Lisa is a sales manager at a clothing retail store. She has hired you, a recent graduate with a marketing degree with an emphasis on marketing information systems. She wants you to analyze big data that the company has gathered on its customers to come up with Ideal Customer Profiles so that the firm can make marketing Investment decisions to attract such customers. Lisa explains that an ideal customer profile is a description of the demographics, psychographies, and behavior of the customers who are most likely to purchase their firm's product. In order to identify the ideal Customers, you must determine the Customer Acquisition Costs, Lifetime Value, Payback Periods, and Customer Retention. You are familiar with these concepts because you learned about them in your marketing classes.You are now ready to calculate the Customer Lifetime Value, which Lisa wants calculated as a forecast of the net profit related to the whole purchase future associated with a customer. It equals the monthly sales to a certain customer, multiplied by the gross profit percentage, multiplied by the number of lifetime months a customer is expected to purchase from a certain store. Using company data, you have determined that the gross profit percentage is 25 percent, or 0.25. The monthly sales to an average customer would be $150 for the first group and $210 for the second group.A. Monthly Sales to a CustomerB. Gross Profit Percentage C. Number of Lifetime Months D. Customer Lifetime Value Over a 240-month period, what is the Customer Lifetime Value for the first group? a. $11,000 b. $9,000 c. $10,000 d. $12,000

Answer: b. $9,000

Explanation:

The following details are given;

Monthly sales to customer from first group = $150

Gross Profit percentage = 25%

Number of lifetime months = 240 months

Customer Lifetime value for the first group = 150 * 240 * 25%

= $9,000

Based on what we have learned about shortages and surpluses in a market, which one do you think is more harmful to the overall economy: a shortage or a surplus of a good? Provide a detailed explanation to demonstrate your thinking.

Presented below is information related to Windsor Company.

Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $16,800 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,500, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig $3,400 for realty services performed.
27 Pays $1,100 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,650 in salary for October.

Required:
Journalize the transactions.

Pro forma balance sheet Peabody & Peabody has 2019 sales of $10 million. It wishes to analyze expected performance and financing needs for 2021, which is 2 years ahead. Given the following information, respond to parts a and b.

1. The percent of sales for items that vary directly with sales are as follows: Accounts receivable, 12% Inventory, 18% Accounts payable, 14% Net profit margin, 3%
2. Marketable securities and other current liabilities are expected to remain unchanged.
3. A minimum cash balance of $480,000 is desired.
4. A new machine costing $650,000 will be acquired in 2020, and equipment costing $850,000 will be purchased in 2017. Total depreciation in 2017 is forecast as $290,000, and in 2017 $390,000 of depreciation will be taken.
5. Accruals are expected to rise to $500,000 by the end of 2017.
6. No sale or retirement of long-term debt is expected.
7. No sale or repurchase of common stock is expected.
8. The dividend payout of 50% of net profits is expected to continue.
9. Sales are expected to be $11 million in 2017 and $12 million in 2017.
10. The December 31, 2017, balance sheet follows

Peabody & Peabody Balance Sheet December 31, 2017 ($000)

Assets:

Cash 400
Marketable securities 200
Accounts receivable 1200
Inventories 1800
Total current assets 3600
Net fixed assets 4000
Total assets 7600

Liabilities and Stockholders equity:

Accounts payable 1400
Accruals 400
Other current liabilities 80
Total current liabilities 1880
Long-term debt 2000
Total liabilities 3880
Common equity 3720
Total liabilities and stockholders’ equity $7,600


Required:
a. Prepare a pro forma balance sheet dated December 31, 2017.
b. Discuss the financing changes suggested by the statement prepared in part a.

Liquidity risk would be greatest for an investor whose portfolio was primarily composed of A) ADRs listed on the NYSE B) municipal bond UITs C) Nasdaq stocks D) municipal bonds

Home Inspirations Mary works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Mary plans on taking over the business. Mary is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, any other time, sales are not so good. Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Mary is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increase, she could sell her products at a lower price and increase revenue. She knows that most bedding products available in the market are very similar in nature and satisfy the same need. However, if she were able to lower prices, this might give her company the competitive advantage that it needs. She would then be able to invest money in differentiating her products by providing unique features, building the brand name, and offering services such as free delivery. She is also considering selling her products on the Internet. Mary knows that her father does not like change very much, but she feels these changes are important for the future of the company.
Refer to Home Inspirations.Mary noticed that when sales were up,the economy was in a
A) depression.
B) peak period.
C) grace period.
D) recession.
E) stagnant mode.

1. Purchased raw materials on account $49,400.
2. Raw Materials of $41,300 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,000 was classified as indirect materials.
3. Factory labor costs incurred were $65,200.
4. Time tickets indicated that $54,600 was direct labor and $10,600 was indirect labor.
5. Manufacturing overhead costs incurred on account were $84,900.
6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7. Goods costing $96,300 were completed and transferred to finished goods.
8. Finished goods costing $80,700 to manufacture were sold.

Required:
Record the transactions.

If steak and potatoes are complements, when the price of steak goes down, the demand curve for potatoes:

You would like to be a millionaire when you retire in 40 years, and how much you must invest today to reach that goal clearly depends on what rate of return you can earn. First, suppose you can earn 10.4% per year, and calculate how much you would have to invest today. Second, suppose you can only earn half that percentage rate, and calculate how much you would have to invest today. Divide the second by the first, to see how many times more you must invest today at half that annual rate grow it to $1 million over 40 years.

On June 30, 2012, Oriole Company issued 12% bonds with a par value of $770,000 due in 20 years. They were issued at 98 and were callable at 103 at any date after June 30, 2020. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2021, and to issue new bonds. New 10% bonds were sold in the amount of $1,000,000 at 102; they mature in 20 years. Oriole Company uses straight-line amortization. Interest payment dates are December 31 and June 30.Instructions:
a. Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2021.
b. Prepare the entry required on December 31, 2021, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.

Barth Interior provides decorating advice to its clients. Three recent transactions of the company include:
a. Providing decorating services of $500 on account to one of its clients.
b. Paying $1,200 for an employee's salary in the current period.
c. Purchasing office equipment for $2,700 by paying cash.
Required: Write a memo to your instructor describing each step of the six-step measurement process presented in Illustration 2-1 in the book specifically for each of the three transactions. To emphasize, your memo should be specific to the three transactions indicated above..

Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing (referred to as outsourcing), or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows:
Demand
Staffing Options High Medium Low
Own staff 650 650 600
Outside vendor 900 600 300
Combination 800 650 500
a) If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation?
Own staff, Outside vendor, Combination
What is the expected annual cost associated with that recommendation?
Expected annual cost = $
(b) Construct a risk profile for the optimal decision in part (a).
What is the probability of the cost exceeding $700,000?
Probability =

Allison and Leslie, who are twins, just received $10,000 each for their 25th birthdays. They both have aspirations to become millionaires. Each plans to make a $5000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high quality bonds whose investors have earned 8% per year in the past. Leslie invested in the New-Issue Bio Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 13% per year in the fund’s relatively short history.
a. If the two women’s funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire?
b. How large would Allison’s annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming that their expected returns are realized?

South Texas Luxury Apartments reports pretax financial income of $68,400 for 2019. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,000. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $21,000. 3. Fines for pollution appear as an expense of $10,300 on the income statement. South Texas Luxury Apartments tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2019.

Required:
Prepare a reconciliation between Financial Income and Taxable Income and then prepare the journal entry to record income taxes.

