Fallow Corporation is subject to tax only in State X. State income taxes are not deductible for State X income tax purposes. Fallow generated the following income and deductions:

a. The starting point in computing the State X income tax base is Federal taxable income, which is $.

b. If the interest on State X's obligations is exempt from State X's income tax, Fallow's State X taxable income is $.

c. If the interest on State X's obligations is subject to State X's income tax, Fallow's State X taxable income is $.

Exercise 17-13 The 2020 accounting records of Blocker Transport reveal these transactions and events. Payment of interest $10,600 Collection of accounts receivable $190,700 Cash sales 49,900 Payment of salaries and wages 56,100 Receipt of dividend revenue 17,100 Depreciation expense 15,000 Payment of income taxes 15,300 Proceeds from sale of vehicles 12,600 Net income 37,900 Purchase of equipment for cash 21,700 Payment of accounts payable Loss on sale of vehicles 3,200 for merchandise 114,400 Payment of dividends 14,600 Payment for land 73,800 Payment of operating expenses 28,700

Prepare the cash flows from operating activities section using the direct method.

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

1. As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

2. Actual sales for December and budgeted sales for the next four months are as follows:

3. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

4. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

5. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month: advertising, $70,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,000 for the quarter.

6. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

7. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

8. During February, the company will purchase a new copy machine for $1,700 cash. During March, other equipment will be purchased for cash at a cost of $84,500.

9. During January, the company will declare and pay $45,000 in cash dividends.

10. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the data above, complete the following statements and schedules for the first quarter:

1. Schedule of expected cash collections:

2-a. Merchandise purchases budget:

2-b. Schedule of expected cash disbursements for merchandise purchases:

3. Cash budget:

4. Prepare an absorption costing income statement for the quarter ending March 31.

5. Prepare a balance sheet as of March 31.

Please answer both question as a discussion board

The sales budget is considered the primary driver of all other budgets including budget balance sheet and cash budget.

1. Explain why it is critical the sales budget is the first budget prepared in the master budget.

2. Describe how changes in the sales budget can ripple through the operating budgets and impact the cash budget and budgeted balance sheet.

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

1. As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

2. Actual sales for December and budgeted sales for the next four months are as follows:

3. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

4. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

5. Monthly expenses are budgeted as follows: salaries and wages, $21,000 per month: advertising, $61,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $43,060 for the quarter.

6. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

7. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

8. During February, the company will purchase a new copy machine for $1,600 cash. During March, other equipment will be purchased for cash at a cost of $73,000.

9. During January, the company will declare and pay $45,000 in cash dividends.

10. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the data above, complete the following statements and schedules for the first quarter:

1. Schedule of expected cash collections:

2-a. Merchandise purchases budget:

2-b. Schedule of expected cash disbursements for merchandise purchases:

3. Cash budget:

4. Prepare an absorption costing income statement for the quarter ending March 31.

5. Prepare a balance sheet as of March 31.

A20-14 Basic and Diluted EPS

The following information relates to Willowdale Ltd.’s financial statements for the year ended 31 December 20X6:

a. On 1 January 20X6, Willowdale’s capital structure consisted of the following:

b. On 30 September 20X6, Willowdale issued an additional 100,000 common shares for $1.5 million cash.
c. Willowdale reported earnings of $1.5 million for the year ended 31 December 20X6 net of tax of 25%.

Required:
Calculate the basic and diluted earnings per share figures for 20X6

The following data relates to Merrick Ltd., a single product company who manufactures vaccines:

Variances for October:

DIRECT MATERIAL QUANTITY VARIANCE 2400 UNFAVORABLE

MATERIALS VARIANCE (TOTAL) 600 FAVORABLE

DIRECT LABOR EFFICIENCY VARIANCE 9000 FAVORABLE

Actual materials and labor costs for October:

Materials and labor standards to manufacture one unit of vaccine:

Merrick Ltd. manufactured and sold 1,400 units of vaccines during October. There were no materials and finished goods inventories at the start and end of the October.

Required:

1. Compute standard price per pound of materials.
2. Compute standard quantity of materials allowed for actual production.
3. Compute standard quantity of direct materials allowed for one unit of product.
4. Compute actual direct labor cost per hour for October.
5. Compute direct labor rate variance and indicate whether it is favorable or unfavorable.

2.

A Plus Company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:

Which of the following statements is true regarding this company's activity rates?

Multiple Choice

• The activity rate under the activity-based costing system for Activity 2 is $2.81.

• The activity rate under the activity-based costing system for Activity 2 is $16.00.

• The activity rate under the activity-based costing system for Activity 2 is $19.50.

• The activity rate under the activity-based costing system for Activity 2 is $1.50.

• The activity rate under the activity-based costing system for Activity 2 is $2.00.

Determine the amount of sales (units) that would be necessary under

Break-Even Sales Under Present and Proposed Conditions

Darby Company, operating at full capacity, sold 98,550 units at a price of $117 per unit during the current year. Its income statement for the current year is as follows:

The division of costs between fixed and variable is as follows:

Management is considering a plant expansion program that will permit an increase of $936,000 in yearly sales. The expansion will increase fixed costs by $93,600, but will not affect the relationship between sales and variable costs.

Required:

4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number.
units

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $142,350 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number.
units

6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar.
$

7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar.
$ Income

8. Based on the data given, would you recommend accepting the proposal?

1. In favor of the proposal because of the reduction in break-even point.
2. In favor of the proposal because of the possibility of increasing income from operations.
3. In favor of the proposal because of the increase in break-even point.
4. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
5. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

Choose the correct answer.
b

Please explain how you get each answer

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Exercise 8-12

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $350,000, $370,000, $360,000, and $380,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 30% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $46,000. Each month $7,000 of this total amount is depreciation expense and the remaining $39,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.

3. Prepare an income statement that computes net operating income for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

What can we say about the limitations involved in the assessment of ROE for analyzing the profitability of a company?Please give an understandable explanation

1. What is Kaizen and how is it related with lean maufacturing?

          2. What are the Kaizen practices that MARS had implemented in their plant and what are their results? Give as

              many as possible as mentioned the article. Explain further your answers.

          3. One of the Kaizen practices at Mars is people empowerment. It is mentioned in the article that every associate

              has the authority to stop the line if they see a serious safety or quality issue. In your own opinion, what does

              this mean? Explain your answer, you can cite examples if needed.

An explanation of one area of enterprise risk management (4-5) sentences.

1.) When is it appropriate to use the income approach?

2.) What are the pros and cons of using the income approach?

3.) Describe what pre-tax and after-tax information is.

4.) What is the capitalization of benefits method?

5.) What is the discounted future benefits method?

6.) What is the excess earnings method?