The budget process makes fiscal policy difficult to implement because
<span>---The budget process begins a year and a half before the budget is implemented, and this will make it difficult to know what type of fiscal policy will be needed because it requires us to predict the problem and opportunities that arise during the operation.
---Many budget decisions are made for political reasons , because many politicians was appointed by interest groups that controlled by big companies.
---Nearly two-thirds of the budget is mandated by federal programs and cannot be easily changed, even if it could be changed, the cost could outweihgt the benefit.</span>
Answer:
1. Ending inventory = $3519
2. Cost of Goods Sold = $21030
3. Sales Revenue = $27279
4. Gross Profit = $6249
Explanation:
FIFO method of inventory valuation is whereby the stock that first comes into the business, leaves first. This is common in perishable inventory such as vegetables or fruits.
Jan 1. Beginning inventory: 53 units x $45 = $2385
Total
53 units x $45 = $2385
Apr 7. Purchase 133 units x $47 = $6251
Total
53 units x $45 = $2385
133 units x $47 = $6251
Jul 16. Purchase 203 units x $50 = $10150
Total
53 units x $45 = $2385
133 units x $47 = $6251
203 units x $50 = $10150
Oct 6. Purchase 113 units x $51 = $5763
53 units x $45 = $2385
133 units x $47 = $6251
203 units x $50 = $10150
113 units x $51 = $5763
1. Ending inventory = 502 - 433 = 69 hence,
69 units x $51 = $3519
2. Cost of Goods Sold =
[$2385 + $6251 + $10150 + (44 units x $51)] = $21030
OR $24549 - 3519 = $21030
3. Sales Revenue =
433 units x $63 = $27279
4. Gross Profit = Sales Revenue - Cost of Goods Sold hence,
$27279 - 21030 = $6249
Answer:
a). M1=$808 billion
b). M2=1,068 billion
Explanation:
M1 is the money supply that is the most liquid and is or can be easily converted into cash. The formula for calculating M1 is;
M1=C+D+T+S
where;
M1=money supply
C=currency held outside banks
D=checkable deposits
T=traveler's checks
S=small-denomination time deposits
In our case;
M1=unknown
C=$354 billion
D=$250 billion
T=$4 billion
S=$200 billion
replacing;
M1=(354+250+4+200)=$808 billion
M1=$808 billion
M2 includes elements of M1 and additional money supply that are near liquid. The formula is;
M2=M1+savings deposit+mutual funds
where;
M1=$808 billion
savings=$100 billion
retail money market mutual funds=$160
replacing;
M2=(808+100+160)=1,068 billion
M2=1,068 billion
Answer:
d. 2.94%
Explanation:
First, Calculate the Yield to maturity of the bond using the following formula
Use the following formula to calculate the YTM
P = [ C x ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Where
F = Face value = $1,000
P = Price = $1,495.56
C = Coupon payment = Face value x Coupon rate = $1,000 x 10% = $100
n = numbers of periods = Numbers of years to maturity = 10 years
r = YTM = ?
Placing values in the formula
$1,495.56 = [ $100 x ( 1 - ( 1 + r )^-10 ) / r ] + [ $1,000 / ( 1 + r )^10 ]
r = 3.916%
Now calculate the after-tax cost of debt
After-tax cost of debt = YTM x ( 1 - Tax rate )
After-tax cost of debt = 3.916% x ( 1 - 25% )
After-tax cost of debt = 2.937%
After-tax cost of debt = 2.94%
