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Question Problem 1: Service Revenue Budget. Based on the projects completed by W.T. (above), compute the amount of sales revenue My Assistant should collect each month. Evaluate gross fees only (e.g. do not deduct the PayPal fee at this point). Recall that different customers receive different rates: those paying by PayPal and on account are charged $15 perjob. The customer that pays in advance pays for three months' of service and is charged $14.50 per job. That customer last paid in June for service to be provided in June, July, and August (4 jobs completed per month). Also, recall that fees received through PayPal are received at job completion. Accounts Receivable are due the month following the month in which the service is provided. On June 30, the balance in Accounts Receivable was $600.
My Assistant Services Revenue Budget July 1 - September 30, Year 2
July
August
September
Projected Service Revenue:
PayPal
On Account
Prepaid
Total Budgeted Revenue
Schedule of Cash Receipts:
Total Budgeted Collections
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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