** Please do all 3
31.Keynes’s conjecture refers principally to which of the following?: (a) the relationship between money supply growth and inflation; (b) the notion that the marginal propensity to consume lies between 0% and 100%; (c) that only males over the age of 75 years old can serve as POTUS regardless of whether they have periodic losses of memory; (d) that monetary policy is always the best way to influence the cyclical condition of the economy at the margin.
34. Please indicate the proper order of maturities of Treasury securities, from the shortest duration to the longest duration: (a) bonds, notes, bills; (b) bonds, bills, notes; (c) bills, notes, bonds; (d) bonds, stocks, derivatives.
36. According to the acceleration principle: (a) a relatively small increase in consumer spending results in a relatively larger increase in real GDP; (b) a relatively small increase in consumer spending perceived to be permanent results in a relatively larger increase in investment; (c) a relatively small increase in capital investment results in an even LARGER increase in capital spending (due to momentum); (d) the faster interest rates decline, the faster investment spending declines.
In: Economics
The time married men with children spend on child care averages 5.9 hours per week. You belong to a professional group on family practices that would like to do its own study to determine if the time married men in your area spend on child care per week differs from the reported mean of 5.9 hours per week. A sample of 40 married couples will be used with the data collected showing the hours per week the husband spends on child care. The sample data are contained in the table below.
| 7.7 | 10.6 | 10.4 | 10.4 |
| 3.8 | 9.1 | 11.5 | 2.5 |
|
4.6 |
4.0 | 10.6 | 11.0 |
| 9.6 | 6.6 | 0.9 | 10.6 |
| 7.4 | 6.3 | 6.3 | 8.6 |
| 3.5 | 7.7 | 5.9 | 8.1 |
| 2.8 | 11.5 | 8.1 | 2.1 |
| 7.0 | 4.1 | 6.6 | 7.3 |
| 5.5 | 8.0 | 5.7 | 3.5 |
| 5.4 | 0.9 | 4.5 | 4.1 |
a. What are the hypotheses if your group would like to determine if the population mean number of hours married men are spending in child care differs from the mean reported in your area?
H0 : μ _______ 5.9 (less than, greater than, equal to, less than or equal to, greater than or equal to, not equal to)
Ha : μ _______ 5.9 (less than, greater than, equal to, less than or equal to, greater than or equal to, not equal to)
What is the sample mean?
What is the test statistic?
the p-value is ______. (lower than .01, between .01 and .025, between .025 and .05, between .05 and .10, between .10 and .20, greater than .20)
c. Select your own level of significance. What is your conclusion?
Do we reject the hypothesis? do we/don't we have enough evidence?
In: Statistics and Probability
QUESTION 10
Expansionary monetary policy …
| a. | increases interest rates, raises investment spending, and lowers aggregate demand. | |
| b. | increases interest rates, decreases investment spending, and increases aggregate demand. | |
| c. | increases interest rates, decreases investment spending, and lowers aggregate demand. | |
| d. | lowers interest rates, raises investment spending, and raises aggregate demand. | |
| e. | lowers interest rates, decreases investment spending, and lowers aggregate demand. |
The Fed can decrease the money supply by …
| a. |
making an open market sale of bonds. |
|
| b. |
raising the required reserve ratio. |
|
| c. |
raising the discount rate. |
|
| d. |
making an open market purchase of bonds. |
|
| e. |
a., b., and c. |
1 points
QUESTION 6
The federal funds rate is …
| a. |
the interest rate for overnight interbank loans. |
|
| b. |
equal to the prime rate minus inflation. |
|
| c. |
the interest rate that the Fed charges to private banks. |
|
| d. |
determined in the private market for overnight loans of reserves among banks. |
|
| e. |
Both a., and d. |
1 points
QUESTION 7
Imagine that the federal funds rate is above the target that the Fed had announced. In order to keep the actual rate as close as possible to the target rate, the Fed will …
| a. |
make an open market purchase of bonds. |
|
| b. |
make an open market sale of bonds. |
|
| c. |
do nothing since the Fed cannot influence the federal funds rate. |
|
| d. |
set the federal funds rate by law. |
|
| e. |
None of the above |
In: Economics
Barley Hopp, Inc., manufactures custom-ordered commemorative
beer steins. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (clay) | 1.70 | lbs. | $ | 1.80 | per lb. | $ | 3.06 | |
| Direct labor | 1.70 | hrs. | $ | 10.00 | per hr. | 17.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1.70 | hrs. | $ | 1.10 | per hr. | 1.87 | ||
| Fixed manufacturing overhead ($402,500.00 ÷ 175,000.00 units) | 2.30 | |||||||
Barley Hopp had the following actual results last year:
| Number of units produced and sold | 180,000 | |
| Number of pounds of clay used | 328,200 | |
| Cost of clay | $ | 623,580 |
| Number of labor hours worked | 225,000 | |
| Direct labor cost | $ | 3,082,500 |
| Variable overhead cost | $ | 350,000 |
| Fixed overhead cost | $ | 400,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Barley Hopp.
