The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,191. The December 31, 2010, balance sheet showed current assets of $2,644 and current liabilities of $1,048. What was the company’s 2010 change in net working capital, or NWC?

Answer: ($203)

Explanation:

The company’s 2010 change in net working capital will be calculated thus:

Net working capital = current assets - current liabilities

For 2009, net working capital will be:

= $2,584 - $1,191

= $1393.

For 2010, net working capital will be:

= $2,644 - $1,048

= $1596

Change in net working capital will be:

= $1393 - $1596

= ($203)

US Corp. is charged with determining which small projects should be funded. Along with this assignment, she has been granted the use of $15,000 for a maximum of two years. She is considering three projects. Project A costs $7,500 and has cash flows of $4,000 a year for Years 1 to 3. Project B costs $8,000 and has cash flows of $3,000, $4,000, and $3,000 for Years 1 to 3, respectively. Project C costs $2,000 and has a cash inflow of $2,500 in Year 2. What decisions should she make regarding these projects if she assigns them a mandatory discount rate of 8.5 percent

Darnell has saved $30 per week to buy a new Blu-ray player. He compares two different models: a Panaview that is priced at $130 and a Zony model that is priced at $140. Darnell decides to purchase the Zony Blu-ray player for $140. Identify what role money plays in each of the following parts of the story.

a. Alex can easily determine that the Panaview model has a lower price than the Zony Model.
b. Alex saved $30 per week.
c. Alex pays $140 for the Blu-Ray player.

Ivanhoe Company buys merchandise on account from Metlock Company. The selling price of the goods is $1,290 and the cost of the goods sold is $770. Both companies use perpetual inventory systems.
Journalize the transactions on the books of both companies. (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 amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Ivanhoe
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount
Metlock
Enter an account title to record sale of merchandise
Enter a debit amount
Enter a credit amount
Enter an account title to record sale of merchandise
Enter a debit amount
Enter a credit amount
(To record sale of merchandise)
Enter an account title
Enter a debit amount
Enter a credit amount
Enter an account title
Enter a debit amount
Enter a credit amount

ABC and XYZ are all-equity firms. ABC has 1,750 shares outstanding at a market price of $20 a share while XYZ has 2,500 shares outstanding at a price of $28 a share. ABC is acquiring XYZ for $75,000 in cash. The incremental value of the acquisition is $8,000. What is the net present value of acquiring XYZ to ABC

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,600, $11,600, and $17,800 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 13 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?
a. $39,420.00.b. $24,876.50.c. $28,896.22.d. $36,000.00.e. $27,261.50.

Part II of the Lionbridge examination, Page Quality.

Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow.

Planned production in units 10,000
Actual production in units 10,000
Number of units sold 8,500

There were no variances. The net income (loss) under absorption costing is:

a. (7500)
b. 9,000
c. 15,00
d. 18,000
e. Some other amount

Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
Flexible Budgeting
At the beginning of the period, the Grinding Department budgeted direct labor of $55,200 and property tax of $30,000 for 2,400 hours of production. The department actually completed 2,900 hours of production. Determine the budget for the department, assuming that it uses flexible budget.

10. Which of the following is NOT a reason that real GDP is a poor measure of a nation's
economic welfare?

A)Real GDP omits measures of political freedom.
b) Real GDP does not consider the value of people's leisure time.
c) Real GDP does not include the underground economy.
D) Real GDP omits household production.

A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation. EMOD is the estimated price of this bondat an interest rate of 7.0% using the first-order modified approximation.Calculate EMAC - EMOD A. 91 B. 102 C. 116 D. 127 E. 143

During its first year of operations, Indigo Corporation had credit sales of $3,213,200, of which $361,300 remained uncollected at year-end. The credit manager estimates that $16,880 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINK TO TEXTLINK TO TEXT INTERACTIVE TUTORIAL INTERACTIVE TUTORIAL Prepare the current assets section of the balance sheet for Indigo Corporation, assuming that in addition to the receivables it has cash of $91,990, merchandise inventory of $189,180, and supplies of $12,580. (List current assets in order of liquidity)

Pet Supply purchased some fixed assets two years ago at a cost of $43,800. It no longer needs these assets so it is going to sell them today for $32,500. The assets are classified as five-year property for MACRS. The MACRS rates are 20%, 32% 19.2%, 11.52%, 11.52%, 5.76%, for years 1 to 6, respectively. What is the net cash flow (A-T Salvage Value) from this sale if the firm's tax rate is 35 percent

