Question & Answer

Identify some of the properties for which aluminum is noted?

Why is flash desirable in impression die forging?

: Explain how artificial intelligence may help bridge the historical struggle between managing the “things of production” and the “humanity of production.”

Write a short essay on the integration of bond markets. Explain why adverse conditions within one bond market (such as a particular country) commonly spread to other bond markets.

Price-cap regulation was abandoned in the gas and electricity industries because the regulator (Ofgem) felt that there was sufficient competition. Consider whether this was a wise decision.

With what kinds of products is tube rolling associated?

In the absence of growth in the workforce what does the required investment per worker curve capture?

Explain what is meant by interest elasticity. Would you expect federal government demand for loanable funds to be more or less interest-elastic than household demand for loanable funds? Why? (LO1)

At December 31, 2013, Shiga Naoya Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,500 shares $10,750,000 Common stock, $5 par, 4,000,000 shares 20,000,000 During 2014, Shiga Naoya did not issue any additional common stock. The following also occurred during 2014. Income from continuing operations before taxes $23,650,000 Discontinued operations (loss before taxes) $ 3,225,000 Preferred dividends declared $ 1,075,000 Common dividends declared $ 2,200,000 Effective tax rate 35% Instructions Compute earnings per share data as it should appear in the 2014 income statement of Shiga Naoya Corporation. (Round to two decimal places.)

Satchel Inc. purchases 10,000 shares of its own previously issued $10 par common stock for $290,000. Assuming the shares are held in the treasury with intent to reissue, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders’ equity?

A 5-mm-diameter bolt is to be tightened to produce a preload = 250 N. If the torque coefficient = 0.23, determine the torque that should be applied.

Hank started a new business, Hank’s Donut World (HW for short) in June of last year. He has requested your advice on the following specific tax matters associated with HW’s first year of operations. Hank has estimated HW’s income for the first year as follows:  Revenue: Donut sales$ 252,000 Catering revenues   71,550$ 323,550  Expenditures: Donut supplies$ 124,240 Catering expense27,910 Salaries to shop employees52,500 Rent expense40,050 Accident insurance premiums8,400 Other business expenditures   6,850- 259,950 Net Income $  63,600 HW operates as a sole proprietorship, and Hank reports on a calendar year. Hank uses the cash method of accounting and plans to do the same with HW (HW has no inventory of donuts because unsold donuts are not salable). HW does not purchase donut supplies on credit, nor do they generally make sales on credit. Hank has provided the following details for specific first-year transactions. • A small minority of HW clients complained about the catering service. To mitigate these complaints, Hank’s policy is to refund dissatisfied clients 50 percent of the catering fee. By the end of the first year, only two HW clients had complained but had not yet been paid refunds. The expected refunds amount to $1,700, and Hank reduced the reported catering fees for the first year to reflect the expected refund.  • In the first year, HW received a $6,750 payment from a client for catering a monthly breakfast for 30 consecutive months beginning in December. Because the payment didn’t relate to last year, Hank excluded the entire amount when he calculated catering revenues.  • In July, HW paid $1,500 to ADMAN Co. for an advertising campaign to distribute fliers advertising HW catering service. Unfortunately, this campaign violated a city code restricting advertising by fliers, and the city fined HW $250 for the violation. HW paid the fine, and Hank included the fine and the cost of the campaign in “other business” expenditures.  • In July, HW also paid $8,400 for a 24-month insurance policy that covers HW for accidents and casualties beginning on August 1 of the first year. Hank deducted the entire $8,400 as accident insurance premiums. • On May of the first year, Hank signed a contract to lease the HW donut shop for 10 months. In conjunction with the contract, Hank paid $2,000 as a damage deposit and $8,050 for rent ($805 per month). Hank explained that the damage deposit was refundable at the end of the lease. At this time, Hank also paid $30,000 to lease kitchen equipment for 24 months ($1,250 per month). Both leases began on June 1 of the first year. In his estimate, Hank deducted these amounts ($40,050 in total) as rent expense. • Hank signed a contract hiring WEGO Catering to help cater breakfasts. At year-end, WEGO asked Hank to hold the last catering payment for the year, $9,250, until after January 1 (apparently because WEGO didn’t want to report the income on its tax return). The last check was delivered to WEGO in January after the end of the first year. However, because the payment related to the first year of operations, Hank included the $9,250 in last year’s catering expense. • Hank believes that the key to the success of HW has been hiring Jimbo Jones to supervise the donut production and manage the shop. Because Jimbo is such an important employee, HW purchased a “key-employee” term-life insurance policy on his life. HW paid a $5,100 premium for this policy, and it will pay HW a $40,000 death benefit if Jimbo passes away any time during the next 12 months. The term of the policy began on September 1 of last year, and this payment was included in “other business” expenditures. • In the first year, HW catered a large breakfast event to celebrate the city’s anniversary. The city agreed to pay $7,100 for the event, but Hank forgot to notify the city of the outstanding bill until January of this year. When he mailed the bill in January, Hank decided to discount the charge to $5,500. On the bill, Hank thanked the mayor and the city council for their patronage and asked them to “send a little more business our way.” This bill is not reflected in Hank’s estimate of HW’s income for the first year of operations. Required: a) Hank files his personal tax return on a calendar year, but he has not yet filed last year’s personal tax return, nor has he filed a tax return reporting HW’s results for the first year of operations. Explain when Hank should file the tax return for HW and calculate the amount of taxable income generated using the cash method by HW last year.  b) Determine the taxable income that HW will generate if Hank chooses to account for the business under the accrual method.  c) Describe how your solution might change if Hank incorporated HW before he commenced business last year.

