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What is the purpose of anti trust legislation? In your answer, be sure to include explicit benefits that can be realized by consumers as a consequence of the enforcement of this legislation. What are some potential costs (to consumers)?

Provide an actual (real world) example that could be used to demonstrate the price inelasticity of demand for a given good. Be sure to provide a quantitative definition of price inelastic demand as well as support for the real world example you provide.

ABC sold $5 million worth of its product, wood blocks, during 2006. It sold all of its product on open credit accounts to its customers. For 2006, ABC collected 80% of its sales prior to year end. ABC uses the net method of recognizing Sales and Accounts Receivable, and provides terms to its best customers of 5/5, net 45. Of the total sales during the year, 60% were to its best customers with the remaining 40% to customers whose standard terms were full payment due within 30 days. Presuming that the collection rate between best customers and other customers is the same, calculate the ending Accounts Receivable balance as of December 31, 2006. (4 points)

Based on the financial statement in the annual report for Home Depot (using 2007 figures) develop a set of pro forma financial s (income and balance sheet only) for the next fiscal year end using the percent of sales method. Assume that the company s sales have increased by 20%. If your able to help out with this then I can do the same for Lowe s.

Is the book value of Retained Earnings the value that the company has the option to pay out as current dividends?

The value of Retained Earnings reflected on the Balance Sheet, then, reflects the total of all earnings retained since company inception.

A question for you, is the book value of Retained Earnings the value that the company has the option to pay out as current dividends? Why or Why not?

Argue for the capitalization of leases that do not meet any of the SFAS No 13 criteria for a capital lease.

Under SFAS No. 13, leases that do not meet one of the four criteria for a capital lease are treated as operating leases.

REQUIRED:
Argue for the capitalization of leases that do not meet any of the SFAS No 13 criteria for a capital lease. Your argument should take into consideration the conceptual framework definitions of assets and liabilities.

The Financial Accounting Standards Board has undertaken several key initiatives to pursue the goal of convergence of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, the Board conducts several joint projects with the IASB, and works with the IASB on the short term convergence project.

REQUIRED:
Discussed the efforts made toward convergence of the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP) on the revenue recognition area.