Question 1
"1. To help the marketing manager prepare for her presentation, she has asked you to fi ll in the blanks in the following table. The selling prices in the table were computed by successively decreasing the selling price by 5%. The estimated unit sales were computed by successively increasing the unit sales by 8%. For example, $23.75 is 5% less than $25.00 and 54,000 units is 8% more than 50,000 units. Selling Price Estimated Unit Sales Sales Variable Cost Fixed Expenses Net Operating Income $25.00 50,000 $1,250,000 $300,000 $960,000 $(10,000) $23.75 54,000 $1,282,500 $324,000 $960,000 $ (1,500) $22.56 58,320 ? ? ? ? $21.43 62,986 ? ? ? ? $20.36 68,025 ? ? ? ? $19.34 73,467 ? ? ? ? $18.37 79,344 ? ? ? ? $17.45 85,692 ? ? ? ? $16.58 92,547 ? ? ? ? $15.75 99,951 ? ? ? ? 2. Using the data from the table, construct a chart that shows the net operating income as a function of the selling price. Put the selling price on the X-axis and the net operating income on the Y-axis. Using the chart, determine the approximate selling price at which net operating income is maximized. 3. Compute the price elasticity of demand for the SpamBlocker software. Based on this calculation, what is the profi t-maximizing price? 4. The owners have invested $2,000,000 in the company and feel that they should be earning at least 2% per month on these funds. If the absorption costing approach to pricing were used, what would be the target selling price based on the current sales of 50,000 units? What do you think would happen to the net operating income of the company if this price were charged? 5. If the owners of the company are dissatisfi ed with the net operating income and return on investment at the selling price you computed in (3) above, should they increase the selling price? Explain.,Here is the assignment in a Word Document.
Question 2
1. ABC Company's pension expense for 2010 is: Service cost $30,000 Interest cost $18,000 Actual return on plan assets $15,000 Beginning of year plan assets $200,000 Settlement rate 8% Expected return on plan assets 8% a. $30,000 b. $32,000 c. $33,000 d. $48,000 2. On January 1, 2008, NCAA Company adopted a compensatory stock option plan and granted its managers 10,000 options to buy shares of common stock; each option can be used to acquire a share of common stock at a price of $25 a share. The fair value of each option was $7.50 on January 1, 2008. The options can be converted into common stock after July 1, 2011. The required service period is three years. How much compensation expense will be recorded for the year ending December 31, 2010 assuming that the fair value approach is used? a. $75,000 b. $175,000 c. $50,000 d. $25,000 3. Cash dividends paid by a corporation: a. reduces the net income of the corporation that declared the dividend. b. reduces the retained earnings of the corporation that declared the dividend. c. reduces the retained earnings of the corporation that declared the dividend because net income is reduced by the amount of the dividend.
Question 3
Parent corporation purchased 75% of Subsidiary Corporation in 2000. Subsidiary?s balance sheet shows the following amounts: a)Demand deposit Basis-$20,000 Value-$20,000 b)IBM stock Basis-$30,000 Value-$50,000 c)Parking Lot Basis-$5,000 Value-$30,000 d)Building Basis-$0 Value-$100,000 e)Mortgage Basis-$ Value-$ Subsidiary has a net operating loss carryover in 2006 of $7,000 and earnings and profits of $22,000. The Subsidiary redeemed in 2003 the 25% shareholder Roy Rogers. The Subsidiary distributed the IBM stock for his 25% interest. In 2006, Subsidiary adopts a plan of liquidation. Questions: 1)What are the tax consequences to Roy in 2003 (i.e. realized, recognized gain or loss and character)? 2)Does the Subsidiary recognize gain or loss on the redemption and the Liquidation (i.e. realized, recognized and character)? 3)What is the Parent?s basis for the assets received? 4)What happens to the Subsidiary?s NOL and Earnings and Profits? [Give computations and IRC Secs.],Dear Professor, please let me know about when you will be able to help me with this problem. I rearranged the format of the problem so that it will be more clear for you to review? Corporate Tax Question: Parent corporation purchased 75% of Subsidiary Corporation in 2000. Subsidiary?s balance sheet shows the following amounts: a)Demand deposit Basis-$20,000 Value-$20,000 b)IBM stock Basis-$30,000 Value-$50,000 c)Parking Lot Basis-$5,000 Value-$30,000 d)Building Basis-$0 Value-$100,000 e)Mortgage Basis-$ Value-$ Subsidiary has a net operating loss carryover in 2006 of $7,000 and earnings and profits of $22,000. The Subsidiary redeemed in 2003 the 25% shareholder Roy Rogers. The Subsidiary distributed the IBM stock for his 25% interest. In 2006, Subsidiary adopts a plan of liquidation. Questions: 1)What are the tax consequences to Roy in 2003 (i.e. realized, recognized gain or loss and character)? 2)Does the Subsidiary recognize gain or loss on the redemption and the Liquidation (i.e. realized, recognized and character)? 3)What is the Parent?s basis for the assets received? 4)What happens to the Subsidiary?s NOL and Earnings and Profits? [Give computations and IRC Secs.]
