Income Statement Balance Sheet Sales $20,000,000 Assets: Cash Marketable Securities 12,500,000 Accounts Receivable, net 2,500,000 Inventory Prepaid Expenses Plant & Equipment30000000 Cost of Goods Sold 8,000,000 $5,000,000 12,000,000 Selling and Administrative 1,600,000 Depreciation Interest Taxes (40%) Common Stock Div. 3,000,000 7,400,000 2.000,000 5,400,000 2.160,000 3,240,000 600,000 30,000,000 5,000,000 Total Assets 85,000 00 Liabilities and Equity: Accounts Payable Notes Payable Accrued Expenses Bonds Payable Common Stock Cepital in Excess of Per Retained Earnings $2,640,000 $20,000,000 5,000,000 5,000,000 25,000,000 5,000,000 10,000,000 5,000,000 Total Liabilities and Equity $85000 000 Shares outstending of common stock- 1,000,000 Market price of common stock $18. The Current Ratio is:.
A) 0.55
B) 1.83
C) 0.183
D) 0.35

White company has two departments, cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: department cutting finishing direct labor-hours 6,000 30,000 machine-hours 48,000 5,000 total fixed manufacturing overhead cost $ 264,000 $ 366,000 variable manufacturing overhead per machine-hour $ 2.00 " variable manufacturing overhead per direct labor-hour " $ 4.00 required: 1. compute the predetermined overhead rate for each department. 2. the job cost sheet for job 203, which was started and completed during the year, showed the following: department cutting finishing direct labor-hours 6 20 machine-hours 80 4 direct materials $ 500 $ 310 direct labor cost $ 108 $ 360 using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to job 203. 3. would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces