Technology Ventures From Idea To Enterprise 3rh Edition Thomas Byers, Richard C Dorf - Solutions

(Appendixes) Dave, age 58, is the owner of a small firm that sells window blinds and cleans carpets. The company provides health insurance for seven employees. The wife of one employee has breast cancer and has incurred substantial medical bills, which resulted in a 40 percent increase in health
(Appendixes) Ken, age 52, works only part-time and has no health insurance. The cartilage in both his knees is severely eroded from osteoarthritis, which causes severe pain during his daily activities. As a result, Ken requires major surgery and a total knee replacement for both knees. He has been
(Appendixes) The Social Security trust funds are invested in government securities that are both similar and dissimilar to other government securities available to the Public. LO4a. Explain how the excess of income over outgo is invested in the Social Security trust funds.b. Explain how the Social
(Appendixes) There is no single solution to reducing or eliminating the long-range actuarial deficit in the Social Security program. The Academy of Actuaries has a game that allows viewers to make hypothetical changes to the Social Security program to eliminate the long-range deficit. Go to
(Appendixes) Ethics Some celebrities lend their names to products that later turn out to be ineffective or harmful to consumers. The celebrities are paid to endorse the product by claiming they have used it. But in many cases, the celebrities know very little about it. Some celebrities have been
(Appendixes) Visit Consumer Reports online or obtain an issue from your library and answer the following questions: (a) Who publishes the magazine?(b) Who advertises in the magazine? (c) How are products tested and compared for quality? Select a tested product and summarize three key findings that
(Appendixes) Read the warranty or guarantee for a household product that your family has purchased (examples: coffee maker, blender, or electronic device).What does the manufacturer agree to do? What exceptions are stated?What actions does the manufacturer state it will not agree to do?LO2-2
(Appendixes) Copy the ingredients from the labels of the following products:(a) deodorant, (b) liquid cleaning product, (c) bug spray, and(d) breakfast cereal. Do any of the labels carry warnings? What types of precautions are suggested? Why is it important that customers are informed of product
(Appendixes) Compute unit prices for the following pairs and determine which of the two is the better deal: (a) 3 for $0.98 or 8 for $2.99, (b) 4 for $1.00 or 12 for $3.39, (c) 24 oz. for $1.98 or 36 oz. for $2.49, and (d) 2 lbs. for$2.19 or 5 lbs. for $5.89?LO2-2
(Appendixes) Research Perform research to find a recent news story about a business that used deceptive marketing practices, such as price fixing, bait and switch, fake sales, low-balling, or another scam. Write a one-page report describing the deception and the final outcome. LO2-1
(Appendixes) International Studies Using the Internet, compare the value of the dollar to the value of worldwide currencies. Find the value of the Japanese yen, British pound, Chinese yuan, Euro, Canadian dollar, and Mexican peso. Make a chart that shows the value of each.LO1-3
(Appendixes) Social Studies Conduct a survey of at least three people of varied ages based on the following question. “How is the U.S. economy impacting your life?” As a class, compare and discuss the results.LO1-2
(Appendixes) Economics Select a country with an economic system that is considered communist or socialist. Conduct online research about quality of life, life expectancy rates, tax rates, income and education levels, and other lifestyle data from this country. Locate the same data for the United
(Appendixes) Choose five food, beauty, or household products you find in your home.Visit a local store and compare three different sizes of the product and compute unit prices. Compile the information gathered in a chart. For each product, indicate whether the larger size saves you money or costs
(Appendixes) Search magazines, newspapers, and the Internet for advertisements.Collect or print out ads that offer the following: (a) something for nothing, (b) bonus for early reply, (c) offers of gifts and prizes, and(d) very short time limit for response to get a special deal. Evaluate the
(Appendixes) Visit the Federal Trade Commission’s website to learn about the latest frauds and schemes being carried out against consumers. Write a onepage report on a new scheme that is not discussed in the textbook.LO2-1
(Appendixes) Explain how the Federal Reserve Bank affects the money supply in the United States. How do the Fed’s actions, including setting reserve requirements and controlling discount rates, speed up or slow down the economy?LO1-3
(Appendixes) Select a commonly used product, such as gasoline or milk, and track the prices of this product over a 20-year period by creating a line graph.Explain price increases and decreases based on supply and demand.LO1-2
(Appendixes) Compare and contrast the three major ways economies can be organized. What type of economy exists in the United States? Do you think another type of economy would be better? Explain your answer.LO1-1
(Appendixes) PRESENTATION OF SALES REVENUE AND COST OF GOODS SOLD. The accountant for Sneva, Inc., collected the following data for 19x’: LO3 REQUIRED:Assume that Sneva uses the periodic system and records purchases and sales using the gross method. Prepare an income statement through gross
(Appendixes) A CLASSIFIED INCOME STATEMENT FOR A MERCHANDISING BUSINESS. For each of the cases presented below, compute the missing amounts: LO8
(Appendixes) PURCHASES, PURCHASE RETURNS, AND PAYMENT FOR PURCHASES. Jordan Footwear sells athletic shoes. During April Jordan made the following purchases on credit with terms 3/15, n/40: LO4 Assume that Jordan uses the periodic system and records purchases using the gross method.REQUIRED:1.
(Appendixes) PURCHASES, TRANSPORTATION-IN, AND PURCHASE RETURNS. Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses periodic inventory accounting. Alpharack engaged in the following transactions related to purchases during 19x6:a) Purchased on credit 320 Wilbur T-100
(Appendixes) PURCHASES, SALES, AND COST OF GOODS SOLD. The following data were available for Jeans Inc., a seller of denim clothing, at January 1 of a recent year:Jeans Inc. records purchases and sales gross. During the year, Jeans Inc. engaged in the following transactions:a) Sold merchandise for
(Appendixes) ADJUSTING ENTRY AND PREPARATION OF FINANCIAL STATEMENTS.Michael’s Hardware has the following unadjusted trial balance at the end of 19x3:The following data are also available for preparation of adjusting entries:a) One month’s insurance ($250) remains prepaid at December 31,
(Appendixes) ADJUSTING ENTRIES AND PREPARATION OF FINANCIAL STATEMENTS. Sacramento Stores’ unadjusted trial balance as of December 31, 19x2, appears below:The following information is also available for preparation of adjusting entries for Sacramento:a) An electric bill in the amount of $1,100 is
(Appendixes) DETERMINING UNCOLLECTIBLE ACCOUNT EXPENSE USING THE AGING METHOD. At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for uncollectible accounts of$2,980 (credit). During the year Tennyson had credit sales of
(Appendixes) UNCOLLECTIBLE ACCOUNT EXPENSE: AGING METHOD. Cindy Bagnal, the manager of Cayce Printing Service, has provided you with the following aging schedule for Cayce’s accounts receivable:Cindy indicates that the $126,700 of accounts receivable identified in the table does not include
(Appendixes) UNCOLLECTIBLE ACCOUNT EXPENSE: CREDIT SALES METHOD. The Glass House, a glass and china store, sells nearly half its merchandise on credit. During the past 4 years, the following data were developed for credit sales and uncollectible account losses:In 19x4 The Glass House expanded its
(Appendixes) SALES AND SALES RETURNS WITH DISCOUNTS. Fuente Office Supply sells all merchandise on credit with terms 2/10, n/30. Fuente engaged in the following transactions:a) May 1: Fuente sold 50 staplers to Aaron Enterprises at a list price of $12 per stapler.b) May 5: Fuente accepted 4
(Appendixes) RECORDING SALES. Sullivan Company sells industrial cleaning supplies and equipment to other businesses. During the first quarter of 19x2, the following transactions occurred:a) On January 10, Sullivan sold on credit 50 cases of paper towels to the WMT Manufacturing Company at a list
(Appendixes) SALES AND PURCHASE DISCOUNTS: GROSS AND NET METHODS. Sims Company regularly sells merchandise to Lauber Supply on terms 3/15, n/20. During a recent month, the two firms engaged in the following transactions:a) Sims sold merchandise with a list price of $33,000.b) Sims sold merchandise
(Appendixes) EFFECTS OF DISCOUNTS ON SALES AND PURCHASES. Helmkamp Products sells golf clubs and accessories to pro shops. During 19x5, Helmkamp purchased merchandise with a list price of $628,500 on terms 2/10, n/30. Helmkamp paid for $555,000(suppliers’ list price) of the purchases within the
(Appendixes) TERMS OF SHIPMENT AND RECORDING PURCHASES. On May 12, Digital Distributors received three shipments of merchandise. The first was shipped F.0.B.shipping point, had a total invoice price of $150,000, and was delivered by a trucking company that collected an additional $12,000 for
(Appendixes) TERMS OF SHIPMENT AND ENDING INVENTORY. On December 31, Archive Products had two shipments of merchandise in transit from different suppliers. The first shipment, which arrived on January 5, was shipped F.O.B. shipping point and had a total invoice price of $28,600. The second
(Appendixes) PURCHASES, SALES, AND COST OF GOODS SOLD. Printer Supply Company sells computer printers and printer supplies. One of its products is toner cartridges for laser printers. At the beginning of 19x8 there were 200 cartridges on hand at a cost of $60 each. During 19x8 Printer Supply
