Relationship between Innovation and Economic Growth: Technological progress and R&D spending.

Please, summarize on a page.

Static Budget versus Flexible Budget

The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year:

The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been less than the monthly static budget of $1,609,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:

a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places.

Feedback

For each level of production, show wages, utilities, and depreciation.

Consider performance and spending.

b. Compare the flexible budget with the actual expenditures for the first three months.

What does this comparison suggest?

Static Budget versus Flexible Budget

The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year:

The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been less than the monthly static budget of $735,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:

a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume that depreciation is a fixed cost. Enter all amounts as positive numbers. If required, use per unit amounts carried out to two decimal places.

Feedback

For each level of production, show wages, utilities, and depreciation.

Consider performance and spending.

b. Compare the flexible budget with the actual expenditures for the first three months.

What does this comparison suggest?

In macroeconomics there are two key questions: first, how to measure (real) output growth? and second, how is growth connected to wellbeing?

As for the first question, there are three ways to measure real GDP growth. It starts with the definition of a percentage difference between two numbers, say x1 compared to x0. When there is only one good (e.g. apples) there are no prices to worry about for the calculation. But for the economy as a whole, we need prices to be able to add up quantities (of apples, bananas, and everything else) in dollar terms. So for real GDP growth, which holds prices constant on a given base year to control for inflation, then the trick is to apply those prices before, during, and after that base year in order to calculate the total dollar value of all goods and services produced and track growth that is not affected by inflation.

In this exercise you will work out the connection between the three ways to measure GDP growth: A) As a percentage change holding prices constant. B) Expressing growth in terms of a common item (converting everything into a particular good (e.g. apples). And C) as the weighted average of the growth in each of the goods weighted by their corresponding expenditure shares.

The second question in macroeconomics refers to a mapping from goods and services to subjective well-being. That is, why do we care about economic growth, after all?

On May 11, 2014, Wilson Purchasing purchased $28,500 of merchandise from Hostel Sales; terms 1/10, n/90, FOB Hostel Sales. The cost of the goods to Hostel was $23,500. Wilson paid $1,850 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $4,700 of goods to Hostel Sales, which restored them to inventory. The returned goods had cost Hostel $3,900. On May 20, Wilson mailed a cheque to Hostel for the amount owed on that date. Hostel received and recorded the cheque on May 21.

1.Present the journal entries that Wilson Purchasing should record for these transactions. Assume that Wilson uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Present the journal entries that Hostel Sales should record for these transactions. Assume that Hostel uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

3. Assume that the buyer, Wilson Purchasing, borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 3% and paid it back on the last day of the credit period. Calculate how much the buyer saved by following this strategy. (Use a 365-day year. Round intermediate calculations and final answer to 2 decimal places.)

The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:

Jan. 20 Purchased 420 units @ $8 = $ 3,360

Apr. 21 Purchased 220 units @ $10 = 2,200

July 25 Purchased 300 units @ $13 = 3,900

Sept. 19 Purchased 110 units @ $15 = 1,650

During the year, The Shirt Shop sold 870 T-shirts for $24 each.

a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Create a general journal entry using FIFO; Sales and Cost of goods sold

d. Create a general journal entry using LIFO; sales and Cost of goods sold

e. Create a general journal entry for the weighted average of sales and cost of goods sold

Discuss and examine the 3rd quarter GDP in 2020. one paragraph

^{When FS Industries had its initial public offering on March 1st, it issued all of its 1,550,000 authorized $1 par value common stock shares, receiving $30 per share. After analyzing its first quarters’ results of operations, FS declared a cash dividend on June 15th. Stockholders on record at July 31st are to receive $1.25 per share. FS paid the cash dividend on August 30th. FS reacquired 310,000 of its own shares of stock for cash of $35 per share on September 22nd when their second quarters’ earnings came in much lower than expected. Management wanted to improve the shareholders earnings per share by doing this. On November 4th, FS resold 155,000 of these shares for $41 per share when the third quarter results of operations bounced back.}

Required:

1. Prepare all of the necessary journal entries to record the events described above.
2. Prepare the stockholders' equity section of the balance sheet as of November 30 assuming that the net income for the first three quarters totaled $8,000,000.

b. Jorge is working in health care sector since 25 years with Siemens, he is a loyal and committed
worker started his work with the same organization when he was 22 years old. He started thinking
about his saving plans for the future retirement. Apart from the company retirement gift of
$20,000 he is considering to savings plan by keeping the retirement age of 72 years in his mind.
• Option 1: Deposit $1,000 at the end of each quarter for the first 10 years from now-onwards and. make
no further deposits, but leave the amount accumulated at the end of 10 years for the next years till
retirement
• Option 2: Do nothing for the first 10 years. Then deposit $6,000 at the end of each year till retirement
years.
If deposits or investments earn at an interest rate of 6% compounded quarterly, design an optimal
solution that which of the following option will be suitable based on what he will be able to
accumulate. Represents the calculation in the form of cash flow table shown the total sum deposited
and at the end and start of the year.