Question & Answer

Why may managers choose to set prices that cover all costs including sunk costs.

What is meant by the securitisation of assets? How might this be (a) beneficial and (b) harmful to banks and the economy?

As quantity demanded increases from Q1 to Q2 in Figure 4.15 the expenditure on all other goods decreases. (Point b is lower than point a.) This means, therefore, that the person’s total expenditure on X has correspondingly increased. What, then, can we say about the person’s price elasticity of demand for X between points a and b? What can we say about the price elasticity of demand between points b and c and points c and d?

What features or rights may alter the character of preferred stock?

Describe stock index futures. How could they be used by a financial institution that is anticipating a jump in stock prices but does not yet have sufficient funds to purchase large amounts of stock? Explain why stock index futures may reflect investor expectations about the market more quickly than stock prices. (LO3)

A stepper motor serves as the drive unit for the linear joint of an industrial robot. The joint must have an accuracy of 0.25 mm. The motor is attached to a leadscrew through a 2:1 gear reduction (2 turns of the motor for 1 turn of the leadscrew). The pitch of the leadscrew is 5.0 mm. The mechanical errors in the system (due to backlash of the leadscrew and the gear reducer) can be represented by a normal distribution with standard deviation = ±0.05 mm. Specify the number of step angles that the motor must have in order to meet the accuracy requirement.

Explain why the tax law imposes constructive stock ownership rules on stock redemptions.

Why does the required rate of return for a particular bond change over time? (LO2)

A continuous weld is to be made around the circumference of a round steel tube of diameter = 6.0 ft, using a submerged arc welding operation under automatic control at a voltage of 25 volts and current of 300 amps. The tube is slowly rotated under a stationary welding head. The heat transfer factor for SAW is = 0.95 and the assumed melting factor = 0.7. The cross-sectional area of the weld bead is 0.12 in2. If the unit melting energy for the steel = 150 Btu/in3, determine (a) the rotational speed of the tube and (b) the time required to complete the weld.

Ray Albertson is 72 years old and lives by himself in an apartment in Salt Lake City.Ray’s gross income for the year is $3,000.Ray’s support is provided as follows:Himself (11 percent), his daughters Diane (20 percent) and Karen (15percent), his sons Mike (20 percent) and Kenneth (10 percent), his friend Milt (14 percent), and his cousin Henry (12 percent).Absent a multiple support agreement, of the parties mentioned in the problem, who may claim adependency exemption for Ray as a qualifying relative

The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.   Adjustment data: 1. Supplies on hand totaled $1,500. 2. Depreciation is $15,000 on the equipment. 3. Interest of $11,000 is accrued on notes payable at November 30. Other data: 1. Salaries expense is 70% selling and 30% administrative. 2. Rent expense and utilities expenses are 80% selling and 20% administrative. 3. $30,000 of notes payable are due for payment next year. 4. Maintenance and repairs expense is 100% administrative. Instructions (a) Journalize the adjusting entries. (b) Prepare an adjusted trial balance. (c) Prepare a multiple-step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 2014. (d) Journalize the closing entries. (e) Prepare a post-closing trial balance.

Flagstad Inc. presented the following data. Net income $2,500,000 Preferred stock: 50,000 shares outstanding, $100 par, 8% cumulative, not convertible 5,000,000 Common stock: Shares outstanding 1/1 750,000 Issued for cash, 5/1 300,000 Acquired treasury stock for cash, 8/1 150,000 2-for-1 stock split, 10/1 Instructions Compute earnings per share.

Determine whether a taxpayer who is claimed as a dependent on another return is entitled to an addition to the standard deduction for age or blindness. (Hint: Read the calculation of the standard deduction under §63.)

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www. wiley.com/college/kieso. Instructions Refer to P&G’s financial statements and the accompanying notes to answer the following questions. (a) What is the par or stated value of P&G’s preferred stock? (b) What is the par or stated value of P&G’s common stock? (c) What percentage of P&G’s authorized common stock was issued at June 30, 2011? (d) How many shares of common stock were outstanding at June 30, 2011, and June 30, 2010? (e) What was the dollar amount effect of the cash dividends on P&G’s stockholders’ equity? (f) What is P&G’s return on common stock equity for 2011 and 2010? (g) What is P&G’s payout ratio for 2011 and 2010? (h) What was the market price range (high/low) of P&G’s common stock during the quarter ended June 30, 2011?

Camille Sikorski was divorced in 2018. She currently owns and provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille’s home for the entire year, and Camille paid for all the costs of maintaining the home. Camille received a salary of $105,000 and contributed $6,000 of it to a qualified retirement account (for AGI deduction). She also received $10,000 of alimony from her former husband (per divorce decree issued in 2018). Finally, Camille paid $15,000 of expenditures that qualified as itemized deductions.

Define resistivity as a material property.

The flow curve parameters for a certain stainless steel are strength coefficient = 1100 MPa and strainhardening exponent = 0.35. A cylindrical specimen of starting cross-sectional area = 1000 mm2 and height = 75 mm is compressed to a height of 58 mm. Determine the force required to achieve this compression, assuming that the cross section increases uniformly.

Can the margin of safety ever be negative? Explain your answer.

A continuous hot rolling mill has two stands. Thickness of the starting plate = 25 mm and width = 300 mm. Final thickness is to be 13 mm. Roll radius at each stand = 250 mm. Rotational speed at the first stand = 20 rev/min. Equal drafts of 6 mm are to be taken at each stand. The plate is wide enough relative to its thickness that no increase in width occurs. Under the assumption that the forward slip is equal at each stand, determine (a) speed vr at each stand, and (b) forward slip s. (c) Also, determine the exiting speeds at each rolling stand, if the entering speed at the first stand = 26 m/min

Suppose you asked your favorite AI query tool “Can a single member LLC with one owner who is an individual elect to be taxed as an S corporation?” and the AI tool responded as follows:

Peter M. Dell Co. purchased equipment for $510,000 which was estimated to have a useful life of 10 years with a salvage value of $10,000 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2015, it is determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time. Instructions (a) Prepare the entry (if any) to correct the prior years’ depreciation. (b) Prepare the entry to record depreciation for 2015.

What are the three basic steps in the glassworking sequence?

Identify the three basic forms of sawing operation?

Compare and contrast the tax treatment for rental income received in advance with advance payments for goods and services.

Included in Adams Company’s December 31, 2014, trial balance are the following accounts: Accounts Payable $220,000; Pension Liability $375,000; Discount on Bonds Payable $29,000; Unearned Rent Revenue $41,000; Bonds Payable $400,000; Salaries and Wages Payable $27,000; Interest Payable $12,000; Income Taxes Payable $29,000. Prepare the current liabilities section of the balance sheet.