Question & Answer

A parison is extruded from a die with outside diameter = 11.5 mm and inside diameter = 7.5 mm. The observed die swell is 1.25. The parison is used to blow mold a beverage container whose outside diameter = 112 mm (a standard size 2-liter soda bottle). (a) What is the corresponding wall thickness of the container? (b) Obtain an empty 2-liter plastic soda bottle and (carefully) cut it across the diameter. Using a micrometer, measure the wall thickness to compare with your answer in (a)

Assume there are just two firms (X and Y) and they are considering which of two alternative prices to charge. The decisions are made simultaneously: i.e. without either firm knowing the choice of its rival. The various profits are illustrated in the following pay-off matrix: (a)  What is firm Y’s best response to each of the different prices firm X could charge? Does firm Y have a dominant strategy? (b)  What is firm X’s best response to each of the different prices firm Y could charge? Does firm X have a dominant strategy?     (c)  What is/are the Nash equilibrium/equilbria? What is the most likely outcome of this game? Explain your answer.

During a financial crisis, liquidity in financial markets declines dramatically, and many surplus units no longer participate in financial markets. Yet, if the markets are efficient, securities prices should decline due to existing economic conditions, which should make these securities appealing to potential investors. Nevertheless, many investors typically are no longer willing to participate in the financial markets under these conditions. Write a short essay that explains the logic behind why participants may temporarily disappear during a financial crisis even though security prices are low, causing illiquidity in financial markets.

Explain how return on investment (ROI) is calculated and how it can be         decomposed into two financial measures.

John Olerud Ltd., a local retailing concern in the Bronx, New York, has decided to change from the conventional retail inventory method to the LIFO retail method starting on January 1, 2015. The company recomputed its ending inventory for 2014 in accordance with the procedures necessary to switch to LIFO retail. The inventory computed was $212,600. Instructions Assuming that John Olerud Ltd.’s ending inventory for 2014 under the conventional retail inventory method was $205,000, prepare the appropriate journal entry on January 1, 2015.

How do the AMT tax rates compare to the regular income tax rates?

1.    : As a manager, how would you use symbols to build an adaptability culture that encourages teamwork and risk taking? What kinds of symbols could you use to promote the values of an involvement culture?

A steel casting has a cylindrical geometry with 4.0 in diameter and weighs 20 lb. This casting takes 6.0 min to completely solidify. Another cylindrical-shaped casting with the same diameter-to-length ratio weighs 12 lb. This casting is made of the same steel, and the same conditions of mold and pouring were used. Determine: (a) the mold constant in Chvorinov's rule, (b) the dimensions, and (c) the total solidification time of the lighter casting. The density of steel = 490 lb/ft3 .

A facing operation is performed on an engine lathe. The diameter of the cylindrical part is 6 in and the length is 15 in. The spindle rotates at a speed of 180 rev/min. Depth of cut = 0.110 in, and feed = 0.008 in/rev. Assume the cutting tool moves from the outer diameter of the workpiece to exactly the center at a constant velocity. Determine (a) the velocity of the tool as it moves from the outer diameter towards the center and (b) the cutting time.

Machinery purchased for $60,000 by Tom Brady Co. in 2010 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2015, it is determined that the total estimated life should be 10 years with a salvage value of $4,500 at the end of that time. Assume straight-line depreciation. Instructions (a) Prepare the entry to correct the prior years’ depreciation, if necessary. (b) Prepare the entry to record depreciation for 2015.

Jamarcus, a full-time student, earned $2,500 this year from a summer job.  He had no other income this year and will have zero federal income tax liability this year.  His employer withheld $300 of federal income tax from his summer pay.  Is Jamarcus required to file a tax return?  Should Jamarcus file a tax return?

Draw a supply and demand diagram with the price of labour (the wage rate) on the vertical axis and the quantity of labour (the number of workers) on the horizontal axis. What will happen to employment if the government raises wages from the equilibrium to some minimum wage above the equilibrium?

On March 10, 2016, Lost World Company sells equipment that it purchased for $192,000 on August 20, 2009. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $16,800 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. Instructions (a) Compute the depreciation charge on this equipment for 2009, for 2016, and the total charge for the period from 2010 to 2015, inclusive, under each of the six following assumptions with respect to partial periods. (1) Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base.) (2) Depreciation is computed for the full year on the January 1 balance in the asset account. (3) Depreciation is computed for the full year on the December 31 balance in the asset account. (4) Depreciation for one-half year is charged on plant assets acquired or disposed of during the year. (5) Depreciation is computed on additions from the beginning of the month following acquisition and on disposals to the beginning of the month following disposal. (6) Depreciation is computed for a full period on all assets in use for over one-half year, and no depreciation is charged on assets in use for less than one-half year. (Use 365 days for base.) (b) Briefly evaluate the methods above, considering them from the point of view of basic accounting theory as well as simplicity of application.

Question: The following information relates to the Jimmy Johnson Company. Ending Inventory Price Date (End-of-Year Prices) Index December 31, 2010 $ 70,000 100 December 31, 2011 90,300 105 December 31, 2012 95,120 116 December 31, 2013 105,600 120 December 31, 2014 100,000 125 Instructions Use the dollar-value LIFO method to compute the ending inventory for Johnson Company for 2010 through 2014.

A turning operation is made with a rake angle of 10°, a feed of 0.010 in/rev and a depth of cut = 0.100 in. The shear strength of the work material is known to be 50,000 lb/in2 , and the chip thickness ratio is measured after the cut to be 0.40. Determine the cutting force and the feed force. Use the orthogonal cutting model as an approximation of the turning process.

At December 31, 2014, Percheron Inc. had a deferred tax asset of $30,000. At December 31, 2015, the deferred tax asset is $59,000. The corporation’s 2015 current tax expense is $61,000. What amount should Percheron report as total 2015 income tax expense?

Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and he also paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2017). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Matthew. Marc and Mikkel paid $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year.

Kemper Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2015 at a cost of $1,000,000. At December 31, 2014, the raw materials to be purchased have a market value of $950,000. Prepare any necessary December 31, 2014, entry.

Distinguish between publicly provided goods, public goods and merit goods.

Explain how the conversion of a securities firm to a bank holding company (BHC) structure might reduce its risk. (LO2)

By what means would a depressed country in an economic union with a single currency be able to recover? Would the market provide a satisfactory solution to its problems or would (union) government intervention be necessary, and if so, what form could that intervention take?

As compared with the FIFO method of costing inventories, does the LIFO method result in a larger or smaller net income in a period of rising prices? What is the comparative effect on net income in a period of falling prices?

1.       : A Gallup survey showed that highly educated workers are significantly less likely to be engaged than are those with a high school diploma or less. What might be some reasons for this lower level of engagement among more-educated employees?

Distinguish between a determinable current liability and a contingent liability. Give two examples of each type.

McCormick Corporation issued a 4-year, $40,000, 5% note to Greenbush Company on January 1, 2014, and received a computer that normally sells for $31,495. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare McCormick’s journal entries for (a) the January 1 issuance and (b) the December 31 interest.