2. Calculate the direct labor rate, efficiency,
and total spending variances for Barley
Hopp.
3. Calculate the variable overhead rate,
efficiency, and total spending variances for Barley
Hopp.
Calculate the direct materials price, quantity, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
|
||||||||||||
In: Accounting
A5-9. Suppose the following aggregate expenditure model describes the US economy:
C = 1 + (8/9)Yd T = (1/4)Y I = 2 G = 4 X = 3 IM = (1/3)Y
where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports, all in trillions $US.
(a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level of national income. Illustrate in a diagram with AE on the vertical and Y on the horizontal axis. [Hint: While solving, do not convert the fractions to decimals.] [6]
(b) Calculate the equilibrium levels of consumption spending and private saving (S) [Hint: Recall that C and S are functions of disposable income.]. Is the government running a surplus or deficit? Does the country have a trade surplus or deficit? [8]
(c) Now imagine that as a result of a world-wide financial crisis, both investment exports decrease by 1 each. What is the new level of national income? Illustrate the effects in your diagram. What is effect on the government’s budget? [Hint: Using the multiplier simplifies the calculations.] [6]
(d) The government decides to use an increase in government spending to restore national income to its original level. By how much would it have to increase spending? What happens to the government’s budget balance? Explain why the government’s deficit does not increase by the full amount of the increase in spending. [6]
In: Economics
Suppose the following aggregate expenditure model describes the US economy:
C = 1 + (8/9)Yd T = (1/4)Y I = 2 G = 4 X = 3 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports, all in trillions $US.
(a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level of national income. Illustrate in a diagram with AE on the vertical and Y on the horizontal axis. [Hint: While solving, do not convert the fractions to decimals.] [6]
(b) Calculate the equilibrium levels of consumption spending and private saving (S) [Hint: Recall that C and S are functions of disposable income.]. Is the government running a surplus or deficit? Does the country have a trade surplus or deficit? [8]
(c) Now imagine that as a result of a world-wide financial crisis, both investment and exports decrease by 1 each. What is the new level of national income? Illustrate the effects in your diagram. What is effect on the government’s budget? [Hint: Using the multiplier simplifies the calculations.] [6]
(d) The government decides to use an increase in government spending to restore national income to its original level. By how much would it have to increase spending? What happens to the government’s budget balance? Explain why the government’s deficit does not increase by the full amount of the increase in spending. [6]
Please use diagrams where appropriate
In: Economics
1- Which combination of policies are likely to provide Keynesian stimulus to an economy in a depression?
Tax cuts on investment and increases in defense spending.
An increase in the income tax rate and an increase in transfers going to unemployed workers.
An increase in the income tax rate and cuts in defense spending.
An increase in salaries paid to members of Congress and a cut in the money supply.
2-
How would you describe the state of the U.S. economy during the Great Depression?
There was a prolonged period of very high unemployment and negative or low GDP growth. There was a brief period of deflation.
There was a prolonged period of very high unemployment and very high rates of inflation. GDP growth was slow.
There was a prolonged period of very low unemplyment and negative real interest rate. GDP growth was slow.
There was a prolonged period of deflation and volatile GDP growth. There was a brief period of unemployment.
3-
Will deflation make an economic downturn more or less severe?
More severe. Deflation increases the real value of debt leading to more bankruptcies.
Less severe. Deflation lowers the real value of debt leading to fewer bankruptcies.
Less sever. Deflation increases the real value of debt leading to greater investment and spending by savers.
More sever. Deflation lowers the real value of debt and prices leading to more consumer spending.
More severe. Deflation increases the real value of debt leading to lower prices, more output and more bankruptcies.
Less sever. Deflation leads to lower prices, more consumer spending and economic expansion.
In: Economics
Blossom Travel Court was organized on July 1, 2021, by Betty Johnson. Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30, 2022.
|
BLOSSOM TRAVEL COURT |
||||
|---|---|---|---|---|
|
Revenues |
||||
|
Rent revenue |
$217,500 | |||
|
Operating expenses |
||||
|
Advertising expense |
$ 3,930 | |||
|
Salaries and wages expense |
85,240 | |||
|
Utilities expense |
920 | |||
|
Depreciation expense |
3,070 | |||
|
Maintenance and repairs expense |
4,245 |
|||
|
Total operating expenses |
97,405 |
|||
|
Net income |
$120,095 |
|||
Betty suspected that something was wrong with the statement because
net income had never exceeded $30,000 in any one quarter. Knowing
that you are an experienced accountant, she asks you to review the
income statement and other data.
