Ortho Com pany experienced the following events during its first- and second-year operations: Year 1 Transactions:
1. Acquired $68,000 cash from the issue of common stock.
2. Borrowed $36,000 cash from the National Credit Union.
3. Earned $59,000 of cash revenue.
4. Incurred $43,000 of cash expenses
5. Paid a $7,000 cash dividend
6. Paid $37,000 cash to purchase land.
Year 2 Transactions:
1. Acquired $50,000 cash from the issue of common stock
2. Borrowed $20,000 cash from the National Credit Union
3. Earned $85,000 of cash revenue.
4. Incurred $62,000 of cash expenses.
5. Paid a $2,000 cash dividend.
6. Paid $25,000 cash to purchase land.
Required:
a. Record the transactions in an accounting equation
b-1. Prepare an income statement for year 1 and year 2.
b-2. Prepare a stockholders' equity for year 1 and year 2.
b-3. Prepare a balance sheet for year 1 and year 2.
b-4. Prepare a statement of cash flows for year 1 and year 2.

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?

When a shortage or a surplus arises in the loanable funds market a. the supply of loanable funds changes to return the economy to its original real interest rate b. the nominal interest rate is pulled to the new equilibrium level c. the demand for loanable funds changes to return the economy to its original real interest rate d. the real interest rate is pulled to the new equilibrium level

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.