**NEED ASSISTANCE WITH REQ 4,5,6

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

1. The Marketing Department has estimated sales as follows for the remainder of the year (in units):

The selling price of the beach umbrellas is $15 per unit.

2. All sales are on account. Based on past experience, sales are collected in the following pattern:

Sales for June totaled $555,000.

3. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.

4. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:

5. Gilden costs $0.80 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $66,920.

Required:

1. Calculate the estimated sales, by month and in total, for the third quarter.

2. Calculate the expected cash collections, by month and in total, for the third quarter.

3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.

4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter.

5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.

6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.

Dean and Brittany are both 32 years old and have a three-year old child, Eddie. They came to your office and asked you to build a financial statement analysis for 2017, based on the information provided.

• Assets: They have $2,350 in their checking account, $12,320 in their money market account, $6,250 in a mutual fund investment account, $4,890 in the 529 plan for Eddie, and $25,000 in their retirement accounts. Their house has a fair market value of $195,320. Dean owns a 2015 Honda with a fair market value of $18,670, and Brittany owns a 2012 MiniCooper valued at $24,450. The furniture and household goods had an estimated value of $15,420; they have sporting equipment estimated at $2,430.
• Liabilities: Dean and Brittany owed $6,180 on their Visa credit cards when they came to you, and they usually just pay the minimum required payment for credit card balance. The balance on their home mortgage was $136,000 at the end of 2015; their auto loan balance for Dean’s car was $17,470, and for Brittany’s car was $19,000. Brittany had a student loan which balance was $10,390.
• Their total annual gross income was $98,207; total dedicated annual expenses were $55,085, and discretionary expenses were 3,808.
• Their savings last year included $4,890 towards their retirement savings accounts (no employer match); $47 reinvested money market investment interest; and $1,890 contribution to a 529 plan for Eddie.

Based on the above the information (total 5 points):

1) Make a balance sheet for Dean and Brittany (total asset-0.5 pt; total liabilities-0.5 pt; net worth-1 pt), and

2) Report the following financial ratios: (a) Current Ratio (1 pt); (b) Emergency Fund Ratio (1 pt); and (c) Savings Ratio (1 pt).

Please Show your calculations in excel with functions THANK YOU!

Match these 10 frauds/schemes with the corresponding definitions/scenarios.   On the homework assessment, the definitions will have multiple choice options.

Skimming, payroll fraud scheme, lapping, illegal gratuities, investment scam, expense scheme, disbursement fraud, check tampering, asset misappropriation, billing scheme.

1. Rick Grimes is a real person. He is a friend of Sam who works at Parry Corporation. Sam adds Rick to the payroll of Parry Corporation. Rick does not work at Parry Corporation but he does cash the checks he receives from Parry Corp. and splits the money with Sam.
2. Ted is a City Commissioner. He negotiated a land deal with a group of private investors. After the deal was approved, Ted and his girlfriend were rewarded with a free trip to Cancun Mexico, all expenses paid.
3. Theft that is committed by stealing receipts, stealing assets on hand, or committing some type of disbursement fraud.
4. An employee who works the cash register enters a “no sale” on their cash register so that it appears a sale is being rung up to the customer and other observers. The employee is stealing the customer’s payment.
5. Having an organization pay for something it shouldn’t pay for or pay too much for something it purchases.
6. An individual promises a high paying dividend on an investment product they are selling. However, instead of investing the funds received, the individual pays “dividends” to initial investors using the amounts “invested” by subsequent investors/victims.
7. An employee at a company manufactures fake receipts using his computer and laser printer. The employee seeks reimbursement on these invented purchases.
8. This is a method of concealing the theft of cash designated for accounts receivable by crediting one account while abstracting money from a different account. The process is continuously repeated to avoid detection.
9. Sam is trusted employee at Pear Corp. He has possession of the company’s checks. He makes a check payable to himself. He fraudulently affixes the signature of an authorized maker (signer).
10. Lilly works at Pear Corporation. She is in a position that approves invoices for payment. She creates a shell company called Hooks. She opens a bank account for Hooks. She authorizes payments for invoices submitted from Hooks.

At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current year and the yield to maturity on the bonds is 5 percent.

a. How much interest income will he report this year if he elects to amortize the bond premium?

b. How much interest will he report this year if he does not elect to amortize the bond premium?

Data pertaining to the current position of Lucroy Industries Inc. are as follows:

Required:

1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place.

2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.

Exercise 5.8 (Algorithmic) Characteristics of Production Process, Cost Measurement Vince Melders, of EcoScape Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. EcoScape estimated the following for the year: Number of direct labor hours 6,720 Direct labor cost $67,200 Overhead cost $50,400 During the year, the following actual amounts were experienced: Number of direct labor hours 6,045 Direct labor incurred $66,495 Overhead incurred $50,500 Vince Melders, owner of EcoScape, noticed that the watering systems for many houses in a local subdivision had the same layout and required virtually identical amounts of prime cost. Vince met with the subdivision builders and offered to install a basic watering system in each house. The idea was accepted enthusiastically, so Vince created a new company, Irrigation Specialties, to handle the subdivision business. In its first three months in business, Irrigation Specialties experienced the following: June July August Number of systems installed 68 88 108 Direct materials used $21,216 $27,456 $33,696 Direct labor incurred $14,144 $18,304 $22,464 Overhead $12,729.60 $12,812.80 $13,478.40 Required: 1. Should Irrigation Specialties use process costing or job-order costing? 2. If Irrigation Specialties uses an actual costing system, what is the cost of a single system installed in June? In July? In August? Round your answers to the nearest dollar. June $ per system July $ per system August $ per system 3. Now assume that Irrigation Specialties uses a normal costing system. Estimated overhead for the year is $46,800, and estimated production is 520 watering systems. What is the predetermined overhead rate per system? $ per system installed What is the cost of a single system installed in June? In July? In August? June $ per system July $ per system August $ per system

Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.3 ounces $ 4.00 per ounce $ 25.20 Direct labor 0.3 hours $ 19.00 per hour $ 5.70 Variable overhead 0.3 hours $ 4.00 per hour $ 1.20 The company reported the following results concerning this product in February. Originally budgeted output 5,800 units Actual output 8,600 units Raw materials used in production 30,900 ounces Actual direct labor-hours 1,990 hours Purchases of raw materials 33,300 ounces Actual price of raw materials $ 102.90 per ounce Actual direct labor rate $ 112.40 per hour Actual variable overhead rate $ 4.90 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for February is:

Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow:

No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department.

Required:

1. Compute the Drying Department's equivalent units of production for pulping and conversion in March.

2. Compute the Drying Department's cost per equivalent unit for pulping and conversion in March.

3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March.

4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March.

5. Prepare a cost reconciliation report for the Drying Department for March.

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

$3 per unit variable; $254,000 fixed each year. The company’s $38 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operations are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Advanced Pharmaceuticals, Inc., is a wholesale distributor of prescription drugs to independent retail and hospital-based pharmacies. Management believes that top-notch customer representatives are the key factor in determining whether the company will be successful in the future. Customer representatives serve as the company’s liaison with customers—helping pharmacies monitor their stocks, delivering drugs when customer stocks run low, and providing up-to-date information on drugs from many different companies. Customer representatives must be ultra-reliable and are highly trained. Good customer representatives are hard to come by and are not easily replaced. Customer representatives routinely record the amount of time they spend serving each pharmacy. This time includes travel time to and from the company’s central warehouse as well as time spent replenishing stocks, dealing with complaints, answering questions about drugs, informing pharmacists of the latest developments and newest products, reviewing bills, explaining procedures, and so on. Some pharmacies require more hand-holding and attention than others and consequently they consume more of the representatives’ time. Recently, customer representatives have made more frequent complaints that it is impossible to do their jobs without working well beyond normal working hours. This has led to an alarming increase in the number of customer representatives quitting for jobs in other organizations. As a consequence, management is considering dropping some customers to reduce the workload on customer representatives. Data concerning a representative sample of the company’s customers appears below: Leafcrest Pharmacy Providence Hospital Pharmacy Madison Clinic Pharmacy Jenkins Pharmacy Total revenues $328,860 $3,056,380 $1,487,010 $208,550 Cost of drugs sold $232,470 $2,248,480 $1,133,440 $129,920 Customer service costs $10,710 $76,500 $45,500 $7,980 Customer representative time 255 1,380 630 150 Customer service costs include all of the costs—other than the costs of the drugs themselves—that could be avoided by dropping the customer. These costs include the hourly wages of the customer representatives, their sales commissions, the mileage-related costs of the customer representatives’ company-provided vehicles, and so on. Required: 1. Rank the four customers in terms of their profitability. 2. Customer representatives are currently paid $40 per hour plus a commission of 1% of sales revenues. If these four pharmacies are indeed representative of the company’s customers, could the company afford to pay its customer representatives more in order to retain them? Yes No

What are some of the business benefits and management challenges of client/server networks?

Below are transactions related to Wildhorse Company.

Prepare journal entries on the books of Wildhorse Company to record these transactions