(Appendixes) COMPONENTS OF COST OF GOODS SOLD. Anna’s Corner Store has the following data for a recent year. LO9
(Appendixes) PURCHASES AND PURCHASES RETURNS. On November 6, Lubin Products purchased on credit 350 parts kits from Michaels Electronics for $38 per kit. Michaels paid $320 to have the kits shipped to Lubin. Lubin paid for the kits on December 1.On December 15, Lubin discovered that 4 kits were
(Appendixes) COST OF PURCHASES. Compass, Inc., purchased 1,000 bags of insulation from Glassco, Inc. The bags of insulation cost $4.25 each. Compass paid Turner Trucking $260 to have all 1,000 bags of insulation shipped to its warehouse. Compass returned 50 bags that were defective and paid for the
(Appendixes) PURCHASES RECORDED NET. Clean Wheels Car Wash purchased $54,200(list price) of soap for its car-washing machines. The seller offered credit terms of 2/10, n/20. Clean Wheels records purchases net of discounts. LO2 REQUIRED:1. Prepare the entry to record this purchase in Clean Wheels’
(Appendixes) PURCHASES RECORDED GROSS. Dawson Enterprises uses the periodic system and records purchases gross. On a recent day, Dawson engaged in the following three transactions: LO2a) Purchased merchandise on credit with a list price of $24,600 on terms 3/15, n/25.b) Paid for a purchase made 9
(Appendixes) PREPARATION OF MERCHANDISING FINANCIAL STATEMENTS. Jay Coat Company has prepared the following unadjusted trial balance as of December Ble Ox2: LO9 The following data are also available:a) The building has an expected life of 20 years and a residual value of $29,000.b) The cost of
(Appendixes) PERIODICAND PERPETUAL INVENTORY SYSTEMS. A list of inventory-system characteristics is presented below. Match each characteristic with one of the following:(A) periodic inventory systems, (B) perpetual inventory systems, or (C) both periodic and perpetual inventory systems.1. Inventory
(Appendixes) INVENTORY TURNOVER. A recent annual report for The Limited shows cost of goods sold for the year of approximately $5,286 million and average inventory of approximately $769 million during the year.REQUIRED:1. Calculate The Limited’s inventory turnover.2. Assuming a 365-day year, how
(Appendixes) ENDING INVENTORY, COST OF GOODS SOLD, AND GROSS MARGIN. Wilson Company sells a single product. At the beginning of the year, Wilson had 120 units in stock at a cost of $8 each. During the year Wilson purchased 850 more units at a cost of $8 each and sold 210 units at $13 each, 250
(Appendixes) ENDING INVENTORY AND COST OF GOODS SOLD. Hempstead Company has the following data for 19x9: LO8
(Appendixes) CORRECTING AN ERRONEOUS WRITE-OFF. The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,710 that had been determined to be uncollectible. Accordingly, he debited accounts receivable for 5 $1,710 and credited uncollectible account expense for
(Appendixes) ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for uncollectible accounts of $6,307. During the year Kullerud made credit sales of $890,000, collected receivables in the amount of $812,000, wrote off
(Appendixes) UNCOLLECTIBLE ACCOUNT EXPENSE: AGING METHOD. Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year: LO6
(Appendixes) AGING RECEIVABLES AND UNCOLLECTIBLE ACCOUNT EXPENSE. Perkinson Corporation sells paper products to a large number of retailers. Perkinson’s accountant has prepared the following aging schedule for its accounts receivable at the end of the year:LO7 Before adjusting entries are
(Appendixes) UNCOLLECTIBLE ACCOUNT EXPENSE: CREDIT SALES METHOD. Bradford~Plumbing had the following data for a recent year. LO8 REQUIRED:1. Compute uncollectible account expense for the year. 2. Determine the ending balances in accounts receivable and allowance for uncollectible accounts.
