“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 $500,000. Credit sales typically are 70 percent of total sales. Intercoastal’s credit experience indicates that 10 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 40 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:

   Sales salaries	$	35,000
   Advertising and promotion		16,000
   Administrative salaries		35,000
   Depreciation		25,000
   Interest on bonds		1,250
   Property taxes		1,500

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

4. Intercoastal’s president, Davies-Lowry, has indicated that the firm should invest $105,000 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 $40,000. 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.
5. Intercoastal’s board of directors has indicated an intention to declare and pay dividends of $50,000 on the last day of each quarter.
6. 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.
7. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period.

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

1. Sales budget:

Question 2

Marsden makes contact tracing tracking devices and has the following sales budget for the first six months of the year.

The inventory of finished goods at the end of each month is budgeted to be 15% of the next month's sales. Due to unexpected sales activity in the prior year, at the beginning of January the finished goods inventory totaled only 4,500 units.

Each tracking device requires 2 specialized computer chips. Since the supply of the specialized chips is inconsistent, the company keeps an inventory of the specialized chips at the end of each month equal to 45% of the next month's production needs. On January 1 Marsden had 40,000 of the specialized chips in inventory. The chips are stored in a secure storage locker that can hold 250,000 chips.

Required:

1. Prepare a budget showing the quantity of specialized computer chips to be purchased for the first quarter of the year.
2. The purchasing manager may be able to secure a volume discount by purchasing 500,000 chips per order. What impacts (positive and negative) would there be for the company if they decide to purchase 500,000 chips per order?

Discuss two challenges faced by individuals who must use durable medical equipment (DME, also known as “assistive devices”), such as a cane, walker, or wheelchair, to perform their activities of daily living (ADLs). Describe how these affect their quality of life (QOL)

React to the goal of having 75% of all third graders reading on grade level by 2025.

Find the following present values on October 31, 2020.

a) Canadian T-bill maturing for $1.2 million in 273 days based on a yield rate of 1.25%

b) $10,000 due on March 31, 2025 at a force of interest of 5%

c) $3,600 due on April 30, 2022 at a nominal rare of discount of 6%, compounded 6 times a year.

d) Payments on $10,000 made every November 1 from 2020 to 2025 at 6.5% interest.

Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.

Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $185,400.

Direct Materials

Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit.

Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2019, totaled 11,380 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $104,585.

Other Information

The Cash balance on December 31, 2019, totaled $100,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.70 per share for 5,180 shares outstanding. The company has an open line of

1) For the first quarter of 2017, prepare a sales budget.

2) For the first quarter of 2017, prepare a production budget.

3) For the first quarter of 2017, prepare a direct materials budget. (Round cost per pound to 2 decimal places, e.g. 0.25 and all other answers to 0 decimal places, e.g. 2,520.)

4) For the first quarter of 2017, prepare a direct labor budget. (Round time per unit to nearest hour, e.g. 30 minutes will be rounded to 0.5 hours)

5) For the first quarter of 2017, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 2,520. List Variable Costs first.)

6)  For the first quarter of 2017, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. E.g. 1.25)

7) For the first quarter of 2017, prepare a schedule for expected cash collections from customers. (Do not leave any answer field blank. Enter 0 for amounts.)

8)For the first quarter of 2017, prepare a schedule for expected payments for materials purchases. (Round answers to 0 decimal places, e.g. 2,520. Do not leave any answer field blank. Enter 0 for amounts.)

9) For the first quarter of 2017, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,520. Do not leave any answer field blank. Enter 0 for amounts.)

credit with Romney’s Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $550,000 equipment purchase is planned for February.

Using your preferred technology format (StatCrunch, Statdisk, Excel), generate a scatterplot for these two data sets. Based on the graph, do you believe the two sets are correlated?

Now, complete a hypothesis test to test the claim that the course rating and the professor rating are correlated. Explain your conclusion in statistical and non-statistical terms and how you arrived at that conclusion. You should include your null and alternative hypothesis (in English and in symbolic form), your significance level, whether you are conducting a right tailed, left tailed, or two tailed test, r-value, p-value, and conclusions.

COURSE EVAL   PROF EVAL
4.3   4.7
4.5   4.6
3.7   4.1
4.3   4.5
4.4   4.8
4.2   4.4
4   4.4
3.4   3.4
4.7   4.8
3.9   4
3.1   3.6
4   4.1
3.8   4.1
3.4   3.5
2.9   2.9
4.5   4.6
4   4.4
3.8   4
4.3   4.9
3.4   3.5
3.4   3.7
3.3   3.4
4.3   4.3
4.4   4.5
4.1   4.3
4.6   4.8
4.2   4.4
4   4.4
3.3   3.6
4.4   4.6
2.3   2.3
3.5   4.3
4.7   4.9
3.9   4.2
4   4.2
4.3   4.3
3.8   3.9
3.8   3.9
4   4.1
4.6   4.8
3.5   3.3
4.7   4.4
3.4   3.3
3.9   4
4.5   4.5
4.7   4.9
3.5   3.7
3.7   3.9
4   4.4
4.1   4.4
4.4   4.5
4.2   4.3
4.5   4.8
3.8   4.1
3.1   3.5
3.7   4
3.9   3.8
4   4.1
3.3   3.7
3.1   3.2
4   4.2
4.3   4.5
3.7   3.8
3.4   3.7
4.3   4.5
3.7   3.8
4.2   4.5
2.2   2.4
3   3
4.3   4.5
3.5   3.5
4.6   4.8
3.7   4.2
3.8   4
3.6   3.7
4.4   4.5
4.1   4.7
4.3   4.3
4   4
4.8   4.9
3.5   3.5
3.6   3.3
3.8   4.2
4.7   4.8
4.9   4.9
4.3   4.5
3.3   3.3
3.4   3.3
3.6   3.6
4   4.1
3.9   3.7
4.3   4.5
3.3   3.5

