...Recommended exercises and solutions for chapter 1 and chapter 2 Chapter 1 E1.3 Buy or Sell? Value = $850 + $675 = $1,525 million Value per share = $1,525/25 = $61 Market price = $45 Therefore, BUY! Chapter 2 E2.1. Applying Accounting Relations: Balance Sheet, Income Statement and Equity Statement a. Liabilities = Assets – Shareholder’s equity = $400 - $250 = $150 million b. Net Income = Revenues – Expenses $30 = ? - $175 ? = $205 million c. Ending equity = Beginning equity + Comprehensive Income – Net Payout $250 = $230 + ? - $12 ? = $32 million As net income (in the income statement) is $30 million, $2 million was reported as “other comprehensive income” in the equity statement. d. Net payout = Dividends + Share repurchases – Share issues As there were no share issues or repurchases, dividend = $12. E2.2. Applying Accounting Relations: Cash Flow Statement Change in cash = CFO – Cash investment – Cash paid out in financing activities $130 = $400 - ? - $75 ? = $195 million E2.4. Preparing an Income Statement and Statement of Shareholders’ Equity Income statement: Sales $4,458 Cost of good sold 3,348 Gross margin 1...
Words: 383 - Pages: 2
...Chapter 1 Even 1. Define business profiles, processes, and modeling. a. Business profile is an overview of a company’s mission, functions, organization, products, services, customers, suppliers, competitors, constraints, and future direction. b. Business processes is a specific set of transactions, events, and results that can be described and documented. c. Modeling is a standard based language used by analysts. It includes various shapes and symbols to represent events, processes and workflows. 2. Explain the difference between vertical and horizontal systems packages. d. A horizontal system is a basic software package system that can be adapted to common business processes like inventory and payroll. e. A vertical system is customized to meet the unique needs of a particular business, industry, or organization 3. Describe five types of information systems, and give an example of each. f. Enterprise computing systems support company-wide data management. e.g. airline reservations systems g. Transaction processing systems process data generated by day-to-day business operations. e.g. customer billing systems h. Business support systems provide job-related information support to users at all levels of a company. e.g. inventory reordering systems i. Knowledge management systems simulate human reasoning by combining a knowledge base and inference rules that determine how the knowledge is applied. e.g. technical...
Words: 836 - Pages: 4
...CHAPTER 1 1-1 Define each of the following terms: a. Proprietorship: A business owned by one individual. Partnership: A partnership exists when two or more persons associate to conduct business. Corporation: A corporation is a legal entity created by a state. The corporation is separated and distinct from its owner and managers. b. Limited partnership: A partnership in which limited partners’ liabilities, investment returns, and control are limited: general partners have unlimited liability and control. Limited Liability Partnership: A limited liability partnership (LLP), sometimes called a limited liability company (LLC), combines limited liability advantage of a corporation with the tax advantages of a partnership. Professional Corporation (PC): Has most of the benefits of incorporation but the participants are not relieved of professional (malpractice) liability; known in some states as professional associations (PA). c. Stockholder wealth maximization: The basic principle where managers and decision makers are working on the behalf of the stockholders to enhance the shareholder value. Management’s primary objective should be stockholder wealth maximization. d. Money market: A financial market for debt securities with maturities of less than 1 year (short-term). The New York money market is the world’s largest. Capital market: Capital markets are the financial markets for long-term debt and corporate stocks. The New York Stock Exchange is...
Words: 1709 - Pages: 7
...CHAPTER I Introduction Many people are using branded conditioners for them to make their hair smoothen but they didn’t know that there are other alternatives for it, so the researchers are introducing the product calamansi and malunggay extracts as Hair Conditioner. The researchers search about the Calamansi and Malunggay’s content. The calamansi’s scientific name is citrus microcarpa. The Calamansi’s skin or peel is green to yellowish. The peel adheres closely to the flesh which contains a few seeds and its light orange in color. The fruit is crushed with gogo and used for cleansing the hairs. The Calamansi have other uses like removing ink stains from clothes, washing the hair of women, can be used for bleaching freckles and as a cheap remedy for itching acne vulgar and pruritis vulvae. The properties of Calamansi are antiseptic, antichloristic, carminative, deodorant, and refrigerant. Calamansi can also prevent infections to the user’s scalp, it can also prevent a frizzy problem to the hair. It is also a natural way keeping the hair better because when you put any chemicals to your hair you will get bad effects that will eventually harm your hair. It is also convenient to use calamansi and malunggay extracts. It prevents bad toxins and refreshes the scalp. The investigators search about malunggay and the scientific name for it, is moringa. It is best known as an excellence of nutrition and natural energy booster. It is...
