Suppose residents of Islandia use rubies as money. Every ruby is used, on an average, 7 times per year to carry out transactions. The total supply of rubies is fifty million. (a) What is the level of aggregate nominal spending in Islandia according to the quantity theory of money? (b) Suppose now that the residents of Islandia use less money to conduct the same number of transactions. What is the effect on the velocity of money? (c) Suppose a new financial product named “bonds” introduced into the economy. How the introduction of this new financial product will affect the willingness to hold rubies and consequently the velocity of rubies? (d) Plot the following table on the graph showing average money growth rates on the horizontal axis and average inflation rates on the vertical axis.

(e)Do the data reported in the above table support the quantity theory of money? Explain your answer with the help of the graph you draw in part (d).

ATC 14-1 Business Applications Case Preparing and using pro forma statements

Maria Gutierrez and Devin Duzan recently graduated from the same university. After graduation they decided not to seek jobs at established organizations but, rather, to start their own small business hoping they could have more flexibility in their personal lives for a few years. Maria’s family has operated Mexican restaurants and taco trucks for the past two generations, and Maria noticed there were no taco truck services in the town where their university was located. To reduce the amount, they would need for an initial investment, they decided to start a business operating a taco cart rather than a taco truck, from which they would cook and serve traditional Mexican-styled street food.

They bought a used taco cart for $25,000. This cost, along with the cost for supplies to get started, a business license, and street vendor license brought their initial expenditures to $29,000. They took $5,000 from personal savings they had accumulated by working part-time during college, and they borrowed $15,000 from Maria’s parents. They agreed to pay interest on the outstanding loan balance each month based on an annual rate of 4 percent. They will repay the principal over the next few years as cash becomes available. They were able to rent space in a parking lot near the campus they had attended, believing that the students would welcome their food as an alternative to the typical fast food that was currently available.

After two months in business, September and October, they had average monthly revenues of $20,000 and out-of-pocket costs of $16,000 for rent, ingredients, paper supplies, and so on, but not interest. Devin thinks they should repay some of the money they borrowed, but Maria thinks they should prepare a set of forecasted financial statements for their first year in business before deciding whether or not to repay any principal on the loan. She remembers a bit about budgeting from a survey of accounting course she took and thinks the results from their first two months in business can be extended over the next 10 months to prepare the budget they need. They estimate the cart will last at least five years, after which they expect to sell it for $5,000 and move on to something else in their lives. Maria agrees to prepare a forecasted (pro forma) income statement, balance sheet, and statement of cash flows for their first year in business, which includes the two months already passed.

Required

1. Prepare the annual pro forma financial statements that you would expect Maria to prepare based on her comments about her expectations for the business. Assume no principal will be repaid on the loan. [Note: Some amounts are different from the printed text version]

2. Review the statements you prepared for the first requirement and prepare a list of reasons why actual results for Devin and Maria’s business probably will not match their budgeted statements.

Identify some principles that are important to the success of the nap time routine.

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods

The units of an item available for sale during the year were as follows:

There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (Round per unit cost to two decimal places and your final answer to the nearest whole dollar).

1. Inventory Turnover and Days' Sales in Inventory

   Financial statement data for years ending December 31 for Amsterdam Company follow:

   	20Y4				20Y3
   Cost of merchandise sold	$3,598,900				$3,015,630
   Inventories:
   Beginning of year	593,000				589,600
   End of year	648,000				593,000

   a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.

   	Inventory Turnover
   20Y4	fill in the blank 1
   20Y3	fill in the blank 2

   b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place.

   	Days' Sales in Inventory
   20Y4	fill in the blank 3 days
   20Y3	fill in the blank 4 days

   c. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
   

Check My Work

VISUAL BASIC (VB.NET)1. Create a Sub Procedure with a name of your choice and in the procedure, declare a
2-Dimensinal (2-D) array that can store 15 Integer numbers. Then implement a
nested loop that will be used to store any 15 Integer numbers into the 2-D array at
runtime (an interactive program).
The implementation will be such that the program cannot terminate unless all the
inputs provided are integers (user input validation). If you provide an invalid input,
you should be asked to “Try again”. Make sure also to print out all valid inputs
respectively, after the point of insertion.
Note – The Procedure you created should be called in the Main Procedure to run it.

