What Matt Johnson delivers newspapers and is putting away $35 at the end of each quarter from his paper route collections. Matt is 10 years old and will use the money when he goes to college in 8 years. What will be the value of Matt's account in 8 years with his quarterly payments if he is earning 6.5% (APR), 9.5% (APR) or 13% (APR)?

What will be the value of Matt's account in 8 years with his quarterly payments if he is earning 6.5% (APR)? $

9.5% (APR)? $

13% (APR)? $

Gulf Company, a successful retailer located in Qatar, is preparing its budget for the upcoming quarter. The following data and information are available for the months of April, May, and June 2019.

1. Budgeted sales and expenses for the period:

                                                              April                May                June       

Sales................................................... $400,000       $600,000           $500,000
Merchandise Purchases....................... 240,000         360,000             300,000
Administrative Expenses....................... 18,000           18,000               16,000
Insurance Payments............................... 30,000           30,000               30,000
Advertising.......................................... 140,000         153,000             100,000
Machinery Purchases............................. 16,000              -------                 -------
Depreciation Expense............................ 20,000           20,000               20,000

2. All sales are on account. 20% of a month’s sales are collected in the month of the sale, 75% is collected in the month following the sale, and 5% is collected in the second month following the sale.
3. Accounts receivable on April 1 will be $303,000, of which $282,000 will be collected during April and $21,000 will be collected during May.
4. Merchandise purchases are paid in full in the month following the purchase. The March 31 accounts payable balance of $216,000 for merchandise purchases will be paid in April.
5. The cash balance on April 1 is budgeted to be $52,000.
6. The company requires a minimum cash balance of $50,000 at the end of each month. The company may borrow any amount from a local bank at the beginning of a month and will make repayments at the end of a month. The yearly interest rate is 5% and interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.

Required:

1. Prepare a Schedule of Expected Cash Collections for April, May, June, and for the quarter in total.
2. Prepare a Cash Budget for April, May, June, and for the quarter in total.

1. Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2002

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2002, credit sales were $210,000, and credit purchases were $156,000. Using this information, complete the following cash budget:

Walmart is a huge retailer but gets only about a quarter of its sales from outside the United States. Coles is one of the largest retailers in Australia and gets very little of its sales outside Australia. Based on your research

What factors should these top retailers consider in choosing countries for internationalizing their operations?

What are the best markets for these firms to target for foreign expansion?

What types of questions should management at each firm ask in assessing its readiness to internationalize?

Your company has projected the following numbers for the third quarter of the year:

Collections occur as follows: 15% pay within the month of sale, 65% pay during the month following the sale, and 20% pay in the second month following the sale. Payments for labor and raw materials occur in the month following the purchase. Salaries and general expense run $15,000 per month, lease payments are $5,000 per month, depreciation charges are $7,500 per month, miscellaneous expense are $2,000 per month. An income tax payment of $25,000 is due in September. Cash on hand on July 1 is $25,000 and the company must maintain a minimum balance of $25,000. Prepare a cash budget for the third quarter of July, August, and September.

You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly in late December, 20Y7, and an accounting intern has been drafting the journal entries since January. You are examining the accounting records before finalizing the journal entries for the first quarter of 20Y8. The following journal shows some of the accounts receivable transactions that you are reviewing.

Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes. Refer to the Chart of Accounts for the exact wording of account titles. You may also use any items from the preceding list shown in (1) if needed

(1)

Allowance for Doubtful Accounts

Total Credit Sales

Net Realizable Value of Receivables

Balance of Aging Accounts

Estimate for Uncollectible Accounts

. Even the most stubborn libertarian might admit that there is a case for government provision or subsidization of a service if that service is a public good or if there are positive externalities associated with its consumption. A. Do primary and secondary education meet the conditions for being public goods? Explain why or why not. B. Are there externalities associated with primary and secondary school attendance? That is, do you benefit from the fact that other people in your community attended school? Tell me what some of these positive externalities are. C. It is rare in economics that one policy approach enhances both efficiency and equity. Explain how free public education might do this. If you like, you might also discuss the limitations on the equity part, because I think that these are pretty important, too.

You own a fast food restaurant and must decide on a pricing strategy for burgers and fries. Marginal production costs are constant at $1 for burgers and $0.50 for fries. The market you serve contains equal numbers of 3 types of consumers called “Average”, “Burger Buffs”, and “Fries Fiends”. Each consumer will purchase at most 1 of each food type. Their valuations of the two goods are listed in the following table.

What are the optimal mixed bundle prices if you allow consumers to buy the meal or to buy a burger or fries separately