Questions
Many people believe that unusual behavior is more likely to occur during a full moon. As...

Many people believe that unusual behavior is more likely to occur during a full moon. As a test for empirical evidence to support this belief, suppose that you categorized the visits of new clients to a community health unit over a one-year period by lunar phases and found the following distribution of visits: Full moon 62, new moon 50, first quarter 60, and third quarter 56.

Answer the following questions:

1. What are the null and alternate hypotheses?

2. What are the expected values for each of the categories?

3. What is the chi-square obtained?

4. What is the critical value?

5. What is your statistical decision? Justify your answer.

6. What is your conclusion?

In: Statistics and Probability

Closing Entries and Post-Closing Trial Balance for 12/31/16 Additional information: The equipment is being depreciated on...

  1. Closing Entries and Post-Closing Trial Balance for 12/31/16

Additional information:

  • The equipment is being depreciated on a straight-line basis over a 10-year life, with no residual value.
  • Salaries accrued but not recorded total $500
  • On 1/1/16, the company had paid 3 years’ rent in advance at $100 per month
  • Bad debts are expected to be 1% of total sales
  • Interest of $400 has accrued on the note payable
  • The income tax rate is 40% on current income and will be paid in the first quarter of 2017

Accounts

Debit

Credit

Cash

2500

Accounts Receivable

4000

Allowance for Doubtful Accounts

300

Inventory

8200

Prepaid Rent

3600

Equipment

30000

Accumulated Depreciation

12000

Accounts Payable

3700

Note Payable (due 7/1/17)

5000

Common Stock (1,000 shares)

8900

Retained Earnings (1/1/16

10200

Dividends

1000

Sales Revenues

45000

Cost of Goods Sold

21000

Salaries Expense

7100

Utilities Expenses

3300

Advertising Expense

4400

Totals

85,100

85,100

In: Accounting

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech Corporation
Balance Sheet
June 30
Assets
Cash $ 84,000
Accounts receivable 144,000
Inventory 63,750
Plant and equipment, net of depreciation 223,000
Total assets $ 514,750
Liabilities and Stockholders’ Equity
Accounts payable $ 84,000
Common stock 349,000
Retained earnings 81,750
Total liabilities and stockholders’ equity $ 514,750

Beech’s managers have made the following additional assumptions and estimates:

  1. Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, respectively.

  2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

  3. Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

  4. Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 relates to expenses that are paid in the month they are incurred.

  5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Complete this question by entering your answers in the tabs below.

Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

Schedule of Expected Cash Collections
Month
July August September Quarter
$0
From July sales 0
From August sales 0
From September sales 0
Total cash collections $0 $0 $0 $0

Req 2A

Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

Merchandise Purchases Budget
July August September Quarter
Total needs
Required purchases

Req 2B

Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

Schedule of Cash Disbursements for Purchases
July August September Quarter
$0
From July purchases 0
From August purchases 0
From September purchases 0
Total cash disbursements $0 $0 $0

$0

Req 3

Prepare an income statement for the quarter ended September 30.

Beech Corporation
Income Statement
For the Quarter Ended September 30
0
0
$0

Req 4

Prepare a balance sheet as of September 30.

Beech Corporation
Balance Sheet
September 30
Assets
Total assets $0
Liabilities and Stockholders' Equity
Total liabilities and stockholders' equity $0

In: Accounting

Andy’s Co. is a manufacturing firm of a computer hardware device. Its sales forecasts for the...

Andy’s Co. is a manufacturing firm of a computer hardware device. Its sales forecasts for the year 2020 is as follows:

Quarter

Sales in units

Price

Revenue

Q1, 2020

500

$              400

$     200,000

Q2, 2020

1000

                 400

         400,000

Q3, 2020

1000

                 400

         400,000

Q4, 2020

1000

                 400

         400,000

Q1, 2021

2000

                 400

         800,000

Q2, 2021

1500

                 400

         600,000

Q3, 2021

1000

$              400

$     400,000

The company will start its business this year with $30,000 of cash balance. As of Q4 of the fiscal year 2019, it does not have any material, work in progress, or finished goods inventories. The company currently has no debt and entirely owned by shareholders. The balance sheet of Andy’s Co. as of the end of the year 2019 is as follows:

Cash

30,000

Equity

30,000

Direct material costs per unit are $150. Each unit requires three direct labor hours to be completed. The hourly wage is $40. For the year 2020, the company expects the variable overhead to be $136,000. The company allocates variable overhead by direct labor hours. Fixed overhead is expected to be $204,000, including the depreciation of the equipment ($47,500). The company will evenly allocate the fixed overhead for each quarter.

At the beginning of the year 2020, the company will invest in $95,000 for the equipment.

The company supplies products with no material selling and administrative expenses. Their products are immediately picked up by other manufacturers in the complex for cash. Due to the highly efficient just-in-time inventory management system, the company does not hold materials inventories. All materials are purchased just enough to be used in production each quarter. The company also does not hold work in progress inventories. However, they keep 10% of next quarter’s sales as ending inventories of finished goods.

The company also engages in flexible cash management. They require a minimum balance of zero. Whenever they run short of cash, they can borrow from a partnered venture capital at the quarterly interest rate of 2%. They obtain the short-term loan at the beginning of the quarter, and they repay both principal and interest at the end of the quarter if they have enough cash.

The company will incur 20% of taxable income (operating income less interest expenses) as tax expenses but will pay the income taxes in the year 2021.

5) Complete the overhead budget including the cash disbursement for Andy’s Co. for the fiscal year 2020

6) Complete the cost of goods manufactured budget for Andy’s Co. for the fiscal year 2020

7) Complete the cost of goods sold budget for Andy’s Co. for the fiscal year 2020

8) Complete the cash budget for Andy’s Co. for the fiscal year 2020

9) Complete the income statement for Andy’s Co. for the fiscal year 2020

10) Complete the balance sheet for Andy’s Co. for the fiscal year 2020

11) An alternative plan for operation requires more investment in the equipment. If the company can invest $210,000 instead of $95,000 in the equipment at the beginning of the year 2020, the company can reduce direct labor hours required for each unit to 2 hours. The depreciation of the equipment will be $105,000 for the year 2020. Calculate the impacts of the additional investment on net income and operating cash flows for the year 2020. You can present an alternative income statement, cash budget, and balance sheet.

12) The executives of Andy’s Co. are debating over whether to invest $95,000 or $210,000. The market analysts suggest that the demand for the products will be at a similar level over the next few years. Based on the sales forecasts of the market analysts, provide advice to the executives. Support your advice quantitatively.

In: Accounting

It is customary to think about investments as falling into one of three groups: revenue-enhancing, cost-reducing,...

It is customary to think about investments as falling into one of three groups: revenue-enhancing, cost-reducing, and mandatory describe what each of these categories mean and give an example.

In: Finance

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech Corporation
Balance Sheet
June 30
Assets
Cash $ 96,000
Accounts receivable 139,000
Inventory 70,200
Plant and equipment, net of depreciation 228,000
Total assets $ 533,200
Liabilities and Stockholders’ Equity
Accounts payable $ 89,000
Common stock 333,000
Retained earnings 111,200
Total liabilities and stockholders’ equity $ 533,200

Beech’s managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $390,000, $410,000, $400,000, and $420,000, respectively.

All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

Each month’s ending inventory must equal 30% of the cost of next month’s sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

Monthly selling and administrative expenses are always $54,000. Each month $7,000 of this total amount is depreciation expense and the remaining $47,000 relates to expenses that are paid in the month they are incurred.

The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1Req 2AReq 2BReq 3Req 4 Prepare a balance sheet as of September 30.

quarter ended September 30.

quarter ended September 30.

Schedule of Expected Cash Collections
Month
July August September Quarter
From accounts receivableselected answer correct $139,000selected answer correct $139,000
From July sales 136,500selected answer correct 253,500selected answer correct 390,000
From August sales 143,500selected answer correct 266,500selected answer correct 410,000
From September sales 140,000selected answer correct 140,000
Total cash collections $275,500 $397,000 $406,500 $1,079,000
Merchandise Purchases Budget
July August September Quarter
Budgeted cost of goods soldselected answer correct $234,000selected answer correct $246,000selected answer correct $240,000selected answer correct $720,000selected answer correct
Add: Desired ending merchandise inventoryselected answer correct 73,800selected answer correct 72,000selected answer correct 75,600selected answer correct 221,400selected answer incorrect
Total needs 307,800selected answer correct 318,000selected answer correct 315,600selected answer correct 941,400selected answer incorrect
Less: Beginning merchandise inventoryselected answer correct 70,200selected answer correct 73,800selected answer correct 72,000selected answer correct 216,000selected answer incorrect
Required purchases $237,600selected answer correct $244,200selected answer correct $243,600selected answer correct $725,400selected answer correct
Schedule of Cash Disbursements for Purchases
July August September Quarter
From accounts payableselected answer correct $89,000selected answer correct $89,000
From July purchases 95,040selected answer correct 142,560selected answer correct 237,600
From August purchases 97,680selected answer correct 146,520selected answer correct 244,200
From September purchases 97,440selected answer correct 97,440
Total cash disbursements $184,040 $240,240 $243,960 $668,240
Beech Corporation
Income Statement
For the Quarter Ended September 30
Salesselected answer correct $1,200,000selected answer correct
Cost of goods soldselected answer correct 720,000selected answer correct
Gross marginselected answer correct 480,000
Selling and administrative expensesselected answer correct 162,000selected answer correct
Net operating incomeselected answer correct 318,000
Net incomeselected answer correct $318,000