Words: 3194 - Pages: 13
...Misha: chapters 1 and 2 I really was not thrilled or interested in this book at all at first. The beginning was very slow and it took a while for the story to pick up, but once it did, it was good. This was until the end of the last chapter. It felt very slow again and it just described the living conditions she lived through on her own for pages. It seemed repetitive even though it really wasn’t. The one thing I questioned was how old Misha actually was. When she was put into a home for hiding with another family, she was given the identity as a 4 year old because she could pass for that age. However, when she ran away and had to live on her own, she knew exactly what to do and how to take care of herself in the harsh conditions of the winter break. I also noticed that she talks about her life of present day relating to the past. For instance, in the book she wrote, “From that time on I always slept with my shoes on. (Today I own over three hundred pairs of shoes, and I don’t need a psychiatrist to tell me why I buy so many more than I could possibly need.)” Throughout the last chapter, she did this many times. When she was brought to the home where she was being hid, she was put into a closet like room as her bedroom. She was expected to help out around the house and she could only do things when she was told she could. She was allowed to leave the house only once a week and that was to go get eggs and other ingredients from a man who they called grandpas farm. Misha...
Words: 398 - Pages: 2
...Katie White Statistics Week 1 (Chapter 1 & 2) Chapter 1 2. a) Ratio b) Nominal c) Interval d) Ordinal 4. a) Sample b) Population c) Population d) Sample 6. A sample is a portion or part of the population of interest. While population is the entire set of individuals or objects of interest or the measurements obtained from all individuals or object of interest. 8. a) Population would be used to get the overall average grade for the course. b) Sample would be used because a large corporation over the past ten years would be way to information to locate and take way too long. c) Sample of each because of the amount of information you are giving you don’t have to go into deep detail on each one. d) Population to get exact number to make sure it all can be stored on the iPod. 10. Name: Nominal Number of mins used: Ratio Satisfaction: Ordinal Chapter 2 2. 3 Classes. iPod, iRiver and Magic Star MP3 8. 26=64 therefore 6 classes. i > $29 - $0 / 6 = 4.8 class intervals of 5 12. a) 5 classes b) 10 intervals c) 50 d) Chart below e) Chart below # of Visits | Frequency | Relative Frequency | 50 -60 | 4 | 4/20=.2 | 61 -70 | 6 | 6/20=.3 | 71 - 80 | 5 | 5/20=.25 | 81 - 90 | 2 | 2/20=.1 | 91- 100 | 3 | 3/20=.15 | Total | 20 | | 16. a) 5 patients b) 20-30 Days c) 30 Days d) 3 e) Frequency Polygon...
Words: 254 - Pages: 2
...Chapter 1 27. If they get married in 2010 and file jointly they will pay $38,643.50 [(10% x $16,750) + (15% x $51,250) + (25% x $69,300) + (28% x $42,700)]. If they wait until 2011 to get married and Conrad files as a single individual he will pay $44,516.75 [(10% x $8,375) + (15% x $25,625) + (25% x $48,400) + (28% x $89,450) + (33% x $8,150)]. It would be to their advantage to marry before the end of 2010 because they would save $5,873.25 in income taxes. If they each made $90,000 and both filed individually, they would pay in a combined total of $37,818.50 = 2 x $18,909.25 [(10% x $8,375) + (15% x $25,625) + (25% x $48,400) + (28% x $7,600)]. In this case, it would make more sense to wait until 2011 to get married and each file individually in 2010 because it will save them an additional $825. It would make no difference if they got married in 2010 and filed jointly or separately $38,643.50 = 2 x $19,321.75 [(10% x $8,375) + (15% x $25,625) + (25% x $34,650) + (28% x $21,350)]. 28. John: $4,081.25 [(10% x $8,375) + (15% x $21,625)] William: $11,181.25 [(10% x 8,375) + (15% x $25,625) + (25% x $26,000)] William’s taxable income is twice that of John’s, but William’s taxes are 2.74 times that of John’s. This illustrates vertical equity as well as a progressive tax system where each tax bracket pays a different percentage of their income in taxes – the more money you earn, the higher your tax rate; and, just because you earn twice as much as someone else, it...
Words: 1177 - Pages: 5
...Chapter 1 2. If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable if: a. | it increases revenue more than costs or reduces costs more than revenue | b. | it decreases some costs more than it increases others (assuming revenues remain constant) | c. | it increases some revenues more than it decreases others (assuming costs remain constant) | d. | all of the above | e. | b and c only | 3. In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return. a. | profits (cash flows) | b. | revenues | c. | outlays | d. | costs | e. | investments | 6. According to the innovation theory of profit, above-normal profits are necessary to compensate the owners of the firm for the risk they assume when making their investments. a. | true | b. | false | Chapter 2 1. A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. a. | marginal returns | b. | total costs | c. | marginal costs | d. | average costs | e. | average benefits | 5. The standard deviation is appropriate to compare the risk between two investments only if a. | the expected returns from the investments are approximately...