You first look at the trial balance. In addition to the account
balances reported above in the income statement, the trial balance
contains the following additional selected balances at June 30,
2022.
|
Supplies |
$ 9,095 | |
|---|---|---|
|
Prepaid Insurance |
14,400 | |
|
Notes Payable |
14,000 |
You then make inquiries and discover the following.
| 1. | Blossom rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,070. | |
| 2. | There were $1,935 of supplies on hand at June 30. | |
| 3. | Prepaid insurance resulted from the payment of a one-year policy on April 1, 2022. | |
| 4. | The mail in July 2022 brought the following bills: advertising for the week of June 24, $115; repairs made June 18, $4,790; and utilities for the month of June, $225. | |
| 5. | Wages expense is $300 per day. At June 30, four days’ wages have been incurred but not paid. | |
| 6. | The note payable is a 6% note dated May 1, 2022, and due on July 31, 2022. | |
| 7. | Income tax of $13,550 for the quarter is due in July but has not yet been recorded. |
(a)
Prepare any adjusting journal entries required at June 30, 2022. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
In: Accounting
A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years.
Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals.
When Mr. Burn Out learned that you are an accountant, he confessed that he is excited with his planned investment project, but very much afraid because he cannot afford to fail and lose his hard-earned retirement pay.
You advised that a Feasibility Study be prepared for his planned investment project. The study, you said, would determine the viability of his proposed business undertaking. it would cover key areas, such as marketing, production or purchasing, and finance, among others. You emphasized that the financial aspect is the most critical of them all.
Mr. Burn Out requested you to prepare a feasibility study for his proposed business. You immediately started and gathered the following relevant data.
1. Projected sales for the first year of operations are $288,000, spread evenly during the year. All sales will be on account with an average collection period of one month.
2. The cost ratio will be 60% of sales.
3. At the end of the first year, the acid-test ratio will be 1:1, while the current ratio will be 2:1.
4. Once the business is underway, purchases will replace the stock sold each month. The average payment period for accounts payable arising from the purchases of merchandise will be two (2) months.
5. Mr. Burn Out will open an account with the nearest bank and deposit $260,000 to start the business.
6. Various fixed assets will be acquired for cash at a total cost of $240,000. These fixed assets will be depreciated at the rate of 10% per year using the straight-line method.
7. Operating expenses, other than depreciation, are estimated at $70,000 per year. There will be no accruals and prepayment at year-end.
8. Mr. Burn Out will make drawings in excess of the amount necessary to meet the above plans.
Question: The projected balance of inventories at the end of the first year of operations is?
In: Accounting
|
You have just been hired as a management trainee by Cravat Sales Company, a nationwide distributor of a designer’s silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You are anxious to make a favorable impression on the president and have assembled the information below. |
|
The company desires a minimum ending cash balance each month of $12,000. The ties are sold to retailers for $8.10 each. Recent and forecasted sales in units are as follows: |
|
January (actual) |
20,000 |
June |
65,000 |
|
February (actual) |
24,000 |
July |
40,000 |
|
March (actual) |
28,000 |
August |
36,000 |
|
April |
33,000 |
September |
32,000 |
|
May |
41,000 |
||
|
The large buildup in sales before and during June is due to Father’s Day. Ending inventories are supposed to equal 75% of the next month’s sales in units. The ties cost the company $4.85 each. |
|
Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 30% of a month’s sales are collected by month-end. An additional 60% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. |
|
The company’s monthly selling and administrative expenses are given below: |
|
Variable: |
|||
|
Sales commissions |
$ 1 |
per tie |
|
|
Fixed: |
|||
|
Wages and salaries |
$ |
22,000 |
|
|
Utilities |
$ |
14,000 |
|
|
Insurance |
$ |
1,200 |
|
|
Depreciation |
$ |
1,500 |
|
|
Miscellaneous |
$ |
3,000 |
|
|
All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for $30,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The company’s balance sheet at March 31 is given below: |
|
Assets |
||
|
Cash |
$ |
14,000 |
|
Accounts receivable ($19,440 February sales;
$158,760 |
178,200 |
|
|
Inventory (24,750 units) |
120,037.50 |
|
|
Prepaid insurance |
14,400 |
|
|
Fixed assets, net of depreciation |
172,700 |
|
|
Total assets |
$ |
499,337.50 |
|
Liabilities and Stockholders’ Equity |
||
|
Accounts payable |
$ |
76,993.75 |
|
Dividends payable |
12,000 |
|
|
Capital stock |
300,000 |
|
|
Retained earnings |
110,343.75 |
|
|
Total liabilities and stockholders’ equity |
$ |
499,337.50 |
|
The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $300,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $12,000 in cash. |
Part 1a. Create a sales budget by month and the total for the 2nd quarter.
Part 1b. Create a schedule for budgeted cash collections from sales and accounts receivable.
Part 1c. Create a purchases budget in units and dollars. Note: this company is a merchandiser, so no production budget is needed. Instead, a purchases budget will be used (since the company will be buying inventory instead of manufacturing it).
Part 1d. Create a cash disbursements budget for purchases by month and the total for the quarter.
In: Accounting