New Mexico State University

Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. The marketing department of Acme Inc. has estimated the following demand function for its popular carpet deodorizer, Freshbreeze: Q = 100 – 5p, where Q is the quantity of an 8 oz box sold (in thousand units) and p the price of an 8 oz. box

Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. Lucy wants carpets and paintings for her office. Her company has given her a budget of $7,200 for this purpose. Persian carpets of the size that she wants can be purchased for $900 each and paintings from a local Native American artist cost $400 each.

Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers. The demand and supply functions for oil in a small isolated country are Qd = 210 - 1.5p and Qs = -140 + 2p, where p is the price per barrel and quantities are in millions of barrels per year:

Understanding income statement relationships During the year, cost of goods sold was $120,000; income from operations was $114,000; income tax expense was $24,000; interest expense was $18,000; and selling, general, and administrative expenses were $66,000.

Identify accounts by category and financial statement(s) Listed here are a number of financial statement captions. Indicate in the spaces to the right of each caption the category of each item and the financial statement(s) on which the item can usually be found. Use the following abbreviations:

Understanding financial statement relationships The information presented here represents selected data from the December 31, 2019, balance sheets and income statements for the year then ended for three firms:

Prepare an income statement, balance sheet, and statement of changes in stockholders’ equity; analyze results The information on the following page was obtained from the records of Breanna Inc.:

Analysis of accounts receivable and allowance for bad debts—determine ending balances  A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. is presented here:

Capitalizing versus expensing  For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers.

Financial statement effects of depreciation—straight-line versus accelerated methods  Assume that a company chooses an accelerated method of calculating depreciation expense for financial statement reporting purposes for an asset with a five-year life.