Question: Dealco Corporation published a consolidated income

> Select the correct answer. 1. T F Free enterprise is a system of business in which individuals decide what to produce and how to produce it. 2. T F Less than 65 percent of small businesses fail within the first ten years. 3. T F Business is the orga

> a. According to the IMF, what are the economic growth projections for 2017 and 2018? b. What is the importance of exports to the U.S. economy? c. Which nations are the principal trading partners of the United States? What are the major U.S. imports and e

> a. What kinds of factors encourage certain people to start new businesses? b. What are the major causes of small-business failure? Do these causes also apply to larger businesses?

> a. Explain the relationships among a franchise, the franchisor, and the franchisee. b. Describe the three general categories of franchising arrangements.

> a. Briefly describe four contributions of small business to the American economy. b. Give examples of how small businesses fill needs of society and other businesses.

> a. Identify five ways in which the SBA provides management assistance to small businesses. b. Identify two ways in which the SBA provides financial assistance to small businesses. c. Why does the SBA concentrate on providing management and financial assi

> a. What are the major advantages and disadvantages of smallness in business? b. What are the major components of a business plan? Why should an individual develop a business plan?

> a. List and briefly describe the principal restrictions that may be applied to a nation’s imports. b. What reasons are generally given for imposing trade restrictions? c. What are the general effects of import restrictions on trade?

> a. What is a sole proprietorship? b. What are the advantages of a sole proprietorship? c. What are the disadvantages of a sole proprietorship?

> a. What are the advantages of a corporation? b. What are the disadvantages of a corporation?

> a. Explain the difference between an open corporation and a closed corporation. b. How is a domestic corporation different from a foreign corporation and an alien corporation? c. Outline the incorporation process, and describe the basic corporate structu

> Circle the letter before the most accurate answer. 6. The selling and shipping of raw materials or products to other nations is called a. importing. b. exporting. c. balance of trade. d. balance of payments. e. dumping. 7. A type of trade restriction tha

> a. What is the Export-Import Bank of the United States? How does it assist U.S. exporters? b. What is a multilateral development bank (MDB)? Who supports these banks? c. What is the International Monetary Fund? What types of loans does the IMF provide?

> a. Explain the difference between an S corporation and a limited-liability company. b. How does a regular (C) corporation differ from a not-for-profit corporation?

> a. What reasons would you give if you were advising someone to study business? b. What factors affect a person’s choice of careers? c. Once you have a job, what steps can you take to be successful?

> a. What is management? b. What are the four kinds of resources?

> a. Why is planning sometimes referred to as the “first” management function? b. What is a plan? Differentiate between the major types of plans. c. What kind of motivations do different employees have? d. What are the three steps of controlling?

> a. Describe the three levels of management. b. Identify the various areas of management specialization, and describe the responsibilities of each.

> a. Describe the major leadership styles. b. Which one is best?

> a. Describe the major steps in the managerial decision-making process. b. Why does a manager need to evaluate the solution and look for problems after a solution has been implemented?

> a. Why does top management need to be strongly committed to TQM programs? b. Describe the major components of a TQM program.

> a. How do large and small organizations use organization charts differently? b. Identify the major considerations when organizing a business.

> Circle the letter before the most accurate answer. 25. One factor that influences ethical decision making because of the amount of freedom given to employees is the __________ factor. a. business b. consumer c. marketing d. opportunity e. internal 26. A

> a. What are the positive and negative effects of specialization? b. What are three ways to reduce the negative effects of specialization?

> a. What are the four most common bases for departmentalization? b. Give an example of each.

> a. Identify and describe the three steps in the delegation process. b. Differentiate decentralized organization and centralized organization.

> a. Describe the two spans of management. b. What are problems associated with each one?

> a. What is corporate culture? b. Explain the four types of corporate cultures.

> a. What is the difference between a committee and a task force? b. What are the advantages and disadvantages of using committees?

> a. In what ways can informal groups affect a business? b. How is the grapevine used in a business organization?

> a. List the major activities involved in operations management. b. What steps have U.S. firms taken to regain a competitive edge in the global marketplace? c. What is the difference between an analytical and a synthetic manufacturing process? Give an exa

> a. How is the production of services similar to the production of manufactured goods? b. How is production of services different from the production of manufactured goods? c. How can service firms measure customer satisfaction?

> a. Describe how research and development leads to new products. b. What is the difference between basic research, applied research, and development and implementation? c. Explain why product extension and refinement are important.

> Circle the letter before the most accurate answer. 6. A general rise in the level of prices is called a. free enterprise. b. inflation. c. gross domestic product. d. depression. e. monopoly. 7. A market situation in which there are many buyers and seller

> a. What are the advantages of a partnership? b. What are the disadvantages of a partnership?

> Compute the issue price of each of the following bonds. a. $10,000,000 face value, zero coupon bonds due in 20 years, priced on the market to yield 8% compounded semiannually. b. $10,000,000 face value, serial bonds repayable in 40 equal semiannual insta

> Ms. Fleming has £145,000 with which she purchases an annuity on February 1, 2008. The annuity consists of six annual receipts, the first to be received on February 1, 2009. How much will she receive in each payment? Assume the following interest rates: a

> If Mr. Enmetti invests €90,000 on June 1 of each year from 2008 to 2018 inclusive, how much will he have accumulated on June 1, 2019 (note that one year elapses after the last payment), if the interest rate is a. 5% per year? b. 10% per year?

> Ms. Namura wants to have ¥45 million on her 65th birthday. She asks you to tell her how much she must deposit on each birthday from her 58th to 65th, inclusive, in order to receive this amount. Assume the following interest rates: a. 8% per year b. 12% p

> Mr. Case plans to set aside $4,000 each year, the first payment to be made on January 1, 2013, and the last on January 1, 2018. How much will he have accumulated by January 1, 2018, if the interest rate is a. 6% per year? b. 8% per year?

> When the American Basketball Association (ABA) merged with the National Basketball Association (NBA), the owners of the ABA St. Louis Spirits agreed to dissolve their team and not enter the NBA. In return, the owners received a promise in perpetuity from

> The balance sheet of Lynch Company shows net assets (= total assets – total liabilities) of $100,000 and shareholders’ equity of $100,000. The assets are all depreciable assets with remaining lives of 20 years. The income statement for the year shows rev

> When General Electric Company first introduced the Lucalox ceramic, screw-in light bulb, the bulb cost three and one-half times as much as an ordinary bulb but lasted five times as long. An ordinary bulb cost $1.00 and lasted about eight months. If a fir

> Mrs. Heileman occasionally drinks beer. (Guess which brand.) She consumes one case in 20 weeks. She can buy beer in disposable cans for $25.20 per case or for $24.00 per case of returnable bottles if she pays a $3.00 refundable deposit at the time of pur

> When Mr. Shafer died, his estate after taxes amounted to $300,000. His will provided that Mrs. Shafer would receive $24,000 per year starting immediately from the principal of the estate and that the balance of the principal would pass to the Shafers’ ch

> Mme. Barefield wishes to have $150,000 at the end of 8 years. How much must she invest today to accomplish this purpose if the interest rate is a. 6% per year? b. 8% per year?

> If you promise to leave $30,000 on deposit at the Dime Savings Bank for four years, the bank will give you a new large, flat-screen Sony TV today and your $30,000 back at the end of four years. How much are you paying today for the TV, in effect, if the

> An oil-drilling company figures that it must spend $30,000 for an initial supply of drill bits and that it must spend $10,000 every month to replace the worn-out bits. What is the present value of the cost of the bits if the company plans to be in busine

> Using the notation O/S (overstated), U/S (understated), or NO (no effect), indicate the effects on assets, liabilities, shareholders’ equity, and net income of each of the independent errors that follow. Ignore income tax effects. a. In applying the equi

> Laesch Company, as parent, owns shares in Lily Company. Laesch has owned the shares since it formed Lily. Lily has never declared a dividend. Laesch has retained earnings from its own operations independent of intercorporate investments of $100,000. The

> On December 12, 2013, Canning purchased 2,000 shares of Werther. By December 31, the market price of these shares had dropped by $1,000. On March 2, 2014, Canning sold the 2,000 shares for $18,000 and reported a realized gain on the transaction of $4,000

> During 2013, Fischer/Black Company purchased equity securities classified as available-for-sale securities. On May 22, 2014, the company recorded the following correct journal entry to record the sale of the equity securities: a. What was the acquisiti

> Firms that do not elect the fair value option classify marketable securities along two dimensions: ■ Purpose of investment: held-to-maturity debt securities, trading securities, or available for-sale securities. ■ Length of expected holding period: curre

> Disney World experienced damage from a tornado at Space Mountain, one of its most popular attractions. It paid $30,200 to replace steel reinforcements to the structure damaged by the tornado, $86,100 for a new roof torn off by the tornado, $26,900 for a

> Thom Corporation acquired a computer on January 1, 2011, for $10,000,000. The computer had an estimated useful life of six years and $1,000,000 estimated salvage value. The firm uses the straight-line depreciation method. On January 1, 2013, Thom Corpora

> Mr. Altgeldt has $5,000 to invest. He wants to know how much it will amount to if he invests it at the following rates: a. 6% per year for 21 years. b. 8% per year for 33 years.

