What is the present value of a series of 41 quarterly deposits (starting at quarter 1) when the first deposit is $500 and the deposits increase by $31 each quarter starting with the second quarter? The nominal annual interest rate is 10% and is compounded weekly.
In: Finance
Government borrowing makes the most sense for which type of spending: defense, education, or social security. Why?
In: Economics
Tempo Company's fixed budget (based on sales of 14,000 units)
for the first quarter of calendar year 2017 reveals the
following.
| Fixed Budget | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales (14,000 units) | $ | 3,066,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct materials | $ | 350,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct labor | 616,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production supplies | 392,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Plant manager salary | 150,000 | 1,508,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 1,558,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales commissions | 112,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Packaging | 224,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advertising | 100,000 | 436,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Administrative expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Administrative salaries | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation—office equip. | 170,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Insurance | 140,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Office rent | 150,000 | 660,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income from operations | $ | 462,000 |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
The client is a 29-year old female who stated that she has had crying spells, felt sad "all the time," had trouble sleeping at night, and was having trouble concentrating. She reported that she had difficulty falling asleep, and that she spent time awake "thinking" and "worrying." She reports worrying that she is a bad mom and a bad wife. She stated that over the last few months, she has felt "always down." She reports being fatigued, feeling unmotivated, and avoiding spending time with others. She has experienced weight loss in the past few weeks. “Food just doesn’t take as good as it used to.” She reports feeling hopeless and often has a hard time concentrating. She does not report any suicidal ideation. What diagnosis is most appropriate for this person?
A
Generalized Anxiety Disorder
B
Major Depressive Disorder
C
Persistent Depressive Disorder
D
Premenstrual Dysphoric Disorder
E
Bipolar I Disorder
F
Bipolar II Disorder
G
Cyclothymic Disorder
H
Postpartum Depression
I
Major Depressive Disorder, Peripartum Onset
J
None of these
In: Psychology
Managerial accountants and the budget committee for
the FMI corporation is meeting in November to prepare the 2019
budget. Your task, as a member of the budget committee, is to
prepare the 2019 budget given the following data:
Sales: The company expects to sell 40% more units in 2019 than in
each quarter of 2018. During 2018, sales were Q1: 40,000; Q2:
30,000; Q3: 60,000 and Q4: 50,000 units. The selling price per unit
is expected to be $50 in the first three quarters, but only $40 per
unit in Q4 because substantial competition is expected beginning in
Q4 of 2019. Sales are expected to be 40,000 units in Q1 of
2020.
The company wants to maintain ending finished goods inventory at
25% of the next quarter’s expected unit sales. Assume
that this will hold to start Q1 of 2019 so that beginning finished
goods inventory is (.25) (40,000 x 1.4) = (.25)(56,000) =14,000
units.
Each unit of final goods produced requires 1.5 hours of direct
labor time at $12 per hour.
Variable overhead costs are calculated per unit of direct labor
hours as follows: indirect labor $0.2, indirect materials $0.1,
maintenance $0.5.
ANNUAL fixed overhead costs are: supervisory salaries $200,000,
maintenance $60,000, depreciation $80,000. They are allocated
equally across quarters.
Direct raw material requirements are 5 kilograms per unit of output
produced and the cost is $1.5 per kilogram of materials. At the end
of each quarter, the company maintains enough raw materials to
produce 10,000 units for the next quarter.
Instructions:
Prepare the following budgets by quarter for the year 2019 (also
show the cumulative or annual totals):
[Use the format shown in the textbook/slides to prepare each
quarter’s budget. Your work and calculations MUST be done using a
Microsoft excel spreadsheet].
* (a)Sales budget
* (b)Production budget
* (c)Direct materials budget
* (d)Direct labor budget
* (e)Manufacturing overhead budget
In: Accounting
Study the following table containing information on the South African labour force in the first quarter of 2019 (January to March) and answer the following question:
Table: Labour force by all sexes and all population group
|
Population |
Millions |
|
Total unemployed |
? |
|
Total employed |
14690 |
|
Economically active |
19663 |
|
Not economically active |
? |
|
Population of working age |
34712 |
Source: Stats SA Quarterly labour force survey, Quarter 1, 2019
What is the current unemployment rate in SA?
| A. |
29.1% |
|
| B. |
23.3% |
|
| C. |
29.7% |
|
| D. |
30.1% |
|
| E. |
31% |
If real gross domestic product is R500 billion and planned aggregate expenditure is R458 billion, then inventories will:
A.
pile up and output will decrease.
B.
pile up and output will increase.
C.
be depleted and output will decrease.
D.
be depleted and output will increase.
E.
stay constant, as will output.
