Questions
The company has just hired a new marketing manager who insists that unit sales can be...

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:

Year 2 Quarter

Year 3 Quarter
Data 1 2 3 4 1 2
Budgeted unit sales 45,000 70,000 105,000 75,000 85,000 90,000
Selling price per unit $7


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G

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Chapter 8: Applying Excel
Data Year 3 Quarter
1 2 3 4 1 2
Budgeted unit sales 45,000 70,000 105,000 75,000 85,000 90,000
• Selling price per unit $7 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 material costs $0.80 per pound
• 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

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?

c. What is the total cost of raw materials to be purchased 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 80,000 units in any one quarter. Is this a potential problem?

No

Yes

Thank you!

In: Accounting

Solve the following problems: (a) Show that any polarization state can be converted into a linearly...

Solve the following problems:
(a) Show that any polarization state can be converted into a linearly polarized state by using a quarter-wave plate.
(b) Calculate the output polarization state (in Jones’ vector) for an input field (x-polarized) first going through a half-wave
plate with the fast axis oriented at and a quarter-wave plate with fast axis oriented at
respect to y-axis.

In: Physics

ABC ins's first quarterly dividend of 2$/share is expected to be paid nine months from today....

ABC ins's first quarterly dividend of 2$/share is expected to be paid nine months from today. Then on, dividends will decline by 2% per quarter for next three years. After three years, the dividends will start increasing by 1% per quarter in perpetuity. Assume that ABC's required rate of return is 15% (effective annual rate). What is the price of a share of ABC today?

In: Finance

The Fiscal Policy is the use of the Federal Budget to regulate the economy. What are...

The Fiscal Policy is the use of the Federal Budget to regulate the economy. What are discretionary spending and automatic stabilizers? When was it first used? What are problems with using the budget to regulate the economy?

In: Economics

Using the following yearly cash flow and an interest rate of 6% /year compounded quarterly

  1. Using the following yearly cash flow and an interest rate of 6% /year compounded quarterly


       year                      0 _______1_______2_______3_______4_______5__

   cash flow, $        5000                            6500                                            8000  


determine:

         

  1. The present value (present worth).


  1. The equivalent uniform annual amount.


  1. How much must be invested each month into an account paying 18% /year compounded monthly to accumulate $200,000 in four years?

  1. The bank states that a new car loan with monthly payments is available for three years at an annual interest rate of 9%.


  1. What would be the monthly payments on a $23,000 loan?


  1. What is the effective annual interest rate (express to two decimals)?  


  1. An Engineering company is reporting income of $30,000 for the first quarter, income of      $32,000 for the second quarter, and income increasing by $2,000 each quarter through                                   year four. What is the equivalent uniform amount per quarter if the interest rate is 3%             per quarter?                                        

In: Economics

The Federal Reserve Bank of St. Louis provides these data online

The following two plots on the next page show exponentially weighted moving averages of the percentage change in the amount of household credit market debt. The time series is quarterly, from 1960 through the fourth quarter of 2011. In the first plot the weight for the EWMA w = 0.5, whereas in the second plot w = 0.9. The EWMA in both cases is shown as a red line with the surrounding data. (The Federal Reserve Bank of St. Louis provides these data online.)
(a) Which weight w do you think produces a better summary of the underlying trend in the percentage change in household debt? Explain your choice.

Merest t 30 12 18 14 26 1970 1980 1990 2000 2010 18 39 Yaar 20 Mart bee 30 12 14 15 29 20

(b) In the fourth quarter of 2011, household credit debt was estimated to be $13.223 trillion. Having seen these plots, forecast household credit debit in the first quarter of 2012.
(c) Provide a range to accompany your forecast of household credit debt.

In: Statistics and Probability

a) Using the Keynesian cross model where the goods market equilibrium is determined and analyzed, graphically...

a) Using the Keynesian cross model where the goods market equilibrium is determined and analyzed, graphically derive the IS curve, and explain each step. Explain what the equilibrium in the goods market implies for the IS curve, i.e., why is the IS curve downward sloping. Also, explain what causes shifts in the IS curve.

b) First, based on the analysis of the financial market equilibrium, graphically derive the LM curve. Explain what the LM curve is and explain in detail why it has its particular shape. Explain what causes shifts in the LM curve.

c) Suppose that the FED sells a large amount of bonds (say, treasury securities) through open market operations. Graphically illustrate and explain in detail what effect this operation will have on the LM curve and the IS curve. Also explain if it cause a shift in the IS and LM curve?

d) Suppose that the US government reduces government spending (G) to reduce the budget deficit (G-T>0). Graphically illustrate and explain in detail what effect this policy will have on the LM curve and the IS curve. Also explain if it cause a shift in the IS and LM curve?

In: Economics

Most, if not all, of the Canadians believe the government should provide an “adequate” level of...

Most, if not all, of the Canadians believe the government should provide an “adequate” level of public school funding. How might raising this level of “adequacy” actually lead to a reduction of overall (public and private) levels of educational spending in Canada? Explain with the help of a properly labeled diagram.

In: Economics

2. One of the major differences between a for-profit (FP) and not-for-profit (NFP) hospital is: there...

2. One of the major differences between a for-profit (FP) and not-for-profit (NFP) hospital is:

there is no difference, both are obligated to serve the community

FP always have superior management skills and business performance

NFP always focus on community health

NFP are established for community benefit

FP hospitals are always profitable

3. The majority of the United States population is covered through the following:

Employer Provided Insurance

Medicare, Medicaid, CHIPs, Veterans

Affordable Healthcare Act

Intergalactic coverage

  1. By 2025, there will be a shortage of 52,000 primary care physicians. The most significant cause of this shortage is:

    Geographic maldistribution

    Specialty maldistribution

    A decline in medical school students

    Failure to increase medical school enrollment in alignment with demographic growth

In: Nursing

For example: Question: If income changes by $40 billion for each $2.28 billion change in spending,...

For example:

Question: If income changes by $40 billion for each $2.28 billion change in spending, h much will income change by?

Answer:   91   (rounded down from the calculated value of $91.2 billion)

[Not acceptable would be: 91.2, nor $91, nor $91.2, et al.]

For the following five questions, assume the following characteristics of the monetary transmission mechanism:

The money multiplier is 2.33

Interest rates will change by 2.25% for every $75 billion change in the money supply.

Investment will change by $60 billion for every 1.5% change in the interest rate.

Income will change by $15 billion for every $3.8 billion change in investment.

1)Identify the change in income when the Fed does the following:

a. Buys $35 billion in bonds.

b. Buys $18 billion in bonds.

c. Buys $5.5 billion in bonds.

d. Sells $12 billion in bonds.

e. Sells $22 billion in bonds.

In: Economics