A, D, and E are part of a contractionary fiscal policy, B is Part of an expansionary fiscal policy and C is Not part of a fiscal policy. Fiscal policy refers to the use of government spending and taxation to influence the economy.
Expansionary fiscal policy involves increasing government spending and/or decreasing taxes in order to stimulate economic growth and combat recession. This can lead to an increase in aggregate demand and output and can lead to inflation if the economy is already at full employment.
Contractionary fiscal policy involves decreasing government spending and/or increasing taxes in order to slow down the economy and combat inflation. This can lead to a decrease in aggregate demand and output and can lead to a recession if the economy is already operating below its potential.
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San antonio independent school district v. rodriguez (1973) in 1968, members of the edgewood concerned parent association filed a lawsuit in a texas district court challenging that the system of using property taxes as the main source of revenue for school districts discriminated against poorer school districts. they provided evidence showing that wealthier schools serving primarily white students spent more money per pupil than poorer schools, especially those with minority populations. without a wealthy tax base to fund their schools, they argued that poorer students’ fourteenth amendment rights were being violated.the case was brought before the supreme court in san antonio independent school district v. rodriguez (1973). in a 5-4 decision, which was divided along ideological lines, the supreme court ruled that the students’ constitutional rights were not violated by the texas school funding plan. in writing the majority opinion, justice powell stated that "the texas plan is not the result of hurried, ill-conceived legislation. it certainly is not the product of purposeful discrimination against any group or class. on the contrary, it is rooted in decades of experience in texas and elsewhere, and, in major part, is the product of responsible studies by qualified people."
question a. identify the clause of the fourteenth amendment that is common to both brown v. board of education of topeka (1954) and san antonio independent school district v. rodriguez (1973).
b. explain how the difference in facts led to a different decision in both brown v. board of education of topeka and san antonio independent school district v. rodriguez.
c. explain how the outcome in san antonio independent school district v. rodriguez demonstrates how public policy regarding equality of opportunity is affected by federalism in the united states.
The clause of the Fourteenth Amendment is the equal protection clause. In Brown v. Board of Education of Topeka (1954), the issue was whether the segregation of public schools was based on race. San Antonio Independent School District v. Rodriguez case outcome is regarding equal opportunity being affected by federalism.
a. The clause of the fourteenth amendment that is common to both Brown v. Board of Education of Topeka (1954) and San Antonio Independent School District v. Rodriguez (1973) is the equal protection clause.
b. In Brown v. Board of Education of Topeka, the issue was the segregation of schools based on race, which the Supreme Court ruled was unconstitutional and a violation of the equal protection clause. In San Antonio Independent School District v. Rodriguez, the issue was the funding of schools based on property taxes, which the Supreme Court ruled did not violate the equal protection clause as it was not a purposeful discrimination against any group or class.
c. The outcome in San Antonio Independent School District v. Rodriguez demonstrates how public policy regarding equality of opportunity is affected by federalism in the United States because it allows states to have control over their own educational systems and funding, which can lead to disparities in resources and opportunities for students in different areas. The Supreme Court's decision, in this case, upheld the state's right to determine its own funding system, even if it resulted in unequal educational opportunities for students. This highlights the challenge of balancing state autonomy with the federal government's responsibility to ensure equal protection and opportunity for all citizens.
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On December 31, 2017, Eppel, Inc. Borrowed $900,000 on an eight percent, 15-year mortgage note payable. The note is to be repaid in equal semiannual installments of $52,047 (payable on June 30 and December 31). Prepare journal entries to reflect (a) issuance of the mortgage note payable, (b) the payment of the first installment on June 30, 2018, and (c) the payment of the second installment on December 31, 2018. Round amounts to the nearest dollar
(a) Issuance of mortgage note payable:
Cash: $900,000
Mortgage Note Payable: $900,000
(b) Payment of first installment on June 30, 2018:
Interest Expense: $36,000
Mortgage Note Payable: $16,047
Cash: $52,047
Calculation:
Interest Expense = ($900,000 × 8% × 6/12) = $36,000
Payment toward principal = $52,047 - $36,000 = $16,047
(c) Payment of second installment on December 31, 2018:
Interest Expense: $34,200
Mortgage Note Payable: $17,847
Cash: $52,047
Calculation:
Interest Expense = (($900,000 - $16,047) × 8% × 6/12) = $34,200
Payment toward principal = $52,047 - $34,200 = $17,847
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A company has 1,700 shares of 6%, $100 par value preferred stock the company issued at the beginning of Year 1. All remaining shares are common stock. The company was not able to pay dividends in Year 1, but plans to pay dividends of $22,000 in Year 2. Required:
1. & 2. How much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in Year 2, assuming the preferred stock is cumulative? What if the preferred stock were noncumulative?
If the preferred stock is cumulative, the company must first pay any missed dividends from the previous year before paying any dividends to common stockholders. The remaining $11,500 of the $22,000 dividend would be paid to common stockholders.
In this case, the missed dividend from Year 1 is 1,700 shares x $100 par value x 6% dividend rate = $10,200.
Therefore, the preferred stockholders will receive $10,200 + $10,500 (1,700 shares x $100 par value x 6% dividend rate for Year 2) = $20,700 of the $22,000 dividend, and the remaining $1,300 will be paid to common stockholders.
If the preferred stock were noncumulative, the missed dividend from Year 1 would not have to be paid, and the preferred stockholders would only receive $10,500 (1,700 shares x $100 par value x 6% dividend rate for Year 2).
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Which workplace climate best encourages employee responsibility?
Question 18 options:
Common goals encourage employees to work together rather than compete against each other.
Employees have a sense of ownership, and the employer delegates his authority.
Hard work and achievements are recognized then used as an employee motivator.
Objectives are clearly defined, and goals help motivate employees to complete tasks.
The workplace climate that best encourages employee responsibility is when B. employees have a sense of ownership, and the employer delegates his authority.
How can this encourage employee responsibility ?Employees who feel a sense of ownership in their work are inclined to assume responsibility for the consequences and take proactive measures towards accomplishing organizational objectives.
Further, delegation of authority constitutes regard and trust shown in their skills, serving as an impetus to propel them to undertake initiatives at their workplace with accountability.
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Select the correct answer. the bankruptcy abuse and prevention and consumer protection act limited the number of debtors who could declare which type of bankruptcy? a. chapter 7 b. chapter 13 c. chapter 12 d. chapter 15
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) limited the number of debtors who could declare Chapter 7 bankruptcy.
The BAPCPA, enacted in 2005, made significant changes to bankruptcy law, aiming to reduce the number of bankruptcy filings and to ensure that individuals pay back some of their debts. Chapter 7 bankruptcy allows debtors to liquidate their non-exempt assets to repay creditors, and remaining debts are often discharged.
BAPCPA introduced a means test to determine if an individual is eligible for Chapter 7 bankruptcy. The test examines the debtor's income, expenses, and debt level. If the debtor's income is higher than the median income for their state, they may be required to file for Chapter 13 bankruptcy instead.
Chapter 13 bankruptcy involves the creation of a repayment plan where debtors pay back a portion of their debts over a 3-5 year period.
In summary, the BAPCPA limited the number of debtors who could declare Chapter 7 bankruptcy by implementing a means test that directs some debtors towards Chapter 13 bankruptcy. This change aimed to reduce bankruptcy filings and encourage debt repayment when possible.
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According to the five forces model, _______ levels of competition for customers translate to _______ levels of profit in the industry.
According to the five forces model, High levels of competition for customers translate to low levels of profit in the industry.
This is because when there is intense competition, customers have more options to choose from, giving them greater bargaining power. As a result, companies may need to lower their prices or offer additional incentives to attract and retain customers.
This can lead to reduced profit margins for businesses as they strive to remain competitive. Additionally, increased competition often leads to market saturation, making it challenging for companies to differentiate themselves and maintain a sustainable competitive advantage, further impacting profitability in the industry.
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which of the following describes how american options can be valued using a binomial tree? group of answer choices a. check whether early exercise is optimal at all nodes where the option is in-the-money. b. check whether early exercise is optimal at the final nodes. c. check whether early exercise is optimal at the penultimate nodes and the final nodes. d. none of the above.
Option C explains how a binomial tree can be used to value American options.
The correct answer to the question is (c) check whether early exercise is optimal at the penultimate nodes and the final nodes.
The binomial tree model is a commonly used tool to value American options. This model considers two possible outcomes for each period of time, and it constructs a tree of possible future stock prices, allowing for the calculation of the option's value at each node of the tree.
In the case of American options, the owner has the right to exercise the option at any point up to and including its expiration date.
This means that the option may be exercised early, and therefore, the option's value may depend on whether early exercise is optimal or not. To determine the value of an American option using a binomial tree, the model checks whether early exercise is optimal at each node of the tree. However, checking whether early exercise is optimal at every single node would be computationally expensive, and therefore, it is not practical. Instead, the model checks whether early exercise is optimal at the penultimate nodes and the final nodes.
The penultimate nodes are the last nodes before expiration, and they represent the decision points where the option owner must decide whether to exercise the option early or not.
The final nodes are the nodes at expiration, and the option must be exercised at these nodes.
By only checking whether early exercise is optimal at the penultimate and final nodes, the model can determine the option's value with reasonable accuracy while keeping the computation time reasonable. Therefore, the correct answer is (c) check whether early exercise is optimal at the penultimate nodes and the final nodes.
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explain the importance of entrepreneurship in the US economy. Clearlycommunicate the benefits and the drawbacks of entrepreneurship in the United States.
Entrepreneurship plays a crucial role in the US economy by driving innovation, creating new jobs, and fueling economic growth. Entrepreneurs are individuals who identify opportunities, take risks, and start new businesses.
They bring new products and services to market, disrupt existing industries, and create new ones. The importance of entrepreneurship in the US economy can be seen through the following benefits. New businesses create jobs, and entrepreneurs are responsible for most of the new job growth in the US. According to the Small Business Administration (SBA), small businesses created 1.5 million net new jobs in 2019, and they account for about half of all private-sector jobs in the US. Entrepreneurs drive economic growth by introducing new products and services, improving productivity, and fostering competition. They also attract investment and create wealth, which can then be reinvested in the economy. Entrepreneurs are often driven by a desire to solve problems and create something new. They introduce new technologies, processes, and business models that can transform industries and drive progress. Entrepreneurs are often more nimble and adaptable than larger corporations, which allows them to respond quickly to changes in the market and innovate more effectively.
However, there are also some drawbacks to entrepreneurship in the United States. These include Entrepreneurship involves taking risks, and not all ventures are successful. Entrepreneurs often invest their own money, time, and resources into their ventures, which can lead to financial ruin if the business fails. Entrepreneurs face stiff competition from established companies, as well as other startups. It can be difficult to stand out in a crowded market and gain traction. Starting a business can be a complex and time-consuming process, particularly when it comes to complying with regulations and obtaining licenses and permits. While successful entrepreneurs can create significant wealth, not all entrepreneurs succeed. Income inequality can widen as a result, with successful entrepreneurs earning significantly more than those who are less successful.
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The accounting records of Shinault Inc. Show the following data for 2020 (its fi rst year of operations). 1. Life insurance expense on offi cers was $9,000. 2. Equipment was acquired in early January for $300,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Shinault used a 30% rate to calculate depreciation
Shinault Inc. recorded $9,000 in life insurance expense and $60,000 in depreciation expense on the equipment in 2020. The company will also have a deferred tax liability due to the difference between financial reporting and tax reporting of depreciation expense.
In 2020, Shinault Inc. incurred $9,000 in life insurance expense for its officers. This expense is recorded on the income statement as part of the company's operating expenses. Life insurance premiums paid on behalf of officers are considered a normal and necessary business expense and are tax deductible.
In addition, the company acquired equipment in early January for $300,000. The equipment has a useful life of 5 years with no salvage value. For financial reporting purposes, Shinault uses straight-line depreciation to allocate the cost of the equipment over its useful life.
Therefore, the company will recognize $60,000 ($300,000/5 years) of depreciation expense each year for the next five years.
For tax purposes, the company uses a 30% rate to calculate depreciation. This means that the company will be able to deduct $90,000 ($300,000 x 30%) of depreciation expense for tax purposes in 2020.
The difference between the financial reporting depreciation expense of $60,000 and the tax depreciation expense of $90,000 will create a deferred tax liability. The deferred tax liability represents the additional taxes that the company will pay in the future due to the timing differences between financial reporting and tax reporting.
