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3 years ago

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Why might increasing taxes increasing taxes as a fiscal policy be a more difficult policy than the use of monetary policy to slo

w down an economy experiencing inflation?

1 answer:

Ratling [72]3 years ago

6 0

Answer:

The legislative process experiences longer delays than monetary policy.

Explanation:

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Gomez runs a small pottery firm. He hires one helper at $11,500 per year, pays annual rent of $7,000 for his shop, and spends $2

madreJ [45]

Answer:

in this problem, we need to calculate Gomez's accounting and economic profit. To do this, let us first classify and list the explicit and implicit costs. Revenue: Sales: $85,000 Explicit costs: Cost of one helper: $18,000 Rent: $8,000 Materials: $24,000 These are the costs that require an outlay of cash. Implicit costs: Opportunity cost of funds invested in equipment: $7,000 Gomez could have invested the funds in another asset that could earn him $7,000 Opportunity cost of working as a potter in his own shop: $20,000 Gomez could have worked as a potter for a competitor that could earn him $20,000. This is the worth of Gomez's skill as a potter. Entrepreneurial talent: $4,000 This is the worth of Gomez's talent in running the business. These costs do not require an outlay of cash. These are the implicit costs. Now, we are ready to calculate both the accounting and economic profit of Gomez. a. Calculate the accounting profit for Gomez's pottery firm. $_ Accounting profit = Total Revenue − Total Explicit Costs Accounting profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 ) Accounting profit = $ 85 , 000 − $ 50 , 000 Accounting profit = $ 35 , 000 The accounting profit is equal to $35,000. b. Now calculate Gomez's economic profit. $_ Economic profit = Total Revenue − Total Explicit and Implicit Costs Economic profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 + $ 7 , 000 + $ 20 , 000 + $ 4 , 000 ) Economic profit = $ 85 , 000 − $ 81 , 000 Economic profit = $ 4 , 000 The economic profit is equal to $4,000.

8 0

3 years ago

Garden Sales, Inc, sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has

muminat

Answer:

Garden Sales, Inc.

April May June Total

1. Cash Collections:

Cash sales (20%) $92,000 $198,000 $88,000 $378,000

Credit sales:

10% month of sale 36,800 79,200 35,200 151,200

70% month following sale 123,200 257,600 554,400 935,200

20% second month following 25,600 35,200 73,600 134,400

Total cash collections $277,600 $570,000 $751,200 $1,598,800

2. Merchandise Inventory:

a. Purchases Budget April May June

Cost of goods sold 322,000 693,000 308,000

Ending inventory (15%) 103,950 46,200 35,700

Goods available for sale 425,950 739,200 343,700

Beginning inventory 84,000 103,950 46,200

Purchases 341,950 635,250 297,500

b. Cash payment for purchases:

50% month of purchase 170,975 317,625 148,750 637,350

50% month following purchase 126,000 170,975 317,625 614,600

Total payment for purchases $296,975 $488,600 $466,375 $1,251,950

3. Cash Budget

April May June Total

Beginning cash balance $46,000 $40,225 $40,425 $46,000

Total cash collections 311,200 652,800 727,600 $1,691,600

Cash available $357,200 $693,025 $768,025 $1,737,600

Payment for purchases $296,975 $488,600 $466,375 $1,251,950

Other payments:

Dividends 24,000 24,000

Land purchase 32,000 32,000

Selling & administrative exp. 115,000 134,000 73,400 322,400

Total cash payments $435,975 $654,600 $539,775 $1,630,350

Cash Balance (78,775) 38,425 228,250 228,250

Minimum Cash balance (40,000) (40,000)

Cash required $118,775 $1,575 0 0

Cash borrowed $119,000 $2,000 (123,400) (123,400)

Ending balance 40,225 40,425 104,850 104,850

4. To: The President

From: FC

Subject: Revised Estimates and the Cash Budget

Date: April 26, 2021

The revised estimates will ensure that the company has the ability to pay off its borrowings in April and May by the end of the second quarter.

It should be maintained.

