Fancy Foot Cat Biscuits Company manufactures cat treats. The company has the

following actual data for January and February 20xx.

                                                                          January                                                                                  February

Beginning inventory in kilograms                          0                                                                                             2,000

Production in kilograms                                   20,000                                                                                        20,000

Sales in kilograms                                          18,000                                                                                         21,000

Variable manufacturing costs per unit produced  $8                                                                                             $8

Variable marketing costs per unit sold                $2                                                                                              $2

Fixed manufacturing costs                            $30,000                                                                                     $30,000

Fixed marketing costs                                    $5,000                                                                                         $5,000

The selling price per kilogram is $20.00. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 20,000 kilograms. There
is no price, efficiency or spending variance. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.

1. Prepare the January and February income statements for Fancy Foot Cat

Biscuits under: a) variable costing and b) absorption costing

2. Prepare a numerical reconciliation and explanation of the difference in the

income each month between variable costing and absorption costing.

i. if the typical market basket of goods and services cost $400 in 1995, and the price index (base year 1992 )for 1995 is 120, then if this same typical bundle cost $420 in 1996, the price index in 1996 would be:

a.120

b.between 120 and 125

c.125

d.above 125

ii.supposez the non-institutionalized population over age 15 is 20 million, 10 million of whome are female, the labour force is 16 million, 6 million of whome are female, and the number of people employed is 15 million, 5.5 million of whome are female. the female participation rate is:

a. 10/20

b. 6/16

c. 5.5/15

d. 6/10

iii.consider an economy in which the current level of income is $700b, the multiplier is 3, the marginal tax rate is 20%, and the current budget deficit is $20b. suppose the government increases the spending to increase GDP to $715b, the budget dificit becomes:

a. less than or equal to $20b

b. more than $20b but not more than $23b

c. more than $23b but not more than $26b

d. more than $26b

Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as​ follows:

The selling price per vehicle is $29,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 units. There are no​ price, efficiency, or spending variances. Any​ production-volume variance is written off to the cost of goods sold in the month in which it occurs.

Briefly answer the following questions.

1. Consider the followingstatements

1. In a Mixed economy there is only private ownership of means of production
2. In a communist nation, the means of production are owned by the state
3. In a free-market economy there is minimum role of the government.

Which of the above three statements is/are true?

b. Answer the following:

1. Who is credited with bringing the term the ‘’invisible hand’’ in economics? And what it means?
2. Why intermediate goods are not included to calculate the final output? Explain with an example
3. If we compare GDP and GNP, then, GNP= GDP+ net income from abroad explain true or false.
4. What policy options might be used by Government to lower unemployment? Reduce government spending or Increase interest rates or lower taxation and why?
6. Explain the Monetary Policy, its types and its importance in GDP growth? What type of monetary policy does Pakistan have and what repercussions have we faced due to our monetary policy in history? ( time frame; 2000 onwards)
7. Evaluate money supply with reference to inflation and unemployment? Explain by graphical representation.

1) Albert has an investment worth 275,042 dollars. The investment will make a special payment of X dollars to Albert in 7 month(s) and the investment also will make regular, fixed monthly payments of 2,390 dollars to Albert forever. The expected return for the investment is 0.92 percent per month and the first regular, fixed monthly payment of 2,390 dollars will be made to Albert in 1 month. What is X, the amount of the special payment that will be made to Albert in 7 month(s)?

2) An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate annually. We know that the cash flow expected in 3 year(s) from today is expected to be 1,600 dollars and the cash flow expected in 8 years from today is expected to be 3,320 dollars. What is the cash flow expected to be in 5 years from today?

3) An investment, which has an expected return of 13.2 percent, is expected to make annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate of 2.28 percent per year. The cash flow in 1 year from today is expected to be 33,260 dollars. What is the present value (as of today) of the cash flow that is expected to be made in 4 years?

4) Indigo River Banking just bought a new race track. To pay for the race track, the company took out a loan that requires Indigo River Banking to pay the bank a special payment of 19,710 dollars in 7 month(s) and also pay the bank regular payments.   The first regular payment is expected to be 4,860 dollars in 1 month and all subsequent regular payments are expected to increase by 0.31 percent per month forever. The interest rate on the loan is 1.9 percent per month. What was the price of the race track?

5) You own a store that is expected to make annual cash flows forever. The cost of capital for the store is 10.72 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 1.27 percent. What is the value of the store if you know that the cash flow in 7 years from today is expected to be 13,100?

6) Goran has an investment worth 75,779 dollars. The investment will make a special payment of X to Goran in 5 quarters in addition to making regular quarterly payments to Goran forever. The first regular quarterly payment to Goran is expected to be 2,000 dollars and will be made in 3 months. All subsequent regular quarterly payments are expected to increase by 0.42 percent per quarter forever. The expected return for the investment is 3.6 percent per quarter. What is X, the amount of the special payment that will be made to Goran in 5 quarters?

During 2021, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all sales will be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns under the assumption that all sales are made for cash (no accounts receivable are outstanding).

On May 20, 2020 Beopple Stratified Wall Systems issued at 94.0 at $10,000,000 5 year note payable to Retsoff Equity Advance Partners at a stated rate of 7.5%. BSW incurred bic at 90 bps. The note required calendar-year quarterly payments and was secured by a first mortgag lien on finished goods.

Required: Book the note issuance and the 2Q interest accrual for BSW.