Given the following information for Nugget Corporation, answer the questions below.

November December January February March Sales $300,000 $250,000 $275,000 $325,000 $350,000

Cash collected in month of sale 10% Credit collections: Collected in month of sale 10% Collected in month following the sale 75% Collected in second month following the sale 15%

Each question should have one amount in the answer field.

You must format your answers as follows: $x,xxx

1 Total collections from cash sales for the quarter ending March 31, 2018.

2 Total collections from credit sales for the quarter ending March 31, 2018.

Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a balance of $10,500. The company's cash account in the general ledger showed a balance of $8,670 on June 30. Other relevant information includes the following:

1. Deposits in transit on June 30 total $7,800.
2. The bank statement shows a debit memorandum for a check printing charge of $60.
3. Check number 160 payable to Simon Company was recorded in the accounting records for $372 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $54 credit balance and the check to them should have been $426.
4. Outstanding checks as of June 30 totaled $8,700.
5. Check No. 176 was correctly written and paid by the bank for $609. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $735.
6. The bank returned a NSF check in the amount of $1,026.
7. The bank included a credit memorandum for $1,890 representing a collection of a customer's note. The principle portion was $1,800 and the interest portion was $90. The interest had not been accrued.

Required
a. Prepare the June bank reconciliation for Chicago Scooter Company.
b. Prepare any necessary adjusting entries.

aura Drake wishes to estimate the value of an asset expected to provide cash inflows of

$ 3 comma 500$3,500

for each of the next 4 years and

​$14 comma 77114,771

in 5 years. Her research indicates that she must earn

44​%

on​ low-risk assets,

88​%

on​ average-risk assets, and

1616​%

on​ high-risk assets.

a.  Determine what is the most Laura should pay for the asset if it is classified as​ (1) low-risk,​ (2) average-risk, and​ (3) high-risk.

b.  Suppose Laura is unable to assess the risk of the asset and wants to be certain​ she's making a good deal. On the basis of your findings in part

a​,

what is the most she should​ pay? Why?

c. All else being the​ same, what effect does increasing risk have on the value of an​ asset? Explain in light of your findings in part

a.

a. ​ (1) The most Laura should pay for the asset if it is classified as​ low-risk is

​$nothing.

​(Round to the nearest​ cent.)

​(2) The most Laura should pay for the asset if it is classified as​ average-risk is

​$nothing.

​ (Round to the nearest​ cent.)

​(3) The most Laura should pay for the asset if it is classified as​ high-risk is

​$nothing.

​(Round to the nearest​ cent.)

b.  Suppose Laura is unable to assess the risk of the asset and wants to be certain​ she's making a good deal. On the basis of your findings in part

a​,

the most she should pay is

​$nothing.

​(Round to the nearest​ cent.)

c. All else being the​ same, what effect does increasing risk have on the value of an​ asset? Explain in light of your findings in part

a.

​(Select the best answer​ below.)

A.

By increasing the risk of cash flows received from an​ asset, the required rate of return​increases, which increases the value of the asset.

B.

By increasing the risk of cash flows received from an​ asset, the required rate of return​increases, which reduces the value of the asset.

C.

By increasing the risk of cash flows received from an​ asset, the required rate of return​decreases, which reduces the value of the asset.

The Landers Corporation needs to raise $1.60 million of debt on a 5-year issue. If it places the bonds privately, the interest rate will be 10 percent. Thirty thousand dollars in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 11 percent, and the underwriting spread will be 2 percent. There will be $140,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 5-year period, at which time it will be repaid. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a. For each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is 16 percent annually. Use 8.00 percent semiannually throughout the analysis. (Disregard taxes.) (Assume the $1.60 million needed includes the underwriting costs. Input your present value of future payments answers as negative values. Do not round intermediate calculations and round your answers to 2 decimal places.)
  

Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $215,500, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $3 million is received from sale of the assets?