Regards,

Explanation:

a) Data and Calculations:

Budgeted monthly absorption costing income statements for April-July are:

April May June July

Sales $460,000 $990,000 $440,000 $340,000

Cost of goods sold 322,000 693,000 308,000 238,000

Gross margin 138,000 297,000 132,000 102,000

Selling and administrative expenses *

Selling expense 89,000 94,000 55,000 34,000

Administrative expense 42,000 56,000 34,400 32,000

Total selling and administrative

expenses 131,000 150,000 89,400 66,000

Net operating income $7,000 $147,000 $42,600 $36,000

April May June July

Sales $460,000 $990,000 $440,000 $340,000

Credit sales (80%) 368,000 792,000 352,000 272,000

Cash collections

Cash sales (20%) $92,000 $198,000 $88,000 $68,000

Credit sales:

10% month of sale 36,800 79,200 35,200 27,200

70% month following sale 123,200 257,600 554,400 246,400

20% second month following 25,600 35,200 73,600 158,400

Total cash collections $277,600 $570,000 $751,200 $500,000

April May June July

Cost of goods sold 322,000 693,000 308,000 238,000

Ending inventory (20%) 138,600 61,600 47,600

Goods available for sale 460,600 754,600 355,600

Beginning inventory 64,400 138,600 61,600 47,600

Purchases 396,200 616,000 294,000

Cash payment for purchases:

50% month of purchase 198,100 308,000 147,000

50% month following purchase 93,800 198,100 308,000

Total payment for purchases $291,800 $506,100 $455,000

Other payments:

Dividends 24,000

Land purchase 32,000

Selling & administrative exp. 115,000 134,000 73,400

Total cash payments $430,800 $672,100 $528,400

Principal debt to bank at the end of the quarter = $121,000

+ Interests: 1% of $119,000 = $1,190

1% of $121,000 1,210

Total interest owed $2,400 2,400

Total debt to the bank at the end of the quarter = $123,400

Revised Estimates:

Credit sales (80%) 368,000 792,000 352,000 272,000

Cash collections

Cash sales (20%) $92,000 $198,000 $88,000 $378,000

Credit sales:

25% month of sale 92,000 198,000 88,000 378,000

65% month following sale 114,400 239,200 514,800 868,400

10% second month following 12,800 17,600 36,800 67,200

Total cash collections $311,200 $652,800 $727,600 $1,691,600

April May June July

Cost of goods sold 322,000 693,000 308,000 238,000

Ending inventory (15%) 103,950 46,200 35,700

Goods available for sale 425,950 739,200 343,700

Beginning inventory 84,000 103,950 46,200

Purchases 341,950 635,250 297,500

Cash payment for purchases:

50% month of purchase 170,975 317,625 148,750

50% month following purchase 126,000 170,975 317,625

Total payment for purchases $296,975 $488,600 $466,375

Other payments:

Dividends 24,000

Land purchase 32,000

Selling & administrative exp. 115,000 134,000 73,400

Total cash payments $435,975 $654,600 $539,775

5 0

3 years ago

Q 6.3: Hanson Technology is a computer manufacturer. For years, Hanson has relied on the JIT inventory method. However, due to n

Taya2010 [7]

Answer:

The answer is: Their inventory levels will increase

Explanation:

When companies use the Just in Time (JIT) they reduce their ordinary inventory to a minimum level, without any safety stock and that help them lower costs and improve their efficiency.

Since Hanson is changing from the JIT inventory system to a more traditional inventory system, their inventory levels should increase to include certain safety stock levels.

6 0

3 years ago

Decision Point: Your Final Meeting: RC Helicopter Piloting Radio controlled helicopter Your next client is Alan, who runs a high

hoa [83]

Answer:

Leave the price alone. Although it may lack some of the features that competitors’ models have, the Boss brand is well-recognized and well-respected in the market

Explanation:

You chose to lower the price to $359.That was the best choice.During the maturity stage of the product life cycle, increased competition eventually forces price cutting, and market share leadership may outweigh profit as a pricing objective, so this is a good option. However, it would take some research to determine whether the company can still make a profit at this price.

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3 years ago

Managers are constantly seeking out new tools to meet new challenges. Indicate whether today’s manager’s are more or less aware

Galina-37 [17]

Answer:

Customer relationship management system (CRM)

Explanation:

A <em>CRM </em>system is what keeps the customer coming back. Instead of targeting each customer with a default bundle of products that are trending, the customer relationship management system tracks down the customer's habits and preferences, creating a tailor-made approach. Every customer is different in things he/she wants to buy. This way, marketing gets more customized and customer statistics generates better reports (more insight for the long-term).

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3 years ago