You have a co-worker at work that you are also friends with. One day, a borrower comes in and meets with him. You overhear the borrower tell your co-worker that he has a loan with his mom and dad for about $10,000 that he pays $300 a month. Your co-worker proceeds as if he didn’t hear your borrower at all. Once he has taken the application, he tells the borrower that he qualifies for maximum financing for a $250,000 home. However, that does NOT take into consideration the $300 a month the borrower pays his parents for the loan.
Did your coworker do anything unethical in this transaction?
Assuming you feel this was an unethical situation, how do you handle this? Remember, this is your friend and co-worker

Answer:

1. My co-worker has indeed done something unethical as it goes against the ethics of the financial profession. By ignoring the outstanding loan that the applicant has with his parents in his risk assessment of the applicant, he has opened the company to more risk exposure that could be costly to the company. My co-worker has therefore been derelict in his duty for whatever reason and engaged in unethical conduct.

2. As this is my co-worker and friend, I would not think to get him in trouble as a first resort by reporting to our immediate manager. Rather I will go an discuss with him to make him see the error in what he just did because it might have been a mistake.

I will advise him to call the applicant back and reduce the available financing. On the off chance he refuses, I would be forced to report him to our supervisor/ manager.

Which statement best describes a business creating an incentive?

Owners of a local restaurant are concerned about their ability to provide quality service as they continue to grow and attract more customers. They have collected data from Friday and Saturday nights, their busiest times of the week. During these time periods about 126 customers arrive per hour for service. Given number of tables and chairs, and the typical time it takes to serve a customer, the owners estimate they can serve on average about 121 customers per hour.
During these nights, are they in the zone of service, the critical zone , or the zone of non service?
A. zone of service
B. zone of non service
C. critical zone

Indicate how you think each of the following would shift demand in the indicated market:
a. The income of buyers in the market for Adirondack vacations increase.
b. Buyers in the market for pizza read a study linking pepperoni consumption to heart disease.
c. Buyers in the market for gas-powered cars learn of an increase in the price of electric cars (a substitute for gas-powered cars).
d. Buyers in the market for electric cars learn of an increase in the price of electric cars.

Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools:

Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs

Required:
Compute the activity rate for each of the activity cost pools.

List four job advertisements can be found​

The income statement of Cullumber Company for the month of July shows net income of $2,490 based on Service Revenue $7,100, Salaries and Wages Expense $2,930, Supplies Expense $920, and Utilities Expense $760. In reviewing the statement, you discover the following:
1. Insurance expired during July of $490 was omitted.
2. Supplies expense includes $340 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $240 was omitted.
4. Accrued but unpaid wages at July 31 of $400 were not included.
5. Service performed but unrecorded totaled $730.
Prepare a correct income statement for July 2017.

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 700,000 units of product to finished goods. At the end of November, the work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning inventory had $420,000 of direct materials and $139,000 of conversion cost. The direct material cost added in November is $2,220,000, and the conversion cost added is $3,254,000. Beginning work in process consisted of 60,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 60,000 were from beginning work in process and 640,000 units were started and completed during the period.

Required:
a. Determine the equivalent units of production with respect to (a) direct labor and (b) direct materials.
b. Compute both the direct labor cost and the direct materials cost per equivalent unit.
c. Compute both direct labor cost and direct materials cost assigned to (a) units completed and transferred out and (b) ending goods in process inventory.

Which qualities would be best for someone working in Support Services?

patience for performing repetitive tasks, accuracy in performing lab work, and critical-thinking skills
social awareness, integrity for knowledge of patient confidentiality, and hand steadiness
knowledge of nutrition, social awareness, and patience for performing repetitive tasks
integrity, stress-management skills, and specialized knowledge of medical care

Mike, Matt, Brooke, and Kellie decide to go into business together. The form a limited partnership where Mike, Matt, and Brooke are the limited partners. They contribute the following amounts: Mike - 25,000 Matt - 10,000 Brooke - 10,000 Kellie - 5,000
Additionally, the partnership agreement states that all profits are to be distributed equally. Mike will perform services for the company and will be paid $100,000 a year for those services. The company will be able to deduct this amount from net income. In the first year of operations, the company had the following items of income:
Services - 160,000
Expenses - 24,000
Depreciation - 28,000
Finally, no one withdraw any money from the partnership, save Matt who withdraws $15,000.
What is the maximum Kellie can withdraw without having a gain in excess of basis?

The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

Department 100 Department 200
Direct materials purchased on account $110,000 $177,500
Direct materials used 32,500 13,500
Direct manufacturing labor 52,500 53,500
Indirect manufacturing labor 11,000 9,000
Indirect materials used 7,500 4,750
Lease on equipment 16,250 3,750
Utilities 1,000 1,250

Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.

Required:
a. Determine the budgeted manufacturing overhead rate for each department.
b. Prepare the necessary journal entries to summarize the March transactions for Department 100.
c. What is the total cost of Job A?

Suppose that Portugal and Austria both produce oil and shoes. Portugal's opportunity cost of producing a pair of shoes is 4 barrels of oil while Austria's opportunity cost of producing a pair of shoes is 10 barrels of oil. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the production of shoes and has a comparative advantage in the production of oil. Suppose that Portugal and Austria consider trading shoes and oil with each other. Portugal can gain from specialization and trade as long as it receives more than of oil for each pair of shoes it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than of shoes for each barrel of oil it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of oil) would allow both Sweden and Portugal to gain from trade?
a. 1 barrel of oil per pair of shoes
b. 9 barrels of oil per pair of shoes
c. 3 barrels of oil per pair of shoes
d. 8 barrels of oil per pair of shoes

what are the objectives of business​

Concord Windows manufactures and sells custom storm windows for three-season porches. Concord also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Concord enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,360 and chooses Concord to do the installation. Concord charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $620. The customer pays Concord $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Concord completes installation on October 15, 2020, and the customer pays the balance due.
Prepare the journal entries for Geraths in 2020. (Round amounts to nearest dollar.)

Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the __________. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation.

The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in exactly 20 years. Looking forward, this bond makes no interest payments for the next six years. Beginning in the middle of year seven, the bond makes payments of $800 every six months through the end of year 14. Finally, beginning in the middle of year 15, the bond makes semiannual payments of $1000 up to and including its maturity date.

Required:
What are the current prices of bond M and bond N?

Question 2 Week 8 (7 marks)
The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each
valued at $1.50. The summary statement of the financial position of the subsidiary company immediately
following the acquisition is:
Fair value of assets acquired $2,640,000
Fair value of liabilities acquired $720,000
Total shareholders’ equity of the subsidiary company $800,000
Retained earnings of the subsidiary company $1,120,000
Required:
(a) Pass the necessary journal entry to record the acquisition (2 marks)
(b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition (2 marks)
(c) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company (2 marks)
(d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase
consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50 (1 marks)

A work group of 10 workers in a certain month produced 7200 units of output working 8 hr/day for 22 days in the month. Determine the labor productivity ratio using:
Units of output per worker-hour and per worker-month.
For each of these, determine the productivity index for the next month using the prior month as a base. Then, suppose that in the next month, the same work group produced 6800 units but, there were only 20 workdays in the month.

At the end of the fiscal year, the following adjusting entries were omitted:

a. No adjusting entry was made to transfer the $3,000 of prepaid insurance from the asset account to the expense account.
b. No adjusting entry was made to record accrued fees of $500 for services provided to customers.

Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces.

Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,192,500 in manufacturing overhead cost at an activity level of 559,000 machine-hours. The company spent the entire month of January working on a large order for 12,300 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow:

a. Raw materials purchased on account, $322,000.
b. Raw materials used in production, $258,000 (80% direct materials and 20% indirect materials).
c. Labor cost accrued in the factory, $159,000 (one-third direct labor and two-thirds indirect labor).
d. Depreciation recorded on factory equipment, $63,100.
e. Other manufacturing overhead costs incurred on account, $85,000.
f. Manufacturing overhead cost was applied to production on the basis of 40,720 machine-hours actually worked during the month.
g. The completed job for 12,300 custom-made machined parts was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.)

