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NYU - ACC - 203
Microeconomics Spring 2008 Professor Jan De Loecker Monday & Wednesday 9:30-10:45/11-12:15/2-3:15 TA recitation session starting week 1 W 08:00am - 09:15am WS TISC UC61:Wen-Jyh W 08:00am - 09:15am WS TISC UC62: Ihab W 04:55pm - 06:10pm WS TISC
NYU - ACC - 203
Lecture 9Chapter 7: The Cost of ProductionLast lecture Input allocation (L,K) Isoquant map Combinations of L and K producing a givenoutput Q Now we look for optimal combination, so we needto introduce cost of inputs (note: consumer problem
NYU - ACC - 203
Lecture 10Chapter 8 : Profit Maximization and Competitive SupplyRoadmap Perfectly Competitive Markets Profit Maximization Marginal Revenue, Marginal Cost, andProfit Maximization Choosing Output in the Short RunRoadmap Ctd. The Competiti
NYU - ACC - 203
Lecture 12Chapter 9: The Analysis of Competitive Markets1RoadmapNow we have model of supply and demand and measures of CS and PS to evaluate Gains and Losses from Government Policies Minimum price Maximum price Supply restriction Tax, sub
NYU - ACC - 203
Chapter 10Market Power: Monopoly and Monopsony1Last Time Competitive Markets: Flat Demand Curve forfirms Firms set MC(q)=p Markets are efficient when p=MC: maximizeCS+PS Thus, competitive markets are efficient2Roadmap Monopoly: Fir
NYU - ACC - 203
Chapter 10Market Power II: Monopoly and Monopsony and Antitrust1Last Time Monopoly versus Perfect Competition Monopolists are price makers and facedownward sloping demand curves Monopolists choose q such that MC=MR, but MR=P(1+1/Ed) When I
NYU - ACC - 203
Chapter 11Pricing with Market PowerLast Time Monopolists Pricing Rule:MC=MR but MR=P(1+1/Ed) Monopoly is inefficient: creates adeadweight loss Antitrust Laws are used to preventmonopolyRoadmap Capturing Consumer Surplus Price Discrim
NYU - ACC - 203
Principles of Accounting Professor Choi fchoi@stern.nyu.edu KMC 10-75 TTh 11:15 a.m.-12 noon W 11a.m. 12 noon.SuccessPracticeBasicsTA Kedar Talang Office Hrs.Approach to Course? Importance of lifetime learning. My approach Read ass
NYU - ACC - 203
Present Value Model Objectives Time value of money Compound interest PV model of investment choiceRole of Accounting? Provide information that will facilitate the making of financial decisions Provide relevant information in a cost effective
NYU - ACC - 203
Features of the PV Model Future Value vs. Present Value PV and Wealth Sensitivity of PV to r Consistency PV and IncomeFuture Value $ 1 2 Present Value $1 2 33NPV & Wealth (or, I'm not a lazy good-for-nothing!)Wealth = command over goods
NYU - ACC - 203
Cash Flow vs Accrual-Based Measures of PerformanceDonut 2Prematurely Recognizing RevenuesSession Topics Limitations of PV data. Alternative performance metrics Cash flow measures Accrual measurescreditorsloan $repayment of principal &
NYU - ACC - 203
Financial PositionReview Limitations of NPV Cash flow NOILearning objectives Review the content of the income statement Introduce the concept of financial position Examine each component of the accounting equation See how an understanding
NYU - ACC - 203
Disposable WealthLearning Objectives Examine the concept of disposable wealth Learn under what conditions performance can be measured using the income statement or balance sheet Note the distinction be recurring and nonrecurring items Understan
NYU - ACC - 203
Donut 4Overstating Income by Ignoring InflationLearning Objectives Understand why financial statements based on historical costs may be misleading during periods of changing prices Distinguish between general price level changes and specific pr
NYU - ACC - 203
Market Value Model Session Objectives Review earlier valuation models Introduce the accretion concept of incomeComparison of Financial Accounting ModelsHC HC GPL RC HC RC MV MVValuationRevenue recognitionpt. of salept. of salept. accr
NYU - ACC - 203
