The nation of Cantania regularly experiences changes in its national budget situation. In some years, Cantania operates with a budget deficit, while in other years it experiences a budget surplus. Please classify each of the possible consequences into the appropriate category of the budget circumstance most likely to cause them.

Category:
a. Cantania experiences an increase in budget surplus
b. Cantania experiences an increase in budget deficit

1. Cantania's government increases its demand for financial capital.
2. Interest rates in Cantania rise.
3. The government Of Cantania stops borrowing frorn foreign nations
4. More funds are made available for private investment in physical capital

Budget Surplus refers to a situation where the government's income exceeds its expenditure.

Budget Deficit is when the government's expenditure exceeds its income.

3. The government Of Cantania stops borrowing from foreign nations

The government would stop borrowing from foreign nations because they will have a surplus to fund what it is they need to fund without seeking excess capital.  

4. More funds are made available for private investment in physical capital.

With the government in surplus, they will not need to borrow from the market which would leave enough funds for the private sector to borrow and invest in physical capital.

1. Cantania's government increases its demand for financial capital.

The government would demand more financial capital to enable it fund the deficit.  

2. Interest rates in Cantania rise.

Interests rates will rise as the government borrows funds because they will borrow a significant amount which would reduce the supply of loanable funds thereby increasing rates.

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $ 122Units in beginning inventory 290Units produced 6,600Units sold 6,590Units in ending inventory 300Variable costs per unit:Direct materials $ 42Direct labor $ 26Variable manufacturing overhead $ 2Variable selling and administrative expense $ 21Fixed costs:Fixed manufacturing overhead $ 151,800Fixed selling and administrative expense $ 46,130The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.Required:a. Prepare a contribution format income statement for the month using variable costing.b. Prepare an income statement for the month using absorption costing.

A coffee manufacturer is interested in whether the mean daily consumption of regular-coffee drinkers is less than that of decaffeinated-coffee drinkers. A random sample of 50 regular-coffee drinkers showed a mean of 4.35 cups per day. A sample of 40 decaffeinated-coffee drinkers showed a mean of 5.12 cups per day. Assume the population standard deviation for those drinking regular coffee is 1.20 cups per day and 1.36 cups per day for those drinking decaffeinated coffee. Perform an appropriate test at the 1% level of significance. Use the critical value approach.Compute the p-value.

If D0 = $2.00, g (which is constant) = 6%, and P0 = $40, what is the stock's expected dividend yield for the coming year?

At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $2,950,000. After the timber is cleared, the land will have a residual value of $670,000. Roads to enable logging operations were constructed and completed on March 30, 2021. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $228,000. During 2021, Terra logged 570,000 of the estimated 5.7 million board feet of timber. Required: Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of-production method is used for both assets

Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold fair trade merchandise for $2, 600, with credit teres n/30; invoice dated October 1. The cost of the nerchandise is $1,450 which had cost $145, is returned to inventory of the merchandise is $890 6 The customer in the October 1 sale returned $260 of fair trade merchandise for full credit. The merchandise, 9 Sold recycled leather merchandise for $1, 250, with credit terms of 1/10, n/30; invoice dated October 11 Received payment for the amount due from the October 1 sale less the return on 0ctober 6.

Fuqua Company’s sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019.

Requried:
a. Prepare a projected budget for Jan and Feb 2017.
b. Prepare a direct material budget for Jan 2017.

what effect does a rise in fuel prices have on product prices​

I tell you that if you rake all the leaves in my yard, I will show up to Business Law class next week. You immediately come over and start raking the leaves. Halfway through the job you decide to leave to do some extra Business Law reading for fun. I run after you and say, "you didn’t finish, I will sue you for this!" Your best defense is:

Southern Fields has an inventory of 838,000 pounds of sugar. The firm placed a partial hedge on this inventory by selling 6 futures contracts at 9.56. The futures contracts are based on 112,000 pounds and are quoted in cents per pound. At the time the firm sold the sugar, the spot rate was 9.63. How much profit did the firm lose because of the hedge

On January 1, 2019, Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $285,880.07. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary.

A businessperson is setting up a new automatic car wash and is choosing between two fully automated machines. The first machine can process up to 2,000 cars per month at a marginal cost of $1 per car. The second machine can also process up to 2,000 cars per month but at a marginal cost of $0.50 per car. The monthly lease for the machine with the higher marginal cost is $1,200. The monthly lease for the machine with the lower marginal cost is $1,590 The car wash can sell car washes for $8 per car. 1. Suppose the businessperson chooses to lease the machine with the higher marginal cost for the first month and does indeed wash 2,000 cars that month. The businessperson earned profits of____________ $ in the first month. 2. Suppose now the businessperson chooses to lease the machine with the lower marginal cost for the second month and again washes 2,000 cars that month. The businessperson earned profits of __________$ in the second month. 3. The car wash would have to wash ____________cars or more per month in order to justify paying the higher-priced machine lease.

A company normally sells it products for $20 per unit, which includes a profit margin of 25%. However, the

selling price has fallen to $15 per unit. This company's current inventory consists 200 units purchased at $16

per unit. Replacement cost has now fallen to $13 per unit. Calculate the value of inventory at the lower of

cost or market. ​

1. Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively low risk. The appropriate premium over the risk-free rate of lending to these firms is 2%. Firms of type B are in poor financial health and are relatively high risk. The appropriate premium over the risk-free rate of lending to these firms is 6%. As an investor, you have no other information about these firms except that type A and type B firms exist in equal numbers. a. At what interest rate would you be willing to lend if the risk-free rate were 5%

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

1. Cash balance according to the company's records at August 31, $16,760.
2. Cash balance according to the bank statement at August 31, $17,460.
3. Checks outstanding, $3,400.
4. Deposit in transit, not recorded by bank, $2,730.
5. A check for $340 in payment of an account was erroneously recorded in the check register as $430.
6. Bank debit memo for service charges, $60.

Required:
a. Prepare a bank reconciliation.
b. If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash?
c. Must a bank reconciliation always balance (reconcile)?

Which of the following defines core competency?

You've graduated from college and are now working in an investment firm where you advise clients on investment decisions. Here is the information on a proposed project. Up-front cost: $300,000 Next year's revenue: $15,000 Real interest rate: 8% Depreciation rate: 10% How much profit does the project yield, and should your client invest in the project

The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4.00 and for B is $3.80 at the split-off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit. In a decision between selling B at the split-off point or processing B further, which of the following items is not relevant:a. $10,000) per production run b. $96,000 per production run c. ($42,000) per production run d. $36,000 per production run

On May 7, Hatch Company purchased on account 490 units of raw materials at $20 per unit. During May, raw materials were requisitioned for production as follows: 211 units for Job 200 at $16 per unit and 186 units for Job 305 at $20 per unit.Journalize the entry on May 7 to record the purchase. If an amount box does not require an entry, leave it blank. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSBergan CompanyGeneral Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
132 Work in Process
133 Factory Overhead
134 Finished Goods
141 Supplies
142 Prepaid Insurance
143 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
241 Lease Payable
251 Wages Payable
252 Consultant Fees Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Office Supplies Expense
540 Administrative Expenses
560 Depreciation Expense-Factory
590 Miscellaneous Expense
710
Interest Expense
Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. Refer to the Chart of Accounts for exact wording of account titles.

Nash Incorporated factored $156,000 of accounts receivable with Crane Factors Inc. on a without-recourse basis. Crane assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Nash Incorporated and Crane Factors to record the factoring of the accounts receivable to Crane.

Omar Industries manufactures two products: Regular and Super. The results of operations for 20x1 follow. Regular Super Total Units 10,000 3,700 13,700 Sales revenue $ 240,000 $ 740,000 $ 980,000 Less: Cost of goods sold 180,000 481,000 661,000 Gross Margin $ 60,000 $ 259,000 $ 319,000 Less: Selling expenses 60,000 134,000 194,000 Operating income (loss) $ 0 $ 125,000 $ 125,000 Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed. Omar Industries wants to drop the Regular product line. If the line is dropped, company-wide fixed manufacturing costs would fall by 10% because there is no alternative use of the facilities. What would be the impact on operating income if Regular is discontinued

Jamison Company purchased the assets of Booker Company at an auction for $5,600,000. An independent appraisal of the fair value of the assets is listed below: Land $1,900,000 Building 2,800,000 Equipment 2,100,000 Trucks 3,400,000 Assuming Jamison allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Trucks?

Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $12,000. The estimated useful life was four years, and the residual value was $960. Assume that the estimated productive life of the machine was 9,200 hours. Actual annual usage was 3,680 hours in year 1; 2,760 hours in year 2; 1,840 hours in year 3; and 920 hours in year 4.
Required:
1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
a. Straight-line.
b. Units-of-production (use four decimal places for the per unit output factor).
c. Double-declining-balance.

Current Attempt in Progress Nash's Trading Post, LLC developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost MarketA $84000 $89000 B 59000 56000 C 118000 120000 After Nash's Trading Post, LLC applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:___________. a. $261000. b. $265000. c. $258000. d. $268000.

This activity is important because marketing students should be aware of career opportunities in sales, how sales people create value for customers, and how the sales function contributes to the overall success of the organization.
Mark will be a junior in college this fall, but is undecided about his major. Over the summer, he visited with an old family friend, Brad Donavan, who has had a lengthy and successful career selling business software and services. He suggests that sales might be a great match for Mark’s personality, interests, and lifestyle. Mark is encouraged and begins looking at job listings and responsibilities associated with various types of sales positions advertised in his area.
The goal of this exercise is to assist Mark by categorizing each of the eight (8) listed job descriptions into one of five sales job category types: (1) new business salesperson, (2) order-taker, (3) missionary salespeople, (4) sales management and support, and (5) other.
Select the appropriate sales job category for each example.
2. The goal of the Channel Sales Manager (CSM) position is to create and manage successful revenue-generating relationships with reseller partners who affect the movement of our products to end user customers.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other
4. A primary responsibility of the Route Sales Representative will be to drive a company vehicle to deliver coffee, tea, and other products to customers in assigned territory.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other
8. The Key Account Manager is responsible for nurturing key customer relationships and the development of account-specific promotional activities.
(Click to select) New Business Salespeople Order-Takers Missionary Salespeople Sales Management and Support Other

Yoyodyne is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Yoyodyne is using ________ to generate new product ideas.

Sheridan Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Units Per unit price Total Balance, 1/1/20 200 $5.00 $1000 Purchase, 1/15/20 120 5.40 648 Purchase, 1/28/20 120 5.50 660 An end of the month (1/31/20) inventory showed that 160 units were on hand. If the company uses FIFO and sells the units for $8 each, what is the gross profit for the month

Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single-member LLC (a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $386,600 (this is also their taxable income before the deduction for qualified business income). Determine their allowable QBI deduction for 2020. $fill in the blank 1

A sales representative lives in Bloomington and must be in Indianapolis next Thursday. On each of the days Monday, Tuesday, and Wednesday, he can sell his wares in Indianapolis, Bloomington, or Chicago. From past experience, he believes that he can earn $12 from spending a day in Indianapolis, $16 from spending a day in Bloomington, and $17 from spending a day in Chicago. Where should he spend the first three days

Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436, started and completed during the year, was charged with the following costs: Department A Department B Direct materials $50,000 $10,000 Direct labor ? $60,000Manufacturing overhead $80,000 ?The total manufacturing cost assigned to Job 436 was:_________A) $360,000B) $390,000C) $270,000D) $480,000

A Rhode Island company produces communion wafers for churches around the country and the world. The little company produces a lot of wafers, several hundred million per year. When in production, the process produces wafers at the rate of 48 per second. During this production process the wafers must spend 5 minutes in an oven and then 10 minutes passing through a cooling tunnel.

Required:
How many wafers does the cooling tube hold on average when in production?