P16.6a (lo 3) financial statement the following data, presented in alphabetical order, are taken from the records of nieto corporation. accounts payable $ 260,000 accounts receivable 140,000 accumulated depreciation—buildings 180,000 accumulated depreciation—equipment 52,000 allowance for doubtful accounts 6,000 bonds payable (10%, due 2028) 500,000 buildings 950,000 cash 62,000 common stock ($10 par value; 500,000 shares authorized, 150,000 shares issued) 1,500,000 dividends payable 80,000 equipment 275,000 goodwill 200,000 income taxes payable 120,000 inventory 170,000 investment in mara common stock (30% ownership), at equity 380,000 investment in sasse common stock, at fair value 300,000 land 390,000 notes payable (due 2021) 70,000 paid-in capital in excess of par—common stock 130,000 premium on bonds payable 40,000 prepaid insurance 16,000 retained earnings 125,000 short-term investments, at fair value 180,000 the investment in sasse common stock is considered to be a long-term security. instructions prepare a classifi ed balance sheet at december 31, 2020.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Zara, a global retail and apparel manufacturer based in spain that has successfully implemented this idea by having a continuous flow of new products that are typically limited in supply. zara has created a system that draws its clientèle into its stores, on average, 17 times per year as compared to 4 times per year for most stores. how is zara using it to gain competitive advantage? what specific technologies are used by zara to maintain this advantage over its competition?

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.