(Appendixes) UNCOLLECTIBLE ACCOUNT EXPENSE: CREDIT SALES METHOD. Gilmore Electronics had the following data for a recent year. LO3
(Appendixes) AVERAGE UNCOLLECTIBLE ACCOUNT LOSSES AND UNCOLLECTIBLE ACCOUNT EXPENSE. The accountant for Porile Company prepared the following data for sales and uncollectible account losses: LO8 REQUIRED:1. What is the weighted average percentage of uncollectible account losses for 19x4 through
(Appendixes) ACCOUNTS RECEIVABLE TURNOVER. A recent annual report for Gerber Products Company shows credit sales for the year of approximately $1,269 million and average accounts receivable of approximately $118 million during the year. LO2 REQUIRED:1. Calculate Gerber’s accounts receivable
(Appendixes) INTERNAL CONTROL FOR SALES. Alcoa Building Products distributes aluminum siding and related building products to building contractors, all of whom purchase on credit. LO6 REQUIRED:List three documents prepared by Alcoa for each sales transaction and describe the purpose of each
(Appendixes) SALES RETURNS. Swan and Bloom, Inc., is a wholesaler of novelty items to small stores. All sales are on credit with no discount offered. During March, Swan and Bloom accepted the following sales returns:a) Johnson Company returned merchandise with a list price of $600. Johnson had not
(Appendixes) SALES, SALES RETURNS, AND SALES ALLOWANCES. The contractor sales department of a Builders’ Square store in suburban Chicago had the following salesrelated transactions on a recent day:a) List price of building supplies sold on credit was $14,700; terms 3/15, n/45.b) Cash sales of
(Appendixes) SALES RECORDED NET. Using the data in Exercise 6-27, assume that Nevada records sales gross. LO8 REQUIRED:1. Prepare the entries to record this sale in Nevada’s journal.2. Prepare the entry for Nevada’s journal to record receipt of cash for the sale within the discount period.3.
(Appendixes) SALES RECORDED GROSS. Nevada Company sold merchandise with a list price of $12,500 to Small Enterprises on terms 3/15, n/30. Nevada records sales net of discount. LO2 REQUIRED:1. Prepare the entries to record this sale in Nevada’s journal.2. Prepare the entry for Nevada’s journal
(Appendixes) EFFECTS OF SALES DISCOUNTS. Castore Security Systems makes all sales on credit, with terms 2/10, n/30. During 19x9, the list price (prediscount) of goods sold was $720,000. Customers paid $550,000 (list price) of these sales within the discount period and the remaining $170,000 (list
(Appendixes) DISCOUNT POLICY AND GROSS MARGIN. Compton Electronics sells Motorola cellular phones. During 19x8, Compton sold 1,000 units for $300 per unit. Each unit costs Compton $180. At present, Compton offers no sales discount. Compton’s controller suggests that a generous sales discount
(Appendixes) ETHICS AND INVENTORIES. Mary Cravens is an accountant for City Appliance Corporation. One of Mary’s responsibilities is developing the ending inventory amount for the calculation of cost of goods sold each month. At the end of September, Mary noticed that the ending inventory for a
(Appendixes) ERRORS IN ENDING INVENTORY. From time to time, business newspapers report that the management of a company has misstated its profits by knowingly establishing an incorrect amount for its periodic-system ending inventory.LO6 REQUIRED:1. Explain how a misstatement of ending inventory can
(Appendixes) INCOME EFFECTS OF UNCOLLECTIBLE ACCOUNTS. The credit manager and the accountant for Goldsmith Company are attempting to assess the effect on net income of writing off $100,000 of receivables. Goldsmith uses the aging method of determining uncollectible account expense and has the
(Appendixes) INTERNAL CONTROL FOR SALES. Yancy’s Hardware has three stores. Each store manager is paid a salary plus a bonus on the sales made by his or her store. On January 5, 19x6, Bill Slick, manager of one of the stores, resigned. Bill’s store had doubled its expected December 19x5 sales,
(Appendixes) INTERNAL CONTROL FOR SALES. Gateway 2000 is a large mail-order computer and software business located in South Dakota. Most of Gateway’s customers call on its toll-free phone line and order computers and software, paying with a credit card. LO85 REQUIRED:Explain why the shipping and
(Appendixes) FINANCIAL ANALYSIS OF RECEIVABLES. A chain of retail stores located in Kansas and Nebraska has requested a loan from First Chicago. The balance sheet of the retail chain shows significant accounts receivable related to its in-house credit card. You are employed by First Chicago as a
(Appendixes) SALES DISCOUNT POLICIES. Consider three businesses, all of which offer price reductions to their customers. The first is an independently owned Shell service station located at a busy intersection in Cincinnati, Ohio, that offers a 3% discount for cash purchases of gasoline. The second
(Appendixes) Identify the accounting items for which adjustments are made to the purchase price of goods acquired for resale when determining the cost of purchases. Assume that the firm uses the gross method of recording purchase discounts. LO70
(Appendixes) Describe the difference between F.O.B. shipping point and F.O.B. destination. LO56
(Appendixes) Why are adjustments made to the gross purchase price of goods acquired for resale? LO90
