5. Consider a newlywed who is planning a wedding anniversary gift of a trip to Dubai for her
husband at the end of 10 years. She will have enough to pay for the trip if she invests $5,000
per year until that anniversary and plans to make her first $5,000 investment on their first
anniversary. Assume her investment earns an 8 percent interest rate, how much will she have
saved for their trip if the interest is compounded in each of the following ways?
a. Annually
b. Quarterly
c. Monthly
6. If you applied for a loan of $10,000 from two different banks, and Bank Y makes an offer to
charge interest of 7% compounded monthly and Bank Z offers you 8% annual interest due at the
end of the year. What will be the difference in the Effective Interest Rate charged by the two
banks?
7. Your grandfather left an inheritance for you of $50,000. However you can only drawdown on
the investment as follows:
Years 1 – 4 $10,000 and
Year 5 $40,000
Interest on the fund is 7.5%. What is the present worth of this inheritance?
8. Your choice of vehicle is the Honda CRV, which you plan to purchase in 5 years time after you
have completed your studies. You plan to save a certain sum of money every quarter for the
next 5 years, and the bank offers you a rate of 8% per annum on your savings. How much do
you need to save every quarter to meet the price of your vehicle which is $150, 000.

Exercise 21-10 Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2017. January February March April May Estimated unit sales 10,700 11,300 8,600 8,200 8,200 Sales price per unit $50.30 $48.10 $48.10 $48.10 $48.10 Direct labor hours per unit 2.4 2.4 1.5 1.5 1.5 Wage per direct labor hour $8.00 $8.00 $8.00 $9.00 $9.00 Lowell has a labor contract that calls for a wage increase to $9.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lowell expects to begin the year with 18,610 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month’s sales, plus 70% of the second following month’s sales. Prepare a production budget for Lowell Company by month and for the first quarter of the year. LOWELL COMPANY Production Budget Jan Feb Mar Total : : LINK TO TEXT LINK TO TEXT Prepare a direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) LOWELL COMPANY Direct Labor Budget Jan Feb Mar Total $ $ $ $ $ $ $

After graduating from school, you are fortunate to receive an offer as an assistant manager of a marketing department in a company located in New York City, working for a fast-growing company that provides marketing support for companies. Your department specializes in marketing strategies for the Internet and currently has 10 employees – you, your direct supervisor (the manager of the department), and 8 marketing associates. Your job is to help the manager lead the unit to develop long-term strategies for your unit, to maintain excellent customer service with your clients, and to strive to build future business opportunities. The marketing associates in your department work a very flexible schedule and are often off site, working with the clients at their locations to help develop marketing campaigns to improve their business presence and performance via the Internet.

After being on the job a short while, you realize that you need to create another position to help make sure that all the necessary work gets completed on time. Essentially, while you and your manager are focusing on the long-term interests of the department and the associates are working very hard to help the clients, many of the administrative aspects of the work are falling by the wayside. For example, no one is currently tracking the accounts payable from clients or handling accounts payable to your service providers. As a result, you are spending time on these tasks that are beyond your job expectations. In addition, you are spending an increasing amount of time making travel arrangements, such as booking hotels and arranging transportation for your staff. After you talk with the manager of your unit, she agrees that something needs to change to allow you to devote your time to more of the strategic issues in the unit, and she permits you to create a new position to help out in your department. Your challenge now is to determine what this position will be.

a.         What job would you create? Why?

b.         What are the key tasks and responsibilities that this new employee would be expected to perform?

c.         What are the employee competencies this position needs to be successful? Why?

d.         What are your ideas for how you might design performance management, compensation, and incentives for this new position? Why?

e.         Are there any particular challenges you would expect to encounter that would make successfully filling this position difficult? How would you overcome these challenges?

Analyzing Segment Revenue Disclosures from Quarterly Data
Beyond Meat disclosed the following in its Form 10‑Q for the first quarter ended March 30, 2019. The company had its initial public offering (IPO) in May 2019.
The Company’s net revenues by platform and channel are included in the tables below:

Two distributors each accounted for approximately 21% of the Company’s gross revenues in the three months ended March 30, 2019; and three distributors accounted for approximately 34%, 14% and 11%, respectively, of the Company’s gross revenues in the three months ended March 31, 2018.

a. Calculate the average discount given to customers for the two quarters presented.
Note: Round percentage (your final answer) to one decimal place (for example, enter 6.7% for 6.6555%).

