Fiscal Policy Recommendation

Write recommendations for government fiscal policy (specific spending and taxation changes) that you feel would be best for the Canadian economy using your understanding of the economics concepts taught in the course. Use the following guidelines as you write your recommendations: Give consideration to the impact your decisions would have on each of the economic indicators. Your discussion might consider some of the following topics: government debt and the budget surplus or deficit; the impact of these recommendations on government services; how Canadians will benefit from the recommended policies in the short term and in the long term; the multiplier effect; any potential problems with your recommendations. These are just some suggestions. Your argument should discuss several ways that your ideas will impact the economy. The recommendations you discuss could include several of these areas but you can use any relevant course concepts to justify your recommendations.

The following changes took place last year in Pavolik Company’s balance sheet accounts:

Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts
Cash $ 30 D Accounts payable $ 92 I
Accounts receivable $ 34 I Accrued liabilities $ 34 D
Inventory $ 78 D Income taxes payable $ 39 I
Prepaid expenses $ 29 I Bonds payable $ 284 I
Long-term investments $ 31 D Common stock $ 136 D
Property, plant, and equipment $ 545 I Retained earnings $ 112 I
Accumulated depreciation $ 112 I

D = Decrease; I = Increase.

Long-term investments that cost the company $31 were sold during the year for $66 and land that cost $65 was sold for $34. In addition, the company declared and paid $28 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.

The company’s income statement for the year follows:

Sales $ 1,320
Cost of goods sold 586
Gross margin 734
Selling and administrative expenses 520
Net operating income 214
Nonoperating items:
Loss on sale of land $ (31 )
Gain on sale of investments 35 4
Income before taxes 218
Income taxes 78
Net income $ 140

The company’s beginning cash balance was $148 and its ending balance was $118.

Required:

1. Use the indirect method to determine the net cash provided by operating activities for the year.

2. Prepare a statement of cash flows for the year.

What can you infer about the changes in U.K. pound–euro exchange rate during July and August 2014? Can you think of a reason for the behavior of that exchange rate?

If the dollar continues its upward path against the euro, what do you predict will be the consequences for U.S. and European relative inflation rates?

You will investigate how unnatural amino acid mutagenesis works. Take time to examine what changes needed to be made to the tRNA to allow for an unnatural amino acid to be used instead of the native substrate. Also focus on what codons are used to recognize the modified tRNA. How many different codons are there that can be used? What are they called?

Discussion Question 1:

Budget vs. Actual

Describe why percentage changes identified in the budgeted vs. actual reports need to be interpreted carefully.
Provide a numerical example to aid in your explanation.

Discussion Question 2:

Paper vs. Excel vs. QuickBooks

Based on what you have learned in studying accounting in textbooks and in some cases utilizing Microsoft Excel templates for completing assignments, would you prefer to use paper, Excel, or QuickBooks to prepare financial statements and reports? Would you use just one program, both, or some other software?

Mark from Mark's Mowers wants to make some changes to his business. He has asked each of his department managers (Production, Marketing and Sales) to submit a plan for growth to you the General Manager.

Currently Mark is selling 500 lawn mowers a month at $250 each. His variable cost per lawnmower is $180 each. His fixed cost per month are $ 25,000.

For purposes of this project assume that each scenario is within the relevant range (no larger space is needed, no additional people will be needed, and no additional fixed cost will be necessary.  

The Sales Department is considering three different alternatives.  

How much money will Mark make in each of the separate situations? Which of the scenarios is best and why?  

1. Offer a commission of $ 5 per mower to the sales force. They believe that this will increase sales by at least 20 units.  

2. Offer a commission to the sales force of $15 per mower. They believe that this will increase sales by at least 35 units per month.  

3. Offer a commission of $ 25 per mower and increase the cost of the mower by $10. Even with the higher price, they believe it would increase mower sales by at least 40 mowers per month.  

Describe whether the following changes cause the short-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) Input prices decrease. (c) Firms and workers expect the price level to fall. (d) The price level decreases. (e) New policies cause an increase in the cost of meeting government regulations. (f) The number of workers in the labor force increases.

Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) The stock of capital in the economy increases. (c) Natural resources increase. (d) The price level decreases. (e) Firms and workers expect the price level to rise. (f) The number of workers in the labor force increases.

PLEASE ANSWER ALL THE QUESTION!!!

1. Proponents of tax-law changes to encourage saving would
Select one:

a. increase the number of government benefits which are means-tested.

b. favor none of the above programs.

c. argue that corporate tax rates should be decreased.

d. argue that state sales tax should be replaced with state income tax.

2. Stimulus spending in 2009 was used for
Select one:
a. providing aid to local and state governments.

b. building roads and bridges.

c. All of the above are correct.

d. making payments to the unemployed.

3. Stimulus spending in 2009 was used for:

Select one:
a. providing aid to local and state governments.

b. building roads and bridges.

c. All of the above are correct.

d. making payments to the unemployed