The newly established Environmental Council (a nongovernmental not-for-profit organization) uses two funds for internal reporting purposes. The general fund is used to record day-to-day operating transactions. A building fund is used to accumulate resources for a new building to house the Council’s operations. Both funds are reported using the accrual basis of accounting. In its first year, the Council engaged in the following transactions. Prepare a statement of revenues, expenses, and other changes in fund balances. Use a two-column format, one column for each of the Council’s two funds. Comment on the extent to which the statement of revenues, expenditures, and changes in fund balances measures the cost of services?

1.) It received cash contributions of $500,000. Donors stipulate that $100,000 of this amount must be used for the new building.

2.) It incurred operating payroll costs of $200,000, of which $180,000 is paid in cash.

3.) It earned $1,000 in interest (paid in cash) on investments restricted to the acquisition of the new building.

4.) It transferred $25,000 from its general fund to the building fund.

It paid $15,000 in fees (accounted for as expenses) for architectural drawings for the proposed building

The

Westover

Company manufactures and sells pens. Present sales output is

5,300,000

units per year at a selling price of

$0.50

per unit. Fixed costs are

$910,000

per year. Variable costs are

$0.30

per unit.Required

(Consider each case​ separately.)

What is the present operating income for a​ year?

Start by determining the formula to calculate operating income.

The following table shows the market for cranberries:

a.       (2) Determine the price elasticity of demand for cranberries as the price changes from $8 to $6. Use the midpoint formula. Is demand elastic or inelastic?

b.       (2) Which price range maximizes total revenue for sellers? What is the price elasticity of demand equal to at this price range?

c.       (2) The demand curve for cranberries in this example is a downward sloping straight line. Explain briefly how the degree of elasticity changes as you move from a price of $10 down to a price of $2.

d.       (2) Sam claims that the demand for cranberries is highly inelastic. Which determinant of price elasticity of demand would support this claim? Explain.

e) (2) A cranberry farmer states that his supply of cranberries is perfectly inelastic. Describe the slope or shape of the supply curve and explain which determinant of price elasticity of supply would support this statement?

We are evaluating a project that costs $896,000, has eight year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 100,000 units per year. Price per unit is $38, variable cost per unit is $25, and fixed costs are $900,000 per year. The tax rate is 35%, and we require a 15% return on this project.

no excel, please :)

a- Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point? (77,847 units; 9.04)

b- Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.(Base case: $299,200; $446,606.60; After 500 unit decline: $294.975; $427,647.66)

c- What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs. ($364,200; $65,000)

3. Use relevant diagrams to answer the following:

(Assume a closed economy unless stated otherwise)

a. The stock market just crashed; the Dow Jones Industrial Average fell by 750 points. How does this impact the goods market equilibrium interest rate, savings and investment?

b. Suppose your company is in equilibrium, with its capital stock at its desired level. A permanent decline in the expected real interest rate now has what effect on your desired capital stock?

c. If consumers foresee future taxes completely, what would be the impact of reduction in taxes this year that is accompanied by an offsetting increase in future taxes, on the goods market equilibrium. (Assumes that taxes don’t impact investment decisions and also assume consumption smoothing)

d. The tax code changes so that business firms face higher tax rates on their revenue (offset by other lump-sum tax changes so there's no overall change in tax revenue). What happens to saving, investment, real interest rate and current account balance in a small open economy.

The short-run aggregate supply curve shows:

a. What happens to output in an economy as the actual price level changes, holding all other determinants of real GDP constant

b. How firms respond to changes in interest rates

c. The relationship between the price level and aggregate expenditure

d. What happens to output in an economy when the government spends more money

Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that apply.

- Institutions, such as patent laws and tax systems, that make up the "rules of the game"

- Input prices

- The technology available to firms

- The price level

The term potential output refers to:

a. The quantity of output produced at the intersection of the AD and AS curves

b. The maximum possible output for an economy

c. The quantity of output produced when the price level is the same as firms and workers expected when they agreed on input prices and wages

d. The quantity of output that would be produced if every member of the labor force worked 40 hours per week

'Development is the development of man, it is human being centered'. Economic development is economic growth plus positive changes in the factors or indicators of well being of the masses.

Explain economic growth and examine or discuss some of the factors or indicators of which positive changes will bring about economic growth and lead to economic development.

Hints- examples of the factors or indicators include: physical capital per worker, human capital per worker, natural resources per worker, technological knowledge, savings and investment, diminishing returns and catch-up-effect, free trade and investment from abroad, quality of education and teachers per student, access to education, access to health care and quality of health care, doctors/medical personnel per citizen, quality nutrition and child malnutrition, access to clean drinking water, leisure, access to electricity, available paved roads and other infrastructures, bureaucratic corruption and integrity of public official, property rights and political stability, enforcement of contracts, access to television, computers, telephones, internet, infant mortality rates, maternal mortality rates, population growth, research and development.

'Development is the development of man, it is human being centered'. Economic development is economic growth plus positive changes in the factors or indicators of well being of the masses. Explain economic growth and examine or discuss some of the factors or indicators of which positive changes will bring about economic growth and lead to economic development. Hints- examples of the factors or indicators include: physical capital per worker, human capital per worker, natural resources per worker, technological knowledge, savings and investment, diminishing returns and catch-up-effect, free trade and investment from abroad, quality of education and teachers per student, access to education, access to health care and quality of health care, doctors/medical personnel per citizen, quality nutrition and child malnutrition, access to clean drinking water, leisure, access to electricity, available paved roads and other infrastructures, bureaucratic corruption and integrity of public official, property rights and political stability, enforcement of contracts, access to television, computers, telephones, internet, infant mortality rates, maternal mortality rates, population growth, research and development.

'Development is the development of man, it is human being centered'.
Economic development is economic growth plus positive changes in the factors or indicators of well being of the masses. Explain economic growth and examine or discuss some of the factors or indicators of which positive changes will bring about economic growth and lead to economic development.

Hints- examples of the factors or indicators include: physical capital per worker, human capital per worker, natural resources per worker, technological knowledge, savings and investment, diminishing returns and catch-up-effect, free trade and investment from abroad, quality of education and teachers per student, access to education, access to health care and quality of health care, doctors/medical personnel per citizen, quality nutrition and child malnutrition, access to clean drinking water, leisure, access to electricity, available paved roads and other infrastructures, bureaucratic corruption and integrity of public official, property rights and political stability, enforcement of contracts, access to television, computers, telephones, internet, infant mortality rates, maternal mortality rates, population growth, research and development.