In summary, Shinault Inc. recorded $9,000 in life insurance expense and $60,000 in depreciation expense on the equipment in 2020. The company will also have a deferred tax liability due to the difference between financial reporting and tax reporting of depreciation expense.
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which of the following statements is true? question 13 options: 1) all people who experience manic symptoms will experience symptoms of depression at some point during their lifetime. 2) an episode of depression is required for the diagnosis of bipolar i. 3) an episode of depression is required for the diagnosis of bipolar ii. 4) researchers often study triggers of manic and depressive episodes simultaneously.
Bipolar disorder is a mental health condition characterized by episodes of mania or hypomania (less severe than mania) and depression. There are several types of bipolar disorder, including bipolar I and bipolar II.
The correct answer is: 2) an episode of depression is required for the diagnosis of bipolar I. To be diagnosed with bipolar disorder, a person must have experienced at least one manic episode in their lifetime. A manic episode is defined as a period of abnormally elevated, expansive, or irritable mood lasting for at least one week (or less if hospitalization is necessary) and accompanied by other symptoms such as decreased need for sleep, increased talkativeness, racing thoughts, and reckless behavior.
While an episode of depression is not required for the diagnosis of bipolar I disorder, it is common for people with bipolar I to experience episodes of depression as well. In contrast, for the diagnosis of bipolar II disorder, a person must have experienced at least one hypomanic episode and one major depressive episode.
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1. At the beginning of 2016, the stock market value (Dow Jones Industrial Average) was around 17,150; median house prices were at $357,000; oil was selling at $36/barrel and gold was selling at $1,073/ounce. Five years later (January of this year), they were at 30610 (DJIA), $393,000 (house prices), $68 (oil), and $1,891 (gold). Which of these four investments would have been the best choice for those five years
To determine which investment would have been the best choice over the five-year period, we need to calculate the percentage change in value for each of the four investments. The investment with the highest percentage change would have provided the best return.
Dow Jones Industrial Average (DJIA):
Percentage change = [(30610 - 17150)/17150] x 100% = 78.54%
Median house prices:
Percentage change = [(393000 - 357000)/357000] x 100% = 10.08%
Oil:
Percentage change = [(68 - 36)/36] x 100% = 88.89%
Gold:
Percentage change = [(1891 - 1073)/1073] x 100% = 76.90%
Based on these calculations, we can see that oil had the highest percentage change and would have provided the best return over the five-year period. The Dow Jones Industrial Average also had a high percentage change, but not as high as oil. Gold had a lower percentage change than oil and DJIA, while median house prices had the lowest percentage change. However, it's important to note that past performance is not necessarily indicative of future results, and there are many factors that can affect the performance of different investments over time.
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Suppose that your favorite electronics store maintains an inventory of a certain brand and model of mp3 player. the store pays the manufacturer $165 for each mp3 player ordered. each order incurs a fixed cost of $40 in order processing, shipping, etc. and requires a 2 week lead time. the store estimates that its cost of capital is 17% per year, and it estimates its other holding costs (warehouse space, insurance, etc.) at $1 per mp3 player per month. the demand for mp3 players is steady at 40 per week.
required:
a. using the eoq model, calculate the optimal order quantity, reorder point (r), and average cost per year.
b. now suppose that backorders are allowed, and that each backorder incurs a stockout penalty of $60 per stockout per year. using the eoq model with planned backorders, calculate the optimal order quantity, stockout percentage (x), reorder point (r), and average cost per year. how much money would the store save per year by allowing stockouts, expressed as a percentage?
The store pays the manufacturer $165 for each mp3 cost estimations theory player ordered. each order incurs a fixed cost of $40 in order processing, shipping, etc that backorders are allowed, and that each backorder.
A stockout penalty of $60 per stockout per year. using the eoq model with planned backorders, calculate the optimal order quantity,
Before you can calculate the cost of creating mp3 devices, you must first determine the company's entire overhead costs.
Cost-benefit analysis illustration.
• Divide the $2000 weekly overhead expense by the quantity of weeks required to produce the mp3 devices.
• After that, add the price of each MP3 player to the overall overhead expense. The sum of these two figures is the cost of manufacturing mp3 players.
• For instance, if manufacturing the mp3 devices takes 4 weeks, the final cost would be $8,180 ($2000 x 4 weeks + 45 x 4 weeks).
Cost of overhead is $2000 per week.
MP3 Player Price: $45 .Total Price = Overhead Price + MP3 Player Price Total Price = $2000.
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bond x is a premium bond making semiannual payments. the bond has a coupon rate of 6.8 percent, a ytm of 6.2 percent, and 13 years to maturity. bond y is a discount bond making semiannual payments. this bond has a coupon rate of 6.2 percent, a ytm of 6.8 percent, and also 13 years to maturity. assume the interest rates remain unchanged and a $1,000 par value. what are the prices of these bonds today? note: do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. what do you expect the prices of these bonds to be in one year? note: do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. what do you expect the prices of these bonds to be in three years? note: do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. what do you expect the prices of these bonds to be in eight years? note: do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. what do you expect the prices of these bonds to be in 12 years? note: do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. what do you expect the prices of these bonds to be in 13 years? note: do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
The prices of these bonds today are $1,222.45 and $846.18.
The prices of these bonds to be in one year are $1,174.98 and $896.59.
The price of these bonds in three years are $1,016.67 and $787.60.
The price of these bonds in eight years are $973.89. and $596.23.
The price of these bonds in 12 years are $985.40. and $383.86.
The price of these bonds in 13 years are $1,000 and $1,028.22.