> In 2013, Carlton, Inc., acquires a machine for $88,800. It expects the machine to last six years and to operate for 30,000 hours during that time. Estimated salvage value is $4,800 at the end of the machine’s useful life. Calculate the depreciation charg

> Nexor, a steel manufacturer, self-constructs a new manufacturing facility in Vermont. At the start of 2013, the Construction-in-Process account had a balance of $30 million. Construction activity occurred uniformly throughout the year. At the end of 2013

> Bulls Eye Stores constructed new stores during the current year. The average balance in the Construction-in-Process account excluding the current year’s capitalized interest costs was $3,400,000. Bulls Eye Stores engaged in borrowing directly related to

> WollyMartin Limited, a large retailer, provided the following information from its accounting records for the year ended September 30, 2013: WollyMartin’s business is characterized by many retail customers—some of wh

> Cemex S.A., a Mexican cement and construction firm, reported ending inventory, net for the year ended December 31 of $19,631 million (all amounts reported in millions of Mexican pesos). During the year, Cemex reported that application of the lower-of-cos

> Falcon Motor Company, a U.S. automotive manufacturer, reports that it uses the LIFO cost-flow assumption for inventory. For the year ended December 31, 2013, Falcon’s cost of goods sold was $142,587 million. It reported the following in

> Cat Incorporated manufactures machinery and engines for the construction, agriculture, and forestry industries. It follows U.S. GAAP and reports its results in millions of U.S. dollars ($). For the year ended December 31, 2013, it reported LIFO inventori

> Warren Company uses a FIFO cost-flow assumption and calculates Cost of Goods Sold as Beginning Inventory + Purchases – Ending Inventory. It uses a physical count of merchandise on hand to determine the balance in Ending Inventory. On December 30, 2012, W

> The following data relate to Crystal Chemical Corporation for the year ended December 31, 2013 (amounts in millions of euros): The company incurred manufacturing costs (direct material, direct labor, and manufacturing overhead) during the year totaling

> Arnold Company’s raw material purchases during January, its first month of operations, were as follows: The inventory on January 31 was 3,500 pounds. Compute the cost of the inventory on January 31 and the cost of raw materials issued

> GenDyn computes net income for 2012 of $1,500 and for 2013 of $1,800, its first two years of operations. Before issuing its financial statements for 2013, GenDyn discovers that an item requires an income-reducing adjustment of $400 after taxes. Indicate

> The following data relate to GenMet, a U.S. based consumer goods manufacturing firm, for the fiscal year ending October 31, 2013. Reported amounts are in millions of U.S. dollars ($). GenMet incurred manufacturing costs (direct material, direct labor,

> A customer shopping at Bed, Bath & Beyond, a home products retailer in the United States, made the following purchases: $100 for bath towels, $135 for an iron, $45 for an ironing board, and $250 for a gift certificate. Sales taxes on the purchase amounte

> An old agreement obliges the state to help a rural county maintain a bridge by paying $60,000 now and every two years thereafter forever. The state wants to discharge its obligation by paying a single sum to the county now for the payment due and all fut

> Consider the scholarship fund in the preceding question. Suppose that the first scholarship award occurs one year from now and the donor wants the scholarship to grow by 2% per year. How much should the donor deposit if the fund earns a. 6% per period? b

> To establish a fund that will provide a scholarship of $3,000 per year indefinitely, with the first award to occur now, how much must a donor deposit if the fund earns a. 6% per period? b. 8% per period?

> Mr. Grady agrees to lease a certain property for 10 years, at the following annual rental, payable in advance: Years 1 and 2—$1,000 per year Years 3 to 6—$2,000 per year Years 7 to 10—$2,500 per year What single immediate sum will pay all of these rent

> Compute the amount (future value) of an ordinary annuity (an annuity in arrears) of the following: a. 13 rental payments of $100 at 1% per period. b. 8 rental payments of $850 at 6% per period. c. 28 rental payments of $400 at 4% per period.

> Compute the present value of the following: a. $100 due in 30 years at 4% compounded annually. b. $250 due in 8 years at 8% compounded quarterly. c. $1,000 due in 2 years at 12% compounded monthly.

> Compute the future value of the following: a. $100 invested for 5 years at 4% compounded annually. b. $500 invested for 15 periods at 2% compounded once per period. c. $200 invested for 8 years at 3% compounded semiannually. d. $2,500 invested for 14 yea

> State the rate per period and the number of periods in the following: a. 12% per year, for 5 years, compounded annually. b. 12% per year, for 5 years, compounded semiannually. c. 12% per year, for 5 years, compounded quarterly. d. 12% per year, for 5 yea

> Assume no changes in physical quantities during the period. During a period of rising purchase prices, will a FIFO or a LIFO cost-flow assumption result in the higher ending inventory balance sheet carrying value? During a period of rising purchase price

> On October 1, 2013, Biddle Corporation purchases equipment from a supplier in France on account at a purchase price of €40,000 and denominates the transaction in euros. Biddle Corporation must pay the €40,000 on March 31

