The Deluxe Division, a profit center of Riley Manufacturing Company, reported the following data for the first quarter of 2013:

                Sales      $9,000,000

                Variable costs    6,300,000

                Controllable direct fixed costs    1,200,000

                Noncontrollable direct fixed costs             530,000

                Indirect fixed costs          300,000

Instructions

(a)          Prepare a performance report for the manager of the Deluxe Division.

(b)          What is the best measure of the manager's performance? Why?

(c)           How would the responsibility report differ if the division was an investment center?

he National Science Foundation collects data on the research and development spending by universities and colleges in the United States. Here is the data for the years 2008 - 2011:

(a) Draw a scatterplot that shows the increase in research and development spending over time. Try to be as accurate as you can with your scatterplot. You may use Excel to help guide you. Does the pattern suggest that the spending is increasing linearly over time?

(b) Find the equation of the least-squares regression line for predicting spending from year. Use Excel to help you. Add this line to your scatterplot.

(c) For each of the four years, find the residual.

(d) Write the regression model for this setting. What are your estimates for the slope and y-intercept in this model?

(e) Use the least-squares regression equation to predict research and development spending for the year 2013 (assume year 2008 is​ x = 1 , year 2009 is x = 2 , etc.). The actual spending for 2013 was $63.4 billion. Add this point to your plot, and comment on why your equation performed so poorly.

Let: C = consumption, Ip = investment spending (as a function of price level), G = government spending, Tx = tax revenue, Yd = after-tax income, Assume for a given closed economy:

C=100 + 0.9 Yd – 20P

Ip= 400 – 40P G=300

T=100

Moreover, aggregate supply curve for this economy is defined by the following equation:

P=1.41 + 0.0001Y

a. According to the investment equation (Ip= 400 – 40P) as overall price level in the economy increases investment spending decreases. How could you explain this situation? Please use graphs to elaborate your answer.

b. Find the equilibrium level of overall price and aggregate output in this economy. What would be the value of consumption and investment spending at this equilibrium?

c. How would the equilibrium aggregate output and price level change if government spending increases to Gnew=400? What would be the value of consumption and investment spending at this new equilibrium?

d. Compare equilibrium values of investment spending and consumption you find in parts (c) and (d). How would you explain the changes? Elaborate your answer for both investment and consumption.

Nathan purchased a 5-year Treasury bond with a coupon rate of j2 = 3.50% p.a.
and a face value of $100 that matures at par. Coupons can be reinvested at
j2 = 3.2% p.a. for the first four and a half years.
a. [2 marks] Calculate Nathan’s purchase price for this bond at a yield
rate of j2 = 3.1% p.a. (rounded to three decimal places).
b. [4 marks] Assume that Nathan held this bond to maturity to earn a
total realised compound yield of j2 = 3.13% p.a. Based on your result
from part a, calculate the reinvestment rate for the last half year. Give
your answer in j2 form, rounded to two decimal places.
c. [3 marks] Assume that Nathan held this bond for 2 years and sold it for
a yield of j2 = 3.8% p.a. Based on your result from part a, calculate the
holding period yield in j2 form, rounded to two decimal places. Include
in your answer a cash flow diagram, drawn from Nathan’s perspective,
that models the purchase and sale of the bond.
d. [2 marks] Without any further calculations, explain how the holding
period yield will change if the sale yield is lower than j2 = 3.8% p.a.
e. [4 marks] Assume that this bond is subject to a 30% tax on interest and
capital gains. Recalculate the price Nathan paid (in part a) if the net
yield rate is j2 = 3% p.a. and all tax payments (interest tax payments
and capital gains tax payment) are delayed by one year from when
taxable cash flows occur. Round your result to three decimal places.
Accompany your answer with a cash flow diagram, from Nathan’s perspective,
that models this scenario.

Financial Statements of a Manufacturing Firm

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

1. Purchased $48,700 of materials
2. Used $37,500 of direct materials in production.
3. Incurred $56,000 of direct labor wages.
4. Incurred $78,900 of factory overhead.
5. Transferred $131,000 of work in process to finished goods.
6. Sold goods for $234,200.
7. Sold goods with a cost of $104,200.
8. Incurred $59,900 of selling expenses.
9. Incurred $26,300 of administrative expense.

Using the information given, complete the following:

a. Prepare the January income statement for Digital Vibe Manufacturing Company.

b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

Financial Statements of a Manufacturing Firm

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

1. Purchased $67,700 of materials
2. Used $52,100 of direct materials in production.
3. Incurred $77,900 of direct labor wages.
4. Incurred $109,700 of factory overhead.
5. Transferred $182,100 of work in process to finished goods.
6. Sold goods for $325,600.
7. Sold goods with a cost of $144,900.
8. Incurred $83,300 of selling expenses.
9. Incurred $36,600 of administrative expense.

Using the information given, complete the following:

a. Prepare the January income statement for Digital Vibe Manufacturing Company.

b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

Kline Sisters Company operates a gift shop where peak sales and activity occur in the months of December and January. Data regarding the store's operations follow:

Sales are budgeted at $360,000 for January, 320,000 for February, and $250,000 for March and $240,000 in April.

Collections are expected to be 30% in the month of sale, 65% in the month following the sale, 3% in the second month following sale and 2% uncollectible.

The cost of goods sold is 76% of sales.

The company desires ending merchandise inventory to equal 13% of the following month's cost of goods sold. Payment for merchandise is made 50% in the month of purchase and 50% in the month following the purchase.

Monthly operating expenses to be paid in cash are $12,000.

Equipment purchases of $40,000 in February and $30,000 in March were paid in cash.

Monthly depreciation is $13,000.

Dividends of $48,000 were declared and paid in January.

Any borrowings must be in $1,000 increments at 12% annual interest. Assume interest accrues at the beginning of the month and is paid at the end of the month.

The company must maintain a minimum cash balance of $30,000.

Ignore income taxes.

All accounts receivable from December 31 will be collected in January and all accounts payable at December 31 will be paid in January.

The balance sheet as of December 31^st:

Prepare the following budgets for each month January, February, March and Total for the quarter in good form in excel with proper use of formulas and formatting:

a.   Prepare a Schedule of Expected Cash Collections

What is the budgeted accounts receivable at March 31^st ?

b.   Prepare a Merchandise Purchases Budget and a Schedule of Expected Cash Disbursements

What is the budgeted accounts payable at March 31^st ?

c. Prepare a Cash Budget

How much does the company need to borrow for the quarter?

How much can the company repay for the quarter?

d.   Prepare a Budgeted Income Statement

Please highlight your answers.

Formatting is as important as the correct answer for this project. Your spreadsheet should be in good form, presented and printed clearly, and labeled appropriately. Your print out should be in report format and clearly presented. Each budget should not span more than one page, i.e. pay attention to what prints out on each page.

      Please name your uploaded file the following way:

                                          LAST name_First name_ACCT116_2017F

You will need to borrow and repay during the quarter.

Kline Sisters Company operates a gift shop where peak sales and activity occur in the months of December and January. Data regarding the store's operations follow:

Sales are budgeted at $360,000 for January, 320,000 for February, and $250,000 for March and $240,000 in April.

Collections are expected to be 30% in the month of sale, 65% in the month following the sale, 3% in the second month following sale and 2% uncollectible.

The cost of goods sold is 76% of sales.

The company desires ending merchandise inventory to equal 13% of the following month's cost of goods sold. Payment for merchandise is made 50% in the month of purchase and 50% in the month following the purchase.

Monthly operating expenses to be paid in cash are $12,000.

Equipment purchases of $40,000 in February and $30,000 in March were paid in cash.

Monthly depreciation is $13,000.

Dividends of $48,000 were declared and paid in January.

Any borrowings must be in $1,000 increments at 12% annual interest. Assume interest accrues at the beginning of the month and is paid at the end of the month.

The company must maintain a minimum cash balance of $30,000.

Ignore income taxes.

All accounts receivable from December 31 will be collected in January and all accounts payable at December 31 will be paid in January.

The balance sheet as of December 31^st:

Prepare the following budgets for each month January, February, March and Total for the quarter in good form in excel with proper use of formulas and formatting:

a.   Prepare a Schedule of Expected Cash Collections

What is the budgeted accounts receivable at March 31^st ?

b.   Prepare a Merchandise Purchases Budget and a Schedule of Expected Cash Disbursements

What is the budgeted accounts payable at March 31^st ?

c. Prepare a Cash Budget

How much does the company need to borrow for the quarter?

How much can the company repay for the quarter?

d.   Prepare a Budgeted Income Statement

Please highlight your answers.

Formatting is as important as the correct answer for this project. Your spreadsheet should be in good form, presented and printed clearly, and labeled appropriately. Your print out should be in report format and clearly presented. Each budget should not span more than one page, i.e. pay attention to what prints out on each page.

      Please name your uploaded file the following way:

                                          LAST name_First name_ACCT116_2017F

You will need to borrow and repay during the quarter.

One of the economic impacts of the current covid -19 pandemic is a rise in demand deficient unemployment.
i) Explain how fiscal policy can be used to solve this problem.
ii) How can monetary policy be used to address the same problem.
iii) Explain the links between changes in the nation’s money supply, the interest rate, investment spending, aggregate demand and real GDP. Illustrate with a graph where appropriate
iv) Discuss the negative redistributive effects of unanticipated inflation on any three groups/agents in the economy.
v) Which of the two types of inflation is most likely to be associated with a negative GDP gap? Illustrate with a graph.