Economics of Enterprise Answers

Lan and Mai are students at Accounting and Auditing Faculty. After completing Accounting Unit, they are now able to prepare financial statement and discussing about the figures on financial report. Mai said, "all the figures on financial statement are definitely reliable because accountants have to adhere with strict code of ethics, integrity standards, and set of accounting rules and standard such as IFRS when preparing the report". Do you agree or disagree with Mai's statement? Provide explanation and real-life examples (cases) to justify your opinion.

Case Study HP Company is suffering declining sales of its medical products. The president, Toshio Nakao, instructs his controller, Satoshi Kasai, to lengthen asset lives to reduce depreciation expense. A processing line of medical equipment, purchased for $4 million in January 2020, was originally estimated to have a useful life of 5 years and a salvage value of $200,000. Depreciation has been recorded for 2 years on that basis. Nakao wants the estimated life changed to 10 years total and the straight-line method continued. Kasai is hesitant to make the change, believing it is unethical to increase net income in this manner. Nakao says, “The life is only an estimate, and I've heard that our competition uses a 12year life on their medical equipment.”Instructions
(a) Who are the stakeholders in this situation?
(b) Is the proposed change in asset life unethical? Give your explanation.
(c) What is the effect of Nakao's proposed change on income before taxes in the year of change?

a new project would required an investment of birr 430million in an asset and would produce an annual after tax net benefit of birr 77.4million over a service life of 10 years. when the project ends the net profit from the sell of the asset would be birr 43million. and additional 120.4million birr at 8 years hence. all costs and benefits are described by cash flow diagram. compute the rate return of this project.

1. a firm has the facilities for manufacturing two commodities A and B. the unit variable cost is $125 for A and $135 for B. the selling price is $209 for A and $225 for B. the capital available for the production of this commodity exclusive of that required to cover fixed cost is $65000 per month. the firm will produce only as many unit of each commodity as can readily be sold and it is essential that maximum monthly sales will be 290 unit of A and 450 unit of B. during its manufacture each unites must pass through three production department; the following table presents the relevant information pertaining to these departments. what monthly production each commodity will yields the maximum profit from this operation?

number of machine hours

required per unit

commodity number of machine hours available per

month

production A B

department

D1 2.0 1.7 734

D2 1.4 2.6 824

D3 0.3 2.0 550

what is the maximum profit as calculated before deducing fixed cost?

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"From Jan 2006 to Jul 2016, the Consumer Price Index for college tuition and fees increased 63 percent, compared with an increase of 21% for all items. Over that period, consumer prices for college textbooks increased 88% and housing at school (excluding board) increased 51%."

It's no secret that college is expensive and, while community college is less expensive than two years at a university, this isn't much comfort for those who have to take out loans or pay out of pocket.

1) According to multiple sources, "Americans owe over $1.4 trillion in student loan debt...that's about $620 billion more than the total U.S. credit card debt...the average class of 2016 graduate has $37,172 in student loan debt" (SLH). What potential problems does this pose? What, if anything, should be done about this and by whom? 200 words

2) What motivated you to go to college and do you think that it will be worth the investment? 200 words

3) What should Americans consider before applying to college? 200 words

. In what circumstances, and on what criterion, can the conversion of tropical forestry into agricultural land be justified. (1500 words)

Money is an imperfect store of value when,

Select one:

a. businesses are failing due to bankruptcy.

b. the unemployment rate is high.

c. gold prices are falling.

d. the rate of inflation is high.

please answer correctly with an explanation. Thank You;

Mr. Dee Jay borrowed money from the bank and he received the amount of P18,420 and promised to repay P20,000 at the end of 10 months. Determine the rate of simple interest.