Budgeting Cash Flow
The following various elements relate to Whitfield, Inc.’s cash budget for April of the current year. For each item, determine the amount of cash that Whitfield should receive or pay in April.

a. At $28 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit; 30% of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible.

March sales= Answer

April cash sales= Answer

April credit sales= Answer

Cash collected in April =Answer

b. Merchandise purchases were $45,000 and $78,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month.

c. Fixed administrative expenses, which total $11,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, one-half of which is paid in the month incurred, with the balance paid in the following month.

d. A store asset originally costing $8,000, on which $6,000 depreciation has been taken, is sold for cash at a loss of $400.

$Answer

Budget Performance Report

Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows:

At the beginning of July, GBC management planned to produce 580,000 bottles. The actual number of bottles produced for July was 626,400 bottles. The actual costs for July of the current year were as follows:

Enter all amounts as positive numbers.

a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.

Feedback

Compare the actual costs with the standard cost at actual volume for direct labor, direct materials, and overhead. Identify the cost variance as favorable (actual less than standard) or unfavorable (actual greater than standard).

Review the concepts of favorable and unfavorable variances.

Learning Objective 2.

b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If required, round your answers to nearest cent.

Answer theses question fully and in detail. These questions are related to ASX Corporate Governance Council requirement for all listed companies to have a majority of "independent" board members.

1. What new agency conflicts would be created if director’s independence was compromise in regards to holding significant shareholdings in the company?

2. Statistic for Australian company's failure due to directors independecy comprosmised?

Problem 6-15B Retail inventory method LO6
CHECK FIGURE: 2. Loss at cost = $2,040.27
The records of The Wilke Co. provided the following information for the year ended December 31, 2020:

At Cost At Retail
January 1 beginning inventory ......................... $ 40,835 $ 57,305
Purchases ............................................................... 251,945 383,530
Purchase returns .................................................. 5,370 7,665
Sales ........................................................................ 393,060
Sales returns ......................................................... 2,240

Required
1. Prepare an estimate of the company’s year-end inventory by the retail method. Round all calculations to
two decimal places.
2. Under the assumption the company took a year-end physical inventory at marked selling prices that totalled
$39,275, prepare a schedule showing the store’s loss from theft or other causes at cost and at retail.

Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $40. Wesley expects the following unit sales:

Wesley’s ending finished goods inventory policy is 25 percent of the next month’s sales.

Suppose each handisaw takes approximately 0.65 hours to manufacture, and Wesley pays an average labor wage of $13.50 per hour.

Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $5.00 each. The company has an ending direct materials inventory policy of 10 percent of the following month’s production requirements. Materials other than the housing unit total $3.50 per handisaw.

Manufacturing overhead for this product includes $63,000 annual fixed overhead (based on production of 24,000 units) and $0.80 per unit variable manufacturing overhead. Wesley’s selling expenses are 5 percent of sales dollars, and administrative expenses are fixed at $16,000 per month.

Required:
1. Compute the budgeted cost of goods sold for the first quarter.
2. Compute the budgeted selling and administrative expenses for the first quarter.
3. Complete the budgeted income statement for the handisaw product for the first quarter.

Reba Dixon is a fifth grade school teacher who earned a salary of 38,000 in 2018. She is 45 years old and has been divorced for four years. She receives 1,200 of alimony payments each month from her former husband. Reba also rent out a small apartment building. This year Reba receive 50,000 of rental payments from tenant and she incurred 19,500 of expenses associated with the rental.
        Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one half of Heather support. They had been living in Colorado for the past 15 years, but ever since her divorced, Reba has been wanting to go back to Georgia to be closer to her family. Luckily last December, a teaching position opened up and Reba and Heather decided to make a move. Reba paid a moving company 2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia.
          Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full time in January at near by university. She was awarded a & 3000 partial tuition scholarship this year and Reba help out by paying the remaining 500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses.
           Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return, however she kept track of several expenses this year that she thought might qualify if she was able to itemized. Reba paid 5800 in state income taxes and 12500 in charitable contribution during the year. She also paid the following medical related expenses for herself and Heather :
Insurance premiums.     5,795
Medical care expenses   1,100
Prescription medicine         350
Nonprescription medicine. 100
New contact lenses for Heather. 200

   Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused 900 in damage to the car and gave her whiplash. Because the repair was less than her insurance deductible, she paid the entire cost of the repair. Reba wasn't able to work for two months after the accident. Fortunately, she receives 2000 from her disability insurance. Her employer, the central Georgia school district, paid 60%of premium on the policy as a non-taxable fringe benefits and Reba paid the remaining 40% portion.
      A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments : 2200 of interest income from corporate bonds and 1500 interest income from city of Denver municipal bonds. Overall, Reba stock portfolio appreciated by 12000 but she did not sell any of her stock.
      Heather reported 6200 of interest income from corporate bonds she received as a gift from her father over the last several years. This was Heather only sources of income for the year. Reba had 10,000 of federal income taxes withheld by employer. Heather made 1000 estimates tax payments during the year. Reba did not make any estimate payments. Reba had qualifying insurance for purposes of the affordable care Act (ACA).

Required :

(A) Determine Reba federal income taxes due or taxes payable for current year, complete pages 1 and 2 of forms 1040 for Reba.

(b) is Reba allowed to file as a head of household or single?

(c) Determine the amount of FICA taxes Reba was required to pay on her salary.

(d) Determine Heather federal income taxes due or payable

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.

2. Assuming that the July 1 work in process inventory includes $24,000 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and July. If required, round your answers to the nearest cent.

Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (Hint: Use the reconciliation method.)

Required:

a. What is the unit product cost for the month under variable costing?

b. Prepare a contribution format income statement for the month using variable costing.

c. Without preparing an income statement, determine the absorption costing net operating income for the month.(Hint: Use the reconciliation method.)

Your company provides catering services throughout the United States. As part of the company’s growth strategy, they plan on acquiring businesses which complement the catering service by providing full service restaurants.

1. Explain the capital investment analysis methods they should use to determine their choices of capital investments.
2. Explain which methods will assist in determining whether to continue to analyze the investment decisions.
3. Explain which method you would recommend they use to ensure the investment is right for the company.

Which of the following does not affect the gross profit:

Select one:

a. dropping a product line due to declining consumer interest

b. an increase in freight costs of inventory from shipping port

c. having to pay more for insurance premiums after making several claims

d. having to change suppliers and pay more for inventory

e. reducing selling prices due to increased competition

From the perspective of a bureaucrat, which government accounting method (Cash Basis, Modified Accrual or Full Accrual) is more feasible for each revenue source? Explain your response.

1. State Income Taxes   D. Motor Fuel Taxes          G. Gaming Fees (casinos)
2. Public Utility Fees    E. Licenses and Fees          H. Block Grants
3. Donations                 F. Sales Taxes                     I. Property Taxes

Part Five

APPLY THE CONCEPTS: Net present value and Present value index

Calculate the net present value and the present value index for each project using the present value tables provided below.

Present Value of $1 (a single sum) at Compound Interest.

Present Value of an Annuity of $1 at Compound Interest.

Based upon net present value, which project has the more favorable profit prospects?   Project A

• Both are favorable
• Project A
• Project B
• Can't determine

Based upon the present value index, which project is ranked higher?   Project A

• Both are favorable
• Project A
• Project B
• Can't determine

On June 8, Steering Ltd was incorporated and issued 56,000 common shares for $280,000. On August 19, an additional 14,000 shares were issued for $84,000. On November 2, the company paid $29,760 to reacquire 6,200 common shares and on December 7 it paid $51,350 to reacquire 7,900 common shares.

Calculate the average cost of the common shares on June 8, August 19, November 2, and December 7.

A city council has estimated that it has a surplus of $100 Million (M). The council is exploring the following three projects, each of which costs $100 M. a. A bridge which takes five years to build, then yields $50M benefit per year for the next 10 years. The benefits are received at the end of each year. Assume that the costs are spread out evenly over the five years (i.e. year 1 to year 5) and are paid at the end of each year. b. Temporary classrooms for schools yielding $50M benefit per year for five years. The benefits are received at the end of each year. Assume that all costs are paid at the end of year 1. c. Tax breaks per year to a foreign auto manufacturer for a new auto plant yielding $20M benefit per year from the third year for next 5 years. The benefits are received at the end of each year. Assume that all costs (i.e. tax breaks) are paid equally at the end of year 1 and year 2. Assuming the discount rate of 5 percent, calculate the following for each of the projects: Discounted Benefits, Discounted Costs, Net Present Value (NPV) and Benefit Cost Ratio (BCR). Which one of the above projects would you suggest that the City Council can undertake based on the BCR? Explain your answer. You should be able to use Excel for this exercise.

Please post excel screenshot as well as how to calculate each cell.