Answer:
Decrease;increase;frictional
Explanation:
Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will decrease. The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will increase. The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.
The following policies outlined below would help achieve this goal.
1. Improving a widely used job-search website so that it matches workers to job vacancies more effectively.
2. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks.
Sandhill Company has used the dollar-value LIFO method since January 1, 2017. Sandhill uses internal price indexes and multiple pools. At the end of calendar year 2018, the following data are available for Sandhill’s inventory pool A. Inventory At Base-Year Cost At Current-Year Cost January 1, 2017 $1,000,000 $1,000,000 December 31, 2017 1,290,000 1,419,000 December 31, 2018 1,340,000 1,527,600 Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory in Pool A be reported at December 31, 2018?
Answer:
1,376,000 and 1.027
Explanation:
According to the scenario, computation of the given data are as follows:-
Price Index = Current Year Cost ÷ Base Year Cost
Year Current Year Inventory Cost Divided Base Year Inventory Cost Price Index
January 1,2017 $1,000,000 ÷ $1,000,000 1
December 31,2017 $1,419,000 ÷ $1,290,000 1.1
December 31,2018 $1,527,600 ÷ $1,340,000 1.14
Ending Inventory At LIFO Cost = Layer at Base Price Year Inventory × Price Index
Dollar Value LIFO
Year Layer At Base Price Year Inventory($) Multiple Price Index Ending Inventory at LIFO Cost($)
2017
January 1,2017 1,000,000 × 1 1,000,000
December 31,2017 290,000 × 1.1 319,000
Total 1,290,000 1,319,000
2018
January 1,2017 1,000,000 × 1 1,000,000
December 31,2017 290,000 × 1.1 319,000
December 31,2018 50,000 × 1.14 57,000
1,340,000 1,376,000
Dollar Value LIFO Inventory = $1,376,000
Internal Price Index = Ending Inventory at LIFO Cost ÷ Layer at Base Year Price
= 1,376,000 ÷ 1,340,000
= 1.027
We simply used the above formulas
Susan is considering adding toys to her gift shop. She estimates that the cost of inventory will be $6,500. The remodeling expenses and shelving costs are estimated at $2,800. Toy sales are expected to produce net cash inflows of $3,300, $3,300, $4,300, and $4,300 over the next four years, respectively. What is the payback period? (Please round to three decimal places). Should Susan add toys to her store if she assigns a three-year payback period to this project? Why or why not?
Answer:
Payback period= 2 years, 7.53 months
If Susan assigns a 3 year payback period, the toys should be added.
This is so because, with a 3 year payback period, Susan would expect to recoup her investment within a three year period but the project would actually recoup its cash outflow in less than 3 years.
Since the actual payback period(2 year 7.5 months) is less than the target payback period (3 years), the investment should be undertaken
Explanation:
The payback period is the estimated length of time in years it takes
the net cash inflow from a project to equate the net cash the initial cost
The total cost of the investment =6,500+2,800 = 9300
Payback period
Cumulative cash inflow at the end of year two= 3,300+ $3,300= 6600
Balance left to recoup investment = 9,300 - 6,600 = 2,700
Payback period = 2 years + (2700/4300)× 12
= 2 years, 7.53 months
If Susan assigns a 3-year payback period, the toys should be added.
This is so because, with a 3-year payback period, Susan would expect to recoup her investment within a three-year period but the project would actually recoup its cash outflow in less than 3 years.
Since the actual payback period(2 year 7.5 months) is less than the target payback period (3 years), the investment should be undertaken. Because the project would recoup its investment faster than than the stipulated time.
Answer:
2.63 years or 2 years 7.56 months
Explanation:
Payback period is the time in which a project returns back the initial investment in the form of net cash flow.
Initial Investment includes all the expense made on an asset to make it usable.
Initial Investment = $6,500 + $2,800 = $9,300
Year Balance Recovery Time period
0 ($9,300) 0 0
1 ($6,000) $3,300 1
2 ($2,700) $3,300 1
3 $1,600 $2,700 0.63
Total Period 2.63 years
Payaback period = 2 years + 0.63 x 12 months = 2 years 7.56 months