On December 1, 2017, Ringling Company (a U. S.-based company) entered into a three month forward contract to purchase 1,000,000 pesos on March 1, 2018. The following U. S. dollar per peso exchange rates apply: Forward Rate
Date Spot Rate (to March 1, 2018)
1-Dec-17 $0.04 $0.05
31-Dec-17 0.046 0.049
1-Mar-18 0.05 N/A

Ringling's incremental borrowing rate is 16 percent. The present value factor for two months at an annual interest rate of 16 percent (1 percent per month) is 0.9739. Which of the following correctly describes the manner in which Ringling Company will report the forward contract on its December 31, 2017, balance sheet

Which of the following correctly describes the manner in which Ringling Company will report the forward contract on its December 31, 2017 balance sheet?

a. As an asset in the amount of $1,960.60.
b. As an asset in the amount of $2,940.90.
c. As a liability in the amount of $980.30.
d. As a liability in the amount of $2,940.90.

James sebenius, in his harvard business review article: six habits of merely effective negotiators, identifies six mistakes that negotiators make that keep them from solving the right problem. identify which mistake is being described. striving for a “win-win” agreement results in differences being overlooked that may result in joint gains.

The following accounts appeared in recent financial statements of delta air lines. identify each account as either a balance sheet account or an income statement account. for each balance sheet account, identify it as an asset, a liability, or stockholders' equity. for each income statement account, identify it as a revenue or an expense. item financial statement type of account accounts payable balance sheet advanced payments for equipment balance sheet air traffic liability balance sheet aircraft fuel (expense) income statement aircraft maintenance (expense) income statement aircraft rent (expense) income statement cargo revenue income statement cash balance sheet contract carrier arrangements (expense) income statement flight equipment balance sheet frequent flyer (obligations) balance sheet fuel inventory balance sheet landing fees (expense) income statement parts and supplies inventories balance sheet passenger commissions (expense) income statement passenger revenue income statement prepaid expenses income statement taxes payable balance sheet

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale