3. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate of 3.4%, payable semiannually. Market interest rates on September 1, 2019 were 3.8%. Prepare the journal entry to record the transaction on September 1, 2019.

4. Prepare the journal entries to record interest expense and other accounts for XYZ’s bond for the first 2 interest payments (ignore year-end accruals)

The U-Mart Supermarket is a convenience store company that has five store located in different location at UTM Skudai. At the end of each year, the management of the UTM wants to know the performance of the company. They have decided to use a computer program to help them in analyzing the company performance based on the total sales of each quarter in all stores. Develop a C program to perform this task using array and function based one following requirements.

Input:

The program should read in sales data from a text file.
The format of the input file for each line/record is as follows:
first number is for the store branch code,

second number is the sales of the first quarter ,

third number is the sales of the second quarter,

fourth number is the sales of the o third quarter,

fifth number is the sales of the fourth quarter.

The following is an example of input file named “sales2015.txt” containing sales data for the year 2019 for five stores.
11 940.80 490.10 960.60 670.50

12 710.90 570.30 170.60 310.60

13 360.70 160.30 300.60 870.60

14 480.50 490.40 910.70 720.55

15 340.30 320.30 140.60 570.70

Arrays:

The program should use array(s) to store the sales data

Functions:

The program should have the following functions:

float highest_Sale(). This function should accept arrays (representing sales) as one of its parameters. It should determine the indices of row and column of a cell in the array
which has the highest sales.
void grandTotal_each_store(). This function should return the grand total of sales for each stores throughout the year. It should accept array (representing sales) as its parameters.
void Total_each_quarter(). This function should accept arrays and the index of a column in the array (representing a quarter) as its parameters. The function should return the total sales for the each quarter.

Output:

The program should print out a report into a text file named “report.txt”.
The report should include:
- The grand total of sales, over all stores sales, throughout the year.

- The highest sales of all quarter. Print the store code and the highest sales.

- The total sales for each quarter of all store.

The following diagram is example of output file based on the input given.
EXPECTED OUTPUT

Grand total of sales over all stores: RM xxxxx.xx

The highest quarter sales:

Store Code: 11

Quarter : 3

Sales: RM 960.60

Total sales by quarter:

Quarter Sales

----------- --------------

Quarter 1 RM 4474.10

Quarter 2 RM xxxx.xx

Quarter 3 RM xxxx.xx

Quarter 4 RM xxxx.xx

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

Rooney had a beginning inventory balance of $3,100 on April 1 and a beginning balance in accounts payable of $14,700. The company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. Rooney 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 Rooney 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 Rooney will report on the end-of-quarter pro forma balance sheet.

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 45,000 70,000 120,000 70,000 90,000 90,000 Selling price per unit $7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Chapter 8: Applying Excel Data Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 45,000 70,000 120,000 70,000 90,000 90,000 • Selling price per unit $7 per unit • Accounts receivable, beginning balance $65,000 • Sales collected in the quarter sales are made 75% • Sales collected in the quarter after sales are made 25% • Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter • Finished goods inventory, beginning 12,000 units • Raw materials required to produce one unit 5 pounds • Desired ending inventory of raw materials is 10% of the next quarter's production needs • Raw materials inventory, beginning 23,000 pounds • Raw material costs $0.80 per pound • Raw materials purchases are paid 60% in the quarter the purchases are made and 40% in the quarter following purchase • Accounts payable for raw materials, beginning balance $81,500 a. What are the total expected cash collections for the year under this revised budget? b. What is the total required production for the year under this revised budget? c. What is the total cost of raw materials to be purchased for the year under this revised budget? d. What are the total expected cash disbursements for raw materials for the year under this revised budget? e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? Yes No

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:

a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 80,000 units in any one quarter. Is this a potential problem?

• Yes

• No

1. Which of the following is a sustained rise over time in a nation's production of goods and services?

2. Which of the following would be the best fiscal policy to use during a recession?

3. _____ are people who risk their time, money, and other resources to start and manage a business.

4. How do higher income taxes typically affect the economy?

The marketing manager has recently completed a sales forecast. She believes the company’s sales will increase by 1 percent each month over the previous month’s sales from December 2015 through March 2016. Then sales are expected to remain constant for several months. Helping Hand’s projected balance sheet as of December 31, 2015 is as follows: Cash $ 60,000 Accounts receivable 172,530 Marketable securities 10,000 Inventory 39,784 Buildings and equipment (net of accumulated depreciation) 600,000 Total assets $ 882,314 Accounts payable $ 111,940 Sales commissions payable 4,040 Bond interest payable 8,000 Property taxes payable 0 Bonds payable (4%; due in 2020) 600,000 Common stock 100,000 Retained earnings 58,334 Total liabilities and stockholders' equity $ 882,314 The following information has been accumulated to assist with preparing the master budget for the first quarter of 2016: 1) Projected sales for November 2015 are $200,000. Credit sales are typically 90% of total sales. Helping Hand’s credit experience indicates that 13% of credit sales are collected during the month of sale, 75% in the month following the sale, and 10% in the second month following the sale. Experience shows the remaining credit sales are uncollectible. 2) Helping Hand’s cost of goods sold generally runs at 65% of sales. Inventory is purchased on account and 15% 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 company attempts to have inventory on hand at the end of each month equal to 30% of the next month’s projected cost of goods sold. 3) The controller has estimated that Helping Hand’s other monthly expenses will be as follows: Sales salaries $ 35,000 Advertising and promotion 5,000 Administrative salaries 12,000 Depreciation 7,500 Interest on bonds 2,000 Property taxes 1,000 In addition, sales commissions run at the rate of 2.0 percent of sales. Sales commissions are paid in the month following the month of sale. 4) The company president has indicated that the company should invest $225,000 in an automated inventory-handling system to control the movement of inventory in the company’s warehouse just after the new year begins. The president would like to purchase the equipment primarily from the company’s cash and marketable securities. However, the president believes the company should have a minimum cash balance of $30,000 at the end of each month. If necessary, the remainder of the equipment purchase may be financed using short-term credit from a local bank. The minimum lending period for such a loan is three months. The current short-term interest rates are 6 percent per year and are expected to remain at this rate through the time the equipment is purchased. If a loan is necessary, the president has decided it should be paid off at the end of the first quarter if possible. Any partial payment will be paid at the end of the first quarter and in a $1,000 increment. 5) Helping Hand’s board of directors has indicated an intention to declare and pay dividends of $150,000 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 Helping Hand’s bonds is paid semiannually on February 28 and August 31 for the preceding sixmonth period. 7) Property taxes are paid quarterly on March 31, June 30, September 30, and December 31 for the preceding three-month period. Required: Build a model to forecast Helping Hand Corp’s cash balance at March 31, 2016. Your model must contain the following master budget schedules. Round all amounts to the nearest dollar. Your model should allow you to change any of the assumptions provided above and easily recalculate the ending cash balance at March 31, 2016. The assumptions may be on a separate worksheet but all of the schedules below must be on one worksheet. 1) Sales budget: 2015 2016 November December January February March 1st Quarter Total sales Cash sales Sales on account 2) Cash receipts budget: 2016 January February March 1st Quarter Cash sales Cash collections from credit sales made during current month Cash collections from credit sales made during preceding month Cash collections from credit sales made during 2nd preceding month Total cash receipts 3) Purchases budget: 2015 2016 December January February March 1st Quarter Budgeted cost of goods sold Add: Desired ending inventory Total goods needed Less: Expected beginning inventory Purchases 4) Cash disbursements budget: 2016 January February March 1st Quarter Inventory purchases: Cash payments for purchases during the current month Cash payments for purchases during the preceding month Total cash payments for inventory purchases Other expenses: Sales salaries Advertising and promotion Administrative salaries Interest on bonds Property taxes Sales commissions Total cash payments for other expenses Total cash disbursements 5) Summary cash budget: 2016 January February March 1st Quarter Cash receipts (sch 2) Less: Cash disbursements (sch 4) Change in cash balance during period due to operations Sale of marketable securities (1/2/16) Proceeds from bank loan (1/2/16) Purchase of equipment Repayment of bank loan (3/31/16) Interest on bank loan Payment of dividends Change in cash balance during the month Beginning cash balance Ending cash balance 6) Prepare a memo to the president of Helping Hands Corp with at least two recommendations on how the company can ensure it completes the first quarter of 2016 with the minimum required cash balance. You should provide a plan to support your recommendation. For example, if you recommend an increase in sales, how can this be attained. Be specific. You should provide specific financial information for your recommendations utilizing your model (include a model for each of your recommendations). For example, if the company does X, the change in ending cash will be Y. Your model will become the property of Helping Hands Corp. and should be easy to use.

Chapter 8: Applying Excel: Exercise (Part 2 of 2)

Requirement 2:

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:

a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

Requirement 2:

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:

a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?