Question
In: Economics
A Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The...
A Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The firm actually sells $3,900,000 worth of goods. It is also planning on purchasing $2,000,000 in new equipment during the year. At the beginning of the year, the company has $400,000 in inventory in its warehouse. Answer the following based on the information above and show all your work:
a) Calculate desired investment
b) Calculate realized investment
c) Calculate desired end of the year inventories
d) Calculate realized end of the year inventories
e) Calculate unplanned inventory investment
f) Calculate Y
g) Calculate E
h) Based on your answers above, should the government follow expansionary or contractionary policies and what kinds? Why?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
A manufacturing company is producing $4,000,000 worth of goods this year and expects to sell $4,100,000....
A manufacturing company is producing $4,000,000 worth of goods
this year and expects to sell $4,100,000. The firm actually sells
$3,900,000 worth of goods. It is also planning on purchasing
$2,000,000 in new equipment during the year. At the beginning of
the year, the company has $400,000 in inventory in its warehouse.
Answer the following based on the information above and show all
your work:
f) Calculate Y
g) Calculate E
h) Based on your answers above, should the government...
Acme Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The...
Acme Manufacturing is producing $4,000,000 worth of goods this
year and expects to sell $4,100,000. The firm actually sells
$3,900,000 worth of goods. It is also planning on purchasing
$2,000,000 in new equipment during the year. At the beginning of
the year, the company has $400,000 in inventory stock in its
warehouse.
Find:
Planned Investment, Actual Investment, Desired end of year
inventories, actual end of year inventories, unplanned inventory
investment, Y, E
Please answer the mentioned parts: A manufacturing company is producing $4,000,000 worth of goods this year...
Please answer the mentioned parts:
A manufacturing company is producing $4,000,000 worth of goods
this year and expects to sell $4,100,000. The firm actually sells
$3,900,000 worth of goods. It is also planning on purchasing
$2,000,000 in new equipment during the year. At the beginning of
the year, the company has $400,000 in inventory in its warehouse.
Answer the following based on the information above and show all
your work:
f) Calculate Y (Income)
g) Calculate E (Expenditure)
h) Based...
Please answer the mentioned parts: A manufacturing company is producing $4,000,000 worth of goods this year...
Please answer the mentioned parts:
A manufacturing company is producing $4,000,000 worth of goods
this year and expects to sell $4,100,000. The firm actually sells
$3,900,000 worth of goods. It is also planning on purchasing
$2,000,000 in new equipment during the year. At the beginning of
the year, the company has $400,000 in inventory in its warehouse.
Answer the following based on the information above and show all
your work:
f) Calculate Y (Income)
g) Calculate E (Expenditure)
h) Based...
Cowdy Corporation expects that it will sell goods to a foreign customer at a price of...
Cowdy Corporation expects that it will sell goods to a foreign
customer at a price of 1 million lire on March 15, Year 2. To hedge
this forecasted transaction, a three-month put option to sell 1
million lire is acquired on December 15, Year 1. It selects a
strike price of $0.15 per lire, paying a premium of $0.005 per
unit, when the spot rate is $0.15. The spot rate decrease to $0.14
at December 31, Year 1, causing the...
ABC Manufacturing expects to sell 1,025 units of product in 2021 at an average price of...
ABC Manufacturing expects to sell 1,025 units of
product in 2021 at an average price of $100,000 each based on
current demand.
The Chief Marketing Officer forecasts growth of 50
units per year through 2025. The $100,000 price will be constant
for 5 years.
However, ABC cannot produce more than 1,000 units
annually. They must update plant or replace it. If replaced,
initial working capital of $5 million is required. RRR is 14%.
Using excel functions, calculate NPV for both...
ABC Manufacturing expects to sell 1,025 units of product in 2021 at an average price of...
ABC Manufacturing expects to sell 1,025 units of
product in 2021 at an average price of $100,000 each based on
current demand.
The Chief Marketing Officer forecasts growth of 50
units per year through 2025. So, the demand will be 1,025 units in
2021, 1,075 units
in 2022, etc. and the $100,000 price will remain
consistent for all five years of the investment life. However, ABC
cannot produce more
than 1,000 units annually based on current
capacity.
In order to...
ABC Manufacturing expects to sell 1,025 units of product in 2021 at an average price of...
ABC Manufacturing expects to sell 1,025 units of
product in 2021 at an average price of $100,000 each based on
current demand.
The Chief Marketing Officer forecasts growth of 50
units per year through 2025. So, the demand will be 1,025 units in
2021, 1,075 units
in 2022, etc. and the $100,000 price will remain
consistent for all five years of the investment life. However, ABC
cannot produce more
than 1,000 units annually based on current
capacity.
In order to...
Vaviano Ltd expects to sell 34,000 units of finished goods over the next 6-month period. The...
Vaviano Ltd expects to sell 34,000 units of finished goods over
the next 6-month period. The company has 10,000 units on hand and
its managers want to have 14,000 units on hand at the end of the
period. To produce one unit of finished product, two units of
direct materials are needed. Vaviano has 100,000 units of direct
material on hand and has budgeted for an ending inventory of
110,000 units.
What is the amount of direct material to be...
For the coming year, Archway Computers Inc. expects to produce and sell 200,000 computers. Of these,...
For the coming year, Archway Computers Inc. expects to produce
and sell 200,000 computers. Of these, 80,000 will be consumer
(personal) computers and 120,000 will be small business computers.
Common fixed overhead is $700,000. Additional information for the
coming year is as follows:
Consumer
Computers Small Business
Computers
Price $780 $2,300
Unit Direct
Materials 500 1,800
Unit Direct
Labour 160 290
Unit Variable
Overhead 40 75
Unit Variable Selling
Expenses 75 70
Total Direct Fixed
Overhead 120,000 200,000
Fixed selling and administrative expense for Archway Computers
Inc. is $3,460,000 per year.
Required:...
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