Words: 304 - Pages: 2
...Chapter 1 : Case Study 2 Providing any form of compensation could be taken as an offense for thousands of donor families who have already made a benevolent choice of donating organs. The proposed legislation could also end up alienating families who have decided to donate life saving organs regardless of any compensation. Many may think that offering economic benefits, wether directly or indirectly in exchange for organ donations or assigning monetary value to the human body, or body parts, is inconsistent with our values as a society. The proposed legislation could also promote suicidal behavior in people who are in need of monetary help or want to help out their family and loved ones. By offering financial incentives, there could be an increase in crimes such as organ stealing and possibly murder for receiving money for the stolen organ. These are the few issues that this proposed legislation raises. Even though the proposed legislation raises the above mentioned issues, I would still support the the bill. Providing financial incentives for organ donation might seem like it diminishes human dignity, however, it could be something worth looking into. In the normal world, people are naturally resistant to things they are not familiar with or cannot relate to. Economic incentives might force them to rethink their options about organ donation. The proposed legislation may not deter people who believe it is wrong but, it will cause a large population to consider organ donation...
Words: 963 - Pages: 4
...Homework Assignment 1 Due on the first Test day Put your full name on the page footer (where page number is inserted usually). Keep the original questions and insert your answers with a different Font. Use the SpellCheck before the final submission. You will answer several discussion questions in Homework Assignment 1. Please type in your answer in a Word file and submit to the assignment drop box in My courses. Please attach a Word document to the assignment submission instead of copying and pasting all your answers to the box. In addition, please name the Word file as your name and assignment1. Example will be yuzhuliAssignment1.doc. This assignment is due on the first Test day. The cutoff time is 11pm on that day. Late submission is subject to the late submission policy (Refer to the syllabus for details.) 1. Chapter 1: Section 1.4 – Before you go on… What are the major reasons why it is important for employees in all functional areas to become familiar with IT? IT systems are integral to every function area of an organization, especially because organizations cannot operate without information technology. This is a huge reason why every manager and professional staff member should learn about IT within his or her specialized field. (21) 2. Chapter 1: Discussion question 1, Page 25 Describe how IT architecture and IT infrastructure are interrelated. IT architecture is a high-level map or plan of the information assets in an organization, while IT infrastructure is...
Words: 728 - Pages: 3
...Chapter 1: (10 points each) 1. Give an example of two related tables other than one in the textbook. Use the STUDENT and GRADE tables in Figure 1-1 of the textbook as an example pattern for your tables. Name the tables and columns using the conventions in the textbook. * I used MysqL workbench to create 2 tables 1- Customers that has customers with some of their information(primary key is “Customer ID”) * CREATE TABLE IF NOT EXISTS `mydb`.`Customer` ( * `CustomerID` INT NOT NULL, * `Name` VARCHAR(45) NULL, * `Email` VARCHAR(45) NULL, * PRIMARY KEY (`CustomerID`), * UNIQUE INDEX `Email_UNIQUE` (`Email` ASC)) * ENGINE = InnoDB 2- Purchases that has number of purchases that has been done by the customers(Pkey is PurchaseID, and foreign key is “CustomerID” from Customer table. * CREATE TABLE IF NOT EXISTS `mydb`.`Purchases` ( * `PurchasesID` INT NOT NULL, * `productID` INT NULL, * `PricePaid` INT NULL, * PRIMARY KEY (`PurchasesID`)) * ENGINE = InnoDB * * *note I made the customerID as the foreign key and the relationship is (1 to many) * * * Figure1 the Customer and Purchases tables’ relationship. * 2. For the tables you created in Question 1, what are the primary keys of each table? Do you think that any of these primary keys could be surrogate keys? * In Customer table the Primary key is CustomerID * In the Purchases table the primary key is PurchaseID ...
Words: 1949 - Pages: 8
...Chapter 1- Question and Answers 1.1 a. What are some of the industries in the healthcare sector? Some of the industries in the healthcare sector are health insurance, pharmaceuticals and biotechnology, medical equipment and supplies and health services. Others include education institutions, government and private research agencies. b. What is meant by the term healthcare finance as used in this book? Healthcare finance is a term used in this book to describe accounting and financial management principles and practices used to ensure the financial well-being of health care organizations. c. What are the two broad areas of healthcare finance? The two broad areas of healthcare finance are accounting and financial management. Accounting is the recording of financial transactions concerning a business or organization, providing a summary of transactions. Financial management is the use of theory, principles, and concepts developed to help managers make better financial decisions. d. Why is it necessary to have a book on healthcare finance as opposed to a generic finance book? While each service industry has a certain definitive characteristic, the health service industry is different to most others. Non-profit corporations dominate the health service industry either by government or privately. Third parties such as insurance companies, employers and government programmes are the ones that make the majority of the payments to healthcare providers over individuals...
