1) When U.S. net exports rise, which increases the aggregate quantity of goods and services demanded, the dollar must have

A. reciprocated.

B. equivocated.

C. depreciated

D. appreciated.

2) When the price level rises less than expected, a firm with a sticky price will sell its output at a price that is

A. more than the firm desires and decrease its production.

B. less than the firm desires and increase its production.

C. less than the firm desires and decrease its production.

D. more than the firm desires and increase its production.

3) If the government institutes an investment tax credit and decreases income taxes,

A. real GDP and the price level fall.

B. real GDP falls, and the price level could rise, fall, or stay the same.

C. real GDP and the price level rise.

D. real GDP rises, and the price level could rise, fall, or stay the same.

4) Which of the following macroeconomic variables is a small part of real GDP, yet accounts for a large share of the fluctuation in real GDP?

A. auto sales

B. investment

C. consumer spending

D. unemployment

5) In the model of aggregate demand and aggregate supply, the GDP deflator measures the

A. price of oil.

B. amount of real output.

C. average price level.

D. nominal interest rate.

6) Most macroeconomic variables that measure some type of income, spending, or production fluctuate very separately from each other.

A) True B) False

Solomon Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

October sales are estimated to be $310,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget.

The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.

The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $13,300. Assume that all purchases are made on account. Prepare an inventory purchases budget.

The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. Prepare a cash payments budget for inventory purchases.

Budgeted selling and administrative expenses per month follow:

*The capital expenditures budget indicates that Solomon will spend $160,200 on October 1 for store fixtures, which are expected to have a $33,000 salvage value and a two-year (24-month) useful life.

Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.)

Prepare a pro forma income statement for the quarter.

Prepare a pro forma balance sheet at the end of the quarter.

Prepare a pro forma statement of cash flows for the quarter.

Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.)

Nielser Plc has engaged a consultant following the approval by
the Board of Directors. The Consultants prepared the following
information for the projected year for 2020.
Nielser Plc, which manufactures Spectacles, will have an expected
unit sales increased by 5% in quarter 1, 10% in Quarter 2, 7% in
Quarter 3 and 4% in Quarter 4.

i. It is expected that due to fluctuating demand during the year
the Price/ Unit will be at K2,500 per Unit in the 1st and 2nd
Quarters, while the price will be expected to increase to K4,500
per Unit in the 3rd and 4th Quarters.
ii. At the beginning of the year for 2020 (Jan.) It is expected that
the unit sales will be 2,500 units.
iii. Assume that Nielser Plc that sells its Spectacles to selected
retailers and that out of each quarter’s sales, 70% is collected
in the 1st Quarter of the sale; 28% is collected in the following
quarter; and 2% is bad debt.
iv. Assume accounts receivable at the beginning of the year stood
at K2,500 (all the funds to be received in the first quarter).

Required:
a). Calculate Nielser Plc sales budget for one year on quarterly
basis. 15 Marks
b). What will be the amount of debtors at the end of Dec., 2020
whose amount will be received in the 1st quarter of 2021?
5 Marks
c). What will be expected amount of bad debts (total) at the end
of 2020) (Dec.? 4 Marks
d). How will Nielser Plc Accountant treat the Bad debts figure
when preparing the cashflow statement in 2021? and explain why
it will be treated in this manner

The Godess of Weather flips a coin twice to determine the weather in January. Her coin is unfair, with 60% to yield

a head and 40% to yield a tail. If she gets two heads, January has 80% to not snow heavily; if she gets a head and a

tail, January has 50% to snow heavily; if she gets two tails, January has 90% to snow heavily. If January and February

both snows heavily, TD Insurance company has a probability of 90% to have a loss in the first quarter. If January snows

heavily, February tends to snow heavily as well, in fact, it stops snowing heavily with only a chance of 15%. What is the

chance that January and February both snow heavily and TD Insurance have a loss in the first quarter?

All of the following can affect a​ firm's total revenue except which​ one?

1. opportunity costs
2. discounts
3. rebates
4. returns

Amazon buys BestBuy and increases the prices of all goods by 30%. As a result, the company now sells 115,000 units instead of 210,000 units for the quarter. What is the elasticity of demand?

A. 2.0

B. 3.0

C. .50

D. 4.0

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

The Marketing Department has estimated sales as follows for the remainder of the year (in units):

The selling price of the beach umbrellas is $12 per unit.

All sales are on account. Based on past experience, sales are collected in the following pattern:

Sales for June totaled $480,000.

The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.

Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be

Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $52,890.

1.Calculate the estimated sales, by month and in total, for the third quarter.

2. Calculate the expected cash collections, by month and in total, for the third quarter​​

3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.

4&5 Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.)

6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.

Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, the accounting records for the most popular item in inventory showed the following:

Required:

b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, First-in, first-out, Last-in, first-out and Specific identification inventory costing methods. For Specific identification, assume that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the second sale was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1.

A charity receives 2025 contributions. Contributions are assumed to be independent and identically distributed with mean 3125 and standard deviation 250. Calculate the probability that the total amount of contributions is greater than $6,320,000.  

1. What do I know?  

2. What do I want to find out?

3. What do we expect the answer to be?

4. How do I go from what I know to what I want to find?

5. Is the answer consistent with what I expected?  

It is 2025, and you have established yourself as a young up-and-comer in your field. As such you and your significant other have decided to put down roots and buy a house together.

In preparing to buy your home you have decided that the maximum monthly payment you would be willing/able to make is $2,000. You have about $80,000 to put towards a down payment.

Assume that you could get an interest rate of 4.75% on a 15 year mortgage or 5.25% on a 30 year mortgage. In order to get these rates you must make a 20% down payment on the value of the home, financing the remainder.

Use the amortization table you have created to determine what your option is in regards to financing your home.

6. What is the price of the home you can afford, given the above parameters?

7. How much interest would you pay over the life of the loan, given the above parameters?

8. If you made an additional payment of $200 each month, how early would you pay off either loan?

9. If you made an additional payment of $250 each month, how much less interest would you pay with either loan?

32. Suppose the government was operating a balanced budget in the year 2025. The next year, in 2026, the government cut taxes by $20 billion.

Part 1: After the tax cut is implemented, what is the impact on public saving? Using an equation or model, explain your answer.

Part 2: Assume that all consumers believe the tax cut is going to be matched by a tax increase in the near future. As such, consumers save the full proceeds of the tax cut. What is the impact of the tax cut on private savings? Using an equation or model, explain your answer.

Part 3: Assume that all consumers believe the tax cut is permanent. As such, consumers spend the full proceeds of the tax cut. What is the impact of the tax cut on private savings? Using an equation or model, explain your answer.

Part 4: In both scenarios – (a) consumers save all of the tax cut and (b) consumers spend all of the tax cut – what is the impact on national saving? Using an equation or model, explain your answer both scenarios.