Question 4
You asked: Requirements: 1) Post beginning balances in ledger accounts (t-accounts) from the December 31, 2009 post-closing trial balance. 2) Prepare journal entries to record each transaction for DeeDee?s Designs. (A general journal is provided. Multiple pages will be needed.) 3) Post the journal entries from requirement 2. 4) Prepare an unadjusted trial balance as of January 31, 2010 5) Prepare a bank reconciliation for DeeDee?s Designs for January 31, 2010. Use the information on the ?Bank Reconciliation Information? page following the January journal entries. 6) Prepare all necessary adjusting entries and entries associated with the bank reconciliation. Post these entries to the accounts in the ledger. 7) Prepare an adjusted trial balance as of January 31, 2010 January Transactions Jan. 1 Established an Allowance for Doubtful Accounts in the amount using the estimate of 7% of Accounts Receivable. Jan. 2 Received $16,500 from Salon C and $7,200 from Louie?s Caf? on account. Jan. 3 Issued ck #127 to Bank One ($12,000 borrowed on December 2nd) for accrued interest of $80. Jan. 4 Performed decorating services for Ryan Banks on account for $1,250. Jan. 5 Issued ck. #128 to Sarah Allsop for accrued salary of $1,200. Jan. 7 Purchased $20,000 inventory on account from Haydel?s Furniture, 2/10, n/30. Jan. 8 Issued ck. #129 for $435 for January office rent. Jan. 10 Returned to Haydel?s $2,000 worth of inventory purchased on Jan. 7. Jan. 11 Received $3,000 from Melissa Trosclair for services to redecorate her new home office. Jan. 12 Performed decorating services for $5,200 for C&C Records on account. Jan. 12 Issued ck. #130 for $600 in payment of advertising for the month. Jan. 14 Completed the decorating work for Diane Thompson (Diane paid DeeDee $4,500 for this work in December). Jan. 15 Purchased supplies on account from Fabrics Etc. for $500. Jan. 16 Paid for purchase made on Jan.7 less the portion returned and discount on Jan. 10 (used ck. #131). Jan. 22 Sold $9,500 of inventory on account to Kristie Breaud. The cost was $8,000. Jan. 23 Received $5,000 cash from the sale of a sofa set. The cost was $3,500. Jan. 25 Granted a return to Kristie Breaud for one the items purchased. The item was sold to Ms. Breaud for $700 and had a cost to Dee Dee of $550. Jan. 26 Performed services on account to Evergreen Apartments in connection with decorating their lobby, $10,400. Jan. 29 DeeDee learns that Coffee Caf? flooded earlier in the month which forced them to shut down and file bankruptcy. DeeDee doubts that she will be able to collect on her account balance from Coffee Caf?. DeeDee decides to write-off their $2,000 account receivable. Jan. 29 Received payment from Kristie Breaud for purchase on Jan.22 (less amount returned). Jan. 30 Issued ck. #132 for $105 to pay the utilities bill for the month. Jan. 30 Issued ck. #133 for $20 in payment of the telephone bill for the month. Jan. 30 Issued ck. #134 for $50 for postage. Jan. 30 Issued ck. #135 for $200 for business automobile expenses. Jan. 30 Issued ck. #136 to Sarah Allsop in the amount of $1036 for payroll. Her gross salary was $1,200. (Payroll taxes are considered in this entry.) Federal income taxes withheld from the pay were $72. Additionally, FICA at 7.65% was withheld. As required by law, the employer is matching the employee?s FICA at 7.65%. HINT: Payroll tax expense should only be debited for the employer?s share of FICA. Round all amounts to nearest dollar. Adjusting Entries Note: DeeDee is preparing the following adjusting entries for the month of January. Round all amounts to nearest dollar. Jan 31 Expired insurance for the period $79. Jan 31 Record the provision for doubtful accounts based on an estimate of 7% of accounts receivable being uncollectible. Jan 31 Supplies on hand at the end of January, $650. Jan 31 The company?s furniture is expected to have a ten year life with no salvage value. Jan 31 The office equipment is expected to have a six year life with no salvage value. Jan 31 Accrue interest on