Handz Sporting Goods had a gross income of $\$ 726,230$ for the year. The business expenses for the year totaled $\$ 627,707$. What is Handz Sporting Goods' taxable income?

If a partner withdraws from a partnership, why is the final distribution often based on the appraised value of the business rather than on the book value of the capital account balance?

Therese, an outside salesperson, uses her car for both business and pleasure. Last year, she traveled 30,000 miles, using 900 gallons of gasoline. Her car gets 40 miles per gallon on the highway and 25 in the city. She can deduct all highway travel, but no city travel, on her taxes. How many miles should Therese be allowed as a business expense?

Elasticity of Demand Interview an owner or manager of a local business about the effects of recent price increases for a product. Is the demand for these goods or services elastic or inelastic? Why?

There has been a data breach at your business, and the business has lost some customer data. It has led to angry customers who have filed charges. What is a recommended course of action to prepare for future events?

a. activate the forensics team and prepare documentation
b. none of these answers
c. meet with your lawyers to counter-sue the customers
d. settle with the customers however it may cost

Imagine that you are going to be a pastry chef in a shop that will make all different types of specialty cupcakes. Write a letter to your business partner detailing which equipment you want to be purchased for the shop, and why. Be sure to explain the purpose of each piece of equipment. Your letter should be in a standard business letter format. Check your grammar and spelling before turning in your letter.

Which of the following is a disadvantage of the partnership form of organization?

A. limited life

B. no taxation at the partnership level

C. flexibility in business operations

D. combining of financial resources

Determine three actual businesses that offer services and three actual businesses that offer products.

A business has a cost of C = 0.5x + 500 for producing x units. The average cost per unit is C̅ = C/x. Find the limit of C̅ as x approaches infinity.

TelCom owns a phone network and provides phone network services to many consumers. The business does not manufacture phones and it does not own retail stores selling them. Senior managers at TelCom are considering a takeover of either a phone manufacturer or a chain of phone shops. TelCom employs 4000 workers and, last year, recorded total sales of $300 million. In contrast, the largest manufacturer of mobile phones, PhonTec, has 450 workers and recorded total sales last year of$ 1200 million.

$$\begin{matrix} \text{a) What is meant by 'takeover'? } & \text{[2]}\\ \text{b) Identify two other ways a business might grow apart from takeovers. } & \text{[2]}\\ \text{c) Identify and explain two reasons why external groups would be interested in measuring the size of businesses such as TelCom. } & \text{[4]}\\ \text{d) Identify and explain two possible reasons why senior managers at Telcom want to expand the business.} & \text{[4]}\\ \text{e) How should TelCom expand - taking over a phone manufacturer or a chain of shops selling mobile phones? Justify your answer.} & \text{[6]}\\ \end{matrix}$$

While reviewing the March 31, 2020, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2020, Business Solutions makes the following investments in trading securities.

Apr. 16 Purchases Johnson & Johnson bonds for$10,000.

Apr. 30 Purchases Starbucks notes for $4,400.

On June 30, 2020, the fair value of the Johnson & Johnson bonds is$12,000 and the Starbucks notes is $3,800.

Required

1. Prepare journal entries to record the April purchases of trading securities by Business Solutions.

2. On June 30, 2020, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.

Effective cash management is very important to the operating performance of a business.

Required:

Explain the principles of cash management. Why might it be advantageous to delay paying suppliers?

Dan Watson started a small merchandising business in 2016. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system.

1. Acquired $30,000 cash from the issue of common stock.

2. Purchased inventory for$18,000 cash.

3. Sold inventory costing $15,000 for$32,000 cash.

Required

Post the entries to T-accounts.

Criticize the following statement: "In our business, we maximize profits by closing any department that does not show a responsibility margin ratio of at least 15 percent."