Revenue Recognition Refinements and Accounts ReceivableAsset & Expense Assuming no I,W, G,L income = R-E = OE OE = (A-L) R-E = A - LLearning Objectives Examine some exceptions to the realization principle. Understand how receivables are rep
NYU - ACC - 203
Current Cost ModelReview of Valuation Frameworks to DatePresent Value ModelWealth = Income =Present value of future cash flows Wealth (PV)Advantages: 1. Takes into account time value of money. 2. Decision relevantDisadvantages:1. Subjecti
NYU - ACC - 203
Accounting Policy in a Historical, Institutional and International Context Session Objectives Examine the capital formation process. Understand the function of capital markets and the role of accounting. Appreciate how accounting standards are es
NYU - ACC - 203
Conventional Accounting Revisited Session Objectives Understand the purpose of the accounting cycle Employ surrogates for the accounting equation as a tool of analysis Undertake transactions analysis with new toolsConventional Accounting Revisi
NYU - ACC - 203
Inventories Appreciate why inventory measurement is so important. Examine reporting effects of measurement options. Understand the distinction between FIFO, LIFO and Average Costing methods. Does inventory measurement impact earnings?Performanc
NYU - ACC - 203
Accounting for Investments What is the difference between ST and LTInvestments? How do earnings and assets differ under the cost vs. equity method of accounting for LT investments? When are accounts of affiliates consolidated with that of the pare
NYU - ACC - 203
Accounting Cycle-continued Correcting entries Closing the books Generation of financial statements Post-closing trial balanceCorrecting EntriesEx. Unpaid wages of $2,000 were incorrectly recorded as having been paid. Original entry: Wage expen
NYU - ACC - 203
Accounting for Fixed AssetsSession Objectives Is fixed asset measurement important? Should capital expenditures be treated as an asset or an expense? Are there different ways of depreciating an asset? Do accounting choices impact reported earni
NYU - ACC - 203
Lecture 2 Solutions E9-41 (10 min.) 1. a. b. a. b. FV = $6,000(1.3605) = $8,163 FV = $6,000(1.5735) = $9,441 PV = $6,000(.7350) = $4,410 PV = $6,000(.6355) = $3,8132.3.Halve the rates and double the number of periods. Present values decline: a.
NYU - ACC - 203
Lecture 10-HW Solutions3-34 (30-40 min.) The solutions to Requirements 1 through 3 are in the accompanying presentations. General Journal Entry Accounts and Explanations a. Cash Accounts receivable Collected cash on accounts. Cash Accounts receivab
NYU - ACC - 203
E2-36 (10-15 min.) 1. The name of the statement is antiquated. It should be titled income statement (or statement of earnings, statement of operations, or operating statement). The line with the date should not be for an instant of time but for an in
NYU - ACC - 203
Solutions Lecture V P2-46 (35-40 min.) 1. 2. See Exhibit 2-46 on the following page. DICHEV COMPANY Balance Sheet April 30, 20X2 Liabilities and Stockholders' Equity Liabilities: Note payable $ 24,000 Accounts payable 5,000 Total liabilities 29,000
NYU - ACC - 203
Solutions Lecture VIP1-38 1. 2.(10 min.)Cash would rise by $1,000 and the liability, Deposits, would rise by the same amount. Deposits are liabilities because Citigroup owes these amounts to depositors. They are depositors' claims on the asset
NYU - ACC - 203
Current Cost Accounting Exercises5. a. The vendor's net income for the day is: Revenue(200 X $.50) -Historical cost of sales(200 X $.25) Conventional net income$100 50 $ 50b.The maximum amount the vendor could withdraw from her business and s
NYU - ACC - 203
Lecture XI-HW Solutions4-35 (15-20 min.) Recall that increases in expense accounts decrease stockholders' equity. (a) Supplies used, $2,000 $900 = $1,100. A = Office Supplies Supplies Inventory Expense Supplies used 1,100 = 1,100 L + SE OfficeJo
NYU - ACC - 203
Lecture XII-HW Solutions3-37 (25-40 min.) This problem provides practice in journals and ledgers. 1. and 3. To save space, the year 20X8 is not shown in these accounts. All items dated 1/1 are the balances as of January 1, 20X8. Balances as of Janu
NYU - ACC - 203
Lecture XIII-HW Solutions6-35 (10 min.) 1. If there is a significant chance that payment on the contract will not be received, the realization test has not been met. Recognition of revenue should be delayed until there is a high probability of rece
NYU - ACC - 203
Lecture XIV HW Solutions 7-56 (20-30 min.) 1. CONTRACTOR SUPPLY CO. Comparison of Inventory Methods Statement of Gross Profit of Kemtone Cooktops For the Year Ended December 31, 20X8 (In Dollars)FIFO Sales, 260 units Deduct cost of goods sold: Inven
NYU - ACC - 203
Lecture XV-HW Solutions8-43 (30-45 min.) 1. See Exhibit 8-43 on the following page.Chapter 8Long-Lived Assets and Depreciation371EXHIBIT 8-43 1. FLECK COMPANY Income Statement For the Year Ended December 31, 20X2 (In Thousands of Dollars)B
NYU - ACC - 203
Lecture XVI-HW Solutions11-29 (15-20 min.) 1. Cash interest payment: .10 x $1,000,000 x 1/2 Semi-annual interest income, 6/30/X2, .12 x $926,400 x 1/2 Amortization of discount: Analysis of Bond TransactionsA Cash Earnings a. b. Purchase Semi-annua
NYU - ACC - 203
Market Value Exercises - Solutions9. Roller Coaster Coaster Investment Corp. Worksheets-Conventional Accounting Investment Investment Owners' Description Cash in stock in bonds equity Beg. bal., 2002 100,000 100,000 Investment in stocks & bonds (90,
NYU - ACC - 203
Sample ExamPart I. Multiple Choice (3 pts each)_1. We learned in class that investors would like ready-made present value information as a basis for their investment decisions. Which of the following reasons does not explain why accountants are r
NYU - ACC - 203
Sample ExamPart I Multiple Choice (3 pts each) Insert in the space provided the letter representing the best choice._A_1. Identifying those features of an investment alternative that are directly related to a decision-maker's felt need is called
NYU - ACC - 203
Data Types, Data Display and Summary StatisticsStatistics for Business Control and Regression Analysis Spring 20081Types of Data Quantitative or Qualitative?Quantitative: presented as numbers permitting arithmetic Interest rate Temperat
NYU - ACC - 203
ProbabilityStatistics for Business Control and Regression Analysis Spring 20081Probability Probability is the basic language of statistics Probability vs StatisticsProbability: "a fair coin is tossed 10 time; what is the probability of ge
NYU - ACC - 203
Random Variables and Probability DistributionsStatistics for Business Control and Regression Analysis Spring 20081Random Variables Question: A coin is tossed three times; how many "heads" appeared? A random variable (RV) is "something that
NYU - ACC - 203
The Normal DistributionStatistics for Business Control and Regression Analysis Spring 20081The Normal Distribution The most important distribution in statistical theory Many phenomena around us and in nature have a normal distribution St
NYU - ACC - 203
Sampling, Point Estimation and Interval EstimationStatistics for Business Control and Regression Analysis Spring 20081Sampling Q: What is the average income of all Stern students? Finding the exact answer (examining everybody) is difficult
Delaware - BUAD - 477
BUAD477: IT Applications in Marketing Spring 2008Tenmat Inc., USA Web Marketing PlanTeam Awesome "By signing this cover page, I certify that all work contained herein has been completed solely by our team without help from, or consultation with,
Delaware - BUAD - 477
MemoTo: From: Date: Subject: Heather Yates Chris Mitchell 22 May, 2008 MedNet.com Confronts "Click-Through" Competition Key Issues MedNet.com has a business model in place that relies 100% on advertising revenue. The primary advertisers on MedNet ar
Delaware - BUAD - 477
MemoTo: From: Date: Subject: Fred Kleisner Chris Mitchell 12 May, 2008 Wyndham International: Fostering High-Touch with High-Tech The lodging industry has become extremely competitive and it is becoming tougher and tougher to separate your brand fro
Delaware - BUAD - 477
MemoTo: From: Date: Subject: Eric Schmidt Chris Mitchell 7 May, 2008 Google Inc.: Figuring out How to Deal with China In Ted C. Fishman's book China, Inc. he states that, "If any country is going to supplant the United States in the world marketplac
Delaware - BUAD - 477
MemoTo: From: Date: Subject: J.P. Rangaswami Chris Mitchell 31 May, 2008 Blogs at Dresdner Kleinwort Wasserstein Information sharing is vital for success in business. One excellent way to share information on a daily basis is by blogging. Dresdner K
Delaware - BUAD - 477
MemoTo: From: Date: Subject: Larry Page and Sergey Brin Chris Mitchell 9 May, 2008 Google Advertising Throughout the years Google has maintained its wholesome, "don't be evil" image by only allowing text based advertising that is relevant to the use
Delaware - BUAD - 441
1 Company Background Anheuser-Busch's origins go way back to 1852 when George Schneider founded the Bavarian Brewing Company in St. Louis, Missouri. Later, Adolphius Busch would marry into the family and begin working closely with his father-inlaw. T
Delaware - BUAD - 301
Chris Mitchell Paper #2 BUAD301-11 10/11/0666,207,896 Bottles of Beer on the WallToday's technology is advancing at incredible rates. If a company wants a chance to stay competitive in today's market technology is the key. Anheuser-Busch demonstra
Delaware - BUAD - 301
Chris Mitchell Paper #4 BUAD 301 11/20/06Chris Mitchell BUAD 301-011The Wegmans Way When you think of grocery store employees you most likely think of acne infested high schoolers who hate their jobs of pushing carts around or being a cashier. We
Cal Poly Pomona - FRL - 301
Zohaib Khan 1) -4500+1200+2500 = -1100 => 2(1100/3400) = 2.32 2) -3000+(3(800) = -600 => 3(600/800) = 3.75 -5000+(5(800) = -200 => 6(200/800) = 5.25 -7000 +(8(800) = 8.33 3) Project A: -50000+30000+18000 = 2(2000/10000) = 2.2 years Project B: -70000+
UCSB - MUS - 15
Music 15 Winter 2008Music 15: Paper I Due at the beginning of class, Thursday, January 17 Listen to the 4 CDs that came with your textbook and pick a piece that you find especially appealing. Once you have settled on a piece, listen to it casually,
UCSB - MUS - 15
Music 15 Winter 2008Music 15: Paper II Due at the beginning of class, Tuesday, February 19, 2008 In this assignment, you will be comparing three recordings of the same piece: the first movement of J. S. Bach's Brandenburg Concerto No. 5. You can li
UCSB - ANTH - 7
Obstacles in the way of truth Why might someone believe something? Evidence that it is true Light travels faster than sound To feel better Dogs go to heaven "looks don't matter" Demonstrate moral superiority "just as bad for a boy." "all children are
UCSB - HIST - 80
Alfred Mai History 80 04-22-08 Essay 1 Confucianism, Legalism and Daoism "The Emperor is here!" I hear the royal announcer proclaim. A second later, the doors swung open and I, the Great Emperor of Han, made my way into the large banquet hall. Alread
UCSB - HIST - 2C
Alfred Mai History 2C TA: M. Bowman April 22, 2008Equiano PaperThe slave trade was one of the largest human atrocities in history and it was not until hundreds of years after it began before it finally became abolished. The entire concept behind s
UCSB - HIST - 2C
The Efforts of Many in Washington in the Fight Against the Red Empire A Critical Analysis of the film "Charlie Wilson's War"Alfred MaiSection: Tuesday, 4:00-4:50 pmWord Count: 1104Thesis: Although Charlie Wilson was a great contributer to the
Cornell - CHEM - 2080
Chemical Kinetics: Iodine Clock Reaction By Julian Remouns Lab Instructor: Bob Neumann February 22, 2008Results and Discussion: The complete concentration and temperature dependence of the reaction rate for the reaction between peroxydisulfate ion
Cornell - CHEM - 2080
Densities of Liquids and Solids By Julian Remouns Lab Instructor: Pasquale Iacono September 5, 2007Results and Discussion: The densities of an unknown solid and an unknown liquid were determined by finding the mass and volume of the unknown. Three