Faughn Corporation has provided the following data concerning manufacturing overhead for July:
Actual manufacturing overhead incurred $69,000
Manufacturing overhead applied to Work in Process $79,000
The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?
A) Manufacturing Overhead account is $233,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000.
B) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
C) Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
D) Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
Faughn Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
Raw materials purchased on account $475,000
Raw materials (all direct) requisitioned for use in production $476,000
Direct labor cost $640,000
Manufacturing overhead:
Indirect labor cost $174,000
Other manufacturing overhead costs incurred $498,000
Cost of goods manufactured $1,672,500
Cost of goods sold (unadjusted) $1,469,000
The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:_____.
A. Finished Goods 1,672,500
Work in Process 1,672,500
B. Work in Process 1,469,000
Finished Goods 1,469,000
C. Finished Goods 1,469,000
Work in Process 1,469,000
D. Work in Process 1,672,500
Finished Goods 1,672,500

Use the following data to determine the total amount of working capital.

Windsor, Inc. Balance Sheet December 31, 2022

Cash $129200 Accounts payable $153500
Accounts receivable 122600 Salaries and wages payable 28400
Inventory 209300 Note payable (due 2025) 268000
Short-term investments 86400 Total liabilities $449900
Land (held for future use) 255000 Land 289000
Buildings $338500 Common stock $355500

Less: Accumulated depreciation (60200) 278300 Retained earnings 771000
Franchise 206600 Total stockholders' equity $1126500
Total assets $1576400 Total liabilities and stockholders' equity $1576400

Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:
Peanut Company Snoopy Company
Debit Credit Debit Credit
Cash $158,000 $80,000
Accounts Receivable 165,000 65,000
Inventory 200,000 75,000
Investment in Snoopy
Stock 319,500 0
Land 200,000 100,000
Buildings and
Equipment 700,000 200,000
Cost of Goods Sold 200,000 125,000
Depreciation Expense 50,000 10,000
Selling & Administrative
Expense 225,000 40,000
Dividends Declared 100,000 20,000
Accumulated
Depreciation 450,000 20,000
Accounts Payable 75,000 60,000
Bonds Payable 200,000 85,000
Common Stock 500,000 200,000
Retained Earnings 225,000 100,000
Sales 800,000 250,000
Income from Snoopy 67,500 0
Total $2,317,500 $2,317,500 $715,000 $715,000
Required:
A. Prepare any equity method entry(ies) related to the investment in Snoopy Company during 20X8.
B. Prepare a consolidated worksheet on the acquisition date, January 1, 2018.

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 1,800 2,300 3,300 Per unit sales value at split-off $ 16.00 $ 19.00 $ 18.00 Added processing costs per unit $ 3.00 $ 5.00 $ 5.00 Per unit sales value if processed further $ 20.00 $ 20.00 $ 25.00 The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point

Splish Corporation had income from continuing operations of $10,703,000 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $205,000. Prior to disposal, the division operated at a loss of $322,000 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Splish had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Splish beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e.g. 1.48.)

without copying and pasting answer!
what are the duties of a plumber, and why is it difficult?

Suppose that you are working as a financial analyst in Bank of America Merrill Lynch. Your boss have just asked to analyze three different money market instrument yields and to suggest investment advice to its rich clients. Which of following instruments is the most desirable to invest in ? A six month T-bill rate of 1.9 % A six moth Eurodollar deposit of 1.9% A six month CD rate of 1.9 %

Following are the merchandising transactions of Dollar Store.

Nov. 1 Dollar Store purchases merchandise for $2,200 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.
5 Dollar Store pays cash for the November 1 purchase.
7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund.
10 Dollar Store pays $110 cash for transportation costs for the November 1 purchase.
13 Dollar Store sells merchandise for $2,376 with terms n/30. The cost of the merchandise is $1,188.
16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $295 and cost $148; the items were not damaged and were returned to inventory.

Required:
Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.

