According to the Blockbuster FY 2004 10K, what change in Blockbuster revenue, net income, liquidity, leverage, turnover, profitability, and/or market value measures are most descriptive Blockbuster’s performance for the period 2003 through 2004? How did the overall market change over that time frame? How has Netflix performed in this time frame? Select the single best available answer from those presented below. Group of answer choices

A) Experienced a massive loss of shareholders' equity; consumer spending for in-home movie viewing in the United States increased; revenues and subscribers have more than tripled.

B) Maintained a stable dividend; DVD sales increased; experienced their first Net income gains .

C)Experienced a massive loss of shareholders' equity; DVD sales increased; experienced Net income losses.

D) Maintained a stable dividend; consumer spending for in-home movie viewing in the United States increased; revenues and subscribers have more than tripled.

According to the Blockbuster FY 2004 10K, what change in Blockbuster revenue, net income, liquidity, leverage, turnover, profitability, and/or market value measures are most descriptive Blockbuster’s performance for the period 2003 through 2004? How did the overall market change over that time frame? How has Netflix performed in this time frame? Select the single best available answer from those presented below. Group of answer choices

A) Experienced a massive loss of shareholders' equity; consumer spending for in-home movie viewing in the United States increased; revenues and subscribers have more than tripled.

B) Maintained a stable dividend; DVD sales increased; experienced their first Net income gains .

C)Experienced a massive loss of shareholders' equity; DVD sales increased; experienced Net income losses.

D) Maintained a stable dividend; consumer spending for in-home movie viewing in the United States increased; revenues and subscribers have more than tripled.

1- It is MOST accurate to say that the recession of 4-5 years ago resulted in which of the following?

- an overselling of private goods

- a widespread disbelief in the possibility of achieving the American dream

- a decline in conspicuous spending

- an increase in materialism

2-

The intangibility of the service means that:

- advertising or other forms of promotion are of little importance to the services marketer.

- unused capacity cannot be shifted from one time period to another.

- brandnames or trademarks can’t be used because they must refer to tangible goods in order to be effective.

- the value of a service may be based on a customer’s experience.

According to the concept of the product life cycle,:

- new products may pass through a life cycle stage quickly, virtually skipping it.

- products spend a predetermined amount of time in each stage of the life cycle; this time span is determined

by the product category.

- most products require the same level of marketing throughout their life cycle.

- all products begin at the introductory stage and move through the life cycles stages at a steady rate

Retail assortments are looking more and more alike because:

- customers today are more focused on service differentiation

- national-brand manufacturers have placed their products almost everywhere

- market segmentation has proven ineffective

- stores are clustered together to increase their customer pulling power

Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year:

1. Expected monthly sales for April, May, June, and July are $260,000, $230,000, $350,000, and $130,000, respectively.
2. Cost of goods sold is 30 percent of expected sales.
3. CGC’s desired ending inventory is 40 percent of the following month’s cost of goods sold.
4. Monthly operating expenses are estimated to be:

• Salaries: $34,000
• Delivery expense: 8 percent of monthly sales
• Rent expense on the warehouse: $6,500
• Utilities: $1,300
• Insurance: $240
• Other expenses: $340

Required:

1. Compute the budgeted cost of purchases for each month in the second quarter.

2. Complete the budgeted income statement for each month in the second quarter.

Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year:

Expected monthly sales for April, May, June, and July are $210,000, $180,000, $300,000, and $80,000, respectively.

Cost of goods sold is 40 percent of expected sales.

CGC’s desired ending inventory is 50 percent of the following month’s cost of goods sold.

Monthly operating expenses are estimated to be:

Salaries: $30,000

Delivery expense: 5 percent of monthly sales

Rent expense on the warehouse: $4,000

Utilities: $800

Insurance: $300

Other expenses: $400

Required:
1. Compute the budgeted cost of purchases for each month in the second quarter.

2. Complete the budgeted income statement for each month in the second quarter.

Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year:

1. Expected monthly sales for April, May, June, and July are $280,000, $250,000, $370,000, and $150,000, respectively.
2. Cost of goods sold is 30 percent of expected sales.
3. CGC’s desired ending inventory is 25 percent of the following month’s cost of goods sold.
4. Monthly operating expenses are estimated to be:

• Salaries: $36,000
• Delivery expense: 5 percent of monthly sales
• Rent expense on the warehouse: $7,500
• Utilities: $1,500
• Insurance: $150
• Other expenses: $250

Required:

1. Compute the budgeted cost of purchases for each month in the second quarter.

2. Complete the budgeted income statement for each month in the second quarter.

Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year:

1. Expected monthly sales for April, May, June, and July are $220,000, $190,000, $310,000, and $90,000, respectively.

2. Cost of goods sold is 30 percent of expected sales.

3. CGC’s desired ending inventory is 20 percent of the following month’s cost of goods sold.

4. Monthly operating expenses are estimated to be:

Salaries: $30,000.

Delivery expense: 4 percent of monthly sales.

Rent expense on the warehouse: $4,500.

Utilities: $800.

Insurance: $175.

Other expenses: $260.

Required:

1. Compute the budgeted cost of purchases for each month in the second quarter.

2. Complete the budgeted income statement for each month in the second quarter.

[The following information applies to the questions displayed below.]

Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company’s master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 4.0 hours to 3.75 hours.

Labor-related costs include pension contributions of $1.55 per hour, workers’ compensation insurance of $1.25 per hour, employee medical insurance of $5 per hour, and employer contributions to Social Security equal to 6.00 percent of direct-labor wages. The cost of employee benefits paid by the company on its employees is treated as a direct-labor cost. Spiffy Shades Corporation has a labor contract that calls for a wage increase to $21.00 per hour on April 1, 20x1. Management expects to have 26,000 frames on hand at December 31, 20x0, and has a policy of carrying an end-of-month inventory of 100 percent of the following month’s sales plus 40 percent of the second following month’s sales.

These and other data compiled by Demarest are summarized in the following table.

Prepare a production budget and a direct-labor budget for Spiffy Shades Corporation by month and for the first quarter of 20x1. (Round "Direct-labor hours per unit" to 2 decimal places.)

For each item used in the firm’s production budget and direct-labor budget, select the other components of the master budget (except for financial statement budgets) that also, directly or indirectly, would use these data. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Sales data:

Selling and administrative expense budget

Production-overhead budget

Direct-material budget

Cash budget

Cost-of-goods-sold budget

Sales budget

Cash disbursements budget

Production data:

Selling and administrative expense budget

Direct-material budget

Cost-of-goods-sold budget

Production-overhead budget

Cash budget

Cash disbursements budget

Sales budget

Direct-labor-hour data:

Selling and administrative expense budget

Production-overhead budget

Direct-material budget

Cash budget

Cost-of-goods-sold budget

Sales budget

Cash disbursements budget

Direct-labor cost data:

Selling and administrative expense budget

Production-overhead budget

Direct-material budget

Cash budget

Sales budget

Cost-of-goods-sold budget

Cash disbursements budget

Prepare a production overhead budget for each month and for the first quarter.

Don Hawk Furnishings sells a variety of decorative pieces including a variety of candle holders. The business began the second quarter (April to June) of 2018 with 15 (Alanea) candle holders at a total cost of $108,750. The following transactions relating to the “Alanea” candle holders were completed during the quarter.

April 7 90 candle holders were purchased at a cost of $6,850 each. In addition the business paid freight charges of $800 cash on each candle holder to have the inventory shipped from the point of purchase to their warehouse.

April 30 The sales for April were 75 candle holders which yielded total sales revenue of $803,250. ( 15 of these units were sold on account to longstanding customers of the business)

May 6 A new batch of 80 candle holders was purchased at a total cost of $654,800

May 9 Upon inspection of the candle holders purchased on May 6, five (5) of the units were found to be defective and were returned to the supplier.

May 31 During the month 62 of the decorative pieces were sold at a price of $11,450 each.

June 5 A customer, to whom 7 of the candle holders were sold during the first business day of May, returned 3 of the candle holders, as they were of another make & model.

June 14 Owing to an increased demand, a further 110 candle holders were purchased at a cost of $9,000 each; the supplier gave a 3% quantity discount on the purchase.

June 30 116 candle holders were sold during June at a unit selling price of $12,250.

June 30 An actual count of inventory was carried out at the close of business which revealed that there were 36 pieces of the Alanea brand of merchandise in the store room. Unless otherwise stated, assume that all purchases were on account and received on the dates stated.

Required:

(A) Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method of inventory valuation to determine the company’s cost of goods sold for the quarter and the value of ending.

(B) Given that selling, distribution and administrative costs associated with the Alanea brand of candle holders for the quarter were $27,255, $42,400 and $145,600 respectively, prepare an income statement for Don Hawk Furnishings (Alanea) for the quarter ended June 30, 2018.   

(C) Journalize the transactions for the month of April, assuming the company uses a:

- Periodic inventory system

- Perpetual inventory system

(D) The manager of the business, Don Hawk, has stated that his objective is to cut back on his tax liability as much as possible and is of the view that the FIFO method would be best. Do you agree with Don? Explain your answer clearly distinguishing between the first in, first out (FIFO) and last in, first out (LIFO) methods of inventory valuation.

Income is to be evaluated under four different situations as follows:

a. Prices are rising:

(1) Situation A: FIFO is used.

(2) Situation B: LIFO is used.

b. Prices are falling:

(1) Situation C: FIFO is used.

(2) Situation D: LIFO is used.

The basic data common to all four situations are: sales, 502 units for $16,064; beginning inventory, 287 units; purchases, 388 units; ending inventory, 173 units; and operating expenses, $3,100. The income tax rate is 30%.

Required:

1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 287 units at $11 = $3,157; purchases, 388 units at $12 = $4,656. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 287 units at $12 = $3,444; purchases, 388 units at $11 = $4,268.Use periodic inventory procedures.(Round your answers to nearest dollar amount

2. Complete the following sentences:

when prices are rising ___________gives a higher net income than ____________

when prices are falling__________effects results.

3. Complete the following sentence:

The relative effects on the cash position for each situation.

when prices are missing,________derives a more favourable cash position than ________the difference in income tax