SM Publishing Co. has approached Bank of Detroit and wants to borrow $250,000 in working capital. The firm provides the bank with the following financial statements. (10 points) Sales: $4,622,800
COGs: $3,504,100
Operating expense: $893,000
Purchase: $3,116,000
Assets Liability & Equity
Cash 50,000 A/P 166,000
A/R 375,000 Accrued Expense 37,000
Inventory 510,000 Notes payable (due in 18 months) 75,000
Fixed Asset 925,000 Current maturity of LT debt 25,000
Total Asset 1,860,000 LongTerm Debt 475,000
Equity 1,082,000
Total Liability&Equity 1,860,000
1). What’s the firm’s gross profit margin? Show your calculations.
2). What’s the firm’s net working capital? Show your calculations .
3). What’s the firm’s working capital loan needs? Show your calculations .

You are frustrated to find that the only way to contact the customer service department is to make a phone call. the number listed would result in long distance charges to your phone bill. which issue should be addressed by the company to keep its crm in line with your expectations?

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.