| Data |
Year 2 Quarter |
Year 3 Quarter |
||||
| 1 | 2 | 3 | 4 | 1 | 2 | |
| Budgeted unit sales | 50,000 | 65,000 | 115,000 | 70,000 | 80,000 | 90,000 |
| Selling price per unit | $7 | per unit | ||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| a.
What are the total expected cash collections for the year under this revised budget? b. What is the total required production for the year under this revised budget?
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
d.
What are the total expected cash disbursements for raw materials for the year under this revised budget?
| e. |
After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? |
||
|
In: Accounting
| Requirement 2: |
|
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: |
| Data |
Year 2 Quarter |
Year 3 Quarter |
||||
| 1 | 2 | 3 | 4 | 1 | 2 | |
| Budgeted unit sales | 45,000 | 70,000 | 110,000 | 70,000 | 85,000 | 90,000 |
| Selling price per unit | $7 | per unit | ||||
| Data | Year 2 Quarter | Year 3 Quarter | ||||
| 1 | 2 | 3 | 4 | 1 | 2 | |
| Budgeted Unit Sales | 45,000 | 70,000 | 110,000 | 70,000 | 85,000 | 90,000 |
|
selling price per unit |
$8 per unit | |||||
| Accounts receivable, beginning balance | $65,000 | |||||
| sales collected in the quarter sales are made | 75% | |||||
| sales collected in the quarter after sales are made | 25% | |||||
| desired ending finished goods inventory is | 30% of the budgeted unit sales of the next quarter | |||||
| finished goods inventory, beginning | 12,000 units | |||||
| raw materials required to produce one unit | 5 pounds | |||||
| desired ending inventory of raw materials is | 10% of the next quarter's production needs | |||||
| raw materials inventory, beginning | 23,000 pounds | |||||
| raw materials cost | $0.80 | |||||
| raw materials purchases are paid | 60% in the quarter the purchases are made | |||||
| and | 40% in the quarter following purchase | |||||
| accounts payable for raw materials, beginning balance | $81,500 |
|
What are the total expected cash collections for the year under this revised budget?
|
In: Accounting
1. Explain which expenditure component of GDP would be most affected.
2. Explain why this an expansionary or contractionary fiscal policy.
3. Explain how this spending may increase economic growth in the long run.
4. Explain what ‘crowding-out’ is using this spending on roads as an example.
c. Which is more likely to increase GDP by more, a $100 million cut in personal income taxes or an increase in government expenditure by $100 million? Explain why.
In: Economics
In our construction of the savings and investment model, we considered government spending to be immediate spending. In other words, there was no “investment” component to government spending. Let’s change up that assumption. Suppose government spending comes in two types: investment spending (new airports, for example) as well as government consumption (snow plowing, for example). Call the first GI and the second GCE.
a. Derive the savings and investment equations under this new assumption and prove, once again, that in equilibrium, savings equals investment
. b. Draw the savings and investment functions on a chart of the market for loanable funds.
c.Show on the chart you just drew what difference it makes if the government increases its deficit to increase investment rather than government consumption.
In: Economics
the dividends are paid at the beginning of every quarter, and the quarterly grow rates are estimated to be 30%, 25%, 20%, 15% per quarter for the first quarters respectively, and stay constant as 5% thereafter. The effective quarterly interest rate is 10% per quarter. you are on dec 31st today and the next dividends shareholders are just about to receive is $1. what is the expected stock price at the end of 15 years in the future?
In: Finance
As the production manager of the Neptune Boat Corporation, you must determine how many units of the Model 4W speedboat to produce over the next four quarters. The company has a starting inventory of 75 units, and demand is 125 units in quarter 1, 100 units in quarter 2, 40 units in quarter 3, and 20 units in quarter 4. Production capacity is limited to 70 units in quarter 1, 90 units in quarter 2, 50 units in quarter 3, and 60 units in quarter 4. The inventory cost during quarters 1 and 2 is $200 per unit per quarter, and $300 per unit per quarter during quarters 3 and 4. Production costs for the first quarter are $8,000 per unit, and these costs increase by 10% per quarter due to increasing labor and material costs. Neptune’s senior management has indicated that the ending inventory for quarter 4 must be at least 30 units. Develop a linear programming model that Neptune can use to determine the optimal production schedule that will minimize the total cost of meeting demand for the Model 4W speedboat in each quarter, subject to the capacity and inventory constraints. You do not need to solve the LP.
In: Statistics and Probability
|
Year 2 |
Year 3 |
||||
|
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Quarter 1 |
|
|
Budgeted unit sales |
10,000 |
16,000 |
15,000 |
23,000 |
30,000 |
Past experience has shown that the ending inventory for each quarter should be equal to 10% of the next quarter’s sales in units. The company expect to start the first quarter with 4,000 units.
Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. Fourth quarter ending of materials is estimated as 8,000 pounds and a total of 12,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound.
Required:
In: Accounting
Moody Farms just paid a dividend of $2.65 on its stock. The growth rate in dividends is expected to be a constant 3.8% per year indefinitely. Investors require a return of 15% for the first 3 years, a return of 13% for the next 3 years, and a return of 11% thereafter. What is the current share price? Please work step by step in Excel, thanks so much!
In: Finance
Explain and graphically illustrate the impact of COVID-19 on investment spending and aggregate demand using at least one (1) of the determinants of investment spending.
A high-quality response must include the steps leading up to the change in the determinant. For example, if I were to make the claim that business taxes increased, I would have to first explain how I moved from COVID-19 to a rise in business taxes, and then trace out the effects on investment spending and aggregate demand.
In: Economics
Jerry Ltd a UK company sells Standard Rated and zero ratedgoods in UK and exports to overseas. Also, Jerry Ltd purchases standard rated goods and zero rated goods from UK suppliers and from overseas. On 1 January 2020, Jerry Ltd has registered for VAT based on compulsory Registration.
The following transactions occurred during the quarter ended 31 March 2020:
|
Car no. 1 |
Car Costing £20,000 (including VAT) for the Director of the company, who uses the car both for personal and business purposes. |
|
Car No. 2 |
Car Costing £18,000 (including VAT) for the Salesman, who uses the car fully for business purposes. |
Note: If not mentioned specifically, all figures are VAT exclusive.
You are required to
(13 marks)
(word count = 100 words)
In: Accounting