On october 10, 2010, printfast company sells a commercial printer for $2,350 with a one year warranty that covers parts. warranty expense is project to be 4% of sales. on february 28, 2011, the printer requires repairs. the cost of the parts for the repair is $80 and printfast pays their technician $150 to perform the repair. what is the warranty liability at the end of 2011

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out