Jason decided to open a small internet café serving a variety of unusual non alcoholic beverages from around the world. he set a goal to break-even within the first six months and make a moderate profit thereafter. within a week of opening, every seat was filled and he had to replenish inventory several times. at his six-month review, he was devastated to find that despite huge sales, he had actually lost money. his math was not wrong, but he had failed to include monthly expenses such as toilet paper, paper towels, and hand soap in his calculations. these costs should have appeared as in his break-even analysis.

An office manager is concerned with declining productivity. despite the fact that she regularly monitors her clerical staff four times each day—at 9: 00 am, 11: 00 am, 1: 00 pm, and again at 3: 00 pm—office productivity has declined 30 percent since she assumed the helm one year ago. would you recommend that the office manager invest more time monitoring the productivity of her clerical staff? explain.

Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.