Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the table below.

Paymore’s labor and administrative expenses are $72 per quarter and interest on long-term debt is $47 per quarter. Suppose that Paymore’s cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $343. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Work out the short-term financing requirements for the firm in the coming year using the above table. The firm pays no dividends. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign.)

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the table below.

Paymore’s labor and administrative expenses are $72 per quarter and interest on long-term debt is $47 per quarter. Suppose that Paymore’s cash balance at the start of the first quarter is $40 and its minimum acceptable cash balance is $30. On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $343. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Work out the short-term financing requirements for the firm in the coming year using the above table. The firm pays no dividends. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign.)

First Second Third Fourth (need all 4 quarters)

Sources of cashCash at start of period

Net cash inflow

Cash at end of period

0000Minimum operating cash balance

Cumulative financing required

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table.

On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $346. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Assuming that Paymore’s labor and administrative expenses are $75 per quarter and that interest on long-term debt is $50 per quarter, work out the net cash flow for Paymore for the coming year using the below table.

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table. Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $372 $360 $336 $384 $384 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $336. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Assuming that Paymore’s labor and administrative expenses are $65 per quarter and that interest on long-term debt is $40 per quarter, work out the net cash flow for Paymore for the coming year using the below table. (Do not round intermediate calculations.)

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the below table.

On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $336. Also, one third of the orders are paid for in the current month and then two thirds of the next quarter's orders are paid in advance. Assuming that Paymore’s labor and administrative expenses are $65 per quarter and that interest on long-term debt is $40 per quarter, work out the net cash flow for Paymore for the coming year using the below table. (Do not round intermediate calculations.)

Executive officers of Solomon Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources:

Solomon’s past experience indicates that cost of goods sold is about 65 percent of sales revenue. The company tries to maintain 15 percent of the next quarter’s expected cost of goods sold as the current quarter’s ending inventory. This year’s ending inventory is $22,000. Next year’s ending inventory is budgeted to be $23,000.

Required

Prepare an inventory purchases budget using the sales manager’s estimate.

Prepare an inventory purchases budget using the marketing consultant’s estimate. Complete this question by entering your answers in the tabs below.

Required A

Required B

Prepare an inventory purchases budget using the sales manager’s estimate. (Round your final answers to nearest whole dollar amount.)

Prepare an inventory purchases budget using the marketing consultant’s estimate. (Round your final answers to nearest whole dollar amount.)

In June 2002, it was discovered that Worldcom, a large US telecommunication company, committed one of the largest accounting frauds. Worldcom illegally capitalized $3.8 billion access fees during the year 2001 and the first quarter of 2002. The fees were paid to local network operators to connect calls from Worldcom services to telephones linked to local networks. This is a typical operating expense item for telecommunication companies. However, Worldcom capitalised these expenditures as assets and amortized them over future fiscal periods. Worldcom was persecuted and the penalties and corrections to the accounts eventually led it into bankruptcy.

The amount of capitalized access fees for each of the quarters are detailed as follows (in USD millions):

Quarter 1, 2001 $780

Quarter 2, 2001 $605

Quarter 3, 2001 $760

Quarter 4, 2001 $920

Quarter 1, 2002 $790

Required:

a) Describe how Worldcom’s accounting treatment of access fees affect the line items in the income statements, balance sheets and statements of cash flows.

b) Which accounting principle did Worldcom violate?

c) Assume that capitalized access fees were amortized over 5 years using the straight-line method. Compute the amount of misstatement for each quarter.

d) Without considering tax effects, prepare the journal entries for correcting the misstatements as of the reporting date of Quarter 1, 2002.

what the most recent estimate for real GDP and list each of its components:
C (Personal consumption expenditures) =________________, I (Gross private domestic investment)=_________________, G (government consumption expenditures and gross investment)=_____________, NX (Net exports of goods and services)=______________.

what is happening in the US right now. Why does consumer spending tend to be considered a stable portion of GDP, when compared to investment spending?

Units of raw materials to be purchased

Unit cost of raw materials

Cost of raw materials to purchased

Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows.

The January 1, 2020, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020.

Prepare quarterly production budgets for each quarter and in total for 2020.

A number of developing countries have accumulated a considerable volume of external debt. In this question, we examine the impact on the terms of trade of the developing countries that would result from repaying part of this debt. For the purposes of this question, suppose that developing countries will pay $300 billion to the industrial countries over the next decade. In addition, assume that this is a transfer. Suppose that the developing countries export raw materials and basic manufactures (“basic goods”) and that the industrial countries export advanced manufactures (“advanced goods”). Spending patterns differ in these two groups of countries. In the developing countries 70 cents of each dollar of spending is allocated to basic goods and 30 cents out of each dollar is allocated to advanced goods. In the industrial countries, the spending pattern is reversed (70% on advanced goods and 30% on basic goods).

a) What is the effect of a $300 billion transfer on world demand for advanced goods?

b) What is the effect of a $300 billion transfer on world demand for basic goods?

c) Using your answers to the first two parts of this question, please determine whether the relative demand curve shifts left or right. Please let the developing countries be the “home country”. Will the terms of trade of trade of the developing countries improve or worsen? Some have argued that, if the developing countries are to generate the surpluses that will facilitate the transfer, the relative price of their exports must fall—their terms of trade must worsen. If so, that would place a “secondary burden” on the developing countries over and above the burden of repaying their debt. Is the concern a valid one in this instance?

d) How would your answers differ if the spending patterns were reversed for the two countries? Repeat the questions with industrial countries spending 30% on advanced goods and 70% on basic goods and developing countries spending 70% on advanced goods and 30% on basic goods.