On January 1, 2014, a machine was purchased for $900,000 by Young Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to St. Leger Inc. on January 1, 2014, at an annual rental of $210,000. Other relevant information is as follows. 1. The lease term is for 3 years. 2. Young Co. incurred maintenance and other executory costs of $25,000 in 2014 related to this lease. 3. The machine could have been sold by Young Co. for $940,000 instead of leasing it. 4. St. Leger is required to pay a rent security deposit of $35,000 and to prepay the last month’s rent of $17,500. Instructions (a) How much should Young Co. report as income before income tax on this lease for 2014? (b) What amount should St. Leger Inc. report for rent expense for 2014 on this lease?

Derive the equation for average flow stress, Eq. (18.2) in the text

What patterns in interest rates emerged following the financial crisis?

What do you think you now know that would be useful for managing projects at the hotel?

What are some common examples of taxable and tax-free fringe benefits?

At December 31, 2014, Reid Company had 600,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 200,000 of which were issued on October 1, 2014. Net income for 2014 was $2,000,000, and dividends declared on preferred stock were $400,000. Compute Reid’s earnings per common share. (Round to the nearest penny.)

Saprano Company, on January 2, 2014, entered into a contract with a manufacturing company to purchase room-size air conditioners and to sell the units on an installment plan with collections over approximately 30 months with no carrying charge. For income tax purposes, Saprano Company elected to report income from its sales of air conditioners according to the installment-sales method. Purchases and sales of new units were as follows. Units Purchased Units Sold Year Quantity Price Each Quantity Price Each 2014 1,400 $130 1,100 $200 2015 1,200 112 1,500 170 2016 900 136 800 205 Collections on installment sales were as follows. Collections Received 2014 2015 2016 2014 sales $42,000 $88,000 $ 80,000 2015 sales 51,000 110,000 2016 sales 34,600 In 2016, 50 units from the 2015 sales were repossessed and sold for $120 each on the installment plan. At the time of repossession, $2,000 had been collected from the original purchasers, and the units had a fair value of $3,000. General and administrative expenses for 2016 were $60,000. No charge has been made against current income for the applicable insurance expense from a 3-year policy expiring June 30, 2017, costing $7,200, and for an advance payment of $12,000 on a new contract to purchase air conditioners beginning January 2, 2017. Instructions Assuming that the weighted-average method is used for determining the inventory cost, including repossessed merchandise, prepare schedules computing for 2014, 2015, and 2016: (a) (1) The cost of goods sold on installments. (2) The average unit cost of goods sold on installments for each year. (b) The gross profit percentages for 2014, 2015, and 2016. (c) The gain or loss on repossessions in 2016. (d) The net income from installment sales for 2016. (Ignore income taxes.)

At December 31, 2014, Burr Corporation owes $500,000 on a note payable due February 15, 2015. (a) If Burr refinances the obligation by issuing a long-term note on February 14 and using the proceeds to pay off the note due February 15, how much of the $500,000 should be reported as a current liability at December 31, 2014? (b) If Burr pays off the note on February 15, 2015, and then borrows $1,000,000 on a long-term basis on March 1, how much of the $500,000 should be reported as a current liability at December 31, 2014, the end of the fiscal year?

All else being equal, should taxpayers prefer to exclude income or defer it? Why?

What is blockchain technology? Why did it gain large popularity in such a short amount of time? (LO2)

The use of RPE systems for the evaluation of individual managers has been abandoned by many organisations.  Microsoft is one example.  Given this can be conclude that RPE is no good?

If anti-monopoly legislation is effective enough, is there ever any need to prevent mergers from going ahead?

Which of the following will have positive signs and which will have negative ones? (a) price elasticity of demand; (b) income elasticity of demand (normal good); (c) income elasticity of demand (inferior good); (d) cross elasticity of demand (with respect to changes in price of a substitute good); (e) cross elasticity of demand (with respect to changes in price of a complementary good); (f) price elasticity of supply.