Intro to Finance Final Exam

1002 WordsApr 8, 20125 Pages
MBA 600 FINAL EXAM 1. (20 POINTS) The accounting staff at Moonbeam Enterprises prepares monthly financial statements. At the end of April 2004 the company had the following account balances: Land $45,000 Notes payable $33,000 Merchandise inventory $12,480 Buildings $50,000 Cash $10,360 Capital Stock $38,770 Retained earnings, April 30 $46,070 Salary expense $15,050 Sales revenue $26,000 Supplies expense $ 1,300 Income tax expense $ 1,060 Fuel expense $ 1,500 Insurance expense $ 550 Interest expense $ 900 INSTRUCTIONS: Prepare an income statement and balance sheet in good form. For each statement, use a…show more content…
This would cause you to be paying more for less. b. If you double the number of workers and add a second espresso machine, would you expect your output (espressos per hour) to double? Explain. ii. This scenario is more likely to produce more results. Generally speaking, you should be able to expect to double your business with twice the workforce and equipment. This assumes that all workers know how to work all the equipment. If you hired another cashier, and no cash register, you would loose money by having one cashier standing around doing nothing. 7. (10 POINTS) Suppose the United States limits the imports of steel to protect its domestic steel industry. Explain the implications of the import restrictions on industries such as appliance manufacturers who use steel as an input. The implications from the restrictions of imported steel on the appliance manufacturers who use steel as an import is not on that the manufacturers would prefer. The limit of the market lets the domestic steel industry control steel prices. This will allow the domestic steel industry to raise prices, causing the manufactures to raise prices, or reduce quality in their product. Either way, their customers will not be happy by this change. In the long run, the manufacturers will loose money, and so will the domestic steel market, when that manufacturer goes out of business. 8. (10 POINTS) What is corporate governance? How has the

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