Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows:

Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.

a-1. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $4 per unit?

a-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the increase in selling price?

b-1. Assume that Mazeppa is currently operating at full capacity. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $60,000 more than it would be without accepting the special order?

b-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor?

1) explain the effect of expansionary domestic monetary policy in a country with flexible exchange rates. explain the linkages as the money moves through the economy and has its effects on the capital and current accounts as well as on domestic spending. Is the monetary policy enhanced or made weaker by the flexible exchange rate? explain

2)   explain the effect of expansionary fiscal policy in a country with flexible exchange rates. explain the linkages as the changes move through the economy and have their effects on the capital and current accounts as well as on domestic spending. Is the fiscal policy enhanced or made weaker by the flexible exchange rate? explain

3)   explain the effect of expansionary domestic monetary policy in a country with fixed exchange rates. explain the linkages as the money moves through the economy and has its effects on the capital and current accounts as well as on domestic spending. Is the monetary policy enhanced or made weaker by the fixed exchange rate? explain

4)  explain the effect of expansionary domestic fiscal policy in a country with fixed exchange rates. explain the linkages as the changes move through the economy and have their effects on the capital and current accounts as well as on domestic spending. Is the fiscal policy enhanced or made weaker by the fixed exchange rate? explain

Wares king supplies custom-fitted curtains and blinds to retail customers. It has recently expanded to offer a wide variety of home decorating products through its six stores across the state. After some initial problems with stock control it installed a new automated inventory system in April this year. The system replaced another automated system that had been modified so often over the years that the auditor had advised Wares’s management that they did not regard it as reliable. That is, the auditor was unable to rely on the old system sufficiently to assess control risk for inventory as anything less than high. Required:

a) Explain the normal process an auditor would expect to find in the client’s systems governing changes to computer programs. Why is an auditor concerned about program changes? ( maximum 100 words)

b) Wares kings’ financial year-end is 31 December. Does the auditor need to obtain evidence about the performance of the inventory control system from every month in the year or from a sample of months? Explain. (, maximum 100 words)

c) If the auditor conducts test of the inventory controls at an interim date, is it appropriate to conclude that the controls also relate to the end of period date? Why?

You will be paying $10,600 a year in tuition expenses at the end of the next two years. Bonds currently yield 7%.

a. What is the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places.)

Present value:|__________________|

Duration: |__________________|years

b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value" to 2 decimal places.)

Duration: |______________________|years

Future redemption Value: |______________________|

c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 8%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Net position changes by:

d. What if rates fall to 6%? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Net position changes by:

1)

One of the ten features that LDCs tend to have in common with each other

2)

The Solow economic growth model generalizes the Harrod-Domar model by modifying the assumption that relates the changes in capital and the changes in output in terms of a neoclassical production function.:

3) Canada in 2013 had 81.1 years of life expectancy at birth, 12.3 mean years of schooling, 15.1 expected years of schooling and an income per capita (GNI per capita) of $35,369. Its New HDI value would be the following (use the same max and min values as the ones used for the Ghana example discussed in class)

Question 3 options:

4) According to the textbook one of the eight ways in which low-income countries today differ with developed countries in their earlier stages of development is that

Question 4 options:

Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial statements contain the following information ($ in millions):

A note disclosed that the allowance for uncollectible accounts had a balance of $27 million and $51 million at the end of 2017 and 2016, respectively. Bad debt expense for 2017 was $48 million. Assume that all sales are made on a credit basis.
Required:
1. What is the amount of gross (total) accounts receivable due from customers at the end of 2017 and 2016?
2. What is the amount of bad debt write-offs during 2017?
3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2017.
4. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2017.
______________________________________________________________________________________________________

1.

2.

4.

5) If a company borrows money from a bank, the interest paid on this load should be reported on the statement of cash flows:

A. Operating activity

B. Investing activity

C. Financing activity

D. Noncash investing and financing activity

E. This is not reported in the statement of cash flows.

6) The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

A. Operating activities

B. Financing activities

C. Investing activities

D. Schedule of noncash investing or financing activity

E. Reconciliation of cash balance

7) All of the following statements related to reporting cash flows from investing and financing activities are true except:

A. Reporting of financing activities is the same under the direct method and indirect method

B. Changes in noncurrent liability accounts are analyzed to determine cash flows from financing activities.

C. Changes in noncurrent asset accounts, current notes receivable, and current investments are analyzed to determine cash flows from investing activities.

D. The direct method applies accrual accounting while the indirect method applies cash basis accounting

E. Reporting of investing activities is the same under the direct method and indirect method.

The following is the balance sheet for Ford Motor Company as of December 31, 1994 (in millions). Assets Liabilities Cash $ 19,927 Accounts payable $ 11,635 Receivables $132,904 Debt due within 1 year $ 36,240 Inventory $ 10,128 Other current liabilities $ 2,721 Current assets $ 91,524 Current liabilities $ 50,596 Fixed assets $ 45,586 Short-term debt $ 36,200 Long-term debt $ 37,490 Equity $ 12,824 Total assets $137,110 Total liabilities $137,110 The firm had revenues of $154,951 million in 1994 and cost of goods sold of $103,817 million. a. Estimate the net working capital. b. Estimate the noncash working capital. c. Estimate noncash working capital as a percent of revenues. 5. Continuing problem 4, assume that you expect Ford's revenues to grow 10% a year for the next five years. a. Estimate the expected changes in noncash working capital each year, assum- ing that noncash working capital as a percent of revenues remains at 1994 levels. b. Estimate the expected changes in noncash working capital each year, assum- ing that noncash working capital as a percent of revenues will converge on the industry average of 4.3% of revenues.

UNIT 2: PPF, TRADE, SPECIALIZATION

The Production Possibilities Frontier is a simple economic model used to illustrate a complex economic reality of productive possibilities of one economy. The PPF is an economic frontier of maximum production of two (2) goods based on available resources and the state of technology. The PPF assumes the economy is using all its resources and is using them efficiently.

Consider this scenario: The U.S. is productive efficient in its economy. It is highly diversified and enjoys economic growth. This year, the U.S. economy changes from a highly diversified one to a specialized one focused on the production of two (2) goods, oil (energy sector) and corn (agricultural sector).

DISCUSSION QUESTION

Given the breadth of the U.S.'s economic resources which were fully employed in its highly diversified economy, do you expect the economy will continue to grow annually (as it did previously) and be productive efficient?

INSTRUCTIONS:

• Your comments should connect PPF framework (changes and economic concepts) to the change noted to the U.S. economy (highly diversified to specialized with 2 products/goods).
• Do you anticipate growth in a specialized productive economy?
• Will economic resources be fully employed?
• Your post should be no more than 200 words.