The cecil-booker vending company changed its method of valuing inventory from the average cost method to the fifo cost method at the beginning of 2018. at december 31, 2017, inventories were $121,000 (average cost basis) and were $125,000 a year earlier. cecil-booker’s accountants determined that the inventories would have totaled $157,000 at december 31, 2017, and $162,000 at december 31, 2016, if determined on a fifo basis. a tax rate of 40% is in effect for all years. one hundred thousand common shares were outstanding each year. income from continuing operations was $410,000 in 2017 and $535,000 in 2018. there were no discontinued operations either year. required: 1. prepare the journal entry to record the change in accounting principle. 2. prepare the 2018–2017 comparative income statements beginning with income from continuing operations. include per share amounts.

Why has the free enterprise system been modified to include some government intervention?

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)