HCJ Corporation is completing their cash budget for the following year. They are going to buy an industrial robot. They will make the acquisition on January 2 of next year, and it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment.”

The robot will cost $1,000,000 financed with a a one-year $1,000,000 loan from My Bank and Trust Company. I’ve negotiated a repayment schedule of four equal installments on the last day of each quarter.

The interest rate will be 10 percent, and interest payments will be quarterly as well

HCJ Corporation is a manufacturer of metal picture frames. The firm’s two product lines are designated as S (small frames; 5 x 7 inches) and L (large frames; 8 x10 inches). The primary raw materials are flexible metal strips and 9-inch by 24-inch glass sheets.   Other raw materials, such as cardboard backing, are insignificant in cost and are treated as indirect materials.

Here is the provided budget information

     1. Sales in the fourth quarter of 20x0 are expected to be 50,000 S frames and 40,000 L frames. Over the next two years, sales in each product line will grow by 5,000 units each quarter over the previous quarter. For example, S frame sales in the first quarter of 20x1 are expected to be 55,000 units.

    2. HCJ's sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The company’s collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.)

    3. The S frame sells for $10, and the L frame sells for $15. These prices are expected to hold constant

throughout 20x1.

    4. HCJ's production team attempts to end each quarter with enough finished-goods inventory in each product line to cover 20 percent of the following quarter’s sales. Moreover, an attempt is made to end each quarter with 20 percent of the glass sheets needed for the following quarter’s production. Since metal strips are purchased locally, HCJ buys on a just-in-time basis; inventory is negligible.   The purchase and production quantities are shown.

5. All direct-material purchases are made on account, and 80 percent of each quarter’s purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter.

6. Indirect materials are purchased as needed and paid for in cash. Work-in-process inventory is negligible.

7. Projected manufacturing costs in 20x1 are as follows:

Direct material:

Metal strips. @ $1 per foot

Glass sheets: $8 per sheet  

Direct labor for both products .1 hour @ $20 per hour

Manufacturing overhead: .1 direct-labor hour @ $10 per hour

Total manufacturing cost per unit . S: $7 L: $10

1. Sales budget:

2. Cash receipts budget:

3. Cash disbursements budget: (including purchases of direct materials and payments for same)

4. Summary cash budget:

HCJ Corporation is completing their cash budget for the following year. They are going to buy an industrial robot. They will make the acquisition on January 2 of next year, and it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment.”

The robot will cost $1,000,000 financed with a a one-year $1,000,000 loan from My Bank and Trust Company. I’ve negotiated a repayment schedule of four equal installments on the last day of each quarter.

The interest rate will be 10 percent, and interest payments will be quarterly as well

HCJ Corporation is a manufacturer of metal picture frames. The firm’s two product lines are designated as S (small frames; 5 x 7 inches) and L (large frames; 8 x10 inches). The primary raw materials are flexible metal strips and 9-inch by 24-inch glass sheets.   Other raw materials, such as cardboard backing, are insignificant in cost and are treated as indirect materials.

Here is the provided budget information

     1. Sales in the fourth quarter of 20x0 are expected to be 50,000 S frames and 40,000 L frames. Over the next two years, sales in each product line will grow by 5,000 units each quarter over the previous quarter. For example, S frame sales in the first quarter of 20x1 are expected to be 55,000 units.

    2. HCJ's sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The company’s collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.)

    3. The S frame sells for $10, and the L frame sells for $15. These prices are expected to hold constant

throughout 20x1.

    4. HCJ's production team attempts to end each quarter with enough finished-goods inventory in each product line to cover 20 percent of the following quarter’s sales. Moreover, an attempt is made to end each quarter with 20 percent of the glass sheets needed for the following quarter’s production. Since metal strips are purchased locally, HCJ buys on a just-in-time basis; inventory is negligible.   The purchase and production quantities are shown.

5. All direct-material purchases are made on account, and 80 percent of each quarter’s purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter.

6. Indirect materials are purchased as needed and paid for in cash. Work-in-process inventory is negligible.

7. Projected manufacturing costs in 20x1 are as follows:

Direct material:

Metal strips. @ $1 per foot

Glass sheets: $8 per sheet  

Direct labor for both products .1 hour @ $20 per hour

Manufacturing overhead: .1 direct-labor hour @ $10 per hour

Total manufacturing cost per unit . S: $7 L: $10

1. Sales budget:

2. Cash receipts budget:

3. Cash disbursements budget: (including purchases of direct materials and payments for same)

4. Summary cash budget: