Reference no: EM131607537

FINACIAL MANAGEMENT DISCUSSION QUESTION

1. John Jetison believes he would need $500,000 to retire today and keep his same lifestyle. If Jetison estimates he will retire in 20 years, how much should he put away each month to have the equivalent of $500,000 in 20 years if the interest he can earn is 5%? If the interest rate changes to 3%, what will Jetison need to save each month? Picture cash flows on a timeline and present it when providing your answer. Think about your own retirement; what would the timeline look like? In what ways could you better prepare for retirement?

2. On a recent trip home for summer break, your grandfather tells you that he has purchased the stock of two firms in the automobile industry: Toyota and Ford. He goes on to discuss the merits of his decision and one of the points he makes is that he has avoided the risk of purchasing only one company's stock by diversifying his holdings across two stocks.What do you think of his argument? Be specific and describe to your grandfather what you have learned about portfolio diversification.

PRINCPLES OF ACCOUNTING DISCUSSION QUESTION

1. The Beach House Accounting firm needs to adjust its books at the end of the year. The firm's year end is December 31st. The accountant noted the following transactions:

2. On June 1st, the firm prepaid one year of its rent.

3. On July 1st, the firm received a payment from a client in the amount of $5,000. The client paid $5,000 as a prepayment of the current year accounting fees. At year end, the firm had only completed 75% of the current year's accounting services for the client.

At December 31st, how much rent expense should the firm record under the cash basis and under the accrual basis? Also, at December 31st, how much revenue should the firm record from the client under the cash basis and under the accrual basis? Explain your answers.

Which basis of accounting more clearly reflects the income and expense of the organization? Why? How might the method of reporting skew the true picture of the year's record?

2. Describe how the financial statements (the income statement, statement of retained earnings, balance sheet and statement of cash flows) are interrelated. Provide at least two examples.

If you were an investor, would you place more emphasis on any one particular financial statement? Explain your answer.

BUSINESS LAW DISCUSSION QUESTION

1. A Baltimore artist named Frederick Bouchat designed what eventually became the Baltimore Ravens' first logo, but the team used the design from 1996 to 1998 without compensating or crediting Bouchat. After Bouchat successfully sued the team for copyright infringement, the Ravens switched to their current logo after the 1998 season.Despite the Baltimore Ravens changing the logo design, Bouchat sued the Baltimore Ravens several more times, claiming that the Baltimore Ravens continued to use the original logo that he had designed after he won the first suit. Specifically, Bouchart complained that the logo he designed still appeared in highlight reels and in historical photos that were displayed in the Baltimore Ravens' stadium.A United States District Court Judge dismissed the suits filed by Bouchaton the grounds that the appearance of the Bouchat logo in highlight reels and in historical photos was allowable under the "fair use doctrine".Bouchat appealed to the United States Court of Appeals for the Fourth Circuit, and in December 2013, the Fourth Circuit agreed, saying that the "fleeting and insubstantial" appearance of the logo in the videos and photos did not amount to copyright infringement. "Society's interest in ensuring the creation of transformative works incidentally utilizing copyrighted material is legitimate no matter who the defendant may be," the court wrote.What is the "fair use doctrine" and what interests are the "fair use doctrine" intended to protect? How does the "fair use doctrine" apply to the Bouchat case?

2. Susan, a wealthy widow, invited an acquaintance, John, to her home for dinner on a specific date at a specific time. John told Susan that he would be delighted to come to dinner and, eager to impress Susan, spent lavishly in preparing for the evening. His purchases included a new blazer, new shoes, and expensive floral arrangement, and champagne as gifts for Susan. At the agreed upon time, John arrived at Susan's house only to find that she had left for the evening. John went home and sent Susan an email saying that he came for dinner but she was not home. The next day Susan sent Jonathan an email saying that she was sorry that she had forgotten the dinner and had gone to the theater with friends. Assume that the facts given are admitted and not in dispute. John wants to sue Susan to recover damages. Can he? Are all of the elements of a contract present in this case? Is there consideration? Don't be distracted by the silliness of the situation. Concentrate on the questions related to contract.

PRINCIPLES OF MACRO DISCUSSION QUESTION

1. Trace through the circular flow model in Chapter 6. What is the point of the circular flow model, what are some leakages and injections into the circular flow model, and how are the leakages and injections related to the circular flow?

2. If actual inflation exceeds anticipated inflation, who will lose purchasing power, and who will gain? How does unanticipated inflation harm the country? As part of your answer, include how you and your employer would both be affected.