Look at the following text about growing cotton in India. The paragraphs have not been printed in the correct order. Arrange the paragraphs in the correct order. Remember that the topic of one paragraph should follow logically from the topic of the last paragraph and should lead on to the topic of the next paragraph.

Pesticide suicide

Most of the farmers are extremely poor. Attracted by cheap loans from pesticides traders and the prospect of a quick buck, they borrowed heavily to raise cotton on small plots of land.

According to the Ministry of Agriculture, the crop losses and destruction in Andhra Pradesh arose from the repeated application of excessive amounts of chemicals - a practice actively encouraged by pesticides traders.

The suicide of Samala Mallaiah in Nagara village grabbed media headlines. He owned one acre of land, leased two more and grew cotton on all three. After making a loss in the first year, he leased yet more land in an attempt to recover. Confronted with falling prices, mounting debts and pest attacks, he committed harakiri. ‘Cotton has given us shattered dreams,’ said one old farmer in Nagara village.

As many as 60,000 small farmers in the region of Andhra Pradesh, southern India, have taken to farming cotton instead of food crops. Some 20 of them have recently committed suicide by eating lethal doses of pesticide.

Whitefly, boll weevils and caterpillars multiplied and destroyed their crops, despite the constant application of pesticides. The average yield of cotton fields in Andhra Pradesh fell by more than half in just one year. Now the farmers are in no position to repay the loans or feed their families.

Nearly half the pesticides used in India go into protecting cotton, the most important commercial crop in the country. However, pests have shown increased immunity to a range of pesticides. Last year there were heavy crop losses due to leaf-curl, which is caused by the dreaded whitefly. This nondescript, milky-white fly sucks sap from the cotton leaves, making them curl and dry up. The fly struck first in Pakistan and north-western India. Then it turned south.

Klandon Company manufactures decorative rocks for aquariums. Kim Klandon is preparing the budget for the quarter ended June 30. She has gathered the following information. 1. Klandon’s sales manager reported that the company sold 12,000 bags of rocks in March. He has developed the following sales forecast. The expected sales price is $10 per bag. April ......... .20,000 bags May ......... 50,000 bags June......... 30,000 bags July ......... 25,000 bags August ......... 15,000 bags 2. Sales personnel receive a 5 percent commission on every bag of rocks sold. The following monthly fixed selling and administrative expenses are planned for the quarter. However, these amounts do not include the depreciation increase resulting from the budgeted equipment purchase in June. 281-B-M-A-B-P-C%20(1282)-1.png 3. After experiencing difficulty in supplying customers in a timely fashion due to inventory shortages, the company established a policy requiring the ending Finished Goods Inventory to equal 20 percent of the following month's budgeted sales, in units. On March 31, 4,000 bags were on hand. 4. Five pounds of raw materials are required to fi ll each bag of finished rocks. The company wants to have raw materials on hand at the end of each month equal to 10 percent of the following month's production needs. On March 31, 13,000 pounds of materials were on hand. 5. The raw materials used in production cost $0.40 per pound. Half of the month's purchases is paid for in the month of purchase; the other half, in the following month. No discount is available. 6. The standard labor allowed for one bag of rocks is 15 minutes. The current direct labor rate is $10 per hour. 7. On June 1, the company plans to spend $48,000 to upgrade its office equipment that is fully depreciated. The new equipment is expected to have a five-year life, with no residual value. 8. The budgeted monthly variable and fixed overhead amounts are as follows. Variable overhead is based on the number of units produced. The fixed overhead budget is based on an annual production of 400,000 bags. 281-B-M-A-B-P-C%20(1282)-2.png 9. All sales are made on account. Historically, the company has collected 70 percent of its sales in the month of sale and 25 percent in the month following the sale. The remaining 5 percent of sales is uncollectible. 10. Klandon must maintain a minimum cash balance of $30,000. An open line of credit at a local bank allows the company to borrow up to $175,000 per quarter in $1,000 increments. 11. All borrowing is done at the beginning of the month, and all repayments are made at the end of a month in $1,000 increments. Accrued interest is paid only when principal is repaid. The interest rate is 12 percent per year. 12. A quarterly dividend of $49,000 will be declared and paid in April. 13. Income taxes payable for the first quarter will be paid on April 15. Klandon’s tax rate is 30 percent. 14. The March 31 balance sheet is as follows: March 31 Cash ................. $ 40,000 Accounts receivable.......... 30,000 Finished goods inventory ........ 26,000 Raw materials inventory ........ 5,200 Plant & equipment .......... 200,000 Accumulated depreciation ....... (50,000) Total assets ............. $ 251,200 Accounts payable........... $ 12,000 Income taxes payable ......... 50,000 Common stock............ 52,000 Retained earnings ........... 137,200 Total liabilities and equities ....... $ 251,200 Required a. Prepare all components of Klandon’s master budget for the second quarter. b. Prepare a pro-forma income statement for the second quarter. c. Prepare a pro-forma balance sheet as of June30.

Required information

[The following information applies to the questions displayed below.]

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).

Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets?

See last 2 tables

1) budgeted mthly income statements. where i have added comments are the items i need . i have put answers that are not correct for june and total column last 3 items for each column

2) for budgedted balance sheet I have added comments on answer section . I have put answers that are not correct for interest payable and stockholders'equity.  