Bond X is a premium bond, which means its coupon rate is higher than the YTM, so its price today will be higher than its face value of $1,000. Using the present value formula, we can calculate its price as follows:
PV = (C / 2) / (1 + r/2) + (C / 2) / (1 + r/2)^2 + ... + (C / 2 + F) / (1 + r/2)^26
PV = (34 / (1 + 0.031)^1) + (34 / (1 + 0.031)^2) + ... + (1034 / (1 + 0.031)^26)
PV = $1,222.45
Bond Y is a discount bond, which means its coupon rate is lower than the YTM, so its price today will be lower than its face value of $1,000. Using the same present value formula, we can calculate its price as follows:
PV = (C / 2) / (1 + r/2) + (C / 2) / (1 + r/2)^2 + ... + (C / 2 + F) / (1 + r/2)^26
PV = (31 / (1 + 0.034)^1) + (31 / (1 + 0.034)^2) + ... + (1031 / (1 + 0.034)^26)
PV = $846.18
In one year, we expect the prices of both bonds to change due to the change in market interest rates. Assuming that the YTM of Bond X increases by 20 basis points (0.2%), we can use the present value formula to calculate its new price:
PV = (C / 2) / (1 + r/2) + (C / 2) / (1 + r/2)^2 + ... + (C / 2 + F) / (1 + r/2)^25 + (C / 2 + F) / (1 + r/2)^26
PV = (34 / (1 + 0.043)^1) + (34 / (1 + 0.043)^2) + ... + (34 / (1 + 0.043)^25) + (1034 / (1 + 0.043)^26)
PV = $1,174.98
Assuming that the YTM of Bond Y decreases by 20 basis points (0.2%), we can use the same formula to calculate its new price:
PV = (C / 2) / (1 + r/2) + (C / 2) / (1 + r/2)^2 + ... + (C / 2 + F) / (1 + r/2)^25 + (C / 2 + F) / (1 + r/2)^26
PV = (31 / (1 + 0.052)^1) + (31 / (1 + 0.052)^2) + ... + (31 / (1 + 0.052)^25) + (1031 / (1 + 0.052)^26)
PV = $896.59
In three years:
Bond X: The number of semiannual periods is 3 * 2 = 6.
The semiannual coupon payment is $1,000 * 6.8% / 2 = $34. The present value of the semiannual coupon payments is
$34 * (1 - 1 / (1 + 3.1% / 2)^6) / (3.1% / 2) = $186.05.
The present value of the principal payment is $1,000 / (1 + 3.1% / 2)^6 = $830.62. Therefore, the price of Bond X in three years is $186.05 + $830.62 = $1,016.67.
Bond Y: The number of semiannual periods is 3 * 2 = 6. The present value of the principal payment is $1,000 / (1 + 7% / 2)^6 = $787.60. Therefore, the price of Bond Y in three years is $787.60.
In eight years:
Bond X: The number of semiannual periods is 8 * 2 = 16. The semiannual coupon payment is $1,000 * 6.8% / 2 = $34.
The present value of the semiannual coupon payments is
$34 * (1 - 1 / (1 + 3.1% / 2)^16) / (3.1% / 2) = $370.05.
The present value of the principal payment is $1,000 / (1 + 3.1% / 2)^16 = $603.84.
Therefore, the price of Bond X in eight years is $370.05 + $603.84 = $973.89.
Bond Y: The number of semiannual periods is 8 * 2 = 16. The present value of the principal payment is $1,000 / (1 + 7% / 2)^16 = $596.23.
Therefore, the price of Bond Y in eight years is $596.23.
In 12 years:
Bond X: The number of semiannual periods is 12 * 2 = 24.
The semiannual coupon payment is
$1,000 * 6.8% / 2 = $34.
The present value of the semiannual coupon payments is
$34 * (1 - 1 / (1 + 3.1% / 2)^24) / (3.1% / 2) = $595.17.
The present value of the principal payment is
$1,000 / (1 + 3.1% / 2)^24 = $390.23.
Therefore, the price of Bond X in 12 years is $595.17 + $390.23 = $985.40.
Bond Y: The number of semiannual periods is 12 * 2 = 24. The present value of the principal payment is $1,000 / (1 + 7% / 2)^24 = $383.86. Therefore, the price of Bond Y in 12 years is $383.86.
In 13 years, bond X will have reached maturity and will be redeemed at its face value of $1,000. Therefore, its price will be equal to its par value of $1,000.
On the other hand, bond Y will have only one more semi-annual coupon payment left before it reaches maturity, and it will be redeemed at its face value of $1,000. Therefore, its price will be the present value of that final coupon payment plus the present value of the face value. Using the same formula as before, we get:
P = 31.10/(1+0.034)^24 + 1000/(1+0.034)^26
P = $1,028.22
Therefore, we can see that the prices of the two bonds will converge as they approach maturity, and in this case, the premium bond X will have a higher price at the time of purchase, but the discount bond Y will have a higher price at the time of maturity.
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3) Suppose that for a particular economy, investments (I) equal $100m, government expenditures (G) are $250m, exports (X) amount to 400m while imports (M) are $175m. The consumption function can be represented by the following equation:
C = 300M + 0. 80Yd
a) Identify the following:
(i) Autonomous consumption 1 mark
(ii) The marginal propensity to consume 1 mark
(iii) The value of the multiplier 2 marks
b) Calculate the equilibrium level of GDP(Y) 5 marks
c) Draw a Keynesian cross showing the equilibrium level of GDP (calculated in question 3b) and aggregate expenditure. 5 marks
Autonomous consumption: There is no autonomous consumption given in the problem. Autonomous consumption refers to the amount of consumption that does not depend on the level of income or disposable income.
(i, ii) The marginal propensity to consume: The marginal propensity to consume (MPC) is the fraction of additional income that is consumed. From the consumption function, we can see that MPC = 0.80.
(iii) The value of the multiplier: The multiplier represents the ratio of the change in equilibrium output to the change in autonomous expenditure. It is calculated as 1/(1-MPC). So, in this case, the multiplier is 1/(1-0.80) = 5.
b) The equilibrium level of GDP can be found by setting aggregate expenditure (AE) equal to output (Y). Aggregate expenditure is the sum of consumption (C), investment (I), government expenditure (G), and net exports (NX).
AE = C + I + G + NX
= (300M + 0.80Yd) + 100 + 250 + (X - M)
= (300M + 0.80(Y - T)) + 100 + 250 + (400 - 175)
= 300M + 0.80Y - 0.80T + 675
So, AE = 300M + 0.80Y + 675
Setting AE equal to Y, we get:
Y = 300M + 0.80Y + 675
0.20Y = 975 - 300M
Y = (975 - 300M)/0.20
Y = 4875 - 1500M
Therefore, the equilibrium level of GDP is $4875 million.
c) The Keynesian cross is a graphical representation of the equilibrium condition of an economy. It shows the relationship between aggregate expenditure and output. In the Keynesian cross diagram, output is shown on the horizontal axis, while aggregate expenditure is shown on the vertical axis.
