Note: No data missing, these are general economic market forces questions, please explain answers

-If interest rates on European assets increase, then we expect that the Euro will depreciate?

-If the U.S. imposes an import tariff on an imported product, then the US as a whole will be better off relative to consumer surplus, producer surplus, and tariff revenue?

-An economy with a growing population sees continued growth in the capital stock and output?

-At given interest rates, if the EXPECTED rate at which we exchange dollars and euros increases, then we expect that the dollar per euro spot exchange rate today increases?

-Suppose second quarter GDP increased by 0.6 percent relative to first quarter GDP. Annualized second quarter growth is then equal to about 2.4 percent.

Thank you!

Read Chapter 13 in Marshall et al., (2014).

Read the "Calculating Your Costs Per Visit" article.

1.Course Project Option 1 is to complete the questions on Case 10.13 for the company you selected.

2.Course Project Option 2 is to complete the following budgeting assignment:

Stillwater Video Company, Inc. produces and markets two popular video games, High Range and Star Boundary. The closing account balances on the company's balance sheet for the last year are as follows: Cash, $18,735; Accounts Receivable, $19,900; Materials Inventory, $18,510; Work in Process Inventory, $24,680; Finished Goods Inventory, $21,940; Prepaid Expenses, $3,420; Plant and Equipment, $262,800; Accumulated Depreciation-Plant and Equipment, $55,845; Other Assets, $9,480; Accounts Payable, $52,640; Mortgage Payable, $70,000; Common Stock, $90,000; and Retained Earnings, $110,980.

Operating budgets for the first quarter of the coming year show the following estimated costs: direct materials purchases, $58,100; direct materials usage, $62,400; direct labor expense, $42,880; overhead, $51,910; selling expenses, $35,820; general and administrative expenses, $60,240; cost of goods manufactured, $163,990; and cost of goods sold, $165,440. Estimated ending cash balances are as follows: January, $34,610; February, $60,190; and March, $54,802. The company will have no capital expenditures during the quarter.

Sales are projected to be $125,200 in January, $105,100 in February, and $112,600 in March. Accounts receivable are expected to double during the quarter, and accounts payable are expected to decrease by 20 percent. Mortgage payments for the quarter will total $6,000 of which $2,000 will be interest expense. Prepaid expenses are expected to go up by $20,000, and other assets are projected to increase by 50 percent over the budgeted period. Depreciation for plant and equipment (already included in the overhead budget) averages 5 percent of total plant and equipment for the year. Federal income taxes (34 percent of profits) are payable in April. The company pays no dividends.

Required:

1.Prepare a budgeted income statement for the quarter ended March 31.

2.Prepare a budgeted balance sheet as of March 31.​

Submission Instructions Submit the file using the Submit button above. Grading Criteria Your work will be graded according to the following rubric. Please do not hesitate to refer to the rubric before, during, and after completing your assignment. Option 1 Grading Rubric

Criteria Level 3 Level 2 Level 1

Depth of Answer Provides an in-depth answer with further elaboration. Provides an in-depth answer. Evidence of   Provides a brief answer lacking depth. Not enough

Critical thinking is evident throughout. some critical thinking information given. Little evidence of critical thinking

310 points 217 points 0 points

Option 2 Grading Rubric

Criteria Level 3 Level 2 Level 1

Budgeted Income Statement The income statement shows all required parts. The income statements show some of the The income statement does not show the

160 points required parts. 112 points. required parts. 0 points

Budgeted Balance Sheet The balance sheet shows all required parts. The balance sheet shows some of the required parts. The balance sheet does not show the   

150 points. 105 points. required parts. 0 points.

Inventory Costing Methods—Periodic Method The following information is for the Bloom Company; the company sells just one product: Units Unit Cost Beginning Inventory: Jan. 1 200 $10 Purchases: Feb. 11 500 14 May 18 400 16 Oct. 23 100 18 Sales: March 1 400 July 1 380 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first-in, first-out, (b) last-in, first-out, and (c) weighted-average cost method. Do not round until your final answers. Round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory $ Cost of goods sold $ B. Last-in, first-out: Ending Inventory $ Cost of goods sold $ C. Weighted Average Ending Inventory $ Cost of goods sold $

Inventory Costing Methods-Periodic Method
The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert's inventory:

Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar.

Inventory Costing Methods-Periodic Method
The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert's inventory:

Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar.

QUESTION ONE

We Send Couriers was established on January 1. The following transactions occurred during the company’s most recent quarter.

• Jan 1. Issued common stock for K80,000 cash.
• Jan 2. Purchased equipment costing K82,000 financed by a long term loan from Cashrite for the full amount.
• Feb 7. Provided delivery service to customers, K72,000 in accounts receivable and K16,000 in cash.
• Feb 18. Incurred repair costs of K3,000 on account from J Motors.
• Mar 12. Collected K65,000 cash from customers on account.
• Mar 20. Borrowed K90,000 by signing another long-term loan from Cashrite.
• Mar 25. Paid K74,400 cash for equipment rentals during the quarter.
• Mar 25. Paid employees K38,000 cash for work done during the quarter.
• Mar 26. Paid (with cash) K49,000 fuel for delivery equipment used during the quarter.
• Mar 28. Paid K2,000 cash on accounts payable.
• Mar 30. Ordered, but haven’t yet received, K700 in supplies.

Required:

1. Open the appropriate books of original entry and record the above transactions.

[10 Marks]

2. Open the appropriate ledger accounts and post the accompanying transactions and close off at the end of the accounting period.

[10 Marks]

3. Close off the accounts and prepare the Trial Balance as at 31 March.

[10 Marks]

4. Prepare the Income statement and the statement of Financial Position for the quarter end.

[10 Marks]

Q1.The forces of supply and demand determine the prices which prevail for most goods and services. Take a look again at any Supply/Demand chart. What or who is represented by the segment on the demand curve which is located below the equilibrium price? In truth, this segment represents those would like to buy the particular good if the price was lower, but can’t (or choose not to) buy the good at its currently higher price. Perhaps this is trivial for goods like lattes or services like travel to the Bahamas (it’s not a tragedy that some cannot afford a latte or a trip to Bahamas, right?), but think about other goods, such as antibiotics, or services such as education. If the market sets the price, then there will always be some who can’t quite pay the price required. Does this feature of the market system strike you as immoral? Because “the market” (forces of supply and demand) does not guarantee that everyone who needs antibiotics will get them, should the market be abandoned in favor of some other system of pricing and distributing goods and services? Why or why not?

Q2. Think about the law of supply. It states that as prices rise, quantity supplied will rise, and as prices fall, quantity supplied will fall. Now think about the flat-screen TV market. Over the last 15 years or so, the prices have come down significantly, but there are many more flat-screen TVs produced (supplied) today than there were 15 years ago. Does this violate the law of supply? Why or why not?