Distribution of proceeds on liquidation:

Distribution to general creditors:

The remaining $ will go to the common stockholders.

what is the flowchart in RAPTOR for the following:

Write a program that allows a tax accountant to compute personal income tax. Your program will ask for a filing status (0 for single, 1 for married filing jointly, 2 for married filing separately) and a taxable income. The program will compute the tax. Please use the following chart to find the tax rate to use to compute the tax:  (0) Single: o $0 - $33,950 --> 10% o $33,951 - $171,550 --> 25% o $171,551 + --> 33%  (1) Married Filing Jointly: o $0 - $67,900 --> 10% o $67,901 - $208,850 --> 25% o $208,850 + --> 33%  (2) Married Filing Separately: o $0 - $38,950 --> 10% o $38,951 - $104,425 --> 25% o $104,426 + --> 33% The program should run and allow for as many entries as the tax accountant wants to enter. It will process the personal income tax for each person as well as calculate the average income tax for all the individuals entered. The program

Need Income Statement Need Statement of Retained Earnings, Balance Sheet, Closing Entries

ABC Corporation Unadjusted Trial Balance December 31, 2016 Debit Credit Cash 759,444 Accounts receivable 442,120 Allowance for doubtful accounts - Inventory Allowance to Reduce Inventory to NRV - Purchases 247,000 Prepaid insurance 6,750 Land 88,000 Building 37,500 Accumulated depreciation: building 1,150 Equipment 21,600 Accumulated depreciation: equipment 9,000 Patent 50,000 Accounts payable 88,851 Notes payable 40,000 Income taxes payable 99,000 Unearned rent revenue 13,500 Bonds Payable 700,000 Premium on Bonds Payable 56,774 Common stock 125,000 PIC In Excess of Par-Common Stock 40,000 Retained earnings Treasury stock 20,000 Dividends 28,000 Sales Revenue 790,000 Advertising expense 9,240 Wages expense 62,150 Office expense 28,500 Depreciation expense 10,150 Utilities expense 33,571 Insurance expense 20,250 Income taxes expense 99,000 $1,963,275 $1,963,275

ABC Corporation Adjusted Trial Balance December 31, 2016 Debit Credit Cash 875,444 Accounts Receivable 442,120 Inventory 100,000 Purchases - - Pre-Paid Insurance 4,500 Land 88,000 Allowance for Doubtful Accounts 75,000 Allowance to reduce Inventory to NRV - Bonds Payable $695,271 Premium on Bonds Payable 56,774 Building 37,500 Accumilated Deprication-Building 1,265 Equipment 21,600 Accumilated Deprication-Equipment 9,900 Patent 45,000 Account Payable 88,851 Notes Payable 40,000 Income Tax Payable 99,000 Unearned Rent Revenue 9,000 Common Stock 135,000 Retained Earnings - Dividends 28,000 PIC in Excess of Par - Common Stock 130,000 Sales Revenue 790,000 Advertising Expense 9,240 Wages Expense 67,150 Office Expense 28,500 Deprication Expense 11,165 Utilities Expense 33,571 Treasury Stock 10,000 Insurance Expense 22,500 Income Tax Expense 99,000 Rent Revenue 4,500 Wages Payable 5,000 Interest Expense 30,571 Interest Payable 35,300 Loss on Impairment 5,000 Cost of Goods Sold 147,000 Bad Debt Expense 75,000 PIC from Treasury Stock 6,000 Total 2,180,861 2,180,861

can't be completed until Income Statement is done, Income before Income Taxes

Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognized amounts to $99,000 (11/12 months). Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct (i.e. the difference between total income tax expense and the amount already accrued through November).

Some Figures to help out along the way -Check figure 1: Income from operations = $395,874. -Check figure 2: Income before income taxes = $361,403. -Check figure 3: Total Current Assets at 12/31/16 = $1,343,664. -Check figure 4: Retained Earnings at 12/31/16 = $206,912. -Check figure 5: Total Stockholders' Equity at 12/31/16 = $467,912. -Check figure 6: Total Liabilities at 12/31/16 = $1,056,687. If your need anything else please let me know

Smith Corp. orally engaged TRA CPAs, to audit its financial statements. The management of Smith Corp. informed TRA CPAs that it suspected that the accounts receivable was materially overstated. Although the financial statements audited by TRA CPAs did, in fact, include a materially overstated accounts receivable balance, TRA issued an unqualified opinion. Smith Corp then relied on the financial statements in deciding to obtain a loan from Town Bank to expand its operations and Town Bank relied on the financial statements in making the loan to Smith Corp. As a result of the overstated accounts receivable balance, Smith Corp. has defaulted on the loan and has incurred a substantial loss. If Smith Corp sues TRA CPAs for negligence in failing to discover the overstatement, what is TRA CPA's best defense?