Required:
1. Prepare journal entries to record items (a) through (f) above (ignore item (g) for the moment).
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T-accounts.
3. Prepare a journal entry for item (g) above.
4. Compute the unit product cost that will appear on the job cost sheet.

Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eating one hot​ dog, and the two goods fill the same need in​ Harry's life. The price of hot dogs has been extremely volatile for the past several​ years, and this year is no exception. Hot dog prices tremendously this month. Assuming hot dogs and hamburgers are substitutes for​ Harry, what will happen to​ Harry's demand for​ hamburgers?

Required:
Using the line drawing​ tool, depict the effect on​ Harry's demand for hamburgers due to the in the price of hot dogs. Properly label this line. Carefully follow the instructions above and only draw the required object.

In a certain economy, when income is $500, consumer spending is $350. The value of the multiplier for this economy is 3.33. It follows that, when income is $1000, consumer spending is

This is the trial balance of Blossom Company on September 30.
BLOSSOM COMPANY
Trial Balance
September 30, 2022
Debit Credit
Cash $ 23,240
Accounts Receivable 6,640
Supplies 5,020
Equipment 10,920
Accounts Payable $ 8,840
Unearned Service Revenue 4,020
Common Stock 19,040
Retained Earnings 13,920 $45,820 $45,820
The October transactions were as follows.
Oct.
5 Received $1,470 in cash from customers for accounts receivable due.
10 Billed customers for services performed $5,020.
15 Paid employee salaries $1,380.
17 Performed $560 of services in exchange for cash.
20 Paid $1,800 to creditors for accounts payable due.
29 Paid a $340 cash dividend.
31 Paid utilities $440.

With the snow season fast approaching us, Jack Frost, age 15, is considering his income-generating alternatives. Jack runs a snow removal business. He employs his friends at $10.00 per hour to clear sidewalks and driveways for neighbors, family friends, and fellow townsfolk. Last year, he had ten regular customers whose walks were shoveled 14 times each over the course of the winter. All told, Jack paid his friends $2,100 for their work for him this winter. Jack is considering the purchase of a used snowblower, which he believes will reduce the amount of time it takes his crew to complete a job to only 45 minutes. The snowblower will cost $1,176 (and will probably be worthless after one year of use), and will consume about $0.50 worth of gasoline and oil per use (per snow removal job). Given that Jack had no fixed costs, what was Jack's total cost function for last year?a. TC = 15Q b. TC = 100 c. TC = 11760 d. TC=0.5Q

Which of the following is NOT an example of a professional degree?
O Master of Science
O Doctor of Medicine
O Master of Divinity
O Juris Doctor

The accounts in the ledger of Hickory Furniture Company as of December 31, 2019, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Accounts Payable $34,000 Accounts Receivable 68,000 Cash ? Elaine Wells, Capital 158,650 Elaine Wells, Drawing 37,000 Fees Earned 566,600 Insurance Expense 10,750 Land 155,250 Miscellaneous Expense 15,850 Notes Payable 74,000 Prepaid Insurance 5,100 Rent Expense 107,700 Supplies 3,400 Supplies Expense 14,150 Unearned Rent 16,400 Utilities Expense 75,900 Wages Expense 317,300 Miscellaneous Expense 9,500
The accounts in the ledger of Hickory Furniture Company as of December 31, 2016, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted.
Accounts Payable $ 42,770 Notes Payable $ 50,000
Accounts Receivable 116,900 Prepaid Insurance 21,600
Cash ? Rent Expense 48,000
Elaine Wells, Capital 75,000 Supplies 4,275
Elaine Wells, Drawing 24,000 Supplies Expense 6,255
Fees Earned 745,230 Unearned Rent 12,000
Insurance Expense 3,600 Utilities Expense 26,850
Land 50,000 Wages Expense 580,700
Miscellaneous Expense 9,500
Prepare an unadjusted trial balance, listing the accounts in their normal order and inserting the missing figure for cash.
X
Unadjusted Trial Balance
Prepare an unadjusted trial balance, listing the accounts in their normal order and inserting the missing figure for cash.
Hickory Furniture Company
UNADJUSTED TRIAL BALANCE
December 31, 2016
ACCOUNT TITLE DEBIT CREDIT
1 Cash
2 Accounts Receivable
3 Supplies
4 Prepaid insurance
5 Land
6 Accounts Payable
7 Unearned Rent
8 Notes Payable
9 Elaine Wells, Capital
10 Elaine Wells, Drawing
11 Fees Earned
12 Wages Expense
13 Rent Expense
14 Utilities Expense
15 Supplies Expense
16 Insurance Expense
17 Miscellaneous Expense
18 Totals

The following errors occurred in posting from a two-column journal:

A credit of $8,770 to Accounts Payable was not posted.
A debit of $1,200 to Cash was posted to Miscellaneous Expense.
A credit of $270 to Cash was posted as $720.
A debit of $8,510 to Wages Expense was posted as $8,150.
An entry debiting Accounts Receivable and crediting Fees Earned for $8,000 was not posted.
A debit of $830 to Accounts Payable was posted as a credit.
A debit of $2,200 to Supplies was posted twice.

Required:
a. Indicate by "yes" or "no" whether the trial balance would be out of balance.
b. If the answer to (a) is "yes", indicate the amount by which the trial balance totals would differ.

The following book and fair values were available for Westmont Company as of March 1.
Book Value Fair Value
Inventory $ 231,000 $ 191,750
Land 822,000 1,119,750
Buildings 2,130,000 2,447,250
Customer relationships 0 867,750
Accounts payable (104,000) (104,000)
Common stock (2,000,000)
Additional paid-in capital (500,000)
Retained earnings, 1/1 (417,500)
Revenues (464,500)
Expenses 303,000
Arturo pays cash of $4,365,500 to acquire Westmont. No stock is issued and Arturo pays $47,500 for legal fees to complete the transaction.
Prepare Arturo % u 2019s journal entry to record its acquisition of Westmont.

What type of business organization offers many benefits and is specific to
the United States?
A. Corporations
B. Limited liability companies
C. Sole proprietors
D. Partnerships

Consider the following scenario:

Cold Goose Metal Works Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.

1. Cold Goose is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The company’s operating costs (excluding depreciation and amortization) remain at 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The company’s tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cold Goose expects to pay $300,000 and $2,306,475 of preferred and common stock dividends, respectively.


Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Round each dollar value to the nearest whole dollar.

Cold Goose Metal Works Inc. Income Statement for Year Ending December 31

Year 1 Year 2 (Forecasted)
Net sales $30,000,000 $
Less: Operating costs, except depreciation and amortization 21,000,000
Less: Depreciation and amortization expenses 1,200,000 1,200,000
Operating income (or EBIT) $7,800,000 $
Less: Interest expense 780,000
Pre-tax income (or EBT) 7,020,000
Less: Taxes (40%) 2,808,000
Earnings after taxes $4,212,000 $
Less: Preferred stock dividends 200,000
Earnings available to common shareholders 4,012,000
Less: Common stock dividends 1,263,600
Contribution to retained earnings $2,748,400 $3,387,850

The U.S. Department of Transportation provides estimated number of miles that residents of large metropolitan areas travel per day in a car. In a random sample of 50 City A residents the mean was 22 miles with a standard deviation of 4 miles, and in a random sample of 50 City B residents the mean was 28 miles with a standard deviation of 8 miles. You want to know if the mean difference in number of miles travelled per day between City A and City B is different from zero in the population.

a. One sample t test
b. Paired samples t test
c. Independent samples t test
d. One-way analysis of variance (ANOVA)