The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: Performed $70,000 of services for clients on account. Performed $40,000 of services for cash. Incurred $36,000 of other operating expenses on account. Paid $10,000 cash to an employee for salary. Collected $47,000 cash from accounts receivable. Paid $16,000 cash on accounts payable. Paid a $8,000 cash dividend to the stockholders. Accrued salaries were $2,000 at the end of Year 1. Required a. Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, or leave blank to indicate the element is not affected by the event. The first event is shown as an example. b. What is the amount of total assets at the end of Year 1

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

If a government accumulates chronic budget deficits over time, what's one possible result? a. a collective action problem b. a debt crisis c. regulatory capture d. an unfunded liability