The saving rate in the United States is low compared to many of the countries with which the United States currently trades. If the United States was a closed economy, what would be the consequences of that low savings rate? The United States is not a closed economy however, but rather than an open economy. How does that change the answer to the closed economy scenario? Be thorough in your explanation.

Let X be the space of all continuous functions from [0, 1] to [0, 1] equipped with the sup metric. Let Xi be the set of injective and Xs be the set of surjective elements of A and let Xis = Xi ∩ Xs. Prove or disprove: i) Xi is closed, ii) Xs is closed, iii) Xis is closed, iv) X is connected, v) X is compact.

A student working in the physics laboratory connects a parallel-plate capacitor to a battery, so that the potential difference between the plates is 225 V. Assume a plate separation of d = 1.27 cm and a plate area of A = 25.0 cm². When the battery is removed, the capacitor is plunged into a container of distilled water. Assume distilled water is an insulator with a dielectric constant of 80.0.

(a) Calculate the charge on the plates (in pC) before and after the capacitor is submerged. (Enter the magnitudes.)

before Q_i = ___ pC

after Q_f = ___ pC

(b)

Determine the capacitance (in F) and potential difference (in V) after immersion.

C_f = ___ F

ΔV_f = ___ V

(c) Determine the change in energy (in nJ) of the capacitor.

ΔU = ___ nJ

(d)

What If? Repeat parts (a) through (c) of the problem in the case that the capacitor is immersed in distilled water while still connected to the 225 V potential difference.

Calculate the charge on the plates (in pC) before and after the capacitor is submerged. (Enter the magnitudes.)

before Q_i = ___ pC

after Q_f = ___ pC

Determine the capacitance (in F) and potential difference (in V) after immersion.

C_f = ___ F

ΔV_f = ___ V

Determine the change in energy (in nJ) of the capacitor.

ΔU = ___ nJ

In Merageville, if the price of gasoline is zero, daily quantity demanded is 1000 gallons. For every increase in price of 10 cents, daily quantity demanded drops by 10 gallons. At a price of zero, quantity supplied is zero, but for every increase in price of 10 cents, quantity supplied increases by 15 gallons.

Now let there be a $1.00 tax on gas, imposed on the demanders. Draw the old and new (after tax) demand curves on a diagram. Remember that the new one is just the old one dropped down by one dollar, but remember that this is the demand curve as seen by suppliers. The actual demand curve is still the same.

Calculate:

a. quantity before the tax

b. quantity after the tax

c. price before the tax

d. demanders price after the tax

e. suppliers price after the tax.

Label on the diagram, and calculate:

a. Producer surplus before the tax

b. Producer surplus after the tax

c. Consumer surplus before the tax

d. Consumer surplus after the tax

e. Government revenue from the tax

f. Consumer deadweight loss from the tax

g. Producer deadweight loss from the tax

The Income Statement of Adom Enterprise for the year ended 31st March, 2020 as prepared by an AccountsAssistantindicatedanetprofitofGHS148,080.Though,thecashbookon31st March,2020 showed a balance at bank to be GHS 13,460. Your attention is however drawn to the following:

1. i) Cheques from customers totalling GHS 14,940 which were recorded in the cash book on

   March 25, 2020 were not credited by the bank until April 2, 2020.

2. ii) Cheques issued on March 13, 2020 totalling GHS 22,260 in favour of suppliers were not paid

   by the bank until after the end of the year (that is after March 31, 2020)

3. iii) On 22 February 2020, the bank paid an amount of GHS 10,800 with respect to a standing order from Adom Enterprise for rent of business premises for the three months to April 30, 2020 but

   unfortunately, no entry for this payment had been made in the cash book.
   Additionally, no provision of this outstanding rent had been made in the income statement for the period.

4. iv) On March 31, a customer known as Mr. Kwarteng had paid GHS 7,020 into Adom
   Enterprise bank account through a standing order to his bankers in full settlement of a debit balance of GHS 7,200 in Adom Enterprise sale ledger, but no entry had been made in the books.

5. v) On 30th March 2020, a cheque for GHS 1,440 was received from a customer in settlement of sales invoice for the same amount. The cheques were lodged into Adom Enterprise bank account. Both sale of goods and the cheque were entered in Adom Enterprise’s books. However, on 31st March 2020, the customer returned the goods and instructed her

   bankers not to pay the cheque (This instruction was carried out the same day) but no entries in respect of these latter developments have been made in Adom Enterprise’s books. The cost of these goods amounting to GHS 960 were not actually included in the closing inventories.

6. vi) Cheques received from two customers: Madam Adwoa Nyarkoa GHS 2,150 and Papa Kwame Ayisi of GHS 1,520 were recorded at the wrong side of the cash book.

7. vii) A cheque for GHS 2,520 from an insurance company in settlement of claim for fire damage to inventory had been paid into the bank and credited by the bank on 21st March 2020, but an estimated amount of GHS 2,400 had been entered in Adom Enterprise’s income statement.

8. viii) During a review of the financial records, it was discovered that the receipts side of the cash book was overstated by GHS 1,480. This has not been corrected.

Required:

a) Prepare a statement on March 31, 2020, clearly indicating the cash book balance.

b) Prepare the bank reconciliation statement for Adom Enterprise
c) Prepare a statement of corrected net profit of Adom Enterprise on 31st March, 2020

d) Explain TWO reasons for carrying out bank reconciliation.

e) Identify and explain any FIVE causes of discrepancies in the cash book balance and the bank

statement balance in this question

QUESTION TWO
The following information was extracted from ABC Ltd’s financial statements for the year ended 31 December 2019.

a. Sales on 30 November 2019 were K100 million and K110 million on 31 December 2019. For the year 2020, sales are expected to double at a constant monthly rate.
b. 80% of the sales made are on account; the remainder on cash.
c. From past experience, 5% of the receivables have turned out to be irrecoverable.
d. Credit customers pay as follows:
i. 75% in the month following the sale;
ii. 15% two months after the sale month.
e. Inventory levels are maintained at 20% of the following month’s sales.
f. Accounts payables are at settled at 30 days after purchase.

Required:
i. Prepare a collections schedule for the three-month period from January to March 2020.
[5 Marks]
ii. Prepare a cash forecast for the three-month period from January to March 2020.
[5 Marks]
iii. Assess the Operating Cycle ratios and their implication on the working capital requirements of the company for the forecast period.
        

Exercise 23-12

Condensed financial data of Vaughn Company for 2020 and 2019 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the direct method.

Exercise 23-12

Condensed financial data of Sandhill Company for 2020 and 2019 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the direct method.

Question 1

The following balances have been extracted from the accounts of Peya, a sole trader, for the period ended 31 March 2020.
N$
Sales 427,726
Carriage inwards 476
Wages and salaries 64,210
Carriage outwards 829
Purchases 302,419
Rent and rates 12,466
Heat and light 4,757
Stock at 1 April 2019 15,310
Drawings 21,600
Equipment at cost 102,000
Motor vehicles at cost 43,270
Provision for depreciation
– equipment 22,250
– motor vehicles 8,920
Debtors 50,633
Creditors 41,792
Bank 3,295 cr
Sundry expenses 8,426
Cash 477
Capital 122,890
The following information as at 31 March 2020 is also available:
(1) N$350 is owing for heat and light
(2) N$620 has been prepaid for rent and rates
(3) Depreciation is to be provided for the year as follows:
equipment at 10% on cost and motor vehicles at 20% on cost
(4) Stock at 31 March2020 isN$16,480
Required:
(a) Prepare the trial balance for Peya (before any adjustments) as at 31 March 2020.
(b) Prepare the trading and profit and loss accounts for Peya for the year ending 31 March 2020.
(c) Prepare the balance sheet for Peya as at 31 March 2020.
(Total 31 marks)
Due Date:

Windsor Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Windsor and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,970 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,970 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Windsor’s cash flow problems are due primarily to the company’s desire to finance a $300,080 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a)

Compute the following items for Windsor Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)