the notes payable is $80. Jan 31 Record the necessary journal entries associated with the January 31 bank reconciliation (use Bank Reconciliation worksheet in the working papers to prepare the bank reconciliation). Bank Reconciliation Information DeeDee used an online bank statement dated January 31, 2010 to prepare the bank reconciliation for January 31, 2010. DeeDee noted the following items on the January 31st bank statement: a. Bank balance at closing bank hours on January 31st: $46,998. b. DeeDee took the cash receipt from Kristie Breaud (received on January 29th) to the bank on January 31 but it is not included on the January 31st bank statement. c. DeeDee?s checking account earned $50 of interest during January 2009. d. DeeDee?s account was debited for a $5 monthly bank service charge on January 31st. e. Checks #132-#136 have not cleared the bank. All other checks have cleared the bank. Check Figures Accounts Receivable Ending Balance is $19,850 Dee Dee Designs Postclosing Trial Balance December 31, 2009 Debits Cash $35,208 Accounts Receivable 28,700 Supplies 200 Prepaid Insurance 712 Deposits 435 Prepaid Rent 435 Land 12,000 Equipment 13,000 Furniture and Fixtures 7,000 Credits Accumulated Depreciation 717 Notes Payable 12,000 Unearned Revenue 4,500 Salaries Payable 1,200 Interest Payable 80 Common Stock 45,000 Retained Earnings 34,193 Balance 97,690,Thanks for accepting question. Attached is a file of text on word that contains the information asked above in a more orderly manner,Are you working on this question? I need the answer by 2:00 AM. It will lock me out at this time. Thanks.,The accounts receivable ending balance according to the check figure I gave you was $19,850 (see word file). But you have 19,856 in your work and do not understand this. Also, please note postage expense from 1/30 was $50, not $40.
Question 5
Final Assignment: Create an Innovation Identify an innovation you could create or design and discuss how you will implement it in your organization or an organization in which you are involved, such as a church or a community group, or to start up a new business. The innovation can be a product, service, process, technology, management practice, or business model. Write a paper of 1,500-2,500 words. You need to outline the various sections of this final paper as you go through each module in this class. The paper should use at least three models related to innovation from your reading or research. Structure the final paper to include the following sections: 1. Opportunity: Describe the problem that will be solved, or the opportunity that will be realized, through the innovation you will be developing in this class. 2. Ensuring Success: Define the importance of innovation to assuring success for you personally and for the organization for which you will be developing an innovation for this class. 3. Impact on Results: Hypothesize the impact on the organization's results that your innovation will have. 4. The Innovation: Describe the innovation (product, service, process, management practice, and technology or business model) you will be developing for this class. 5. Creating Customer Value: Explain how the innovation you will be developing will help meet customer needs, create customer value, and impact your organization's results. 6. Implementation Process: Describe the process you might use to implement the innovation in your organization. 7. Measuring the Impact: Identify how you will measure the impact your innovation makes on customers and/or on your organization. 8. Reflection on Learning: Reflect on the types of learning you might have obtained from the process of developing an innovation. Include at least eight in-text citations to at least four articles from your research. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is not required. 1. Directly quoted source material may not exceed 10% of the paper's content. 2. Note: Due to its inherent unreliability, Wikipedia is not considered an acceptable source for use in academic writing.
