1.Which of the following budgets comes after the production budget but before the cash budget?. Single choice.

A. Sales budget

B. Material purchases budget

C. Budgeted balance sheet

D. Budgeted income statement

2.Which of the following is NOT usually a way to estimate future sales?. Single choice.

A. Trends in the company’s sales data

B. Estimates from the company’s salespersons

C. Sales are estimated based on expected costs

D. Mathematical models adjusted by an experienced manager using professional judgment

3.A company expects to sell 15,000 units in the first quarter, 18,000 units in the second quarter, and 20,000 units in the third quarter. The company desires to maintain an inventory at the end of each quarter equal to 10% of next quarter expected sales. How many units does the company plan to produce in the second quarter?. Single choice.

A. 2,000

B. 20,000

C. 18,150

D. 18,200

GableGable

Manufacturing produces​ self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as​ follows:

​(Click the icon to view additional​ information.)  Inventory at the start of the year was 900

planters. The desired inventory of planters at the end of each month should be equal to 25%

of the following​ month's budgeted sales. Each planter requires two

pounds of polypropylene​ (a type of​ plastic). The company wants to have 10​%

of the polypropylene required for next​ month's production on hand at the end of each month. The polypropylene costs $ 0.20 per pound.Read the requirements
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1.	Prepare a production budget for each month in the first quarter of the​ year, including production in units for each month and for the quarter.
2.	Prepare a direct materials budget for the polypropylene for each month in the first quarter of the​ year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased.

	Number of planters to be sold
January. . . . . .	3,600
February. . . . .	3,300
March. . . . . . . .	3,100
April. . . . . . . . .	4,700
May. . . . . . . . .	4,900

Gable Manufacturing
Production Budget
For the Months of January through March
		January	February	March	Quarter
Unit sales		3,600	3,300	3,100	10,000
Plus:	Desired ending inventory
Total needed
Less:	Beginning inventory
Units to produce

Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the​ year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased.

Start by preparing the direct materials budget through the total quantity​ needed, then complete the budget.

Gable Manufacturing
Direct Materials Budget
For the Months of January through March
		January	February	March	Quarter
Units to be produced
Multiply by:	Quantity of direct materials needed per unit
Quantity needed for production
Plus:	Desired ending inventory of direct materials
Total quantity needed

Quarterly deposits are made into a fund at the beginning of each quarter starting today for 5 years. The first 8 deposits are $1000 each and deposits increase by 1% per quarter thereafter. If the fund earns 8% effective annually, find the accumulated value at the end of 5 years.

Please explain which equations you used and do not use excel.

in your opinion, should the government cut its spending levels, and if so, what specific area should be cut first? Explain your reasoning. What could be the possible unintended consequences of such a cut?

Attachments

Skills

• Describe government spending at federal, state, and local levels.
• Describe how federal deficits and the national debt relate to the economy.
• Describe how automatic stabilizers respond to economic events.

Q4Y4	Q1Y5	Q2Y5	Q3Y5	Q4Y5	Total
Budgeted Sales (Actual for Q4Y4)	10000	11000	14000	15000	17000	57000
Selling Price/per unit	9	9	9	9	9	9
Sale Collection
In quarter of sale	0.8
In following quarter	0.2
Desired ending finished goods inventory		2500	2200	2400	2100	2100
Raw Materials/per unit	5	5	5	5	5	5
Desired Ending raw material inventory Inventory	5000	8000	7000	6000	5000	5000
Raw material price/per unit	2	2	2	2	2	2
Accounts payable
In quarter of purchase	0.7
In following quarter	0.3
Q4Y4 raw material cost	100000

REQUIRED:

Sale Budget	Year 5 Quarters
	1	2	3	4	Year

Production Budget

Material Budget

Cash Receipts

Cash Payments

*Problem 5-35

Bonita Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm’s marketing director, has completed the following sales forecast.

Month Sales Month Sales

January $904,300 July $1,503,900

February $1,002,600 August $1,503,900

March $904,300 September $1,610,000

April $1,158,500 October $1,610,000

May $1,254,900 November $1,503,900

June $1,405,100 December $1,700,100

Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information.

? All sales are made on credit.

? Bonita’s excellent record in accounts receivable collection is expected to continue, with 60% of billings collected in the month after sale and the remaining 40% collected two months after the sale.

? Cost of goods sold, Bonita’s largest expense, is estimated to equal 40% of sales dollars. Seventy percent of inventory is purchased one month prior to sale and 30% during the month of sale. For example, in April, 30% of April cost of goods sold is purchased and 70% of May cost of goods sold is purchased.

? All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, and the remaining 25% in the month following purchase.

? Hourly wages and fringe benefits, estimated at 30% of the current month’s sales, are paid in the month incurred.

? General and administrative expenses are projected to be $1,560,800 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter.

Salaries and fringe benefits $ 325,500

Advertising 378,900

Property taxes 137,400

Insurance 193,900

Utilities 178,300

Depreciation 346,800

Total $ 1,560,800

? Operating income for the first quarter of the coming year is projected to be $324,300. Bonita is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter.

? Bonita maintains a minimum cash balance of $50,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12% line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1,000). Accrued interest is paid in full with each principal repayment. The projected cash balance on April 1 is $59,200.

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Prepare the cash receipts budget for the second quarter. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Cash Receipts Budget

April May June Total Cash Receipts

February sales $

  

$

  

$

  

$

  

March sales   

  

  

  

April sales   

  

  

  

May sales   

  

  

  

Totals $

  

$

  

$

  

$

  

Accounts Receivable balance at the end of second quarter of 2015 $

  

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Prepare the purchases budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Purchases Budget

April May June Total Purchases

April COGS $

  

$

  

$

  

$

  

May COGS   

  

  

  

June COGS   

  

  

  

July COGS   

  

  

  

Totals $

  

$

  

$

  

$

  

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Prepare the cash payments budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Cash Payments Budget

April May June

March purchases $

  

$

  

$

  

April purchases   

  

  

May purchases   

  

  

June purchases   

  

  

$

  

$

  

$

  

Accounts Payable balance at the end of second quarter of 2015 $

  

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Prepare the cash budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Cash Budget

April May June Quarter

Beginning Cash balance $

  

$

  

$

  

$

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Financing:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Ending Cash Balance $

  

$

  

$

  

$

**Need help preparing the cash budget for the next quarter. I'm not sure how to calculate the numbers.

Can you please provide the workings and how you found each answer?

Jesper Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Jesper Manufacturing's operations:

Current Assets as of December 31 (prior year):
Cash	$4,460
Accounts receivable, net	$52,000
Inventory	$15,400
Property, plant, and equipment, net	$122,000
Accounts payable	$44,000
Common stock	$126,860
Retained earnings	$23,000

1. Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:

January	$80,100
February	$89,100
March	$82,800
April	$85,500
May	$77,400

2. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale.
3. Jesper Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units).
4. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two kilograms of direct material is needed per unit at $1.40/kg. Ending inventory of direct materials should be 20% of next month's production needs.
5. Monthly manufacturing conversion costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred.
6. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Jesper Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800.
7. Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred.
8. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,600 for the entire quarter, which includes depreciation on new acquisitions.
9. Jesper Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $130,000. The interest rate on these loans is 1% per month simple interest (not compounded). Jesper Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the quarter.
10. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes.

Requirements:

1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total.
2. Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.)
3. Prepare a direct materials budget.
4. Prepare a cash payments budget for the direct material purchases from Requirement 3.
5. Prepare a cash payments budget for conversion costs.
6. Prepare a cash payments budget for operating expenses.
7. Prepare a combined cash budget.
8. Calculate the budgeted manufacturing cost per unit. (Assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year.)
9. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing each unit x Number of units sold.)
10. Prepare a partial budgeted balance sheet for March 31. Include Loans Payable and Income Tax Payable.
11. Aside from depreciation, can you name another expense that is not payable in cash? (Hint: that expense is not listed in this problem).

"Elizabeth Egbert owns a galvanizing plant. Customers bring in their fabricated steel products (like light poles, towers, trailers, etc.), and Egbert dips them into a heated vat of molten zinc. The zinc bonds to the metal and produces a highly durable corrosion resistant product. " Egbert's primary inventory is molten zinc purchased from suppliers in large blocks of solid material. These blocks are immersed in the heated vat and will melt together with the zinc already in the pool. Egbert generally keeps the vat relatively full, and it is never allowed to cool. Egbert started the year 20X8 with 500,000 pounds of zinc in the pool. During the year Egbert purchased 2,800,000 pounds of zinc. At year's end, the pool contained 520,000 pounds of zinc.

Please answer A, C, E, F, G

(a) How much zinc was used during 20X8? (b) Accountants frequently refer to "goods available for sale." Is this concept the same as ending inventory? How much zinc, in pounds, was "available for sale?" (c) If the beginning inventory cost $1.25 per pound, and purchases during 20X8 cost $1.50 per pound, how much is the "cost of goods available for sale"? (e) If Egbert uses FIFO, how much should be attributed to ending inventory and how much to cost of goods sold? (f) If Egbert uses LIFO, how much should be attributed to ending inventory and how much to cost of goods sold? (g) What will be the difference in profitability between choosing the FIFO and LIFO methods? Does is seem reasonable the choice of accounting method can change the reported profit?

"Mankota Company’s purchasing manager, Fernando Garza, is preparing a purchases budget for the next quarter. At his request, Ruben Carpenter, the manager of the sales department, forwarded him the following preliminary sales budget: Preparing an inventory purchases budget and schedule of cash payments Budgeted sales October $240,000 November $300,000 December $360,000 January$320,00" "For budgeting purposes, Mankota estimates that cost of goods sold is 75 percent of sales. The company desires to maintain an ending inventory balance equal to 20 percent of the next period’s cost of goods sold. The September ending inventory is $40,000. Mankota makes all pur-chases on account and pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. The balance of accounts payable at the end of September is $37,500.Required a. Prepare an inventory purchases budget for October, November, and December.b. Determine the amount of ending inventory Mankota will report on the end-of-quarter pro forma balance sheet.c. Prepare a schedule of cash payments for inventory for October, November, and December.d. Determine the balance in accounts payable Mankota will report on the end-of-quarter pro forma "

1.

A basket of goods and services purchased by an average urban consumer had a cost of $340 in the year 2015, $350 in the year 2016, and $360 in the year 2017. You may assume the base year is 2015.

The inflation rate between 2015 and 2016 was _____ the inflation rate between 2016 and 2017.

Group of answer choices

the same as

lower than

higher than

it is impossible to say from the information given

2.

Bill’s nominal income in 1990 was $38,256 per year. The CPI had a value of 141.67 in 1990 and had a value of 222.33 in 2017. What is Bill’s real income in 1990, measured in 2017 dollars? Enter a number rounded to two decimal places with no dollar sign.

3.

Indicate whether each of the following affect consumption spending (C), investment spending (I), government spending (G), net export spending (NX), or none of the above (N). Enter only the letter given in parenthesis.

Carmax sells a three year old car to John  .

The government sends a social security payment to your grandfather  .

John spends his social security check on a new computer  .

Publix buys 4 new computers  .

You pay your tuition to UCF  .

4.

The inflation rate between the years 2000 and 2001 was 3.79%. Based on this information, a basket of goods that cost $150 in the year 2000 would now cost how much in the year 2001? Enter a number rounded to two decimal places.