Nm | Accounting homework help

Nm | Accounting

1.At the beginning of the year, a   Accounting software developer quit his job and gave up a salary of $90,000 per year in order to start Turnip Tom’s organic farm.  A partial income statement for the first year of operation for Turnip Tom’s, Inc., is shown below:

Revenues

$      98,000

Operating costs and expenses

Cost of products sold

$      15,500

Selling expenses

$         6,500

Administrative expenses

$         3,200

Total operating costs

$      25,200

Income from Operations

$      72,800

Interest expense (bank loan)

$         9,500

Legal expenses

$         1,200

Income taxes

$      22,000

Net income

$      40,100

To get started, Tom spent $125,000 of his own savings to purchase land and equipment to be used for the farm.  During this year, Tom could have earned a 7 percent return by investing in stocks of other business with risk levels similar to his farm.

-What are the total explicit, total implicit, and total economic costs for the year?

-What is accounting profit?

-What is economic profit?

– Using only the data given, would you say that the owner made a good economic decision to leave is job to start the organic farm?  Explain.

2. Explain why it would cost Rafael Nadal or Venus Williams more to leave the professional tennis tour and open a tennis shop than it would for the coach of a university tennis team to do so.  Be sure to use the concepts of implicit cost, opportunity cost, and economic cost in your explanation.

3.An article in The Wall Street Journal discusses a trend among some large U.S. corporations to base the compensation of outside members of their boards of directors partly on the performance of the corporation. “This growing practice more closely aligns the director to the company. [Some] companies link certain stock or stock-option grants for directors to improved financial performance, using a measure such as annual return on equity.”

-How would such a linkage tend to reduce the agency problem between managers and shareholders as a whole?

-Why could directors be more efficient than shareholders at improving managerial performance and changing their incentives?

-How does the concept of moral hazard apply to this situation and what policies can be put in place to mitigate it?

Calculate the price of your order

Select your paper details and see how much our professional writing services will cost.

We`ll send you the first draft for approval by at
Price: $36
  • Freebies
  • Format
  • Formatting (MLA, APA, Chicago, custom, etc.)
  • Title page & bibliography
  • 24/7 customer support
  • Amendments to your paper when they are needed
  • Chat with your writer
  • 275 word/double-spaced page
  • 12 point Arial/Times New Roman
  • Double, single, and custom spacing
  • We care about originality

    Our custom human-written papers from top essay writers are always free from plagiarism.

  • We protect your privacy

    Your data and payment info stay secured every time you get our help from an essay writer.

  • You control your money

    Your money is safe with us. If your plans change, you can get it sent back to your card.

How it works

  1. 1
    You give us the details
    Complete a brief order form to tell us what kind of paper you need.
  2. 2
    We find you a top writer
    One of the best experts in your discipline starts working on your essay.
  3. 3
    You get the paper done
    Enjoy writing that meets your demands and high academic standards!

Samples from our advanced writers

Check out some essay pieces from our best essay writers before your place an order. They will help you better understand what our service can do for you.

Get your own paper from top experts

Order now

Perks of our essay writing service

We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.

  • Swift delivery
    Our writing service can deliver your short and urgent papers in just 4 hours!
  • Professional touch
    We find you a pro writer who knows all the ins and outs of your subject.
  • Easy order placing/tracking
    Create a new order and check on its progress at any time in your dashboard.
  • Help with any kind of paper
    Need a PhD thesis, research project, or a two-page essay? For you, we can do it all.
  • Experts in 80+ subjects
    Our pro writers can help you with anything, from nursing to business studies.
  • Calculations and code
    We also do math, write code, and solve problems in 30+ STEM disciplines.

Frequently asked questions

Get instant answers to the questions that students ask most often.

See full FAQ
    See full FAQ

    Take your studies to the next level with our experienced specialists

    Chat
    Chat
    Hello, we are online 24/7. Leave a message we will reply instantly