I need your advise. Business sells items. 25% customers pay next month. For Oct. cash collected was $21000 and $6500(accounts receivable) from Sept. Total-27500. What is revenue in this case?

Thank you,

Luiza

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If you are on cash basis accounting, this is simply the $27,500 received in the month.

However, I expect you are on accrual basis, in which case the sales made in the month are what you want to count instead of the cash received. Under accrual, you sold $21,000 that you already collected on, and another 25% that will be collected the following month. Therefore, the $21,000 is 75% of revenue for the month. Now it becomes an algebra problem:

$21,000/.75 = $28,000 

The $6,500 of accounts receivable is the 25% of the prior month's revenue, so it doesn't count for this month.

Good studying! 

I'm doing this assignment and I'm totally lost,

U.S. :

d= 200 -40p

s= 40 +40p

Rest of the world:

d= 160 -40p

s= 80 +40p

The U.S. govenment imposes a quota of 32 units on its imports. Calculate the magnitude of deadweight loss resulting from the quota under the assumption that the U.S. is a small open economy?

If anyone knows about this it would great if you could help me out!

I'm still not sure how the whole "college-cram" thing works, but if it might give me some help with the Macro project, I figured it's worth a try.

Here is the problem:

Eastland's currency is called the eastmark, and Westland's currency is called westmark. The supply of and demand for eastmark are given as:

Demand=25,000-5000e+50,000(Re-Rw)

Supply=18,500+8,000e-50,000(Re-Rw) where nominal exchange rate e is measured as westmarks per eastmarks, and Re and Rw are the real inerest rates prevailing in Eastland and Westland.

If Re=Rw=0.10 or 10%, what is market equilibrium value of the eastmark?

Any help, pointer, or anything that you can offer will be greatly appreciated.

Let c_b = 0.2. Let the real money demand in the economy equal L^D = 10 + 2Y – 8r.  The price level P is fixed at P = 1. Y is the level of output and r is the rate of interest.  What is the LM curve for this economy?

anyone help?

Dear Professor Cram,

Could you please answer the following question for me?

Suppose that the public holds a cash/deposit ration of  c_p = 0.2, and the commercial banking sector holds a reserve/deposit ration of c_b = 0.2.  The monetary base is given by H = 50.

Find the value of the money multiplier and the total amount of money in the economy. How does the money multiplier change if the central bank raises the reserve requirement to c_b = 0.3? Briefly explain the economic reasoning for this change in the money multiplier.

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The Multiplier (M) for money is (1+C_p)/(C_p + C_b).

When C_p=0 the formula reduces to its simpler form of the inverse of reserves, or 1/ C_b.

For your question, we start with

C_p = 0.2 and  C_b = 0.2 so the multiplier is (1+0.2)/(0.2+0.2) = 1.2/0.4 = 3

The total money in the economy is M·H = 3·50 = 150

When the banking reserve requirement is increased to 0.3 the multiplier drops:

(1+0.2)/(0.2+0.3) = 1.2/0.5 = 2.4

This will reduce the total amount of money in the economy.

I hope this helps.

Good studying.

How about this one: 

“A given increase in the money supply will shift the LM curve farther to the right if money demand is more sensitive to the level of income”. True, false or uncertain? Briefly explain your answer.
Thanks, Katie

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An increase in the money supply shifts the LM curve to the right, raising income and lowering the interest rate. It seems to me that if money demand is more sensitive to the level of income, this will reduce the shift of the LM curve to the right.

I can't figure out how you find the break-even quantity with a mixed cost. Here is the problem:

LOST sponsors a 5-day camping trip. LOST provides a $3,000 grant and collects $350 per camper. The program expects 150 campers and the following expenses: Campground fees, $6,500 for 3 days, Transportation fees $3925 with 60 person capacity, Outdoor equipment rental $45 per camper, meals $55 per camper per day. Determine the break-even number of campers.

Can you help?  

You may not be surprised to learn that I went to visit my mother in December. She is 85 and doesn't do much cooking these days. I was surprised by a new peanut butter "cookie" recipe she had baked. I liked it so much, she sent the batch home with me. And she gave me the recipe. These Peanut Butter Cookie Biscotti Sticks are a simple but tasty snack. Now it is your turn to post a favorite recipe in your notebook.