Question & Answer

How do different cost structures affect the breakeven point and operating leverage?

1.      : Instruct Rukman participants to reveal their participation in the corporate marketing program only if directly asked by the person they are talking to about the client’s products.

1.            How valuable do you think being a certified PMP is?

: Describe the management changes brought about by a technology-driven workplace and those that facilitate a people-driven workplace.

Explain the strategy of high-frequency trading firms. Describe the typical time horizon of an investment that is relevant to highfrequency traders and explain how it varies from the time horizons of other institutional investors. (LO3)

1. How will the length of the short run for the airline depend on the state of the aircraft industry? 2. Up to roughly how long is the short run in the following cases? (a) A firm supplying DJs for clubs and parties. (b) Nuclear power generation. (c) A street food wagon. (d) Superstore Hypermarkets Ltd. In each case specify your assumptions.

Occidental Petroleum Corporation reported the following information in a recent annual report.   Instructions (a) What items other than coin and currency may be included in “cash”? (b) What items may be included in “cash equivalents”? (c) What are compensating balance arrangements, and how should they be reported in financial statements? (d) What are the possible differences between cash equivalents and short-term (temporary) investments? (e) Assuming that the sale agreement meets the criteria for sale accounting, cash proceeds were $345 million, the carrying value of the receivables sold was $360 million, and the fair value of the recourse liability was $15 million, what was the effect on income from the sale of receivables? (f) Briefly discuss the impact of the transaction in (e) on Occidental’s liquidity.

Why are held-to-maturity investments applicable only to debt securities?

What are the advantages and disadvantages to a firm that issues low- or zero-coupon bonds? (LO2)

The following summarized information relates to the installmentsales activity of Phillips Stores, Inc. for the year 2014. Installment sales during 2014 $500,000 Cost of goods sold on installment basis 350,000 Collections from customers 180,000 Unpaid balances on merchandise repossessed 24,000 Estimated value of merchandise repossessed 11,200 Instructions (a) Prepare journal entries at the end of 2014 to record on the books of Phillips Stores, Inc. the summarized data above. (b) Prepare the entry to record the gross profit realized during 2014.

Solve Problem 20.19 except that the starting blank size diameter = 175 mm

Barrick Gold Corporation, with headquarters in Toronto, Canada, is the world’s most profitable and largest gold mining company outside South Africa. Part of the key to Barrick’s success has been due to its ability to maintain cash flow while improving production and increasing its reserves of goldcontaining property. In the most recent year, Barrick achieved record growth in cash flow, production, and reserves. The company maintains an aggressive policy of developing previously identified target areas that have the possibility of a large amount of gold ore, and that have not been previously developed. Barrick limits the riskiness of this development by choosing only properties that are located in politically stable regions, and by the company’s use of internally generated funds, rather than debt, to finance growth. Barrick’s inventories are as follows.   Instructions (a) Why do you think that there are no finished goods inventories? Why do you think the raw material, ore in stockpiles, is considered to be a non-current asset? (b) Consider that Barrick has no finished goods inventories. What journal entries are made to record a sale? (c) Suppose that gold bullion that cost $1.8 million to produce was sold for $2.4 million. The journal entry was made to record the sale, but no entry was made to remove the gold from the gold in process inventory. How would this error affect the following? Balance Sheet Income Statement Inventory ? Cost of goods sold ? Retained earnings ? Net income ? Accounts payable ? Working capital ? Current ratio ?

Olga Conrad, a financial writer, noted recently, “There are substantial arguments for including earnings projections in annual reports and the like. The most compelling is that it would give anyone interested something now available to only a relatively select few—like large stockholders, creditors, and attentive bartenders.” Identify some arguments against providing earnings projections.

A production line with four automatic workstations (the other stations are manual) produces a certain product whose total assembly work content time = 55.0 min of direct manual labor. The production rate on the line is 45 units/hr. Because of the automated stations, uptime efficiency = 89%. The manual stations each have one worker. It is known that 10% of the cycle time is lost due to repositioning. If the balancing efficiency = 0.92 on the manual stations, find (a) cycle time, (b) number of workers and (c) workstations on the line. (d) What is the average manning level on the line, where the average includes the automatic stations?

Which factors influence a security’s liquidity? (LO2)

Rafael sold an asset to Jamal. What is Rafael’s amount realized on the sale in each of the following alternative scenarios?   a. Rafael received $80,000 of cash and a vehicle worth $10,000. Rafael also paid $5,000 in selling expenses.  b. Rafael received $80,000 of cash and was relieved of a $30,000 mortgage on the asset he sold to Jamal. Rafael also paid a commission of $5,000 on the transaction.  c. Rafael received $20,000 of cash, a parcel of land worth $50,000, and marketable securities of $10,000. Rafael also paid a commission of $8,000 on the transaction.

Discuss at least two items that are important to the value of companies like Intel or IBM but that are not recorded in their balance sheets. What are some reasons why these items are not recorded in the balance sheet?

Explain why an employee should be concerned about whether their employer reimburses business expenses using an “accountable” plan.

Wire stock of initial diameter = 0.125 in is drawn through two dies each providing a 0.20 area reduction. The starting metal has a strength coefficient = 40,000 lb/in2 and a strain hardening exponent = 0.15. Each die has an entrance angle of 12°, and the coefficient of friction at the work-die interface is estimated to be 0.10. The motors driving the capstans at the die exits can each deliver 1.50 hp at 90% efficiency. Determine the maximum possible speed of the wire as it exits the second die.

Explain why interest rates changed as they did over the past year. (LO2)

Sandy has determined that her research question depends upon the interpretation of the phrase “not compensated by insurance.”  What type of research question is this?

Are different factor markets similarly interdependent? What would happen if the price of capital equipment rose?

Using the information in E20-22, prepare a worksheet inserting January 1, 2014, balances, showing December 31, 2014, balances, and the journal entry recording postretirement benefit expense.

Describe the short selling process. Explain the short interest ratio. (LO1)

Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2025 under both the daily allocation and the specific identification allocation methods?  Refer to the following table for the timing of SleepEZ’s income.   Period Income January 1 through March 15 (74 days) $125,000 March 16 through December 31 (291 days) 345,500 January 1 through December 31, 2025 (365 days) $470,500