Answer:
1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" Why?
The mixers will be part of merchandise inventory since Mei-ling is purchasing them and will later resell them at a higher price and hopefully make a profit. Products classified as supplies or equipment are used by the company in their day to day activities and are not meant for resale.
2. "I’ve learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?"
The perpetual inventory system is much better than the periodic inventory system, but it is also more expensive to use. Depending on the number of mixers that are going to be sold, you can do it hand or use a computer software which would make things much easier, but you need to spend time (labor) and money to do so.
If Mei-ling is expecting to sell only a small number of mixers, then she could use a periodic inventory system which is much more simple and is only updated every certain period of time (monthly, quarterly, semiannually or annually). This is a cheaper system but it is the best alternative.
3. "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"
Even if you use the perpetual inventory system, you will eventually need to physically count your inventory in order to make sure that the records have been properly made, but you could do it once or twice a year. Again it depends on the total units that she expects to have in inventory.
Answer:
absolute reference
Explanation:
Based on the information provided within the question it can be said that in this scenario she uses an absolute reference to identify the cell containing the income value. This refers to an actual fixed location within an excel sheet, and it is usually locked so that the rows and columns associated with it won't change when it is copied.
Even though the Phillips curve is an empirical model has historically shown that the rate of unemployment and the rate inflation is inversely proportional, this is only observed in the short-run. In a graph, this is shown as non-linear.
The Long-run Phillips curve, on the other hand, is linear. This means that there's no constant trade-off with regard to inflation & unemployment.
Answe and Explanation:
b) To find out the equilibrium interest we will equate the money demand function with the money supply:
1000 - 200(r) = 1200/2
r = 2%
c) If the price is fixed and if the supply of money of is increased from 1200 to 1400 then the supply of real balances will be 1400/2 = 700
The equilibrium interest would be:
1000 - 200(r) = 700
r = 1.5%
Thus, it shows that when the supply of money is increased and the price is fixed then the interest rate would fall from 2% to 1.5%
d) The supply of real balances would be 1600/2 = 800
Hence, the interest rate will be:
1000-200(r) = 800
r = 1%
As proved above, an increase in the money supply would decrease the interest rate keeping the price fixed.
e) If the Fed keeps the interest rate at 5% then,
1000 - 200(5) = Money supply/2
Money supply = 0
Reduce the money supply if the interest is increase from 2% to 5%
a) Picture is attached.
