Economics Answers

With reference to financial management, write a short essay(600 words) on the concept of sources of finance.

NB:references must be included.

Draw a production possibility frontier (PPF) for an economy between the clean environment and the quantity of industrial output. What determines the shape of the PPF? Using this PPF, explain in detail the trade-off that the Society faces.

In the current pandemic-related GDP growth slowdown across the world, which industries or sectors in the Indian economy do you consider to have most benefited from the Covid-19 crisis and why? Explain and highlight in detail using the Demand-Supply analysis to substantiate your argument. Justify your analysis by supporting it with facts-cum-online data and substantiate your argument by extensively using graphs to highlight your answer

Do-Re-Mi Ltd is a retailer of musical instruments and has the following historical collection pattern for its credit sales:

 70 per cent collected in the month of sale.

 15 per cent collected in the first month after sale.

10 per cent collected in the second month after sale.

4 per cent collected in the third month after sale.

 1 per cent uncollectable.

The credit sales have been budgeted for the last seven months of the year, as shown below:

June

$55 000

July

60 000

August

70 000

September

80 000

October

90 000

November

100 000

December

85 000

Required

1.    Calculate the estimated total cash receipts during October from credit sales

2.    Calculate the estimated total cash receipts during the December quarter from credit sales during the quarter.

11 1. Recall the lemons problem at the start of the chapter. Some used cars are peaches, worth $3,000 to buyers and $2,500 to sellers, and some are lemons,. worth $2,000 to buyers and $1,000 to sellers. There is a fixed supply of cars and unlimited demand. Suppose there are twice as many peaches as lemons. Assume buyers can't tell the quality of a given car, while sellers can. What do the supply and demand curves look like? In the text, we asserted that markets clear at $2,666.67. Are there other market clearing prices?

Ashwin wants to buy a Pure Risk Life Insurance cover of Rs 1.5 crore. He is confused whether he should buy a ULIP a Term Plan. Recommend the product best suited for his requirement. 

With reference to financial management, write a short essay on the concept of capital budgeting as a key fundamental in respect of managers’ maximising corporate value for shareholders. Maximum 600 words and include references.

With reference to financial management, write a short essay on the concept of capital structure as a key fundamental in respect of managers’ maximising corporate value for shareholders. Maximum 600 words and include references.

firms s is the only producer of a particular type of foam fire retardant and insulation used in the construction of commercial buildings. the inverse demand equation for the product is p=1500-0.1q,where q is the annual sales quantity in tons and p is the price per ton. The firms total cost function(in dollar) is C=14000000+300Q+.05Q2

a.to maximize profit,how much foam insulation should firm S plan to produce and sell?What price should it charge?

b.Compute the firms total profit.

QUESTIONS:

Identify whether the following independent transaction is a book or a bank reconciling. In addition, determine the amount of the error and state whether the amount will be added or deducted in the preparation of the bank reconciliation (use adjusted method):

1. Eagle Repairs received P1,500 from Jane. The bookkeeper recorded the amount as P500.

The bank teller deducted CK 123 for P3,500 from the account of Eagle. The said check was issued by Egles Company a different

4. The bookkeeper of Eagle recorded Check No. 345 in the Cash Disbursement Journal as P5,205. The correct amount of the check

5. The deposits of Eagle earned interest of P100 for the month. Eagle does not have knowledge of interest earned until it receives

the bank statement.

Answer:

2. Nation Bank collected from the customer of Eagle the sum of P5,000 representing payment of the said customer to Eagle. No entry

was made in the books of Eagle.

Answer: 3.

depositor of the bank.

Answer:

was P5,250.

Answer:

Answer: