Reading Assignment Class 5 Read the following questions. Each scenario has two choices, consider which option is rational investors' choice and which option is loss-averse investors' choice. Question 1: Suppose you make a plan to invest $50,000. You are presented with two alternatives. Which scenario would you rather have? a. Be assured that I'll get back my $50,000, at the very least even if I don't make any more money. b. Have a 50 percent chance of getting $70,000 and a 50 percent chance of getting $35,000. Question 2: Suppose you make a plan to invest $70,000. You are presented with two alternatives. Which scenario would you rather have?

5 5 AutoSave On File 2. K9 O Undo A Home Insert Draw Page Layout Formulas Data 0 X Paste Clipboard 5 B Total credit sales Accounts Receivable.xlsx Saved v . Calibri B IU • XV. fx C 17 Accounts Receivable 18 Allowance for doudtful debts 19 D ✓11 Ready Accessibility: Investigate Font V • Α Α΄ V E V 8- A $ % 98 F == Review View Help G 8 9 Accounts Receivable written off 0 Credit issued to customers for sales returns 1 Recovery of Accounts Receivable, written off 12 as uncollectible in the prior year (not included in the cash collected above) 13 14 15 The following were taken from the Balance Sheet dated Dec 31, 20X4 16 Alignment Search (Alt+C H Sheet1 ex. for income stmt. approach Practice Question Sheet4 22 1 V 620,000 5450 14500 3400 General 96400 9700 J V Number 20 Jeremy Company estimated that bad debts (uncollectible) to be equal to 0.5% of credit sales, net of sales returns 21 22 Calculate the Accounts Receivable and Allowance for doubtful debts accounts balances as at Dec 31, 20X5…

Knight Company owned 80% of the common stock of Stoop Company. Stoop had 50,000 shares of $5 par value common stock and 2,000 shares of preferred stock outstanding. Each preferred share received an annual per share dividend of $2 and is convertible into four shares of common stock. Knight did not own any of Stoop's preferred stock. Stoop also had 600 bonds outstanding, each of which is convertible into ten shares of common stock. Stoop's annual after-tax interest expense for the bonds was $2,000. Knight did not own any of Stoop's bonds. There are no excess amortizations or intra-entity transactions associated with this consolidation. Stoop reported net income of $300,000 for 2024. Knight has 100,000 shares of common stock outstanding and reported net income of $400,000 for 2024. What would Knight report as consolidated basic earnings per share? Note: Round your answer to two decimal places. Multiple Choice O $5.68 $6.37 O M Saved 12+ Sep 16 5:02

* CENGAGE MINDTAP Q Search Time Value of Money I Back to Assignment Attempts Average / 1 1. Problem 5.01 (Future Value) еВook If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent. $4 Grade it Now Save & Continue Continue without saving