Inferring transactions from financial statements costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 634 locations across the u. s. as well as in canada, the united kingdom, japan, australia, south korea, taiwan, mexico and puerto rico. as of its fiscal year-end 2013, costco had approximately 71.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data ($ millions) 20132012 merchandise inventories$7,894$7,096 deferred membership income (liability)621550 (a) during fiscal 2013, costco collected $2,286 million cash for membership fees. use the financial statement effects template to record the cash collected for membership fees. (b) costco recorded merchandise costs (that is, cost of goods sold) of $91,948 million in 2013. record this transaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during 2013. use the financial statement effects template to record these merchandise purchases. assume all of costco's purchases are on credit. use negative signs with your answers, when appropriate. enter answers in millions. balance sheet transactioncash asset noncash assets

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.