Investment is a fixed amount of $100 million and is represented by a horizontal line at $100 million.
Government expenditure is a fixed amount of $250 million and is represented by a horizontal line at $250 million.
Net exports are equal to $400 million - $175 million = $225 million. At the initial level of output, net exports are positive, so we can represent this on the graph by adding an upward sloping line. The slope of the line is determined by the marginal propensity to import (MPM), which is the fraction of additional income that is spent on imports. In this case, we assume MPM is constant and equal to 0.10, so the slope of the net exports line is 0.10.
Consumption is given by the equation C = 300M + 0.80Yd. Disposable income is equal to output (Y) minus taxes (T), and in this case we assume taxes are 0, so Yd = Y. We can represent the consumption function on the graph as an upward sloping line with a slope of 0.80.
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Select the correct answer from each drop-down menu.
What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ____ planning in order to improve its economy.
1. Short-term/detailed/fulfilled
2. Restrictive/long-term/constructive
A nation can undergo Restrictive planning or long-term planning in order to improve its economy. So, the correct answer is 2).
Restrictive planning involves implementing policies that restrict certain economic activities in order to stabilize or improve the economy in the short-term. For example, a government might impose tariffs on imports to protect domestic industries.
Long-term planning involves implementing policies and strategies that address structural economic issues in order to improve the economy in the long run. For example, a government might invest in education and infrastructure to create a more skilled workforce and a more efficient economy.
Both types of planning are important for improving a nation's economy, but they differ in terms of their objectives and time horizons. Option 2 is the correct answer.
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break-even sales and sales to realize a target profit for the current year ending october 31, papadakis company expects fixed costs of $451,000, a unit variable cost of $44, and a unit selling price of $66. a. compute the anticipated break-even sales (units). fill in the blank 1 units b. compute the sales (units) required to realize a target profit of $103,400. fill in the blank 2 units
a) The anticipated break-even sales (units) for the current year ending October 31 is 11,275 units.
b) The sales (units) required to realize a target profit of $103,400 for the current year ending October 31 is 5,750 units.
a) To calculate the anticipated break-even sales (units), we need to determine the number of units that the company needs to sell to cover its fixed and variable costs. We can use the following formula to calculate break-even sales:
Break-even sales (units) = Fixed costs ÷ (Unit selling price - Unit variable cost)
Plugging in the given values, we get:
Break-even sales (units) = $451,000 ÷ ($66 - $44) = 11,275 units
b) To compute the sales (units) required to realize a target profit of $103,400, we need to use the following formula:
Sales (units) = (Fixed costs + Target profit) ÷ (Unit selling price - Unit variable cost)
Plugging in the given values, we get:
Sales (units) = ($451,000 + $103,400) ÷ ($66 - $44) = 5,750 units
In summary, break-even sales and sales to realize a target profit are important concepts for businesses to understand their financial performance.
Break-even sales help businesses determine the minimum sales volume they need to cover their costs, while sales to realize a target profit help businesses set and achieve their profit goals.
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During the Great Depression in the 1930s, before the creation of the Federal Deposit Insurance Corporation by Franklin D. Roosevelt, many banks were rumored to go broke. Thus, panicked depositors tried to withdraw their money at the same time, which caused many banks to indeed go bankrupt. Answer the following questions.
As more banks went broke in the Great Depression, how did this case of negative excess reserves affect the supply of money in circulation? [Be sure to include the multiplier effect –in this case negative - in your answer. This is a case of the multiplier effect, but in reverse. ] This was a primary cause of the extreme severity and length of the Great Depression: There was not enough money in circulation, so people could not buy goods, there were lay-offs and unemployment, there was deflation, which discouraged investment by businesses, which led to more unemployment and poverty. Vicious circle.
In this case of the Great Depression, explain how the action of individual depositors to withdraw their money is a case of the "Fallacy of Composition. "
The Federal Deposit Insurance Corporation was created in 1933 by the Franklin D. Roosevelt Administration. What did the Federal Deposit Insurance Corporation do to prevent runs on the banks?
We see now in 2020 and 2021 with the Covid pandemic that the Federal Reserve has encouraged borrowing by setting very low interest rates, and the Congress has passed out much money to individuals in these years (I myself received more than $2500 from the US Treasury. ) As compared to the Great Depression, what is the intent of the Federal Reserve and the Congress in 2020-2021?
Assume the required reserve ratio is 10 percent and a bank’s excess reserves are $50 million. Explain why checkable deposits resulting from new loans based on excess reserves are not likely to generate the maximum of $500 million.
Describe in a few words the effect on the money supply of each of the following monetary policies:
The Fed purchases $20 million worth of U. S. Treasury bonds.
The Fed increases the discount rate.
The Fed decreases the discount rate.
The Fed sells $40 million worth of U. S. T-bills.
The Fed decreases the required reserve ratio from 10% to 5%.
What are two problems faced by the Fed in controlling the money supply?
The Great Depression was characterized by negative excess reserves and a contraction of the money supply, caused by panicked depositors withdrawing their funds from the banks. The creation of the FDIC helped to prevent runs on banks by insuring deposits.
As more banks went broke in the Great Depression, the supply of money in circulation decreased due to negative excess reserves. When depositors withdrew their money from the banks, the banks lost a portion of their reserves, which led to a decrease in their ability to create loans.
This reduction in lending capacity, combined with the multiplier effect, resulted in a contraction of the money supply. As banks failed, more depositors panicked and withdrew their funds, exacerbating the downward spiral of the economy. This is a classic case of the "Fallacy of Composition" where individual actions taken in isolation can have unintended and negative consequences on the economy as a whole.
To prevent runs on banks, the Federal Deposit Insurance Corporation was created. The FDIC insures bank deposits up to a certain amount, which reassures depositors that their money is safe and encourages them to leave their money in the bank.
In 2020-2021, the intent of the Federal Reserve and Congress was to stimulate the economy by increasing borrowing and spending. The low-interest rates encouraged investment and spending, while government stimulus payments put more money in the hands of consumers. The aim was to prevent a recession and ensure that the economy remained stable.
If a bank's excess reserves are $50 million and the required reserve ratio is 10%, it can generate up to $500 million in checkable deposits resulting from new loans. However, this assumes that all new loans will be deposited back into the same bank, which is unlikely. Some of the new loans may be deposited into other banks, leading to a smaller increase in checkable deposits.
The effect of the Fed purchasing $20 million worth of U.S. Treasury bonds is to increase the money supply. This is because the Fed is injecting money into the economy by purchasing bonds, which increases the reserves of the banks and allows them to make more loans.
When the Fed increases the discount rate, it becomes more expensive for banks to borrow money from the Fed, which reduces the money supply. This is because banks are less likely to borrow money when the cost of borrowing is high.
When the Fed decreases the discount rate, it becomes cheaper for banks to borrow money from the Fed, which increases the money supply. This is because banks are more likely to borrow money when the cost of borrowing is low.
When the Fed sells $40 million worth of U.S. T-bills, it decreases the money supply. This is because the Fed is taking money out of the economy by selling the T-bills, which reduces the reserves of the banks and limits their ability to make loans.
When the Fed decreases the required reserve ratio from 10% to 5%, it increases the money supply. This is because banks are required to hold fewer reserves, which allows them to make more loans and create more money.
Two problems faced by the Fed in controlling the money supply are the time lags involved in implementing monetary policy and the difficulty of predicting the effects of policy changes on the economy. It can take months for changes in interest rates or reserve requirements to have an impact on the economy, which can make it difficult to time policy changes correctly.
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kinnane's fine furniture manufactures two models: standard and premium. weekly demand is estimated to be 100 units of the standard model and 72 units of the premium model. the following per unit data apply: kinnane's fine furniture data standard premium contribution margin per unit $24 $30 number of machine hours required 3 5 if there are 495 machine hours available per week, how many rockers of each model should kinnane produce to maximize profits?
Kinnane's should produce 100 units of the standard model and 72 units of the premium model to maximize profits.
To maximize profits, Kinnane's Fine Furniture should produce the models that provide the highest contribution margin per machine hour.
Let's calculate the contribution margin per machine hour for each model;
Standard model: $24 / 3 hours = $8 per machine hour
Premium model: $30 / 5 hours = $6 per machine hour
Therefore, the standard model provides a higher contribution margin per machine hour than the premium model.
To determine the optimal production quantity for each model, we can use the following steps;
Determine the maximum number of standard models that can be produced given the machine hours available: 495 machine hours / 3 hours per standard model = 165 standard models
Determine the maximum number of premium models that can be produced given the machine hours available: 495 machine hours / 5 hours per premium model = 99 premium models
Since the demand for the standard model is 100 units and the maximum production capacity is 165 units, Kinnane's should produce 100 units of the standard model.
Since the demand for the premium model is 72 units and the maximum production capacity is 99 units, Kinnane's should produce 72 units of the premium model.
Therefore, Kinnane's will produce 100 units of tandard model and 72 units of the premium model.
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Can you describe for me Tesla INC (ROIC) performance the past 3years .
Tesla Inc's (ROIC) performance over the past three years is quite impressive. Tesla, Inc. (TSLA) has a return on invested capital (ROIC) of -13.50 percent, which is significantly lower than the Auto Manufacturers industry average of 8.72 percent.
In addition, the company's three-year average ROIC is 3.11 percent.
About Tesla INC (ROIC) performanceTesla, Inc.'s ROIC for the last 12 months is -18.30 percent, which is lower than the prior year's 12-month ROIC of -16.70 percent. This demonstrates that the firm's ROIC has decreased in the previous year. The company's return on invested capital (ROIC) over the last three years has been weak, as shown by the graph.
ROIC measures a company's ability to generate a return on investment capital. Return on invested capital, on the other hand, is just one of many metrics that investors use to assess a company's profitability and future potential.
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Advertising revenue was falling off for my college newspaper,the Stetson Reporter, and large numbers of long-term advertisers were not renewing contracts. I designed a new promotional packet to go with the rate sheet and compared the benefits of Reporter circulation with other ad media in the area. I also set-up a special training session for the account executives with a School of Business Administration professor who discussed competitive selling strategies.
Based on the information you learned from the Mock Interview in Blackboard, this passage illustrates all the steps the STAR method.
A. True
B. False
A. True
The passage clearly describes a situation (S) where advertising revenue was falling off for the Stetson Reporter, and the problem was that long-term advertisers were not renewing contracts. The person then took action (T) by designing a new promotional packet, comparing benefits, and setting up a special training session for the account executives. The result (R) of this action is not explicitly stated in the passage, but it can be assumed that the goal was to increase advertising revenue and retain long-term advertisers. The person also demonstrates their skills and abilities (A) by designing a new promotional packet and arranging a training session with a School of Business Administration professor.
Overall, the passage effectively uses the STAR method to convey the situation, action, and skills involved in addressing the problem of declining advertising revenue. By highlighting specific actions and skills, the person shows their ability to take initiative, think creatively, and collaborate with others to achieve their goals.
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Jennifer, a salesperson for westerby industrial equipment, likes to address certain buyer objections before a buyer brings them up. in this scenario, jennifer most likely uses the _____ method of handling resistance.
Jennifer, a salesman for Westerby modern gear, likes to address specific purchaser protests before a purchaser brings them up. in this scenario, Jennifer most likely uses the forestalling method of handling resistance. The option (A) is correct.
Forestalling is a course of going about as a guarded cycle prior to happening an interaction. Taking into account the given situations, we can recognize that Jennifer followed the thwarting strategy to keep the opposition from purchasers before it worked out. She has information concerning opposition from her experience.
So. she picks an extra move for overcoming the resistance. Thus, the right response demonstrating the choice will Forestalling.
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This question is not complete, Here I am attaching the complete question:
Jennifer, a salesperson for westerby industrial equipment, likes to address certain buyer objections before a buyer brings them up. in this scenario, jennifer most likely uses the _____ method of handling resistance.
(A) forestalling
(B) direct denial
(C) translation
(D) questioning
(E) compensation
what is capital budgeting? group of answer choices the process of managing cash flow. the analysis of real asset investment opportunities. the process of managing current assets. none of the above.
Capital budgeting is the process of analyzing and evaluating potential investment opportunities in real assets, such as equipment, facilities, and infrastructure.
This process involves the use of financial tools and techniques to determine the feasibility of investing in a particular project or asset, based on factors such as cash flows, risk, and return on investment.
The primary objective of capital budgeting is to allocate scarce resources to projects that generate the highest return on investment and create the most value for the organization. It helps businesses to make informed decisions about long-term investments and to identify potential risks and uncertainties associated with these investments.
Capital budgeting involves several stages, including identifying potential investment opportunities, evaluating the cash flows associated with each opportunity, estimating the cost of capital, and assessing the risks and uncertainties of each investment. This process is crucial for businesses, as it helps them to allocate their resources more effectively and efficiently, and to make informed decisions about long-term investments.
In summary, capital budgeting is a critical process for businesses, as it enables them to evaluate and prioritize potential investment opportunities in real assets, based on their financial viability and potential return on investment. This process helps businesses to make informed decisions about long-term investments and to allocate their resources more effectively, leading to better financial performance and growth.
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Wings Co. Budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:
a. $1,020.
b. $990.
c. $6,400.
d. $3,460.
e. $1,600.
Can you explain what volume based costing is? Is it another name for traditional costing? What are formulas I need to know for ABC and Volume based costing?
Volume-based costing, also known as traditional costing, is a costing method that assigns indirect costs to products based on a single volume-based cost driver, such as direct labor hours, machine hours, or direct material costs. It assumes that the volume-based cost driver is the main cause of the indirect costs incurred in production. The formula for volume-based overhead rate is:
Volume-based overhead rate = Total estimated manufacturing overhead cost ÷ Total estimated volume-based cost driver
On the other hand, activity-based costing (ABC) is a costing method that assigns indirect costs to products based on multiple cost drivers that represent the activities required to produce the products. It recognizes that different activities consume different resources and cost drivers, and thus, more accurately reflects the true costs of production. The formula for ABC overhead rate is:
ABC overhead rate = Total estimated cost of each activity ÷ Total estimated cost driver of each activity
To calculate the overhead cost for a specific job using volume-based costing, you need to first calculate the overhead rate using the total estimated manufacturing overhead cost and the total estimated volume-based cost driver. Then, you multiply the overhead rate by the actual volume-based cost driver for the specific job. In this case, the volume-based cost driver is direct labor hours. The formula is:
Overhead cost for a job = Volume-based overhead rate x Actual direct labor hours for the job
Using the data provided, the volume-based overhead rate is calculated as follows:
Total estimated manufacturing overhead cost = $160,000 + $13,200 + $1,380 + $10,560 = $185,140
Total estimated direct labor hours = 2,315
Volume-based overhead rate = $185,140 ÷ 2,315 = $79.96 per direct labor hour
To calculate the manufacturing overhead for Job #971, you multiply the actual direct labor hours for the job (20) by the overhead rate:
Manufacturing overhead for Job #971 = $79.96 per direct labor hour x 20 direct labor hours = $1,599.20
Therefore, the closest answer to the manufacturing overhead for Job #971 using volume-based costing is option e, $1,600.
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a construction company entered into a fixed-price contract to build an office building for $18 million. construction costs incurred during the first year were $6 million, and estimated costs to complete at the end of the year were $9 million. the company recognizes revenue over time according to percentage of completion. during the first year the company billed its customer $6 million, of which $3 million was collected before year-end. what would appear in the year-end balance sheet related to this contract?
The year-end balance sheet related to this contract would show a net asset position of $3 million ($6 million in accounts receivable and construction in progress, less $3 million in contract liability).
Based on the information given, the construction company has entered into a fixed-price contract to build an office building for $18 million. As of the end of the first year, the company has incurred construction costs of $6 million and estimates that it will incur an additional $9 million in costs to complete the project.
The company also billed its customer $6 million during the first year, of which $3 million was collected before year-end.
Since the company recognizes revenue over time according to percentage of completion, the year-end balance sheet would show the following:
Accounts receivable: The amount of revenue recognized during the year but not yet collected, which is $3 million.
Construction in progress: The amount of costs incurred to date that have not yet been billed to the customer, which is $3 million ($6 million in costs incurred less $3 million in billing).
Contract liability: The amount of revenue recognized during the year that has not yet been earned, which is $3 million ($6 million in billing less $3 million in revenue recognized).
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A farmer has allocated 2000 acres of her farm for planting two crops. Crop A is more susceptible to frost than Crop B is. If there is no frost in the growing season, she can expect to make $40/acre from Crop A and $25/acre from Crop B. If there is mild frost, the expected profits are $20/acre from Crop A and $30/acre from Crop B. What profit could she expect to make using this optimal strategy
The optimal strategy is to allocate 1333 acres to Crop A and 667 acres to Crop B. With this strategy, the expected profit is $46,670.
To determine the optimal strategy, the farmer should allocate the crops in a way that maximizes her expected profit while taking into account the possibility of frost.
Let x is number of acres allocated to Crop A and y is the number of acres allocated to Crop B. The total acreage is 2000, so we have;
x + y = 2000
If there is no frost, the expected profit is;
Profit = $40x + $25y
If there is mild frost, the expected profit is;
Profit = $20x + $30y
In this case, we can solve the problem by using a simpler method called the "corner-point method."
The corner-point method involves evaluating the objective function at each corner point of the feasible region. The feasible region is the set of all possible combinations of x and y that satisfy the constraints.
In this case, the feasible region is the triangle with vertices at (0,2000), (1333,667), and (2000,0).
At the vertex (0,2000), we have x = 0 and y = 2000. The expected profit is;
Profit = $40x + $25y = $25(2000) = $50,000
At the vertex (1333,667), we have x = 1333 and y = 667. The expected profit is;
Profit = $20x + $30y = $26,660 + $20,010
= $46,670
At the vertex (2000,0), we have x = 2000 and y = 0. The expected profit is;
Profit = $40x + $25y = $80,000
Therefore, the expected profit is $46,670.
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To fulfill its philanthropic objective of raising the standard of living for impoverished cacao farmers in Congo, Theo needs customers to know and care about its social objectives. This can be accomplished through a. Corporate philanthropy. B. Cause branding. Cmunity partnerships. D. Volunteer programs
The best option to fulfill Theo's philanthropic objective of raising the standard of living for impoverished cacao farmers in Congo would be through B. cause branding.
