Mr. X has been seen his business growing and increasing. It is a good business because online sales are available to reach all segment customers. The company is categorized as Small Medium Enterprises. Mr. X tried to anticipate these sales increased by buying more inventories. By buying more inventories, the company can fulfill increasing demand and attract new customers. This is data at present time:

Total Assets IDR 100

Fixed Assets IDR 40

Total current assets IDR 60 which including cash and inventory for IDR 32

Total current liabilities IDR 10

Share Paid Capital is IDR 90

Mr. X plans to expand his business for medium and long planning and it requires long term resources to finance more equipment.

Questions:

a. If the company wants Debt to Asset = 0,50. How much long-term liabilities is needed?

b. What is the changes in Debt to Equity Ratio.?

c. Using the old data (before the DER changes), company want to have current ratio = 2. How much credit purchase need to be made if the company wants current ratio =2?

Solano Company has sales of $720,000, cost of goods sold of $480,000, other operating expenses of $45,000, average invested assets of $2,150,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.) 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.)) a. Company sales and cost of goods sold increase by 40 percent. b. Operating expenses decrease by $9,000. c. Operating expenses increase by 20 percent. d. Average invested assets increase by $410,000. e. Solano changes its hurdle rate to 16 percent.

Consider the current macroeconomic environment in China. The government considers 8% GDP growth as its target growth rate. But currently, Chinese policymakers feel the country will have trouble reaching this goal. They would like to increase Chinese GDP, using either fiscal or monetary policy. In our class, we have looked at the IS-LM –BOP framework to explore the effects of such policies on an economy. Use this framework to analyze policy choices in China. In particular:

1. What if China moved to a flexible exchange rate? Still assume perfect capital mobility

1. What would expansionary fiscal policy do for China? Use the IS-LM-BOP framework to analyze the effects on GDP, interest rates, and other indicators. Be sure to both draw the IS-LM-BOP AND explain these effects. Include changes to Y, i, P and other important indicators.

2. What would expansionary monetary policy do for China? Use the IS-LM-BOP framework to analyze the effects on GDP, interest rates, and other indicators. Be sure to both draw the IS-LM-BOP AND explain these effects. Include changes to Y, i, P and other important indicators

Correlations

1. A correlation is a:

2. A perfect positive correlation of +1.00 means that:

3. A correlation of .00 means that:

4. A correlation of -1.00 means that:

5. The frequencies on a communication task are listed below. The hypothesis being tested is also provided. Fill out the chart below and follow the 12 steps on page 348 to compute the correlation coefficient (r), test r against its critical value at the .05 significance level, answer the hypothesis, and interpret your findings.

H_alt:      When people are giving directions, the number of hand movements will be positively correlated to the number of facial expressions.

1. Step 6:
2. Step 7:
3. Step 8:
4. r =
5. df =
6. Critical r =
7. Interpretation:

A 26-year-old male prisoner begins a hunger strike to protest what he considers unfair prison policies. He drinks only tap water, and his only exercise is two daily half-hour walks at approximately 2.5 miles/hr. The temperature in his cell is maintained at 220C. His starting weight is 70 Kg, of which 14% is body fat. At the end of 4 weeks, he is urged by the prison physician, family, friends, and his attorney to stop his fast because of his deteriorating conditions.

a. What changes in plasma levels of energy substrates would occur in the first 3 days of his fast?

b. On what immediate and on what ultimate sources of energy would brain metabolism depend?

c. What role would the liver play in providing energy sources to the brain and muscles?

d. What early changes in plasma levels of hormones would occur? How would this regulate his energy metabolism?

e. What physiologic events would occur when he stopped his fast by drinking a large quantity of a high glucose fluid?

Match each of the following terms to the appropriate definition.

The answers for each one are one of these, Least squared regression method, Fixed Costs, Incremental Analysis, Relevant Range, Mixed Costs, Operating Leverage, Margin of Safety, Variable costs, and Contribution Margin per Unit

Consider the market for Drug A, which is produced by a price-taking firm that receives a price of $100 from the industry market and decides, considering only private costs, to produce a quantity of 200 units. These decisions were guided by the firm’s goal, as always, to maximize its profits.

A government regulatory agency is contacted about significant water pollution that occurs as a result of production of Drug A. The agency examines the market and concludes that the social marginal cost for Drug A is $120 per unit when 200 units are produced. It further concludes that, were social and private costs both considered in making the output decision, 150 units would be produced instead of 200. The government therefore requires the manufacturer to produce 150 units instead.

Answer the following questions:

1. Draw a graph for the firm described, including all of the above information.
2. Calculate the reduction in total spending that occurs when the quantity produced changes from the amount the firm originally wanted to produce to the amount recommended by the regulatory agency.
3. Calculate the reduction in social costs that occurs when the quantity produced changes from the amount the firm originally wanted to produce to the amount recommended by the regulatory agency.