Michael Pettis from Peking University wrote in May 2011:“In most countries households typically consume around 60-70 percent of GDP, and even the countries of East Asia that have followed a growth model similar to that of the Chinese, household consumption typically represents 50-55 percent of GDP. In China, a decade ago household consumption represented about 45 percent of GDP.But the story doesn’t end there. Five years ago household consumption in China declined to around 40 percent of GDP. ... Policymakers pledged to take every step necessary to raise household consumption growth and to help re-balance the economy. A few economists remained skeptical. They argued that Beijing would not be able to raise the consumption level because doing so would require fundamental change to the growth model. .... Even the skeptics were wrong. For the next five years GDP growth continued to surge ahead of household consumption growth until by last year household consumption represented an astonishing 36% of GDP.”

a. Using tools from the Solow model of growth, explain how a decrease in the share of consumption (and a corresponding increase in the share of investment) in GDP affects Chinese growth in the short term. How does it affect the long-run steady-state capital stock per worker and the marginal productivity of capital in this eventual steady state? What might be the implications for consumer welfare (as opposed to the size of the capital stock and the size of the GDP)?

b. What is the logic behind the statement that China can keep investing in new capital “without running into diminishing returns, because it can keep drawing new labor from the countryside?” [Hint: recall the concepts of constant returns to scale in the production function versus diminishing returns to a given factor of production.]

Lois (DOB September 25, 1949) must take her first required minimum distribution from her traditional IRA by what date?

April 1, 2020.

April 1, 2021.

April 1, 2022.

April 1, 2023.

list five primary literature journal club topics related to the field of pharmacy, more focus on medications and the elderly population.
the articles should be primary literature articles from 2018 to 2020.
i wish to use the articles for journal club presentation

QUESTION 1

Mick, Mark and Mike are directors and shareholders of MMM Hotels Pty. Ltd. Mick, the founder of the company, owns 80% of the shares while Mark and Mike each own 10% of the shares in the company.

Mick is also a single director and shareholder of CAT Construction Pty Ltd.

Mick convinced the board of MMM Hotels that the company could improve its position by refurbishing and expanding one of its hotels. The expansion required Council approval and a loan of $2.5 million.

Mick sought quotes from other construction companies (which exceeded the quote from CAT Construction) and ensured the quote from CAT Construction is well below these other quotes.

At the Board meeting, Mick showed Mark and Mike various financial figures, prepared by Ned, the newly hired graduate accountant at MMM Hotels and said “Ned is confident the company would benefit financially if we go ahead with this”. None of the directors understood the financial figures and had not realised the company’s cash flow was low and that the loan could lead the company into insolvency. Mark and Mike were unaware that Mick was also a director and shareholder at CAT Construction.

At the Board meeting, Mick further represented that “Council approval for this expansion is not a problem – our competitors have done similar expansions and have managed to get Council approval in a month or so.”

Mark and Mike relied on Mick’s representations to the Board meeting, as they were excited about the refurbishment and the potential for profits to increase and hence their remuneration to rise accordingly.

Mick had assumed that Council approval would be easily granted and did not attempt to seek approval until after Mark and Mike had signed the contract with CAT Construction. In the meantime, CAT Construction has commenced work and collected an advance payment of $400,000 from MMM Hotels. Two months after the refurbishment commenced, the Council informed him that the approval was not granted. MMM Hotels was struggling to meet its loan repayments and has become insolvent.

Mark and Mike have now realised the true state of affairs and demand that Mick repay the $400,000 to MMM Hotels at the general meeting. Mick being a majority shareholder in the general meeting passes a resolution ratifying the contract with CAT Construction

Answer the following questions:

1. Advise Mick, Mark and Mike whether they have breached any of the directors’ duties under the Corporations Act 2001 (Cth). 2 marks

2. Advise what if any defences are available to Mick, Mark and Mike 2 marks

3. Advise Mark and Mike what member’s remedies are suitable for them in the circumstances where Mick being a majority shareholder in the general meeting passes a resolution ratifying the contract with CAT Construction 2 marks

As things transpired, the directors had no alternative but to place MMM Hotels into voluntary administration and it was subsequently placed into liquidation.