(Appendixes) What are the components of cost of goods available for sale and of cost of goods sold? Assume that the firm uses the gross method of recording purchase discounts. LO45
(Appendixes) How do the periodic and perpetual inventory accounting systems differ from each other? LO64
(Appendixes) Write the formulas for the calculation of accounts receivable turnover and inventory turnover. What do these calculations tell us about accounts receivable and inventory? LO53
(Appendixes) Name the two allowance methods used to compute uncollectible account expense. For each method, how is uncollectible account expense computed and what does the balance of the allowance for uncollectible accounts represent? LO54
(Appendixes) Why is the allowance procedure preferred over the direct write-off procedure for uncollectible accounts? LO77
(Appendixes) What kind of account is allowance for uncollectible accounts? What does it represent? LO86
(Appendixes) Why does the accountant make an entry to record uncollectible account expense in the period of sale rather than in the period in which an account is determined to be uncollectible? LO25
(Appendixes) Describe the documents that underlie the typical accounting system for sales. Give an example of a failure of internal control that might occur if these documents were not properly prepared. LO65
(Appendixes) Why do readers of financial statements prefer the separate disclosure of gross sales revenue and sales returns and allowances to the disclosure of a single net sales revenue amount? LO61
(Appendixes) What are sales allowances? How do sales allowances differ from sales discounts? LO22
(Appendixes) What are sales returns? Why do sales returns occur? LO86
(Appendixes) What are trade discounts and quantity discounts? From an accounting viewpoint, how does the effect of trade and quantity discounts on selling (or invoice) price differ from the effect of sales discounts? LOy
(Appendixes) What is a sales discount? How can sales discounts be recorded? LO9
(Appendixes) Be familiar with management's responsibilities for reporting on internal control under Section 404 of the Sarbanes-Oxley Act. LO8
3. What mechanisms will you use to instill ethical behavior in your venture?
2. Describe your venture’s plans to act as an adaptive organization.
1. Briefly describe your plan for executing your business plan after you receive the resources.
20.8 Select an example of a white-collar (business) crime in the technology industry and describe what happened. How could this crime have been avoided?
20.7 You attend a critical partner meeting with your CEO. After the meeting, your CEO misrepresents the results of the meeting to the broader management team to further a different agenda.How do you handle this situation with your CEO? With your other team members?
20.6 Your new firm is considering offering one of two health benefit options. One is more complete but also more costly than the other. Should you ask your employees to accept the lower-cost option? Should you explain the benefits of both plans? If you do, most people will prefer the better plan.
20.5 Your cash-strapped company is bidding for a badly needed contract. As the bid deadline nears, an employee of your nearest competitor pays you a visit. He says he will provide details of your competitor’s bid in return for the promise of a job in six months, after the dust has settled. You
20.4 Southeby’s and Christie’s are the two largest upscale auction houses. Both enjoyed a growing business in the boom years of the late 1990s. In 2000, both firms were accused of price fixing. The Sherman Antitrust Act was passed in 1890 to control the power of trusts and monopolists. In 1995,
20.3 Your emerging new company is selling a high-priced software system to the oil and gas industry. Each sale amounts to$100,000 or more. Your firm is scheduled to deliver a system next week to one of your best customers. However, your chief technical officer has just told you that they have found
20.2 The global financial crisis in 2007–2010 drastically impacted the spending patterns of many businesses and industries. Select an industry, list specific spending changes that occurred during this period, and describe how a start-up selling into this industry should adapt its strategies to
20.1 In May 2003, Zipcar of Boston decided it was time to bring in new funding to reach profitability (www.zipcar.com). However, the willing investors insisted on replacing the CEO and the board of directors. Examine Zipcar’s subsequent progress in terms of execution and need at different stages
3. Sketch out a term sheet outlining your venture’s capital needs, the amount of the company you are interested in selling (e.g., number of shares or what percentage of the total shares), and any other negotiation terms you consider important.
2. Provide an outline of the presentation for describing your venture to investors.
1. State your venture’s elevator pitch.
19.7 Why is it critical that the investor and the entrepreneur are both happy with the final deal? Who loses if this is not the case?

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Technology Ventures From Idea To Enterprise 3rh Edition Thomas Byers, Richard C Dorf - Solutions

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