Developing a Master Budget
for a Merchandising Organization
Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2010.

Actual and forecasted sales for selected months in 2010 are as follows:

Monthly operating expenses are as follows:

Cash dividends of $17,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending inventories are sufficient for 120 percent of the next month's sales. Purchases during any given month are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per year. The company desires a minimum cash balance of $3,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed.

(a) Prepare a purchases budget for each month of the second quarter ending June 30, 2010.

(b) Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2010. Do not include borrowings.

(c) Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2010. Do not include repayments of borrowings.

(d) Prepare a cash budget for each month of the second quarter ending June 30, 2010. Include budgeted borrowings and repayments.

Only use negative signs, if needed, for: excess receipts over disbursements, balance before borrowings and cash balances (beginning and ending).

(e) Prepare an income statement for each month of the second quarter ending June 30, 2010.

Only use negative signs to show net losses in income.

(f) Prepare a budgeted balance sheet as of June 30, 2010.

Developing a Master Budget- Please answer the bottom bolded "ANSWERS" at the bottom.
for a Merchandising Organization
Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2010.

Actual and forecasted sales for selected months in 2010 are as follows:

Monthly operating expenses are as follows:

Cash dividends of $17,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending inventories are sufficient for 120 percent of the next month's sales. Purchases during any given month are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per year. The company desires a minimum cash balance of $2,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed.

(a) Prepare a purchases budget for each month of the second quarter ending June 30, 2010.

(b) Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2010. Do not include borrowings.

(c) Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2010. Do not include repayments of borrowings.

(d) Prepare a cash budget for each month of the second quarter ending June 30, 2010. Include budgeted borrowings and repayments.

Only use negative signs, if needed, for: excess receipts over disbursements, balance before borrowings and cash balances (beginning and ending).

(e) Prepare an income statement for each month of the second quarter ending June 30, 2010.

Only use negative signs to show net losses in income.

(f) Prepare a budgeted balance sheet as of June 30, 2010.

Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).

Exercise 9-10 Computing return on investment and residual income; investing decision LO A1

1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company?
2. Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?
3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted?

Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company?

Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?

Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted?

Simpson Manufacturing has the following standard cost sheet for one of its products: TotalDirect materials5 pounds at $2 per pound$10 Direct labor2 hours at $25 per hour 50 Variable factory overhead2 hours at $5 per hour 10 Fixed factory overhead2 hours at $20 per hour 40 Cost per unit $110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of 400 units of the product. Simpson has the following actual operating results for the year just completed: Units manufactured376 Direct materials purchased and used1,880pounds $20,680 Direct labor incurred830hours 22,410 Variable factory overhead incurred 5,312 Fixed factory overhead incurred 15,800 Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: AccountDebit (total) Credit (total)Work-in-process inventory$177,000 $142,640 Finished goods inventory 142,640 119,690 Cost of goods sold 119,690

Required:

1. Determine for the period the following items:a. Flexible budget for variable factory overhead cost based on output for the period.b. Total variable overhead cost applied to production during the period.c. Total budgeted fixed factory overhead cost.d. Total fixed factory overhead cost applied to production during the period.

2. Compute the following factory overhead cost variances using a four-variance analysis:a. Total variable overhead cost variance.b. Variable overhead spending variance.c. Variable overhead efficiency variance.d. Total underapplied or overapplied variable overhead.e. Fixed overhead spending variance.f. Fixed overhead production volume variance.g. Total fixed overhead cost variance.h. Total underapplied or overapplied fixed overhead.

3. Compute the following factory overhead cost variances using three-variance analysis:a. Overhead spending variance.b. Overhead efficiency variance.c. Fixed overhead production volume variance.

4. Compute the total overhead flexible-budget variance and the fixed overhead production volume variance using a two-variance analysis.

5. Using a single overhead account (e.g., Factory Overhead), make proper journal entries for:a. Incurrence of factory overhead costs.b. Application of factory overhead costs to production.c. Identification of overhead variances assuming that the firm uses the four-variance analysis identified in requirement 2.d. Close all factory overhead cost items and their variances of the period if:(1) The firm closes all variances to the Cost of Goods Sold account.(2) The firm prorates variances to the inventory accounts and the Cost of Goods Sold account.

Question 2 (optional)

You have been appointed the Head of Administration of a public sector entity, which is currently applying cash basis of accounting to the recognition of financial transactions and events. You have a strong conviction that the use of accrual basis of accounting is most appropriate for the entity.

Required: Write a Memorandum to the Principal Spending Officer of the entity advocating for the immediate adoption and implementation of the accrual basis of accounting for the entity. In addition, highlight the implementation challenges of your proposal and how these can be addressed.

Answer the following questions either true, false, explain your answer. The explanation is the most important part of your answer.

1. An increase in the money supply will shift the AD curve upwards and to the right.
2. The larger the MPC, the smaller the Keynesian government spending multiplier.
3. Contractionary monetary policy shifts the AD curve to the right.
4. Structural unemployment is caused by fluctuations in economic activity.
5. Nominal GDP can be equal to real GDP.
6. If the reserve ratio 0.1, the money multiplier is equal to 5