Study Appendix 16A. Kalitzki Implements Company had sales revenue of $710,000 in 20X2. Pertinent data for its only
product in 20X2 included the following:
Inventory, December 31, 20X1 15,000 units at $12 $180,000
February purchases 20,000 units at $14280,000
August purchases 34,000 units at $16 544,000
Sales for the year 30,000 units
1. Prepare a statement of gross margin for 20X2. Use two columns, one assuming LIFO and one assuming FIFO.
2. Assume that Kalitzki is reporting to the tax authorities and has a 45% income tax rate. Suppose all transactions are for
cash. Which inventory method results in more cash for Kalitzki? By how much?

Walter wants to deposit $1,500 into a certificate of deposit at the end of each ofthe next 6 years. the deposits will earn 5 percent compound annual interest. ifwalter follows through with his plan, approximately how much will be in his accountimmediately after the sixth deposit is made?

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

Oliver's company is planning the launch of their hybrid cars. the company has included "never-before-seen" product benefits in the hybrid cars. which type of advertising should oliver's company use for the new cars?