> On September 1, 2013, Turner Corporation places an order with a Japanese supplier for manufacturing equipment for delivery on June 30, 2014. The purchase is denominated in Japanese yen in the amount of ¥5,200,000. Turner Corporation purchases

> During 2013, Zeff Corporation sold marketable securities for $14,000 that had a carrying value of $13,000 at the time of sale. The financial statements of Zeff Corporation reveal the following information with respect to available-for-sale securities:

> Give the likely transaction or event that would result in making each of the independent journal entries that follow: а. Unrealized Loss on Available-for-Sale Securities . 4,000 Marketable Securities... 4,000 b. Cash 1,100 Realized Loss on Sale of A

> Events related to Simmons Corporation’s investments of temporarily excess cash appear below. The firm classifies these investments as available-for-sale securities and does not elect the fair value option. None of these three securiti

> Events related to Elston Corporation’s investments of temporarily excess cash appear below. The firm classifies these investments as available-for-sale securities and does not adopt the fair value option. Elston received no dividends

> Kelly Company acquired $500,000 face value of the outstanding bonds of Steedly Company on January 1, 2013. The bonds pay interest semiannually on June 30 and December 31 at an annual rate of 7% and mature on December 31, 2015. The bonds were priced on th

> Kelly Company acquired $500,000 face value of the outstanding bonds of Steedly Company on January 1, 2013. The bonds pay interest semiannually on June 30 and December 31 at an annual rate of 7% and mature on December 31, 2015. The bonds were priced on th

> Woodward Corporation purchases a new machine for $50,000 on January 1, 2013. The machine has a four-year estimated service life and an estimated salvage value of zero. After paying the cost of running and maintaining the machine, the firm enjoys a $25,00

> Lilly Company reports the following information about its financial statements and tax return for a year (amounts in euros): Depreciation Expense from Financial Statements …………………. €322,800 Financial Statement Pretax Book Income………………………………… 190,800 Inc

> Prepare journal entries to record each of the following items for Union Cable Company for 2012. Union Cable Company uses a calendar year reporting period. Ignore income tax effects. a. Discovers on January 15, 2012, that it neglected to amortize a patent

> Pownall Company reports the following information for a year: Book Income Before Income Taxes……………………………… $318,000 Income Tax Expense…………………………………………………….. 156,000 Income Taxes Payable for the Year …………………………………. 48,000 Income Tax Rate on Taxable Income

> Marytown Energy, an electric utility, reports the following information about its income taxes for three recent years (amounts in millions of U.S. dollars): a. Give the journal entries that Marytown Energy made to record income tax expense for 2011, 20

> Fleet Sneaks, an athletic shoe company, reports the following information about its income taxes for three recent years (amounts in millions of euros): a. Give the journal entries that Fleet Sneaks made to record income tax expense for 2011, 2012, and

> Reliance, an automobile manufacturer, reports the following information related to its health care plan for 2013 (amounts in millions of euros). Reliance applies U.S. GAAP. Health Care Plan Assets, Beginning of 2013………………….. € 6,497 Plus Actual Return o

> Tasty Dish Inc., a consumer foods company, reports the following information related to its only pension plan for 2013 (amounts in millions of U.S. dollars). Tasty Dish applies U.S. GAAP. Pension Plan Assets, Beginning of 2013…………………………..………$5,086 Plus

> Air Flight, an aerospace manufacturer, reports the following information related to its only pension plan for 2013 (amounts in millions of U.S. dollars). Air Flight applies U.S. GAAP. Pension Plan Assets, Beginning of 2013 ………………………..$43,484 Plus Actual

> Lorimar Company grows and ages tobacco. On January 2, 2013, the firm has aging tobacco in inventory with a cost of $200,000 and a current market value of $300,000. Lorimar wants to use this tobacco to obtain financing. The firm uses a December 31 year-en

> Cypres Appliance Store has $100,000 of accounts receivable on January 2, 2013. These receivables are due on December 31, 2013. The firm wants to use these accounts receivables to obtain financing. a. Prepare journal entries during 2013 for the transactio

> On January 1, 2013, Baldwin Products, as lessee, leases a machine used in its operations. The annual lease payment of $10,000 is due on December 31 of 2013, 2014, and 2015. The machine reverts to the lessor at the end of the three years. The lessor can e

> Sun Microsystems manufactures an engineering workstation for $7,200 and sells it for $12,000. Although the workstation has a physical life of approximately 10 years, rapid technological change limits its expected useful life to three years. Sun leases a

> Roth Company has prepared its financial statements for the year ended December 31, 2013, and for the three months ended March 31, 2014. You will prepare a statement of cash flows for the three months ended March 31, 2014. Exhibit 16.9 presents the compan