that is capable of making a difference in the decisions of users in their capacity
as capital providers.
(e) Absence of bias intended to attain a predetermined result or to induce a particular behavior.

Match the qualitative characteristics below with the following statements.

1. Timeliness
2. Completeness
3. Free from error
4. Understandability
5. Faithful representation
6 Relevance
7. Neutrality
8. Confirmatory value

(a) Quality of information that assures users that information represents the economic
phenomena that it purports to represent.
(b) Information about an economic phenomenon that changes past or present expectations
based on previous evaluations.
(c) The extent to which information is accurate in representing the economic substance of a
transaction. (d) Includes all the information that is necessary for a faithful representation of the
economic phenomena that it purports to represent.
(e) Quality of information that allows users to comprehend its meaning.
(Qualitative Characteristics) Accounting information provides useful information about business
transactions and events. Those who provide and use financial reports must often select and
evaluate accounting alternatives. The Conceptual Framework examines the characteristics of
accounting information that make it useful for decision-making. It also points out that various limitations inherent in the measurement and reporting process may necessitate trade-offs or
sacrifices among the characteristics of useful information.

Instructions Discuss the propriety of timing the recognition of revenue in Piper Publishing
Company’s accounts with respect to the following. (a) The cash sale of the magazine subscription.
(b) The publication of the magazine every month. (c) Both events, by recognizing a portion of the
revenue with the cash sale of the magazine subscription and a portion of the revenue with the
publication of the magazine every month.

(Qualitative Characteristics) Accounting information provides useful information about business
transactions and events. Those who provide and use financial reports must often select and
evaluate accounting alternatives. The Conceptual Framework examines the characteristics of
accounting information that make it useful for decision-making. It also points out that various
limitations inherent in the measurement and reporting process may necessitate trade-offs or
sacrifices among the characteristics of useful information.

Instructions

(a) Describe briefly the following characteristics of useful accounting information.
(1) Relevance. (4) Comparability (consistency).
(2) Faithful representation. (5) Neutrality.
(3) Understandability.

(b) For each of the following pairs of information characteristics, give an example of a situation
in which one of the characteristics may be sacrificed in return for a gain in the other.
(1) Relevance and faithful representation. (3) Comparability and consistency.
(2) Relevance and consistency. (4) Relevance and understandability.
(c) What criterion should be used to evaluate trade-offs between information
characteristics?Recorded in the general journal.