Accountants focus on creating financial statements, whereas finance professionals mostly use these statements to evaluate a firm and answer questions about its performance. Indicate which of the following financial statement would be the most helpful. a. How much cash is a firm generating through operating, investing, and financing activities?
b. How much debt and equity has the firm issued to finance its assets?

If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:

a. Overstate its earnings
b. Understate its earnings


Answer 1


1. The financial statement that would be the most helpful for a finance professional to evaluate how a firm's performance is:

a. How much cash is a firm generating through operating, investing, and financing activities?

2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:

a. Overstate its earnings


This financial statement is provided by the Statement of Cash Flows. The statement provides the performance report about a company's liquidity and long-term solvency.  The information about how much debt and equity the firm has issued to finance its assets will be obtained from the statement of financial position (known as the balance sheet).  This statement does not show the performance of a firm, but its financial position as of a given date.

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Type the correct answer in the box. Spell all words correctly.Which process does a court use to select a jury?The court selects a jury from a jury pool through a process known as _____.
Pina Corporation traded a used truck (cost $25,200, accumulated depreciation $22,680) for a small computer with a fair value of $4,158. Pina also paid $630 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.)
Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $146 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1?
In a closed economy, public saving is the amount of a. income that households have left after paying for taxes and consumption. b. spending that the government undertakes in excess of the taxes it collects. c. income that businesses have left after paying for the factors of production. d. tax revenue that the government has left after paying for its spending.

An individual shareholder owns 3,000 shares of Baxter Corporation common stock with a basis of $10 per share. She receives a nontaxable 5% stock dividend. The basis per share of the common stock after the stock dividend isA.$9.00.B.$10.00.C.$9.52.D.$9.50.





Existing shares of individual shareholder = 3,000

Stock dividend received = 5%

Number of shares received in stock dividend = Existing shares of individual shareholder x Stock dividend received

                                                                            = 3,000 x 5%

                                                                             = 150

Number of shares after stock dividend = 3,000 + 150

                                                                 = 3,150

The shareholder has basis of $10 per share before stock dividend,

total basis before stock dividend = 3,000 x 10

                                                        = $30,000

Total basis will remain same after stock dividend.

Basis per share after stock dividend = Total basis before stock dividend/Number of shares after stock dividend

                                                             = 30,000/3,150

                                                             = $9.52

Therefore, The basis per share of the common stock after the stock dividend  is %9.52

Mixed Costs and Cost Formula Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each piece as his fee. Space is limited, and there are costs involved, so Ben is careful about accepting artists. When he does accept one, he arranges for an opening show (usually for 3 hours on a weekend night) and sends out invitations to his customer list. At the opening, he serves wine, soft drinks, and appetizers to create a comfortable environment for prospective customers to view the new works and to chat with the artist. On average, each opening costs $600. Ben has given as many as 20 opening shows in a year. The total cost of running the gallery, including rent, furniture and fixtures, utilities, and a part-time assistant, amounts to $120,000 per year.Required:1. Assume that the cost driver is number of opening shows. Develop the cost formula for the gallery's costs for a year.
2. Using the cost formula developed above, what is the total cost for Ben in a year with 12 opening shows?
Using the cost formula developed above, what is the total cost for Ben in a year with 14 opening shows?



$136,200 is the total costs for 14 opening shows


See attached file

Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product



Signature Appliance Group

The environmental force that caused the company to change its product features is:

the Social and Cultural Environment.


The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year.  Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'.  To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.

Final answer:

The change made by Signature Appliance Group in removing the grill unit from their ovens sold in South America was influenced by the consumer environment force. This change was made in response to consumer preferences for outdoor grilling, thus altering the physical aspects of their product.


In the context of the scenario provided, it was the consumer environment force that influenced Signature Appliance Group to remove the grill unit from its ovens sold in South America. Consumer environment force pertains to changes in consumer preferences, habits, or buying behaviors. The company observed that its customers in South America preferred outdoor grilling and as a result, they opted not to use the grilling feature of the oven. Hence, the company decided to alter the physical aspects of its product by removing the grill from the ovens. Such alteration represents a response to consumer demands, thereby aiming to improve customer satisfaction and product relevance. Expounding on physical aspects, these are tangible characteristics or features of a product that cater to consumer needs and preferences, as shown in the example of nonstick surface, unbreakable bottle, and other such elements.

Learn more about Consumer Environment Force here:


Suppose you purchase twelve call contracts on Macron Technology stock. The strike price is $65, and the premium is $2.30. If, at expiration, the stock is selling for $71 per share, what are your call options worth? What is your net profit? (Omit the "$" sign in your response.)



Call option worth = 6

Net profit = 3.7


Call option worth and net profit can be calculated as follows


Strike price = 65

Premium = 2.30

Selling price = 71

Call option worth =?

Net profit =?

Requirement A: Call option worth


Call option worth = Selling price - strike price

Call option worth = 71 - 65

Caall option worth = 6

Requirement B Net profit


Net profit = Selling price - (Strike price + Premium)

Net profit = 71 - (65 + 2.3)

Net profit = 71 -67.3

Net profit = 3.7


Call option worth = $6

Net Profit = $3.70


The strike price of the option is $65

The amount of premium = $2.30

The selling price = $71

Call option worth = Current Price - Strike price

Call option worth = $71 - $65

Call option worth = $6

Net Profit = Selling Price - (Strike price + Premium)

Net Profit = $71 - ($65 + $2.30)

Net Profit = $71 - $67.30

Net Profit = $3.70

On January 1, 2021 M.T. Glass purchased the following investments: 1. 7,500 shares (representing 15%) of ZZ Company stock for $98,000 2. 25,000 shares (representing 40%) of AA Company stock for $440,000 M.T. Glass recorded the sale of some of its investments in 2022 as follows: 1. September 1 sold 5,000 shares of the ZZ Company stock for $76,000 2. December 31 sold 4,000 shares of the AA Company stock for $120,000 AA Company and ZZ Company reported the following information for the years 2021 and 2022: AA Company ZZ Company Net income in 2021 $260,000 $200,000 Dividends paid to M.T. Glass in 2021 $24,000 $15,000 Market value at Dec 31, 2021 $27 per share $22 per share Net income in 2022 $160,000 $225,000 Dividends paid to M.T. Glass in 2022 $41,000 $5,000 Market value at Dec 31, 2022 $24 per share $28 per share Calculate the amount of the realized gain reported in M.T. Glass' 2022 income statement resulting from the sale of the AA Company stock.





If the investor the outstanding shares of the other company which is less than 20% then we can report the unrealized gains or losses in the income statement. The unrealized gain can be calculated as follows:

check the attachment below

When working on opportunities, sales representatives at Universal Containers need to understand how their peers have successfully managed other opportunities with comparable products, competing against the same competitors.A. Big deal alerts
B. Chatter groups
C. Similar opportunities
D. Opportunity update reminders


Answer: (B) Chatter group and (C) Similar opportunities  


  The chatter group and the various types of similar opportunities are features which is used by the system administrators for the purpose of facilitating the given working opportunities.

 The chatter group is one of the type of collaboration tool in which the various types users can easily interact and also communicating socially.

 According to the given question, the universal containers effectively understand that the peers are managing various types of opportunities by using the comparable products and the services with the competitors in the market.

 Therefore, Option (B) and (C) are correct answer.            

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