The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets:

Cash and short-term investments $45,000
Accounts receivable (net) 30,000
Inventory 25,000
Property, plant and equipment 210,000
Total Assets $310,000
Liabilities and Stockholders' Equity Current liabilities $60,000
Long-term liabilities 95,000
Stockholders' equity—common 155,000
Total Liabilities and Stockholders' Equity $310,000

Income Statement
Sales revenue $121,000
Cost of goods sold 66,000
Gross margin 55,000
Operating expenses 30,000
Net income $25,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share on common stock 0.50
Cash provided by operations $40,000

What is the current ratio for this company?

a. 1.25
b. 1.50
c. 0.67
d. 1.00

On January 1, 2020, Pearl Company sold 11% bonds having a maturity value of $400,000 for $415,163, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Pearl Company allocates interest and unamortized discount or premium on the effective-interest basis.
A. Prepare a schedule of interest expense and bond amortization for 2020-2022.
Date Account Titles and Explanation Debit Credit
January 1, 2020 Cash 518,953
Bonds Payable 500,000
Premium on Bonds Payable 18953
B. Prepare the journal entry to record the interest payment and the amortization for 2020.
Schedule of Interest Expense and Bond Premium Amortization
Effective-Interest Method
Date Cash Interest Premium Carrying Amount
Paid Expense Amortized of Bonds
1/1/20
12/31/20 55000
12/31/21 55000
12/31/22 55000
C. Prepare the journal entry to record the interest payment and the amortization for 2022.
Date Account Titles and Explanation Debit Credit
December, 31 51895
Premium on Bonds Payable
Cash

On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows:

September 30 through December 31, 2021 $3,600,000
January 1 through February 28, 2022 1,500,000
March 1 through April 30, 2022 594,000

Athens expects a useful life of four years for the software and total revenues of $7,800,000 during that time. During 2022, revenue of $1,560,000 was recognized.

Required:
a. Prepare a journal entry to record the development costs in each year of 2021 and 2022.
b. Calculate the required amortization for 2022.

You are the owner of a restaurant in a competitive market. You want to improve your restaurant's profile by increasing your quality of service to patrons while also growing profits. In addition to hiring better chefs and changing the menu, you are considering whether to offer a coat check. As one option, you could install hooks for customers to use, which may or may not help your business. Alternatively, you could offer a coat check for a fee, which would increase labor costs but give you a source of revenue in the process. Evaluate the various issues from a business and legal perspective, as well as steps to minimize any liability.

Consider the following independent situations at December 31:
a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned.
b. Salaries expense is $1,800 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday.
c. The unadjusted balance of the Office Supplies account is $3,000. Office supplies on hand total $1,900.
d. Equipment depreciation was $500.
e. On April 1, when the business prepaid $4,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash.
Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries.

At the beginning of 2013, the Harding Construction Company received a contract to build an office building for $10 million. Harding will construct the building according to specifications provided by the buyer, and the project is estimated to take three years to complete. According to the contract, Harding will bill the buyer in installments over the construction period according to a prearranged schedule. Information related to the contract is as follows:
2013 2014 2015
Cost incurred during the year $2,300,000 $3,600,000 $2,100,000
Estimated costs to complete 5,300,000 2,000,000 0
Billings during the year 1,700,000 4,000,000 4,300,000
Cash collections during the year 1,600,000 3,600,000 4,300,000
Calculate the following:
Gross profit : Percentage of completion Completed contract
recognized Method Method
2013
2014
2015
Total gross profit:

Cost of Goods Sold, Cost of Goods Manufactured

Glenville Company has the following information for April:

Cost of direct materials used in production $52,000
Direct labor 67,000
Factory overhead 21,000
Work in process inventory, April 1 38,000
Work in process inventory, April 30 48,000
Finished goods inventory, April 1 22,000
Finished goods inventory, April 30 17,000

Required:
a. For April, determine the cost of goods manufactured.
b. For April, determine the cost of goods sold.

What microeconomic factors point to the fact that your business should be successful? No

Journal Entries, T-Accounts
Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,760. Materials totaling $40,880 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour. Actual overhead of $8,860 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs costing $59,000 were transferred to Finished Goods. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were:
Materials Inventory $1,200
Work-in-Process Inventory 3,400
Finished Goods Inventory 2,640
Required:
1. Prepare the journal entries for the preceding events.
a.
b.
c.
d.
e.
f.
g (1).
g (2).
2. Calculate the ending balances of:
a. Materials Inventory $
b. Work-in-Process Inventory $
c. Overhead Control $
d. Finished Goods Inventory $