acme Services’ CFO is considering whether to take on a new project that has average risk. She has collected the following information: • The company has outstanding bonds that mature in 15 years. The bonds have a face value of $1,000, an annual coupon of 7.5%, and sell in the market today for $1150. There are 15,000 bonds outstanding.
• The risk-free rate is 3%
. • The market risk premium is 5%
. • The stock’s beta is 0.9
. • The company’s tax rate is 35%.
• The company has 100,000 shares of preferred stock with a par value of $100. These shares are currently trading at $73, and pay an annual dividend of $3.50.
• The company also has 2,250,000 common shares trading at $15. These shares last paid an annual dividend of $0.33.
What is Acme's...
a. weight of common shares
b. before tax cost of acmes debt
c. preferred shares
d. value of debt
e. weight of debt
f. firm value

As consumers, we continually interact and consume brands to satisfy our functional and emotional needs. Applying the theory covered as part of this module to your own experience as consumers,

1. Brands play important roles for consumers. For instance, they act as relationship partners that enable consumers to resolve personal issues. Drawing on Fournier (1998) typology of relationships between consumers and brands, identify six types of relationships you as a consumer have with different brands .

As consumers, we continually interact and consume brands to satisfy our functional and emotional needs. Applying the theory covered as part of this module to your own experience as consumers, answer all three questions:-

1. The Internet and digital world has presented new opportunities and threats for brand managers. One threat is the increasing competition traditional, bricks and mortar retail brands are facing from online retail brands. In order to survive, traditional retail brands are having to adapt to this changing environment .

1. Review the impact the Internet and digital space has had on traditional retail brands .
2. What three recommendations would you have for traditional retail brands to survive in the increasingly digital and online world? .

At $80 , a firm can sell 4,715 stereo earphones (3.5 mm for android). At this price, elasticity is estimated at 2.2. What is the change in total revenue (+ or -) if the firm drops price by 12%? Round your answer to the nearest dollar.

At $171, a firm can sell 19,195 stereo earphones (3.5 mm for android). These are premium earphones, guaranteed for 5 years. At this price, elasticity is estimated at 0.4. What is the change in total revenue (+ or -) if the firm drops price by 10%?

The Facts: Enzo and Marie have come to your office for some business organization advice. They plan to set up a flower shop. Enzo will work in the store. Marie will invest the original operating capital of $100,000. They want to share management authority, profits and losses equally. They plan to distribute all of the profits from the business to themselves as they are earned.

(1) List TWO benefits a member-managed Limited Liability Company (LLC) would provide Enzo and Marie based on the fit between the basic business planning characteristics of such an LLC and their expressed business objectives. (Worth 5 points)

(2) Assuming they elect to do business as an LLC, what advice would you give Enzo and Marie about signing any agreements with third parties before the LLC is formed? (Covered this problem in class and made a statement about it) (Worth 5 points)

(3) When does the LLC's existence begin? (Worth 2 points) (

4) Gerard is an incredible candy maker and would like to go into business for himself, but he needs some money to get started. His parents want to help him get his feet on the ground and start his career. They agree to invest in his business; however, they don’t want to be involved in any part of the business, they are just trying to help him out. Gerard asks your supervising attorney for advice on how to organize his business. The task is assigned to you. What business form would suit the needs of Gerard? Why? What are the advantages of this business form?

5) Gerard may have two different business forms that could be used. Name each and provide a brief description of the benefits and detriments of each one. Then which of those two would you recommend and why? (Worth 10 points)

What is the theory of personality according to humanism?

The following income statement and balance sheets for Virtual Gaming Systems are provided.

Earnings per share for the year ended December 31, 2021, are $1.20. The closing stock price on December 31, 2021, is $27.50.

Required:

Calculate the following profitability ratios for 2021. (Round your answers to 1 decimal place.)

When looking at the macro economy right now, the Federal Reserve System seems to be taking the position that a recession is unlikely at least for the next year. Given the seven companies listed in the first assignment (i.e., AAPL, ADP, AMZN, GOOGL, JPM, MCD, and WEN), list three firms most likely to benefit from an upturn in economic activity. Please provide a short justification for each firm you select.

Assume that Product Z is made of two units of A and three units of B. A is made of three units of C and four of D. D is made of two units of E.

Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks.

Fifty five units OF Product Z are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.)

b. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave no cells blank - be certain to enter "0" wherever required.)

QUESTION 41 The current stock price for a company is $48 per share, and there are 4 million shares outstanding. The beta for this firms stock is 1.3, the risk-free rate is 4.7, and the expected market risk premium is 6.4%. This firm also has 230,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 7%, 17 years to maturity, a face value of $1,000, and an annual yield to maturity of 7.1%. If the corporate tax rate is 35%, what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent, but do not use a percent sign).