Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter:

1. Budgeted monthly absorption costing income statements for April–July are:

*Includes $25,000 of depreciation each month.

2. Sales are 20% for cash and 80% on account.

3. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month of sale. February’s sales totaled $245,000, and March’s sales totaled $260,000.

4. Inventory purchases are paid for within 15 days. Therefore, 50% of a month’s inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable at March 31 for inventory purchases during March total $118,300.

5. Each month’s ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $91,000.

6. Dividends of $32,000 will be declared and paid in April.

7. Land costing $40,000 will be purchased for cash in May.

8. The cash balance at March 31 is $54,000; the company must maintain a cash balance of at least $40,000 at the end of each month.

9. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $200,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

What is the Ka and a (degree of ionization) of HC2H3O2 for the following pH and concentrations:

Stagflation is a combination of ______ and _______.

Multiple Choice

• monetary policy; fiscal policy

• inflation; recession

• deflation; expansion

• excessive aggregate spending; excessive aggregate supply

If the MPC is 0.6, and the government spends an additional $50b, the overall effect on GDP will be:

Multiple Choice

• an increase of $250b.

• a decrease of $75b.

• an increase of $125b.

• a decrease of $25b.

Money serves as a store of value when:

Multiple Choice

• there is direct trade of goods and services.

• it is used to purchase goods and services.

• it is a basic measure of economic value.

• it is a means of holding wealth.

When there is a recessionary gap, inflation will ______, in response to which the Federal Reserve will ____ real interest rates, and output will _____.

Multiple Choice

• increase; raise; decline

• decline; raise; decline

• decline; lower; expand

• decline; lower; decline

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).

Trident is a US company that sells goods to crown, a British firm in March for Sterling pounds 1,000,000. Payments are due in three months that is June. Trident cost of capital is 12%. The following quotes are available:
a. spot exchange rate: $1.7640/pound
b. Three month forward rate: $1.7540/pound
c. UK 3 month borrowing interest rate is 8% p.a (or 2% per quarter)
d. US 3 month rate is 8% p.a (or 2% per quarter)
e. US 3 month investment rate is 6% p.a (1.5 per quarter)
June put options on the stock exchange of 12,500 pounds, strike price is $1.75; 1.5% per pound premium, and brokerage cost $25 per contract.

June put option in the OTC market 1,000,000 pounds; strike price is $1.75; 1.5% premium. Trident foreign exchange adviser forecasts that the spot rate in 3 months will be $1.76/pound.

REQUIRED
i. Remain unhedged position
ii. Hedge in the forward market
iii. Hedge in the money market
iv. Hedge in the capital market

Describe the movement of Na⁺ and K⁺ in each event.

Events:

• Resting membrane potential
• Depolarization (rising phase)
• Falling phase
• Hyperpolarization

Falling Oil Prices and their Long-term and Short-term Impact on the Ordinary Investor

write a report at least 2000-2500 words.

Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows:

The vice president of sales believes that the projected sales are realistic and can be achieved by the company.

Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for the first quarter of 20Y1 was 340 boxes. The company's policy is to have 20% of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30% of the next quarter's sales of S12L5 in ending inventory.

Required:

Prepare a production budget for each quarter for 20Y1 and for the year in total.

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Partially correct

Prepare a production budget for each quarter for 20Y1 and for the year in total. If required, round your answers to nearest whole value.

Which of the following indexes is reflecting more clearly price level and inflation trend:

A)  The Core Inflation Rate, or Personal Consumption Expenditure (PCE) price index excluding food & energy

B) GDP deflator which is average of the current prices of all goods & services in GDP expressed as percentage of base year prices

C) Consumer Price Index (CPI) - a measure of the average of prices paid by urban consumers for a fixed market basket of consumer goods and services

D) Real income, which is the purchasing power of nominal income measured by quantity of goods and services nominal income will buy

The changes in Aggregate Supply (AS shifters) resulted from:

A)  Changes in consumer spending, business investment, government expenditures and net export

B) Changes in input prices, productivity, nominal wages and legal-institutional environment

C) Changes in prices of goods and services produced

D)  Business failure, temporary shotdowns and changes in output rate

. The effects of a negative demand shock are:

A) The Aggregate Demand curve shifts leftward with a reduction in price level and in the output that is below the potential GDP and is called recessionary gap

B)  Aggregate demand curve shifts rightward with higher prices and bigger output above the potential GDP called inflationary gap

C) Decrease in Aggregate Supply, higher prices and and lower output which generates stagflation (negative supply shock)

D) Increase in Aggregate Supply with lower prices and bigger output, called positive supply shock

To restore the macroeconomic equilibrium with full-employment the supply side theories emphasized:

A)  The control of money and interest rates as mechanisms for shifting Aggregate demand

B) The role of government spending and taxes

C) The importance to control both Aggregate Demand and Aggregate Supply by shifting both curves

D) The importance to shift Aggregate Supply by changing costs of resources, government taxes and regulation

A 180-lb person jumps out of an airplane with initial upward velocity of 5 ft/s at a height of 3000 ft (assuming the air resistance is proportional to its falling speed). The air resists the body's motion with a force of 2 lb for each ft/s of speed. Assuming the constant gravity is 32 ft/s^2 (1) find its velocity v = v(t) (2) find its terminal velocity (3) find the distance of falling x = x(t) (4) find the duration in seconds until the body hits the ground