4. The liquidator now desires to commence an action against the directors alleging the directors for insolvent trading. Advise 2 marks

5. The liquidator also desires to recover the $400,000 payment to CAT Construction, a related entity to Mick, under Part 5.7B Div 2 of the Corporations Act. Advise

Problem 1

On 1/1/20x1, Petwoud Company acquired 100% of the $1 par value outstanding voting common stock of Supagud, Inc. for a cash payment of $600,000. At the acquisition date, the fair value of Petwoud Company’s common stock was $20 per share. Below is the summary balance sheet information of Supagud, Inc. at acquisition (1/1/20x1):

During fiscal year-ending 12/31/20x1 and 12/31/20x2, Supagud, Inc. generated net income and paid dividends as follows:

As of 1/1/20x1, Supagud's land had a fair value of $102,000, its buildings were valued at $188,000, and its equipment was appraised at $216,000. According to Petwoud Company’s analysis, they will record any excess of consideration paid over fair value of assets and liabilities acquired as a Patent asset to be amortized over 6 years.

Required

1. Using the acquisition method and assuming that Petwoud dissolves Supagud, Inc. so it is no longer in business, prepare Petwoud Company’s journal entry to record the acquisition of Supagud, Inc. at 1/1/20x1.

For B. and C. below, assume Supagud remains in business as a separate operating company and that, for internal accounting purposes, Petwoud accounts for their investment in Supagud, Inc. using the equity method:

2. Prepare Petwoud Company’s journal entry to record the acquisition of Supagud, Inc. at 1/1/20x1.
3. Prepare Petwoud Company’s worksheet consolidation journal entries for:
   1. December 31, 20x1 and
   2. December 31, 20x2.

You are Assistant to Susan Ali, controller for POW PRODUCTS Ltd. (PP), a food distributor. It is late afternoon May 31. Susan has called you to her office to tell you that she is leaving this evening on a well-deserved vacation and that you are to complete and circulate the cash budget for June. To help , she has assembled the following budget data.

Sales. Each month 40% of sales are in cash and 60% are on credit. The collection of credit sales is 20% in the month of sale, 50% in the following month, and 30% in the next month. Inventory purchases. Inventory purchases are paid 30% in the month of purchase, and 70% the following month. Additional information: • At the end of the day on May 31st the company has a cash balance of $460,000. •

Early in May a dealer offered to sell PP a fleet of 12 new high capacity delivery vans at $900,000 for all 12 vans. PP intends to make the purchase in cash on June 15. In addition, the dealer has agreed to accept the old fleet as a trade-in for $140,000. PP will recognize a gain on disposal sale of $55,000 in this transaction.

• Other monthly cash expenses are expected to total $250,000.

• Monthly depreciation of plant and equipment is $180,000.

• Quarterly income tax instalments of $150,000 is to be paid in June.

• A dividend payment of $230,000 was declared in May for payment in June.

• All PP employees share a monthly cash bonus of 2% of the preceding month's sales.

• The company has a policy of maintaining a minimum cash balance of $10o,000 and has a line of credit with the bank to enable it to borrow when necessary. All borrowing is done at the beginning of the month, and borrowings are made to the nearest $1,000. Monthly interest is calculated at 2% per annum and must be paid at the end of each month. There is no outstanding borrowing currently. Susan is rushing to catch her flight as she hands you the budget data, and says, "We may be a bit cash short for June. If so, prepare the budget on the assumption that the cash shortfall will be made up with borrowing. You then go to Stella Ruel, the CEO, to get permission to borrow. However, she will first want to know what are the best alternatives so you should also prepare two reasonable alternatives for your meeting with her. She will also want to know which of these three courses of action you recommend and why. You know our operations, priorities and constraints well enough to do this—just be prepared.”

Required A. Prepare a cash budget for June 200x using a clear and logical format.

B. Assume that Susan is correct about June being cash short. Prepare notes to present to the CEO, outlining the three best alternative courses of action to choose from, i.e., borrowing and two others. Then make a case for the one you judge to be best.

C. Some managers who do not have any accounting training don’t understand the difference between a statement of cash flows (SCF) and a cash budget. The CEO of POW PRODUCTS , Stella Ruel, is one of these non-accountant managers and she asks you to explain, briefly, in what way are these two statements are similar and in what way to they differ. In particular, what are the key differences between them.

In your opinion is the US debt a problem for the United States or not? Given that monetary policy has an effect on interest rates, should monetary policy work with fiscal policy to reduce the impacts of debt? What are the pros and cons of monetary policy and fiscal policy working together? (Answer question based on the article below)

Article:

As Congress allocates trillions of dollars to support businesses and individuals impacted by the coronavirus pandemic, some project US debt skyrocketing to historical highs. This adds fuel to a long-running question: Does America’s growing debt load spell future trouble? In our view, focusing solely on the debt’s size doesn’t tell the whole story. By looking at the debt question differently, we think investors can defuse concerns about America’s allegedly ticking time bomb.

Even before the coronavirus dominated headlines, some worried about big deficits adding to America’s debt. In early May, US Treasury data show $25.1 trillion in total federal government debt outstanding. [i] While this figure includes intra-governmental holdings (i.e., money the government owes itself), even stripping this away leaves net public debt at a still-huge $19.1 trillion—nearly 2.5 times the amount on January 1, 2010. [ii]

In isolation, that big number doesn’t mean much. So to put this figure into perspective, many economists compare a country’s debt to its GDP. At the end of 2019, net public debt was 79.2% of US GDP—up from 52.3% a decade earlier and the biggest since the late 1940s. [iii] Moreover, coronavirus’ impact is almost assured to push the ratio far higher. Between Q1’s -4.8% annualized GDP decline (with worse likely in Q2) and rising debt as the government funds its coronavirus response, America’s debt-to-GDP ratio could exceed its post–World War II high of 106.1% in the not-so-distant future. [iv]

Large debt-to-GDP ratios inspire comparisons to countries like Greece, which defaulted multiple times in the past decade. But even these ratios alone don’t mean problems loom. What matters more: a country’s ability to meet interest payments. Governments don’t use GDP—an annual flow of economic activity—to meet those obligations. They use tax revenue. In fiscal year 2019, US interest payments accounted for about 10.8% of tax revenues. [v] This figure has been rising over the past 4 years, but it remains well below the 15%–18% range in effect during most of the 1980s–1990s. [vi] America had no trouble servicing its debt during these two decades. The economy boomed.

With Treasury yields historically low, many acknowledge financing debt today isn’t onerous—especially since the Treasury gets to refinance maturing debt at a cheaper rate. On May 5, 2010, the Treasury sold $24 billion in 10-year notes at a 3.51% interest rate. [vii] The Treasury effectively refinanced those at a mid-May 2020 auction of new 10-year notes. The interest rate? A far-lower 0.65%. [viii]

Which brings us to another point: Treasury bonds carry fixed rates, so rising rates don’t immediately threaten affordability. As of 12/31/2019, the weighted average maturity of US debt was nearly 70 months—higher than the 60-month historical average over the past 40 years. [ix] Hence, rates would need to rise significantly from here—and stay there for years as Treasury refinanced maturing bonds—to hit costs materially. That doesn’t seem likely today. Demand is strong, putting downward pressure on yields. With sovereign-debt yields low globally—Japan and Europe have lower rates than America—US debt remains more attractive in comparison.

Moreover, interest rates tend to move with inflation, and the latter looks unlikely to surge in the near future. Even after the spread widened between long and short rates since February’s end, the US yield curve is still around its flattest over the past 10 years. That weighs on bank lending and, relatedly, money supply growth—a key inflation component. When investors anticipate higher inflation to come, they will demand a higher premium to compensate for their loss in purchasing power. That isn’t likely to be the case with inflation benign. US debt could be on its way to making new records, but that doesn’t mean new problems will come with it.

Investing in stock markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance is no guarantee of future returns. International currency fluctuations may result in a higher or lower investment return. This document constitutes the general views of Fisher Investments and should not be regarded as personalized investment or tax advice or as a representation of its performance or that of its clients. No assurances are made that Fisher Investments will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Not all past forecasts have been, nor future forecasts will be, as accurate as any contained herein.

Problem 6-2AA Periodic: Alternative cost flows LO P3

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.  

For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 450 units from the March 5 purchase; the March 29 sale consisted of 140 units from the March 18 purchase and 220 units from the March 25 purchase.

Required.
Part one. Compute cost of goods available for sale and the number of units available for sale.

Part two. Compute the number of units in ending inventory.

Part three. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

Part four. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)

Problem 6-2AA Periodic: Alternative cost flows LO P3

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.  

For specific identification, the March 9 sale consisted of 50 units from beginning inventory and 460 units from the March 5 purchase; the March 29 sale consisted of 130 units from the March 18 purchase and 210 units from the March 25 purchase.

Required.

1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)