Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following.

Complete the following flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units

The following information for Dorado Corporation relates to the three-month period ending September 30. Units Price per Unit Sales 455,000 $ 42 Beginning inventory 41,000 24 Purchases 430,000 30 Ending inventory 16,000 ? Dorado expects to purchase 180,000 units of inventory in the fourth quarter of the current calendar year at a cost of $31 per unit, and to have on hand 57,000 units of inventory at year-end. Dorado uses the last-in, first-out (LIFO) method to account for inventory costs.

A)Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.

B) Prepare journal entries to reflect these amounts.

"You currently owe $2480 on your credit card, which calculates interest based on 18.23% APR, compounded daily. You make quarterly payments of $724 at the end of every quarter, and you make your first payment exactly one quarter from now. How many quarters until you pay off your credit card debt? Assume 91 days in each quarter. Express your answer as an integer (number of quarters)."

Johnson Company is preparing budgets for the upcoming quarter ending October 31st . The marketing director has provided the following information to the Budget Committee. Currently the company sells one product, the korda, for $25 per unit. Budgeted sales for the next five months are as follows:

August 15,000

September 45,000

October 37,500

November 25,500

December 26,250

To minimize the risk of stockouts, the company has a policy to maintain an ending inventory of 18% of the following month’s budgeted sales. At the beginning of the quarter, the company had 7,500 units of korda in inventory. Each unit of korda requires 2 kilograms of direct materials. The company has a policy that materials on hand at the end of each month must be a minimum of 20% of the following month’s production. At the beginning of the quarter, the company has 15,600 kilograms of direct materials on hand. Each kilogram of direct material costs $3.00. Each unit of korda requires 0.2 hours (12 minutes) of direct labour. The company pays employees a standard wage of $15.00 per hour. The company applies overhead on the basis of direct labour hours. The variable manufacturing overhead rate is $12.00 per direct labour hour. Fixed overhead is $81,978 per month. The company has variable selling and administrative costs that are equal to $0.75 per unit sold. Fixed selling and administrative costs are estimated to be $100,000 per month. All sales are made on account. The company collects 65% of the sales revenue in the month of the sale, and the remaining 35% in the month following the sale. At the start of 2 the quarter, the company has $45,000 in accounts receivable that are deemed to be fully collectible. As stated, the company pays $3.00 per kilogram of direct materials. The company pays for 70% the direct materials purchases in the month of the purchase and pays the remaining 30% in the month following the purchase. At the beginning of the month, the company owes $20,000 to creditors.

Required:

(A) Prepare a sales budget for August, September, and October, and for the quarter.

(B) Prepare a production budget for August, September, and October, and for the quarter-end. (Note: You should also compute November’s production needs. That information is necessary for section (C).)

(C) Prepare the direct materials purchases budget for August, September, and October, and for the quarter-end.

(D) Prepare the direct labour budget for August, September, and October, and for the quarter-end.

(E) Prepare the overhead budget for August, September, and October, and for the quarter-end.

(F) Prepare the ending finished goods inventory budget for the quarter-end.

(G) Prepare a cost of goods sold budget for the quarter-end.

(H) Prepare the selling and administrative expense budget for August, September, and October, and for the quarter-end.

(I) Prepare a budgeted income statement for the quarter-end.

(J) Prepare the schedule of expected cash collections on sales for August, September, and October, and for the quarter-end.

(K) Prepare the schedule of expected cash disbursements for August, September, and October, and for the quarter-end.

Union Pacific Rail road reported net income of $770million after interest expenses of $320 million in a recent financial year. The corporate tax rate was 36%. It reported depreciation of $960 million in that year, and capital spending of $1.2billion. The firm also had $4billion in debt outstanding on the books, was rated AA (carrying a yield to maturity of 8%), and was trading at par (up from $3.8 billion at the end of the previous year). The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at $60 per share), with a book value of $5 billion. Union Pacific paid 40% of its earnings as dividends and working capital requirements are negligible. (The Treasury bond rate is 7%.) You are required to
a. Estimate the Free Cash Flow to the Firm (FCF)
b. Estimate the value of the firm now.
c. Estimate the value of equity and the value per share now.

Exercise 22-10 Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Fixed Costs Indirect materials $11,300 Supervisory salaries $37,000 Indirect labor 10,800 Depreciation 6,000 Utilities 7,200 Property taxes and insurance 7,400 Maintenance 5,900 Maintenance 5,000 Actual variable costs were indirect materials $14,600, indirect labor $9,400, utilities $9,600, and maintenance $5,100. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,700. The actual activity level equaled the budgeted level. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.) CHUBBS INC. Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ (b) Prepare a responsibility report for the first quarter. CHUBBS INC. Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2017 Difference Controllable Costs Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ Click if you would like to Show Work for this question:

Evaluate the effect of each shock below using first the classical model and second the Keynesian model. For the Classical model, include graphs of the goods market, the labor market, and the money market. For the Keynesian model, include an IS-LM-FE graph, an Aggregate Supply – Aggregate Demand graph, and a graph of labor market equilibrium with efficiency wages. For the Keynesian model, include short-run effects, while the price is constant, and long run effects after the price has fully adjusted.

1. There is a permanent increase in the money supply.
2. There is an increase in expected future productivity (the z in the production function).
3. There is an increase in government spending financed by an increase in expected future taxes.
4. There is an increase in the price of oil which reduces total factor productivity (z).

A ball, dropped onto a hard floor from a height of 2 meters, bounces to a height of 1.8 meters, 90% of the initial height. Each subsequent bounce is 90% the height of the previous one. Find the total distance the ball travels up and down (i.e. after the first collision with the ground it has traveled 2 meters down and 1.8 meters up, giving a total distance of 3.8 meters).

A loan is to be repaid in end of quarter payments of $1,000 each, with there being 20 end of quarter payments total. The interest rate for the first two years is 6% convertible quarterly, and the interest rate for the last three years is 8% convertible quarterly. Find the outstanding loan balance right after the 6^th payment.

On April 23, 2016 Artimis Co. paid its annual property tax bill. Artimis Co. fiscal year is also the calendar year. The annual bill is $840,000.

How much property tax expense should be reported in Artimis Co.'s income statement for the quarter ending March 31, 2016.

Prepare the journal entry to record Artimis Inc.'s property tax expense for the first quarter ending March 31, 2016.

Prepare the journal entry for April 23, 2016 for the payment of property taxes and proper recording of property tax expenses for the quarter ending June 30th or any prepaid property taxes as of the endof April 2016 .

Prepare the journal entry for quarter ending September 30, 2016 for the recording of property taxes expenses for the quarter.

Prepare the journal entry for quarter ending December 31, 2016 for the recording of property taxes expenses for the quarter.