Two masses, m1 and m2, are falling but not freely. In addition to gravity, there is also a force F1 applied directly to m1 in the downward direction and a force F2 applied directly to m2 in the horizontal direction. Friction (µs) is present between the two masses and the forces are applied such that they do not rotate. The force F2 is as large as it can be and not have m2 slide relative to m1. (a) Find an expression for the acceleration of the center of mass of the m1 + m2 system in terms of m1, m2, F1, F2, and g? (b) Draw a FBD for each mass separately. Identify motion constraints and Newton's 3rd law force pairs. (c) Write down Newton's 2nd law applied to each mass separately. (d) If both masses are each 2 kg, the coefficient of static friction between the surface is µs = 1/2, and F1 = 25 N, What is the value of F2?

There was a demonstration of the falling magnet in a simple copper tube. Explain, in detail, the physics behind why the magnet slows its descent through the tube (it does not touch the sides). In your discussion be sure to explain why the magnet doesn't come to a stop in the tube and why it does not speed up.

Maluwana Stores had sales of K700, 000 in November and K850, 000 in December. It expects sales to be as follows during the first six months of the next year:

Month January February March April May June

Sales K500, 000 450,000 550,000 600,000 625,000 600,000

In the past, 17.5 percent of Maluwana’s sales are paid in cash at the time of the sale, 52.5 percent are paid the following month, and 30 percent are paid in the second month following the sale.   

1. Prepare a spreadsheet showing the expected inflow of operating revenues for the first six months of next year.
2. An analysis of the records of Maluwana Stores shows that the cost of goods they sell has averaged 70 percent of the Kwacha value of sales. To save inventory holding costs, Maluwana schedules its receipts of goods for the beginning of the month in which the goods are expected to be sold. Maluwana pays for 20 percent of its purchased goods in the same month that the suppliers deliver the goods. The store pays for 40 percent of its purchased goods in the month following delivery and for 40 percent of its purchased goods two months after delivery. Sales during November and December of last year and forecast sales for the first six months of next year are as given above. What are the cash outflows to pay for purchased goods for each of the first six months of next year?

If the monthly optimal level of restaurant meals vs. pairs of shoes is 8 and 3, respectively, and this costs you $700 ($50/day at restaurants and $100 per pair of shoes), what would be the various combinations of restaurant visits and pairs of shoes purchased if you go to spending $1000 per month. Assume restaurant visits and shoes are normal goods. Of these identified new combinations at the higher level of income, which make sense, and which are ruled out? Give a rationale.

Suppose that there is an urgent need for new school buildings and teachers that emerged after hurricane Harvey in Houston, Texas. Answer the following questions about grants.

a. Explain why a block grant, in comparison with a matching grant, would result in less consumption education services (e.g., school buildings and teachers) but more of other goods according to your textbook.

b. Explain how a matching grant (for school buildings and teachers), in comparison with a block grant, would have a further impact via the spending multiplier?

Question 4: Verbally and graphically explain whether the Fed can achieve its dual goals of price level stability and full employment if it pursues activist policies during each of the following. Assume the economy was operating at full employment in the short run before the shock. a. Due to the coronavirus, consumers stay home and stop discretionary spending.   b. Due to the coronavirus, interruptions in the supply chain plague U.S. industries making it harder, if not impossible, to receive intermediate goods as needed for production.

ABC Company is preparing budgets for the third quarter ending Sept 30, 2019. Budgeted sales for the next five months are;

· July 20,681 units

· Aug 50,020 units

· Sept 30,150 units

· Oct 25,309 units

· Nov 15,000 units

The selling price is $15 per unit. All sales are on account. ABC’s collection pattern is 60% collected in the month of sale and remaining amount in the month following sale.

The June 30 Accounts Receivable balance of $50,000 will be collected in full.

The management at ABC Company wants ending Finished Goods Inventory to be equal to 25% of the following month’s budgeted sales in units. At ABC Company, five pounds of material are required per unit of product. Management wants materials on hand at the end of each month equal to 15% of the following month’s production. Material cost is $0.50 per pound.

30% of a month’s purchases is paid for in the month of purchase and the remainder is paid in the following month. The June 30 Accounts Payable balance is $20,000.

At ABC, each unit of product requires 0.06 hours (3.6 minutes) of direct labor. The company has a “no layoff” policy and in exchange for the “no layoff” policy, workers agree to a wage rate of $15 per hour regardless of the hours worked (no overtime pay). For the next three months, the direct labor workforce will be paid for a minimum of 2,000 hours per month.

At ABC, manufacturing overhead is applied to units of product on the basis of direct labor hours. The variable manufacturing overhead rate is $25 per direct labor hour. Fixed manufacturing overhead is $40,000 per month and includes $10,000 of non-cash costs.

At ABC, the selling and administrative expenses budget is divided into variable and fixed components. The variable selling and administrative expenses are $0.55 per unit sold. Fixed selling and administrative expenses are $60,000 per month. The fixed selling and administrative expenses include $15,000 in costs that are not cash outflows of the current month.

The company:

· Has a July 1 cash balance of $55,000

· Maintains a minimum cash balance of $35,000

· Borrows on the first day of the month and repays loans on the last day of the quarter

· Maintains a 12% open line of credit for $95,000

· Pays a cash dividend of $45,000 in Aug

· Cash purchases of equipment, $155,200 in July and $54,800 in Sept, respectively

ABC reported the following account balances prior to preparing its budgeted financial statements:

· Land - $65,000

· Equipment - $180,000

· Ordinary shares - $195,000

· Retained earnings - $X*

*This Retained earnings figure will be the amount needed to balance off your balance sheet on June 30th i.e. the closing balances on June 30th before you step into the third quarter.

Requirements:

With the information provided, assist ABC to prepare the following budgets for the third quarter of the year:

1. Expected Cash Disbursements for Materials

2. Direct Labour Budget

3. Manufacturing Overhead Budget

4. Ending Finished Goods Inventory Budget