Average discount for quarter ended March 30, 2019: Answer %

Average discount for quarter ended March 31, 2018: Answer %

b. What do we observe about the level of the discounts across the two quarters?
The level of discounts has (increased/decreased/remained) from 2018 to 2019.

c. Beyond Meat’s revenue grew tremendously between March 2018 and March 2019. Determine growth rates for each of the platforms and channels disclosed (Fresh, Frozen, Retail, and Restaurant).
Note: Round percentage (your final answer) to the nearest whole percentage point.

Each question has 6-7 parts, depending on the work. Please answer every part. Thank you.

-Suppose Government spending increases by $400 and Taxes increase by $400, and MPC = .80. Assuming that there is no crowding out, what will be the change in equilibrium income (Y*)?

Group of answer choices

- $400

NO CHANGE

+ $400

- $320

+$320

-

Which of the following is NOT a Keynesian conjecture regarding consumption?

Group of answer choices

As income rises, APC falls.

As income rises MPC falls.

MPC is some number between zero and one.

Consumption is a function of disposable income.

-

Which of the following is most relevant to an income approach formula for Gross Domestic Product (GDP)?

Group of answer choices

Depreciation + Indirect Business Taxes + Rent + Wages + Interest + Profit

Rent + Wages + Interest + Profit

Income - Taxes

Indirect Business Taxes + Rent + Wages + Interest + Profit

National Income + Government transfer payments – Social Security contributions – Undistributed corporate profits

-

Which of the following is most relevant to an income approach formula for Net Domestic Product (NDP)?

Group of answer choices

Income - Taxes

National Income + Government transfer payments – Social Security contributions – Undistributed corporate profits

Indirect Business Taxes + Rent + Wages + Interest + Profit

Depreciation + Indirect Business Taxes + Rent + Wages + Interest + Profit

Rent + Wages + Interest + Profit

-

Which of the following is most relevant to an income approach formula for National Income (NI)?

Group of answer choices

Indirect Business Taxes + Rent + Wages + Interest + Profit

Income - Taxes

Depreciation + Indirect Business Taxes + Rent + Wages + Interest + Profit

Personal Income + Government transfer payments – Social Security contributions – Undistributed corporate profits

Rent + Wages + Interest + Profit

-

Which of the following is most relevant to an income approach formula for Disposable Income (Yd)?

Group of answer choices

Indirect Business Taxes + Rent + Wages + Interest + Profit

Rent + Wages + Interest + Profit

Personal Income + Government transfer payments – Social Security contributions – Undistributed corporate profits

Depreciation + Indirect Business Taxes + Rent + Wages + Interest + Profit

Income - Taxes

-

The increase in the overall price level is known as …

Group of answer choices

stagflation.

stagnation.

disinflation.

inflation.

deflation.

-

Public policy which changes taxes AND / OR changes government spending is referred to as …

Group of answer choices

fiscal policy.

supply-side policy.

monetary policy.

socialist policy.

income policy.

ExxonMobil and Synthetic Genomics Inc. announced a new phase in their joint algae biofuel research program in March that could lead to the technical ability to produce 10,000 barrels of algae biofuel per day by 2025. This is based on a study reported last June in Nature Biotechnology that described how a targeted mutation introduced in the algal genome resulted in doubling the lipid output of the organism.

Outline TWO different models for how a mutation in the algae might possibly lead to an increase in lipid synthesis. You should include diagrams as well as text for each of your models.

On June 1, 2019, Turner Corporation purchased land, a building, and some
equipment for $540,000. The following information is available concerning
the property purchased:

                                 Current Market Value
Land .......................           142,500
Building ...................           262,200
Equipment ..................           165,300

Before the property could be used, Turner had to spend $26,000 to renovate
the building and $14,000 to put the equipment in working order.

Assume the equipment was assigned a $9,500 residual value, a 15-year life,
and was being depreciated using the straight-line depreciation method.

Calculate the book value of the equipment at December 31, 2025.

On June 1, 2019, Turner Corporation purchased land, a building, and some
equipment for $540,000. The following information is available concerning
the property purchased:

                                 Current Market Value
Land .......................           142,500
Building ...................           262,200
Equipment ..................           165,300

Before the property could be used, Turner had to spend $26,000 to renovate
the building and $14,000 to put the equipment in working order.

Assume the equipment was assigned a $9,500 residual value, a 15-year life,
and was being depreciated using the straight-line depreciation method.

Calculate the book value of the equipment at December 31, 2025.