Words: 2336 - Pages: 10
...MKT 310 WK 2 QUIZ 1 CHAPTER 1 & 2 To purchase this visit here: http://www.activitymode.com/product/mkt-310-wk-2-quiz-1-chapter-1-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 310 WK 2 QUIZ 1 CHAPTER 1 & 2 MKT 310 WK 2 Quiz 1 Chapter 1,2 1) The largest company in the world based on sales is ________. A) ExxonMobil B) Sears Roebuck C) Wal-Mart D) Marks & Spencer 2) Which of the following activities does not fit within the scope of retailing? A) medical services to families B) direct-to-home sales C) vending purchases by factory workers D) sales to wholesalers 3) Which statement concerning retailing is correct? A) Retailing activities must involve a store. B) Retailing activities do not have to include a retailer. C) Retailing activities cannot be performed by a wholesaler. D) Retailing activities involve goods, not services. 4) According to the Department of Commerce, annual U.S. retail store sales are about ________. A) $200 billion B) $1.5 trillion C) $3.5 trillion D) $5.0 trillion 5) About how many people are employed by traditional retailers in the United States? A) 11 million B) 16 million C) 25 million D) 34 million 6) Data on U.S. retail employment understates actual employment because it does not include ________. A) store or department managers B) part-time personnel C) seasonal employees and unreported workers in family businesses D) teenagers under 18 who are full-time students 7) In 2007, the four largest retailing companies...
Words: 614 - Pages: 3
...MKT 315 WK 2 QUIZ 1 CHAPTERS 1 & 2 To purchase this visit here: http://www.activitymode.com/product/mkt-315-wk-2-quiz-1-chapters-1-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 315 WK 2 QUIZ 1 CHAPTERS 1 & 2 MKT 315 WK 2 Quiz 1 Chapters 1,2 MULTIPLE CHOICE 1. Which type of strategy did Walmart decide to use to compete with Amazon? a. Heavy advertising b. Price reduction c. Establish kiosks in Walmart stores d. Wholesale distribution e. Mass distribution via its own online channel 2. Which of the following statements is false? a. Consumer expectations have moved firms to add additional channels. b. Both B2C and B2B businesses are increasing the number of channels they use to distribute their products c. The flexibility to respond to consumers does not appear to be relevant to channel design. d. Channels must be targeted to reach intended customer segments. e. The increasing role of technology is helping to foster the use of multiple channels. 3. Which of the following is a true statement about Internet-based channels? a. Walmart's channel model continues to rely on its 'brick and mortar' stores exclusively. b. ‘Bricks and Mortar’ retailers that added online capabilities to traditional channels of distribution have had sluggish sales. c. Online sales have become an established distribution channel for B2C but not B2B markets. d. Internet-based channels have become a mainstream channel in the channel mixes of many firms. e. The growth of E-commerce...
Words: 1485 - Pages: 6
...305 WK 2 QUIZ 1 CHAPTER 1 & 2 To purchase this visit here: http://www.activitymode.com/product/mkt-305-wk-2-quiz-1-chapter-1-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 305 WK 2 QUIZ 1 CHAPTER 1 & 2 MKT 305 WK 2 Quiz 1 Chapter 1,2 TRUE/FALSE 1. An understanding of consumer behavior can mean better business for companies, better public policy for governments, and a better life for individuals. 2. While consumer behavior refers to human thought and action, it is not considered a field of study. 3. Consumer behavior can be thought of as the actions, reactions and consequences that take place as the consumer goes through a decision making process, reaches a decision and then uses the product. 4. Consumer behavior is the set of value-seeking activities that take place as people go about addressing realized needs. 5. The basic consumption process begins with the consumer recognizing that he or she wants something new. 6. The basic consumption process involves a consumer assessing the costs and benefits associated with a choice. 7. The final step in the consumption process is satisfaction. 8. An exchange is the acting out of a decision to give something up in return for something of equal value. 9. Consumer behavior represents the process by which goods, services, or ideas are used and transformed into value. 10. Costs involve more that just the price of the product. MKT 305 WK 2 QUIZ 1 CHAPTER 1 & 2 To purchase...
Words: 727 - Pages: 3