What must an annual report include to be considered a good report?

The annual report of General Mills, maker of Wheaties, Cheerios, and Betty Crocker baking

products, for the year ended May 29, 2011, contained the following($ in millions):

                                                                          May 29, 2011                   May 30, 2010

Total land, building, and equipment                    $7,492.1                              $6,949.7

Less: Accumulated depreciation                        $4,146.2                              $3,822.0

Net land. building, and equipment                  $3345.9                              $3,127.7                  

During fiscal 2011, depreciation expense was $472.6 million, and General Mills acquired land,

buildings, and equipment worth $848.8 million. Assume that no gain or loss arose from the

disposition of land, buildings, and equipment and that General Mills received cash of $158.0

million from such disposals.

Compute (1) the original historical cost of assets sold or retired during fiscal 2011, (2) the amount

of accumulated depreciation associated with the assets sold or retired, and (3) the book value of

the assets sold or retired. Hint: The use of T-accounts may help your analysis.

1. Cash Budget

   The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

   	September		October		November
   Sales	$118,000		$142,000		$199,000
   Manufacturing costs	50,000		61,000		72,000
   Selling and administrative expenses	41,000		43,000		76,000
   Capital expenditures	_		_		48,000

   The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $7,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.

   Current assets as of September 1 include cash of $45,000, marketable securities of $64,000, and accounts receivable of $131,200 ($103,000 from July sales and $28,200 from August sales). Sales on account for July and August were $94,000 and $103,000, respectively. Current liabilities as of September 1 include $7,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $17,000 will be made in October. Bridgeport’s regular quarterly dividend of $7,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $44,000.

   Required:

   1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations.

   Bridgeport Housewares Inc.
   Cash Budget
   For the Three Months Ending November 30
   	September	October	November
   Estimated cash receipts from:
   Cash sales	$	$	$
   Collection of accounts receivable
   Total cash receipts	$	$	$
   Less estimated cash payments for:
   Manufacturing costs	$	$	$
   Selling and administrative expenses
   Capital expenditures
   Other purposes:
   Income tax
   Dividends
   Total cash payments	$	$	$
   Cash increase or (decrease)	$	$	$
   Plus cash balance at beginning of month
   Cash balance at end of month	$	$	$
   Less minimum cash balance
   Excess or (deficiency)	$	$	$

   2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?

   The budget indicates that the minimum cash balance will be maintained in November. This situation can be corrected by and/or by the    of the marketable securities if they are held for such purposes. At the end of September and October, the cash balance will the minimum desired balance.

Shak Inc has accumulated the following data for the past 5 months:

Number of units total overhead costs

August . 2,250 $39,820

September 2,340 $38,650

October . 2,180 $37,880

November 2,080 $38,110

December 2,090 $35,830

Shak Inc, uses the high/low method of separating mixed costs into variable  and fixed components.

Required:

A. Calculate the variable overhead costs per unit and the total fixed overhead costs.

B. If the company expects to produce 3,000 units in January, what will the estimated total overhead cost be?

This week we will be studying budgeting in governmental entities. Locate a recent article from your local city, town, or state that focuses on budgeting. Summarize the article in your own words and relate the discussion to any of the topics that we cover during this week. Identify any funds mentioned or implied in the article, as well as how the article relates to the budgeting process used by government entities. How does the article relate to what you have learned about internal and external users of the government's budget?

McDermott Company has developed a new industrial component called IC-75. The company is excited about IC-75 because it offers superior performance relative to the comparable component sold by McDermott’s primary competitor. The competing part sells for $1,400 and needs to be replaced after 2,200 hours of use. It also requires $300 of preventive maintenance during its useful life.

The IC-75’s performance capabilities are similar to its competing product with two important exceptions—it needs to be replaced after 4,400 hours of use and it requires $400 of preventive maintenance during its useful life.

Required:

From a value-based pricing standpoint:

1. What is the reference value that McDermott should consider when pricing IC-75?

2. What is the differentiation value offered by IC-75 relative the competitor’s offering for each 4,400 hours of usage?

3. What is IC-75’s economic value to the customer over its 4,400-hour life?

4. What range of possible prices should McDermott consider when setting a price for IC-75?