Snack food vendors and beer distributors earn some monopoly profits in their local markets but see them slowly erode from various new substitutes. When California voted on legalizing marijuana, which side would you think that California beer distributors were on

Steel and aluminum are substitutes. If the price of steel increases, other things remaining the same, we would expect the price of aluminum to __________ and the equilibrium quantity of aluminum to__________
For the 1st question, the options are increase, decrease, remain unchanged
For the 2nd question, the options are increase, decrease, remain unchanged

If a well-diversified portfolio of stocks has an expected return of 15% when the expected return on the market portfolio is 10%, then:_____

a. Treasury bills are offering a 7% yield.
b. The portfolio beta is greater than 1.0.
c. The portfolio beta equals 1.67.
d. The investor's portfolio contains many defensive stocks.

Of the following statements, which best describes a legitimate disadvantage of cost-based pricing:
a. Marginal costs and revenues are difficult to measure
b. Determining the amount a customer is will to pay may require estimation
c. Most cost drivers are not readily available
d. Customers may not be willing to pay the price determined by the procedure

You want to buy a house and will need to borrow $295,000. The interest rate on your loan is 6.37 percent compounded monthly and the loan is for 30 years. What are your monthly mortgage payments?

Excel technology is trying to increase its cash flow cycle. Sales in 2019 was $3,250,000 ( all on credit) and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year. and its DSO was 41days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets $535,000, its payable deferral period is 45 days. Calculate Excel technology's cash conversion cycle

Zoey Bella Company has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Journalize the adjusting entry required on December 31, assuming the year ends on a Thursday. If an amount box does not require an entry, leave it blank.
Date Description Post. Ref. Debit Credit

Hollyfield Corporation sold a piece of equipment on September 30, 2018 for $201,000 cash. The equipment had been purchased on January 1, 2012 for $450,000. It had an estimated useful life of 10 years and a $50,000 residual value. Hollyfield Corp. has been using the straight-line method of depreciation and has a year-end of December 31st. Compute the gain or loss on disposal.

Suppose that Dmitri, an economist from a research institute in Texas, and Frances, an economist from a public television program, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Frances: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards. Dmitri: I think a switch from the income tax to a consumption tax would bring growth in living standards. Frances: You really think households would change their saving behavior enough in response to this to make a difference.Because I don't. The disagreement between these economists is most likely due to _____. Depite their differences, with which proposition are two economists chosen at random most likely to agree? A. Employers should not be restricted from outsourcing work to foreign nations. B. Central banks should focus more on maintaining low unemployment than on maintaining low inflation. C. Business managers can raise profit more easily by reducing costs than by raising revenue.

Compute the future value of a $105 cash flow for the following combinations of rates and times.

a. r = 8%; t = 10 years
b. r = 8%; t = 20 years
c. r = 4%; t = 10 years
d. r = 4%; t = 20 years

Given the accelerated pace of technological change, in combination with deregulation, globalization, and demographic shifts, a firm will only be successful today if its:

a. resource advantage is maintained for a short period of time.
b. internal strengths change with its external environment in a dynamic fashion.
c. resource advantage is not causally ambiguous or socially complex.
d. competitive advantage is derived from static resource or market advantages.

A five-year note payable would appear on the balance sheet as a(n) a.disclosure in the notes only. b.long-term liability for the entire amount owed. c.current liability for any portion due within one year. d.intangible asset.

The data is D = 50,000/year, S= $500 per order, H = $0.25 per unit per year. Assume a lead time of 3 days.

Fill in the following table. Write out the formulas you are using.

Annual demand
Holding cost (units per year)
Ordering cost
Ordering quantity (EOQ)
Number of orders per year
Average inventory
Maximum inventory
Reorder level
Length of order cycle
Annual holding cost
Annual ordering cost
Annual Affected Inventory Cost

b. Suppose a mistake was made in the data and the correct data is D = 60,000 per year, S = $400 per order, H = $0.20 per unit per year. Calculate the correct EOQ and affected inventory cost.
c. Now suppose we used the incorrect EOQ (based on the first set of data) instead of the correct EOQ. Calculate the affected inventory cost.
d. Compute the percentage error in the EOQ and in the inventory cost.
e. Moral of the story is that incorrect estimation of costs or demand (does or does not) result in substantial deviation from the optimal cost (circle the right answer).

g Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $370 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as

Lease Plan Effectively Manages Diversity
The term, glass ceiling, was used to represent an absolute barrier or solid roadblock that prevented women from advancing to higher-level positions. The ceiling resulted in women finding themselves stuck in lower-level jobs, ones that did not have profit and loss responsibility, and jobs with less visibility, power, and influence. This scenario is changing. This case illustrates the impact motivated leadership and changing company policies can have on gender diversity in the workplace. Per the United States Department of Labor, compared to women comprising 21 percent of the workforce in 1920, women comprised nearly half of the workforce in the United States in 2013, making gender diversity issues more and more important. This activity asks you to identify and apply your knowledge of such aspects of diversity.
Read the case below and answer the three questions that follow.
In 2003, the representatives of Lease Plan USA's top customers were mostly women, as was most the company's employees. However, men represented a large majority of top managers at the company, reflecting the old-boys network type culture that dominated the fleet industry. New leadership decided to change this and provided career counseling to women, revised reward systems to focus on performance instead of seniority, and replaced some existing managers. Two years ago, only one of seven top executives were a woman. Now, three of the top eight executives are women.

The company's new chief executive claims that these changes are motivated by strategy rather than political correctness. He says, "Lease Plan doesn't build anything…Our sustainable competitive advantages are people." Lease Plan now also implements a development program catered specifically for female employees. The program includes skills assessments, career guidance, communications, brand building, and panel discussions with female executives from other companies.
Lease Plan’s efforts have yielded very positive results in a short period. For example, a 2006 survey showed that 35 percent of women agreed that "management supports my efforts to manage my career," which was improved the following year to 47 percent. A growing percentage of women also feel that their opportunities are growing—increased to 30 percent from 22 percent.
Gerri Patton, Director of Client Activation, says the program helped her become more confident and outspoken. The 23-year Lease Plan veteran encourages her female subordinates to apply. "I wish I would have done that program 10 or 15 years ago," she says. "There's no telling where I would be...The sky would've been the limit."
After reading the case please answer three multiple questions below:
1) According to Eagly and Carli, and also supported by subsequent data analysis by the textbook authors, women have broken through the glass ceiling. Based on what you have read in the case, which of the following trends in gender diversity appears to be most supported by the outcomes of Lease Plan’s program changes?
Educational attainment—women earned the majority of bachelor’s and master’s degrees from 2006 through 2012.
Increases in seats on boards of directors—in Fortune 550 firms up to 16.6 percent in 2013 from only 9.6 percent in 1995.
Leadership positions—in educational institutions in 2010, women represented 18.7 percent of college presidents and 29.9 percent of board members.
Court Appointments—in federal court in 2013, women received 32 percent and 30 percent respectively of appointments to federal courts of appeals and US district court judge positions.
None of these
2) Which of Thomas’s generic action options for managing diversity is most illustrated in the case?
suppress
isolate
deny
include/exclude
tolerate
3) Based on the information in the case, which of the following barriers and challenges to managing diversity that were identified in the text appear to have been present at Lease Plan?
an unsupportive or hostile work environment
poor career planning
lack diversity in senior management
inaccurate stereotypes
difficulty in balancing career and family issues

On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a color scheme for the first floor of her house. On July 31, the designer completed the design work for this customer.

Required:
Journalize the entries.

Sandhill Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.

June
1 Purchased books on account for $2,575 (including freight) from Catlin Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900.
6 Received $75 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,150. The cost of the merchandise sold was $750.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,900. The cost of the merchandise sold was $970. 30 Granted General Bookstore $130 credit for books returned costing $90.

Required:
Journalize the transactions for the month of June for Sandhill Warehouse, using a perpetual inventory system.

Complete the following data taken from the condensed income statements for merchandising Companies X, Y, and Z. For those boxes in which you must enter negative numbers use a minus sign.
Company X Company Y Company Z
Net income/(net loss) $30 $_____ $(20)
Sales _____ 1,270 970
Gross profit 245 _____ 525
Operating expenses _____ 525 _____
Cost of goods sold 330 790 _____