Question & Answer

Identify some of the changes and injuries that can occur at or immediately below the surface of a metal.

1. What effect will trade have on the price of capital in developing and developed countries? 2. It is sometimes claimed that trade with developing countries is unjust because it leads to the importation of goods produced at pitifully low wages. How can the Heckscher–Ohlin theory be used to refute this claim? Is there any validity in the claim? (see Box 24.3)

Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31. 2014 2013 Cash $177,000 $ 78,000 Accounts receivable 180,000 185,000 Investments 52,000 74,000 Equipment 298,000 240,000 Accumulated depreciation—equipment (106,000) (89,000) Current liabilities 134,000 151,000 Common stock 160,000 160,000 Retained earnings 307,000 177,000 Additional information: Investments were sold at a loss (not extraordinary) of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000. Instructions (a) Prepare a statement of cash flows for 2014 for Zubin Mehta Corporation. (b) Determine Zubin Mehta Corporation’s free cash flow.

A lathe performs a turning operation on a workpiece of 6.0 in diameter. The shear strength of the work is 40,000 lb/in2 and the tensile strength is 60,000 lb/in2 . The rake angle of the tool is 6°. The cutting speed = 700 ft/min, feed = 0.015 in/rev, and depth = 0.090 in. The chip thickness after the cut is 0.025 in. Determine (a) the horsepower required in the operation, (b) unit horsepower for this material under these conditions, and (c) unit horsepower as it would be listed in Table 21.2 for a to of 0.010 in. Use the orthogonal cutting model as an approximation of the turning process.

How is antidilution determined when multiple securities are involved?

Explain how equilibrium would be restored in the circular flow of income if there were a fall in investment.

For what reasons do countries experience very different long-run rates of economic growth from each other?

Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $10,000 cash. Matt receives $3,000 cash and a parcel of land with a $7,000 fair market value and a $4,000 basis to the partnership. Matcoy has no debt or hot assets. a. What is Coy’s recognized gain or loss? What is the character of any gain or loss? b. What is Coy’s ending basis in his partnership interest? c. What is Matt’s recognized gain or loss? What is the character of any gain or loss? d. What is Matt’s basis in the distributed property? e. What is Matt’s ending basis in his partnership interest?

What is the difference between point-to-point and continuous path in a motion control system?

List the reasons for each of the three factors above. (Re-read section 10.2 and Box 10.7 if you need help.)

A pile of iron powder weighs 2 lb. The particles are spherical in shape and all have the same diameter of 0.002 in. (a) Determine the total surface area of all the particles in the pile. (b) If the packing factor = 0.6, determine the volume taken by the pile. Note: the density of iron = 0.284 lb/in3 .

1. If the number unemployed exceeded the total annual outflow, what could we conclude about the average duration of unemployment? 2. Make a list of the various inflows to and outflows from employment from and to (a) unemployment; (b) outside the workforce.

If a business places several different assets in service during the year, must it use the same depreciation method for all assets? If not, what restrictions apply to the business’s choices of depreciation methods?

Daniel Barenboim sells and erects shell houses, that is, frame structures that are completely finished on the outside but are unfinished on the inside except for flooring, partition studding, and ceiling joists. Shell houses are sold chiefly to customers who are handy with tools and who have time to do the interior wiring, plumbing, wall completion and finishing, and other work necessary to make the shell houses livable dwellings. Barenboim buys shell houses from a manufacturer in unassembled packages consisting of all lumber, roofing, doors, windows, and similar materials necessary to complete a shell house. Upon commencing operations in a new area, Barenboim buys or leases land as a site for its local warehouse, field office, and display houses. Sample display houses are erected at a total cost of $30,000 to $44,000 including the cost of the unassembled packages. The chief element of cost of the display houses is the unassembled packages, inasmuch as erection is a short, low-cost operation. Old sample models are torn down or altered into new models every 3 to 7 years. Sample display houses have little salvage value because dismantling and moving costs amount to nearly as much as the cost of an unassembled package. Instructions (a) A choice must be made between (1) expensing the costs of sample display houses in the periods in which the expenditure is made and (2) spreading the costs over more than one period. Discuss the advantages of each method. (b) Would it be preferable to amortize the cost of display houses on the basis of (1) the passage of time or (2) the number of shell houses sold? Explain.

Use the information for Hanson Company from BE10-2 and BE10-3. Compute avoidable interest for Hanson Company.

Describe the primary activities in the value chain for your college or university. In your opinion, which primary activities create the most value?

1. Why may a food shop charge higher prices than supermarkets for ‘essential items’ and yet very similar prices for delicatessen items? 2. Which of these two items is a petrol station more likely to sell at a discount: (a) oil; (b) sweets? Why?

Compute the unit energy for melting for the following metals: (a) aluminum and (b) plain low carbon steel.

Cuevas Co. is in the process of developing a revolutionary new product. A new division of the company was formed to develop, manufacture, and market this new product. As of year-end (December 31, 2014), the new product has not been manufactured for resale. However, a prototype unit was built and is in operation. Throughout 2014, the new division incurred certain costs. These costs include design and engineering studies, prototype manufacturing costs, administrative expenses (including salaries of administrative personnel), and market research costs. In addition, approximately $900,000 in equipment (with an estimated useful life of 10 years) was purchased for use in developing and manufacturing the new product. Approximately $315,000 of this equipment was built specifically for the design development of the new product. The remaining $585,000 of equipment was used to manufacture the pre-production prototype and will be used to manufacture the new product once it is in commercial production. Instructions (a) How are “research” and “development” defined in the authoritative literature (GAAP)? (b) Briefly indicate the practical and conceptual reasons for the conclusion reached by the FinancialAccounting Standards Board on accounting and reporting practices for research and development costs. (c) In accordance with GAAP, how should the various costs of Cuevas described above be recorded on the financial statements for the year ended December 31, 2014?

Name the three exposure techniques in photolithography.

In 2014, Steinrotter Construction Corp. began construction work under a 3-year contract. The contract price was $1,000,000. Steinrotter uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2014, are shown below. Balance Sheet Accounts receivable $18,000 Construction in process $65,000 Less: Billings 61,500 Costs and recognized profi t in excess of billings 3,500 Income Statement Income (before tax) on the contract recognized in 2014 $19,500 Instructions (a) How much cash was collected in 2014 on this contract? (b) What was the initial estimated total income before tax on this contract?

The flow curve parameters for the aluminum alloy of Problem 19.29 are: K = 240 MPa and n = 0.16. If the die angle in this operation = 90°, and the corresponding Johnson strain equation has constants a = 0.8 and b = 1.5, compute the maximum force required to drive the ram forward at the start of extrusion.

Name some of the steps that can be taken to reduce or eliminate vibrations in machining

Electrodes in arc welding are divided into two categories. Name and define the two types.

In examining financial statements, financial analysts often write off goodwill immediately. Comment on this procedure.