If the number of the people in the labor force __________ and the number of people working _________ then the unemployment rate must have ___________.
Select one:
a. Increases; declines; increased
b. Increases; increases; decreased
c. Increases; increases; increased
d. Decreases; declines; increased
In the Keynesian View, an increase in all of the below will increase the current period’s GDP, EXCEPT:
Select one:
a. Increase in the money supply
b. Increase in spending by consumers
c. Increase in saving
d. Increase in government spending on goods, such as office equipment.
So long as the loanable funds market clears (adjusts in response to changes in demand and supply), an increase in consumption by households will result in
Select one:
a. An increase in investment by businesses.
b. A decline in the production of capital goods.
c. A decline in the interest rate.
d. An increase in the production of capital goods.
According to the Keynesian View of monetary policy, the central bank should provide incentives to __________ during a recession and _________ during a period of unsustainable boom.
Select one:
a. the government to reduce its spending; to increase its spending
b. banks to reduce loans; to increase loans
c. consumers and businesses to increase spending; to lower spending
d. banks to hold more reserves, to hold less reserves
In the Austrian View, in a market economy without government intervention, if there is an unusually large number of unemployed workers looking for a job without success
Select one:
a. The market wage rate will increase, giving an incentive to many of the workers to accept a new job, and as a result, the labor market will clear rather quickly.
b. The situation will last for a long time, because of the downward stickiness of the wage rate, unless the government intervenes by increasing its spending.
c. The market wage rate will decline, making it profitable for some businesses to hire many of these workers, and as a result, the labor market will clear rather quickly.
d. Many of the businesses will become pessimistic about their future prospects, leading them to decrease their investment in capital goods, and as a result, the number of unemployed workers will become even larger.
In: Economics
In: Nursing
In: Economics
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
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| Sales (28,600 units) | $ | 1,144,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 489,060 | ||||
| Variable selling and administrative | 200,200 | 689,260 | ||||
| Contribution margin | 454,740 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 284,400 | |||||
| Fixed selling and administrative | 183,840 | 468,240 | ||||
| Net operating loss | $ | ( 13,500) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 31,600 | |||
| Units sold | 28,600 | |||
| Variable costs per unit: | ||||
| Direct materials | $ | 7.50 | ||
| Direct labor | $ | 7.90 | ||
| Variable manufacturing overhead | $ | 1.70 | ||
| Variable selling and administrative | $ | 7.00 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 31,600 units but sold 34,600 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
req 1a
Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.)
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req 1b
What is the company’s absorption costing net operating income (loss) for the quarter? (Round your intermediate calculations to 2 decimal places.)
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req 1c
Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deductions should be entered as a negative.)
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In: Accounting
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
| Year 2 | Year 3 | ||||||
| First | Second | Third | Fourth | First | |||
| Budgeted production, in bottles | 64,000 | 94,000 | 154,000 | 104,000 | 74,000 | ||
The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 38,400 grams of musk oil will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2.
In: Accounting
The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $2.6 million in long-term debt, $740,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.8 million, $965,000, and $8.05 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $200,000. The company paid out $570,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $670,000, and the firm reduced its net working capital investment by $155,000, what was the firm's 2018 operating cash flow, or OCF?
In: Finance
The following equation summarizes the trend portion of quarterly
sales of condominiums over a long cycle. Sales also exhibit
seasonal variations.
Ft = 64 − 5.4t + 4.4t
2
where
Ft = Unit sales
t = 0 at the first quarter of last year
| Quarter | Relative |
| 1 | .90 |
| 2 | 1.10 |
| 3 | .40 |
| 4 | 1.60 |
Using the information given, prepare a forecast of sales for each
quarter of next year (not this year), and the first quarter of the
year following that. (Round intermediate calculations and
final answers to 2 decimal places.)
| Quarter | Forecast |
| 1 | |
| 2 | |
| 3 | |
| 4 | |
| 1 | |
In: Statistics and Probability
The following equation summarizes the trend portion of quarterly
sales of condominiums over a long cycle. Sales also exhibit
seasonal variations.
Ft = 53 − 4.3t + 3.3t
2
where
Ft = Unit sales
t = 0 at the first quarter of last year
| Quarter | Relative |
| 1 | 1.05 |
| 2 | 1.05 |
| 3 | .55 |
| 4 | 1.35 |
Using the information given, prepare a forecast of sales for each
quarter of next year (not this year), and the first quarter of the
year following that. (Round intermediate calculations and final
answers to 2 decimal places.)
| Quarter | Forecast |
| 1 | |
| 2 | |
| 3 | |
| 4 | |
| 1 | |
In: Finance
|
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: |
| a. |
As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: |
| Cash | $ | 53,000 | ||
| Accounts receivable | 210,400 | |||
| Inventory | 59,700 | |||
| Buildings and equipment (net) | 363,000 | |||
| Accounts payable | $ | 89,025 | ||
| Common stock | 500,000 | |||
| Retained earnings | 97,075 | |||
| $ | 686,100 | $ | 686,100 | |
| b. | Actual sales for December and budgeted sales for the next four months are as follows: |
| December(actual) | $263,000 |
| January | $398,000 |
| February | $595,000 |
| March | $309,000 |
| April | $206,000 |
| c. |
Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. |
| d. | The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.) |
| e. |
Monthly expenses are budgeted as follows: salaries and wages, $28,000 per month: advertising, $68,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $44,180 for the quarter. |
| f. | Each month’s ending inventory should equal 25% of the following month’s cost of goods sold. |
| g. |
One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month. |
| h. |
During February, the company will purchase a new copy machine for $2,300 cash. During March, other equipment will be purchased for cash at a cost of $76,500. |
| i. | During January, the company will declare and pay $45,000 in cash dividends. |
| j. |
Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. |
| Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Using the data above, complete the following statements and schedules for the first quarter: SOME ANSWER PROVIDED | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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In: Accounting
1. Practice with the best case:You are the central banker, and you have to decide how fast the money supply should grow. Your economy gets hit by the following AD shocks and your job is simply to neutralize them: Just push money growth in the opposite direction of the shock. In all of the following cases, assume that there’s no change whatsoever to the potential growth rate, and assume that before the shock, you’re at your optimal inflation rate and optimal real growth rate. (Yes, this really is the best case!) These are all shocks, so think of each case study as preceded by the word, “Suddenly. . . .” Given the shocks to ?v , should the central bank react by raising money growth or by cutting money growth?
a. Investors become pessimistic about future profit opportunities.
b. State governments increase spending on schools, prisons, and health care.
c. The federal government passes a national sales tax.
d. The federal government increases military spending.
e. Foreigners buy fewer American-made airplanes and movies.
f. American consumers start buying fewer domestically made Hondas and more imported Hondas.
g. Domestically made computers, cars, and furniture all become much more durable and longer-lasting.
In: Economics