Store-X regularly purchases product-A directly from the manufacturer. The demand of last five weeks of this product is summarized on the table next: Week Demand 1 1970 2 1980 3 2200 4 2400 5 2100 Consider following facts: • Wholesale purchase price is $50 per unit. • Due to tax, interests, and expenses of warehouse, it takes 15% of the purchase price, annually, to store one unit of product-A. • The product is ordered many times a year. Mr. Chang Young Mighty Gang, an employee from China, prepares this order. The hourly wage of Mr. Chang Young Mighty Gang is $70 per hour. To make an order, it takes 90 minutes exactly. To bring the product form the factory to Store-X, it costs $90. • After receiving the ordering request, the manufacturer takes 2 days to deliver the product. • Store-X is closed on every Friday. Based on the above data, answer following questions: a) What is the optimum quantity (Q) purchased on each order that will minimize the total expenses? b) Show that, at this optimum level, holding cost is almost equal to the ordering cost. c) What is the total cost associated with each order? d) What is the reorder point? e) How many orders will take place in a year? f) After how many working days each order will be placed?

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Sye chase started and operated a small family architectural firm in 2016. the firm was affected by two events: (1) chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. there were $250 of supplies on hand as of december 31, 2016. record the two transactions in the accounts. record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. post the entries in the t-accounts and prepare a post-closing trial balance.

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