Cause branding involves incorporating social objectives and values into a company's brand image and marketing strategy. By promoting their social objective of supporting impoverished cacao farmers in Congo, Theo can raise awareness and interest in their cause among their customers, which can ultimately lead to increased sales and donations.
Corporate philanthropy, community partnerships, and volunteer programs can also be effective in supporting social objectives, but they may not have the same impact on raising awareness and generating customer interest as cause branding.
Therefore, the correct option is b.
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assume a firm is considering a repurchase of its shares in the market. the firm has $1,000,000 in excess cash, $5,000,000 in earnings after taxes, and 500,000 shares outstanding. the stock trades at a p/e ratio of 20. the current price of the stock is $200 (p/e x eps) and the dividends per share are $2 (excess cash/shares outstanding). what is the number of shares that have been reacquired? (round to the nearest whole share)
The firm can repurchase 5,000 shares using the excess cash. This means that the number of shares that have been reacquired is 5,000 (rounded to the nearest whole share).
To calculate the number of shares that have been reacquired, we first need to find out the amount of cash the firm can use for the repurchase. The firm has $1,000,000 in excess cash that can be used for the share repurchase.
Next, we need to find the price per share. The stock has a P/E ratio of 20, and the current price of the stock is $200. The price per share is calculated as (P/E x EPS). Since the current price of the stock is already given as $200, we do not need to perform any calculations for this part.
Now, we need to find the number of shares that can be repurchased using the excess cash. To do this, we can divide the excess cash ($1,000,000) by the price per share ($200). This calculation is as follows:
Number of shares = Excess cash / Price per share
Number of shares = $1,000,000 / $200
Number of shares = 5,000
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The age discrimination in employment act specifically outlaws hiring practices that discriminate against people:_____.
a. who are between 39-69.
b. who are under the age of 18.
c. who are 40 and over.
d. who are between 16 and 20.
e. who are younger than 18 and older than 39.
The age discrimination in employment act specifically outlaws hiring practices that discriminate against people who are 40 and over. The correct option is c.
The Age Discrimination in Employment Act (ADEA) is a federal law that specifically prohibits hiring practices that discriminate against individuals who are 40 years of age or older. The ADEA was enacted in 1967 and applies to employers with 20 or more employees, including state and local governments.
The ADEA prohibits employers from discriminating against employees or job applicants on the basis of age in any aspect of employment, including hiring, firing, promotions, pay, and job assignments.
Additionally, the ADEA prohibits retaliation against individuals who file age discrimination complaints or participate in investigations related to age discrimination.
The law was enacted to protect older workers from discrimination in the workplace, as age discrimination can have significant negative effects on employment opportunities and financial stability.
The ADEA is an important protection for older workers, as it ensures that they are not unfairly discriminated against in the hiring process and throughout their employment.
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Gee company accumulates the following adjustment data at december 31. indicate the type of adjustment (prepaid expense, accrued revenue, and so on), and the status of accounts before adjustment (overstated or understated). (enter answers in alphabetical order.)
1. supplies of $150 are on hand. supplies account shows $1,600 balance.
2. services performed but unbilled total $900.
3. interest of $200 has accumulated (and not been paid) on a note payable.
4. rent collected in advance totaling $850 has been earned.
1. Adjustment: Prepaid expense (Supplies). Status: Supplies account is overstated.
2. Adjustment: Accrued revenue (Unbilled services). Status: Accounts Receivable is understated.
3. Adjustment: Accrued expense (Interest). Status: Note Payable is understated.
4. Adjustment: Unearned revenue (Rent collected in advance). Status: Rent collected in advance is overstated.
1. The adjustment recognizes that $150 worth of supplies are on hand, indicating a prepaid expense. The initial balance of $1,600 in the supplies account is higher than the actual supplies available, hence overstated.
2. The adjustment accounts for $900 worth of services performed but not yet billed. This indicates accrued revenue. The accounts receivable balance needs to be increased to reflect the revenue earned but not yet recorded, hence understated.
3. The adjustment recognizes $200 of accrued interest on a note payable. It represents an expense that has been incurred but not yet paid. The note payable account should be increased to account for the accrued interest, as it is currently understated.
4. The adjustment is made to recognize that $850 of the collected rent has been earned. Initially, the rent collected in advance was recorded as unearned revenue, but now it needs to be reduced to reflect the portion that has been earned, hence overstated.
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As an increasingly important member of S B&D's Sales team, you have established a strong reputation as a "problem Solver". This will come in handy as one of your bigger accounts "F-Tech" is having serious issues competing on anything other than price.What are the three skills needed in solving Customer Problems? When dealing with customers what does the SPIN questioning method stand for and describe how it works best.
As an increasingly important member of S B&D's Sales team, you have established a strong reputation as a "problem Solver". The given problem can be solved by: Understanding the problem; Resolving the issue; Exceeding customer expectations.
The three skills that are necessary for solving customer problems are as follows:
Understanding the Problem: In order to solve a customer's problem, it is critical to first understand the problem. Listen carefully to the customer, ask questions, and reflect back on what you've learned to ensure you've grasped the issue. Resolving the Issue: The salesperson must use their knowledge and experience to assist the customer in resolving the problem. The best course of action must be identified and the solution implemented. Exceeding Customer Expectations: The salesperson should exceed the customer's expectations by going beyond and above what is required. By doing so, they develop long-term relationships with their customers.When dealing with customers, the SPIN questioning method stands for Situation, Problem, Implication, and Need-Payoff. SPIN questioning is a sales technique that aids in the discovery of a customer's specific needs and, as a result, allows salespeople to custom-tailor their sales presentations to meet those needs. Here's how it works:
Situation questions are open-ended inquiries that allow the salesperson to learn about the customer's current situation. For example, "What is your company's current procedure for X?" is a situation inquiry. Problem questions are used to identify the customer's problems. For example, "What problems have you experienced with your current procedure for X?" is a problem inquiry. Implication questions explore the effects of the problem on the customer. For example, "What effect does that have on your employees?" is an implication inquiry. Need-Payoff questions are designed to get the customer to verbalize the benefits of resolving their issue. For example, "How much time and money do you think you'd save if we could provide a solution to that problem?" is a need-payoff inquiry.Learn more about SPIN: https://brainly.com/question/15177094
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