Assuming that we are at a full employment equilibrium, suggest a disturbance that would move us away from the full employment equilibrium? Show this disturbance graphically. If we are at an unemployment equilibrium, what policy might you use to bring us to full employment? Explain and show graphically.

Let us say you are a manager of a given Multinational Corporation and requested to solicit a fund of $300 Million for a new project.  Explain the source of fund you will be looking for? Tell us the step-by-step action you will make in getting this fund from the sources you identified.

Presented below is information related to Kingbird Company.

Compute the ending inventory for Kingbird Company for 2017 through 2022 using the dollar-value LIFO method.

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.

Production: 6,940 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.

Manufacturing costs: Materials $38,766; labor $20,500; overhead $43,213.

Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

Problem 14-5

(Comprehensive Bonds Problem) In each of the following independent cases, the company closes its books on December 31, 2021.

1. Sanford company sells $500,000 of 10% bonds on March 1. 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

Instructions: for the above case, prepare all the relevant journal entries from the time of the sale until the date indicated. Use the effective interest method for discount amortization (construct amortization table) where applicable. Amortize discount on interest date and year-end (assume that no reversing entries are made).

A. Ling, Johnson, Lesley, and Miya commenced business and named their company as Moba
Teknologi Sdn Bhd. The company sells a ready-to-use software product, ML1 for the use of
small businesses. The current selling price for the product is $500. Next year in 2020, the
company planned to sell 7,300 units. The followings are information on the expenses:
Cost of software $180 per unit
Shipping and handling $20 per unit
Annual fixed cost $1,200,000

Required:
a. Calculate Moba Teknologi’s breakeven point in unit and value ($).
b. Calculate the next year's margin of safety (in percentage).
c. Calculate the company’s operating income for the year 2020 if there is a 10% increase
in unit sales.

B. Suppose in the year 2020, Moba Teknologi will sell two products; ML1 and ML2. The product
cost and sales information are as follows:
Selling price ML1 $500 ML2 $700
Variable cost per unit ML1 $200 ML2 $300
The total annual fixed expense is $3,900,000, while the expected sales mix is three ML1 to
one ML2.

Required:
a. Calculate the total contribution margin for ML1 and ML2.
b. Calculate the break-even point in the unit for each product.

Manufacturing Expenses

Variable                                $3,250,000

Fixed overhead                       640,000       3,890,000

Gross Margin                                                  $4,610,000

Selling and administrative expenses

Commissions                           $580,000

Fixed marketing expenses       300,000

Fixed admin expenses               450,000      1,330,000

Net Operating Income                                     $3,280,000

Fixed Interest expenses                                       230,000    

Income before Taxes                                      $3,050,000     

Income Taxes (21%)                                            640,500

Net Income                                                     $2,409,500

Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).

1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.

2.Prepare contribution format projected income statements assuming the outsourcing is rejected.

Manufacturing Expenses

Variable                                $3,250,000

Fixed overhead                       640,000       3,890,000

Gross Margin                                                  $4,610,000

Selling and administrative expenses

Commissions                           $580,000

Fixed marketing expenses       300,000

Fixed admin expenses               450,000      1,330,000

Net Operating Income                                     $3,280,000

Fixed Interest expenses                                       230,000    

Income before Taxes                                      $3,050,000     

Income Taxes (21%)                                            640,500

Net Income                                                     $2,409,500

Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).

1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.

2.Prepare contribution format projected income statements assuming the outsourcing is rejected.

(Please show how you got each answer)

The following information relates to Bailey Ltd a retail business selling office furniture.

The table below provides the sales and purchases for the company:

Additional information includes:

• Cash sales are 20% each month.
• Credit sales are expected to be collected 60% one month after sale, 20% two months after the sale and 15% 3 months after the month of sale.
• Accounts Payable is settled 40% one month after purchase and the balance is paid two months after purchase. All purchases are on credit.
• Cash payments for expenses are 10% of each month’s sales.
• Depreciation on the machines for January 2020 is estimated to be $2,000.
• The cash balance on 31 December 2019 is $5,400.
• The company wishes to maintain a monthly minimum balance of 10,000 and has a line of credit arrangement with Greater Bank.     

Required:

(a) Prepare the Cash Budget for the month of January 2020.
(b) Explain any two key changes you would make to the Cash Budget to ensure better cash management in the company.

7.         Hadley Company has the following securities in its portfolio on December 31, 2020:

                                                                           Cost             Fair Value

15,000 shares of Brady Corp. Common         $450,000         $460,000

100 shares of Sanders, Inc. Common             115,000             90,000

2,000 shares of Peters, Inc. Preferred             210,000         195,000

                                                                        $775,000         $745,000

All of the securities were purchased in 2020. In 2021, Hadley completed the following

securities transactions:

March 1           Sold 5,000 shares of Brady, Corp. Common for $170,000

August 1          Bought 1,000 shares of North Stores, Common @ $40 each plus fees of $1,000.

The Hadley Company portfolio of securities appeared as follows on December 31, 2021:

                                                                           Cost             Fair Value

10,000 shares of Brady Corp., Common        $300,000         $280,000

100 Sanders Convertible Bonds                     115,000         102,000

1.000 shares North Stores Common                   41,000             42,000

2,000 shares of Peters, Inc. Preferred             210,000         220,000

                                                                        $666,000         $644,000

On the form provided prepare the general journal entries for Hadley Company for:

(a)        the 2020 adjusting entry.

(b)        the sale of the Brady stock.

(c)        the purchase of the North Stores' stock.

(d)       the 2021 adjusting entry. (10 points)