Budget Problem

Part A

The ABC company manufactures bookcases that sell for $400. Budgeted sales for first months are as follows:

Month
Budgeted Sales (units)
January
1000
February
1500
March
2500
April
2000
Required
Calculate sales budget in $ for each monthand total the first quarter

Part B

Each bookcase requires 30 square feetof oak at a cost of $10 per sq foot.. the company wants to maintain an inventory of bookcases equal to 10% of the following month,s sales. Inventory on Jan 1 consisted of 80 bookcases

REQUIRED
Prepare a production budgets in units for each month and in total for the first quarter

Part C

The company wants to amintin an inventory of oak equal to 20% of the next month’s requirements. Materials inventory on Jan 1 consisted of 1100 sq feet of oak
The company estimates an inventory of oak on hand at the end of March of approximately 8000 sq feet

Required

Prepare purchases budget in $ for Direct materials for each month and in total for first quarter

Part D

Each bookcase requires 5 hr of DLH at a cost of $8.00 per hour. Variable manufacturing overhead is budgeted at $2 per DLH
Monthly fixed overhead consists of the following :

Supervisor’s salaries
$6000
Insurance
$ 2000
Depreciation of equipment
$500
Depreciation of factory
$10000

REQUIRED
Prepare a direct labour budget for each month and total the quarter
Prepare a monthly manufacturing overhead budget and total the quarter

Blue Devil Corporation manufactures and sells wireless keyboards. Expected sales of keyboards for upcoming months are as follows: March 50,000 April 55,000 May 60,000 June 52,000 July 58,000 November 37,000 December 39,000 Management likes to maintain a finished goods inventory equal to 20% of the next month's estimated sales. Required: Prepare the company's production budget for the second quarter of this year. Include a column for each month and a total column for the entire quarter.

Canada's current account deficit increased by CAD 5.4 billion in the fourth quarter of 2018 to CAD 15.5 billion from a downwardly revised 10.1 billion in the previous period and compared with market consensus of a CAD 13.5 billion shortfall. A higher deficit in goods and services was only moderated by a lower investment income gap.Canada recorded a capital and financial account deficit of 27 CAD Million in the fourth quarter of 2018.

Discuss the implications for Canada from the outflows of capital

Brief Exercise 9-7 Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,770 in the first quarter, and $5,240 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $41,680 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020. ELBERT COMPANY Selling and Administrative Expense Budget Quarter 1 2 3 4 Year $ $ $ $ $ $ $ $ $ $

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:

1. The finished goods inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 10,000 units.

2. The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 54,000 cc of solvent H300.

3. The company maintains no work in process inventories.

A monthly sales budget for Supermix for the third and fourth quarters of the year follows.

Required:

1. Prepare a production budget for Supermix for the months July, August, September, and October.

3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.

Prepare a production budget for Supermix for the months July, August, September, and October.

Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.

Franklin, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, May, June, and July.

Franklin had a beginning inventory balance of $3,800 on April 1 and a beginning balance in accounts payable of $15,100. The company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. Franklin makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase.

Required

1. Prepare an inventory purchases budget for April, May, and June.

2. Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet.

3. Prepare a schedule of cash payments for inventory for April, May, and June.

4. Determine the balance in accounts payable Franklin will report on the end-of-quarter pro forma balance sheet.

• Required A
• Required B
• Required C
• Required D

Prepare an inventory purchases budget for April, May, and June.

Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet.

Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.)

Determine the balance in accounts payable Franklin will report on the end-of-quarter pro forma balance sheet.

Campbell, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, May, June, and July.

Campbell had a beginning inventory balance of $3,400 on April 1 and a beginning balance in accounts payable of $15,700. The company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. Campbell makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase.  

Required

1. Prepare an inventory purchases budget for April, May, and June.

2. Determine the amount of ending inventory Campbell will report on the end-of-quarter pro forma balance sheet.

3. Prepare a schedule of cash payments for inventory for April, May, and June.

4. Determine the balance in accounts payable Campbell will report on the end-of-quarter pro forma balance sheet.

Prepare an inventory purchases budget for April, May, and June.

Determine the amount of ending inventory Campbell will report on the end-of-quarter pro forma balance sheet.

Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.)

Determine the balance in accounts payable Campbell will report on the end-of-quarter pro forma balance sheet.

Baird, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, May, June, and July.

Baird had a beginning inventory balance of $4,400 on April 1 and a beginning balance in accounts payable of $15,200. The company desires to maintain an ending inventory balance equal to 20 percent of the next period’s cost of goods sold. Baird makes all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the month following purchase.  

Required

Prepare an inventory purchases budget for April, May, and June.

Determine the amount of ending inventory Baird will report on the end-of-quarter pro forma balance sheet.

Prepare a schedule of cash payments for inventory for April, May, and June.

Determine the balance in accounts payable Baird will report on the end-of-quarter pro forma balance sheet.

Prepare an inventory purchases budget for April, May, and June.

Determine the amount of ending inventory Baird will report on the end-of-quarter pro forma balance sheet.

Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.)

Determine the balance in accounts payable Baird will report on the end-of-quarter pro forma balance sheet.

Week 2 Project - Economics of Healthcare The National Health Expenditure Accounts (NHEA) estimates health care spending over time, including everything from health care goods and services to public health activities, government administration to health care investment. For this assignment, we will focus on health spending by major sources of funds. Please see below for a summary: Medicare: Medicare spending, which represented 20 percent of national health spending in 2012, grew 4.8 percent to $572.5 billion, a slight slowdown from growth of 5.0 percent in 2011. A one-time payment reduction to skilled nursing facilities in 2012, after a large increase in payments in 2011 due to implementation of a new payment system contributed to the slower growth. Medicaid: Total Medicaid spending grew 3.3 percent in 2012 to $421.2 billion, an acceleration from 2.4-percent growth in 2011. The relatively low annual rates of growth in Medicaid spending in 2011 and 2012 can be explained in part by slower enrollment growth tied to improved economic conditions and efforts by states to control health care costs. Federal Medicaid expenditures decreased 4.2 percent in 2012, while state and local Medicaid expenditures grew 15.0 percent—a result of the expiration of enhanced federal aid to states in the middle of 2011. Private Health Insurance: Overall, premiums reached $917.0 billion in 2012, and increased 3.2 percent, near the 3.4 percent growth in 2011. The net cost ratio for private health insurance —the difference between premiums and benefits as a share of premiums —was 12.0 percent in 2012 compared with 12.4 percent in 2011. Private health insurance enrollment increased 0.4 percent to 188.0 million in 2012, but still 9.4 million lower than in 2007. Out-of-Pocket: Out-of-pocket spending grew 3.8 percent in 2012 to $328.2 billion, an acceleration from growth of 3.5 percent in 2011, reflecting higher cost-sharing and increased enrollment in consumer-directed health plans. Source: Centers for Medicare & Medicaid Services. (2014). National Health Expenditure Data Highlights. Retrieved from https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/Downloads/highlights.pdf Download the National Health Expenditures [NHE] by type of service and source of funds, NHE2012.zip file. Summarize in a table the total NHE (in millions) for the following years: 1960, 1970, 1980, 1990, 2000, 2010. Present the data visually by creating a line graph or a bar diagram depicting changes in values. Comment on the changes in the categories of expenditure sources, i.e., out-of-pocket, health insurance, third party payers, etc. with respect to both year-to-year changes and across the entire period. Include specific interpretations of why such changes are apparent [social, political, economic, etc. factors] and what strategies may be necessary to curb healthcare expenditure in the coming years. To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format. Submission Details: Your assignment should be addressed in a 2- to 3-page document. Submit your documents to the Submissions Area by the due date assigned.

“We really need to get this new material-handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank.” This statement by Beth Davies-Lowry, president of Intercoastal Electronics Company, concluded a meeting she had called with the firm’s top management. Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firm’s main product lines are small kitchen appliances and power tools. Marcia Wilcox, Intercoastal’s General Manager of Marketing, has recently completed a sales forecast. She believes the company’s sales during the first quarter of 20x1 will increase by 10 percent each month over the previous month’s sales. Then Wilcox expects sales to remain constant for several months. Intercoastal’s projected balance sheet as of December 31, 20x0, is as follows:

Jack Hanson, the assistant controller, is now preparing a monthly budget for the first quarter of 20x1. In the process, the following information has been accumulated:

1. Projected sales for December of 20x0 are $600,000. Credit sales typically are 60 percent of total sales. Intercoastal’s credit experience indicates that 30 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month.
2. Intercoastal’s cost of goods sold generally runs at 70 percent of sales. Inventory is purchased on account, and 50 percent of each month’s purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the firm attempts to have inventory at the end of each month equal to half of the next month’s projected cost of goods sold.
3. Hanson has estimated that Intercoastal’s other monthly expenses will be as follows:

In addition, sales commissions run at the rate of 2 percent of sales.

1. Intercoastal’s president, Davies-Lowry, has indicated that the firm should invest $115,000 in an automated inventory-handling system to control the movement of inventory in the firm’s warehouse just after the new year begins. These equipment purchases will be financed primarily from the firm’s cash and marketable securities. However, Davies-Lowry believes that Intercoastal needs to keep a minimum cash balance of $25,000. If necessary, the remainder of the equipment purchases will be financed using short-term credit from a local bank. The minimum period for such a loan is three months. Hanson believes short-term interest rates will be 10 percent per year at the time of the equipment purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the first quarter if possible.
2. Intercoastal’s board of directors has indicated an intention to declare and pay dividends of $50,000 on the last day of each quarter.
3. The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Intercoastal’s bonds is paid semiannually on January 31 and July 31 for the preceding six-month period.
4. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period.

Prepare Intercoastal Electronics Company’s master budget for the first quarter of 20x1 by completing the following schedules and statements:

1A) Sales budget:

1B) Cash receipts budget:

1C) Purchases budget:

1D) Cash disbursements budget:

1E) Complete the first three lines of the summary cash budget. Then do the analysis of short-term financing needs in requirement (6). Then finish requirement (5).

1F) Calculation of required short-term borrowing.

1G) Prepare Intercoastal Electronics’ budgeted income statement for the first quarter of 20x1. (Ignore income taxes.)

1H) Prepare Intercoastal Electronics’ budgeted statement of retained earnings for the first quarter of 20x1.

1I) Prepare Intercoastal Electronics’ budgeted balance sheet as of March 31, 20x1. (Hint: On March 31, 20x1, Bond Interest Payable is $9,000 and Property Taxes Payable is $1,200.)