The government of an open economy determines that the current equilibrium level of income in the economy is lower than the full-employment level of income and wishes to close this gap. The Minister of Economic Affairs hears that you have just studied the Keynesian model of the macro-economy and approaches you for advice. Which one of the following suggestions would be inappropriate in this context?
| A. |
Create a more favourable environment for investment spending. |
|
| B. |
Spend more on infrastructural projects (for example, the construction of new roads). |
|
| C. |
Encourage households to save a larger proportion of their annual income. |
|
| D. |
Reduce the rate of taxation. |
|
| E. |
Try to reduce imports by encouraging households and firms to purchase locally-manufactured consumer and capital goods |
Which one of the following statements about a simple Keynesian model without a government or foreign sector is incorrect?
| A. |
The greater the value of the marginal propensity to consume, the greater the value of the multiplier becomes. |
|
| B. |
The size of the multiplier depends on the size of the marginal propensity to consume. |
|
| C. |
If the marginal propensity to consume is 0,75, then a R10 million increase in investment spending will raise the equilibrium level of income by R7.5 million. |
|
| D. |
If the marginal propensity to consume is 0,6, then a R100 million increase in investment spending will raise the equilibrium level of income by R250 million. |
|
| E. |
The equilibrium level of income can be obtained by multiplying the level of autonomous spending by the multiplier. |
In the Keynesian model, unemployment can be reduced by:
| A. |
increasing the level of saving, and hence investment. |
|
| B. |
decreasing the level of saving, ceteris paribus. |
|
| C. |
persuading households to reduce their consumption. |
|
| D. |
raising the interest rate. |
|
| E. |
none of the above, since it is not part of the model. |
Study the table below and answer the following question.
|
YEAR |
Output |
Average price level |
CPI |
Nominal GDP |
Real GDP (constant prices) |
Inflation rate (%) |
Economic growth |
|
2014 |
700 |
R47.75 |
95.5 |
R33425 |
? |
? |
? |
|
2015 |
840 |
R50 |
100 |
R42000 |
? |
? |
? |
|
2016 |
900 |
R85 |
170 |
R76545 |
? |
? |
? |
|
2017 |
980 |
R105 |
210 |
R102900 |
? |
? |
? |
|
2018 |
980 |
R120 |
240 |
R117600 |
? |
? |
? |
|
2019 |
1000 |
R150 |
300 |
R150000 |
? |
? |
? |
What was the economic growth rate in 2010?
| A. |
2% |
|
| B. |
1.5% |
|
| C. |
2.04% |
|
| D. |
0.04% |
|
| E. |
3% |
In: Economics
South Shore Construction builds permanent docks and seawalls along the southern shore of long island, new york. Although the firm has been in business for only five years, revenue has increased from $308,000 in the first year of operation to $1,144,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars:
| Quarter | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 1 | 20 | 47 | 75 | 92 | 191 |
| 2 | 100 | 146 | 155 | 202 | 297 |
| 3 | 175 | 255 | 326 | 384 | 460 |
| 4 | 13 | 36 | 48 | 82 | 196 |
In: Statistics and Probability
South Shore Construction builds permanent docks and seawalls along the southern shore of long island, new york. Although the firm has been in business for only five years, revenue has increased from $320,000 in the first year of operation to $1,188,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars:
| Quarter | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 1 | 23 | 38 | 83 | 97 | 202 |
| 2 | 103 | 137 | 163 | 207 | 308 |
| 3 | 178 | 246 | 334 | 389 | 471 |
| 4 | 16 | 27 | 56 | 87 | 207 |
In: Statistics and Probability
South Shore Construction builds permanent docks and seawalls along the southern shore of long island, new york. Although the firm has been in business for only five years, revenue has increased from $308,000 in the first year of operation to $1,084,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars:
| Quarter | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 1 | 20 | 47 | 95 | 92 | 176 |
| 2 | 100 | 146 | 175 | 202 | 282 |
| 3 | 175 | 255 | 346 | 384 | 445 |
| 4 | 13 | 36 | 68 | 82 | 181 |
Trend and Seasonal Pattern
In: Statistics and Probability
South Shore Construction builds permanent docks and seawalls along the southern shore of long island, new york. Although the firm has been in business for only five years, revenue has increased from $320,000 in the first year of operation to $1,116,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars:
| Quarter | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 1 | 23 | 59 | 76 | 92 | 184 |
| 2 | 103 | 158 | 156 | 202 | 290 |
| 3 | 178 | 267 | 327 | 384 | 453 |
| 4 | 16 | 48 | 49 | 82 |
189 |
a. Use Excel Solver to find the coefficients of a multiple
regression model with dummy variables as follows to develop an
equation to account for seasonal effects in the data. Qtr1 = 1 if
Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 =
1 if Quarter 3, 0 otherwise. Round your answers to two decimal
places.
Ft = _ + _Qtr1 + _Qtr2 + _Qtr3
b. Let Period = 1 to refer to the observation in Quarter 1 of
year 1; Period = 2 to refer to the observation in Quarter 2 of year
1; . . . and Period = 20 to refer to the observation in Quarter 4
of year 5. Using the dummy variables defined in part (b) and
Period, develop an equation to account for seasonal effects and any
linear trend in the time series using Excel Solver. Round your
answers to two decimal places. If your answer is negative value
enter minus sign.
Ft = _ + _Qtr1 + _Qtr2 + _Qtr3 + _Period
Based upon the seasonal effects in the data and linear trend,
compute estimates of quarterly sales for year 6. Round your answers
to one decimal place.
Quarter 1 forecast =
Quarter 2 forecast =
Quarter 3 forecast =
Quarter 4 forecast =
In: Math