Req 1

Prepare a balance sheet as of September 30.

Beech Corporation
Balance Sheet
September 30
Assets
Cashselected answer correct $344,760selected answer incorrect
Accounts receivableselected answer correct 273,000selected answer incorrect
Inventoryselected answer correct 72,000selected answer incorrect
Plant and equipment, netselected answer correct 207,000selected answer correct
Total assets $896,760
Liabilities and Stockholders' Equity
Accounts payableselected answer correct $435,240selected answer incorrect
Common stockselected answer correct 333,000selected answer correct
Retained earningsselected answer correct 429,200selected answer correct
Total liabilities and stockholders' equity $1,197,440

Req 3

In: Accounting

Q. Spherical glass particles (12 mm diameter and 2500 kg/m 3 density) and spherical metal particles...

Q. Spherical glass particles (12 mm diameter and 2500 kg/m 3 density) and spherical metal particles (1.5 mm diameter and 7500 kg/m3) are falling in water (density= 1000 kg/m3) .

(1) Calculate the terminal falling velocities of glass and metal particles in water for a constant friction factor of 0.22.

(2) At what water velocity will fluidized beds of glass particles and metal particles have the same bed densities?

The relation between fluidization velocity (uc), terminal velocity (ut) and bed voidage (e) for a spherical particle is given by the equation (uclut) = e2·3

In: Other

lota Inc, an electronics retailer, just finished its first year of operations and is in the...

lota Inc, an electronics retailer, just finished its first year of operations and is in the process of preparing its December 31, 2018 balance sheet. indicate that the account names and dollar amount If any) that lota would report within the current and long-term liabilities sections of its balance sheet at December 31, 2018 as a result of each transaction described below. If no liability should be recorded leave the item blank.

Question 1.

1a) On October 1, 2018 lota issued $ 8,000,000 of notes payable. The notes pay 6% interest each September 30th and mature is installments. The first $1,000,000 installment is due September 30, 2019. List the current liability associated with this transaction.

Question 2.

1b). On October 1, 2018 lota issued $ 8,000,000 of notes payable. The notes pay 6% interest each September 30th and mature in installments. The first $1,000,000 installment is due September 30, 2019. List long-term liabilities associated with this transaction.

Question 3.

2a) On December 31, 2018, lota issued a $ 1,400,000 short term note payable with a 5% rate of interest that due on May 31, 2019. Lota intends to refinance the note using a $900,000 long term loan from an existing line of credit that it will repay in three years. List the current liability associated with this transaction.

Question 4.

2b) On December 31, 2018, lota issued a $ 1,400,000 short term note payable with a 5% rate of interest that due on May 31, 2019. Lota intends to refinance the note using a $900,000 long term loan from an existing line of credit that it will repay in three years. List long-term liabilities associated with this transaction.

Question 5.

3. Lota sold $ 10,000 of gift cards during the first quarter of 2018 and an additional $5,000 of gift cards during the fourth quarter of 2018. By December 31, 2018, $7,000 of the gift cards sold during the first quarter had been redeemed and $3,000 of gift cards sold during the fourth quarter had been redeemed. Lota considers its gift cards to be broken after 6 months.

List the current liability associated with this transaction.

Question 6.

4. During 2018, lota sold 600 laptops for $500 each. All laptops come with a 1-year original warranty. Lota estimated warranty costs will be 3% of sales. By December 31, 2018 lota had spent $2,00 to fix or replace computer cover warranty. Lota collects a 5% sales tax on all laptops sold. Which will be remitted to the government in 2019?

In: Accounting

15. The marketing efforts for convenience and specialty goods are essentially the same. True    False 16. Shopping...

15.

The marketing efforts for convenience and specialty goods are essentially the same.

True    False

16.

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

True    False

17.

Successful marketing of convenience and specialty goods require different marketing mixes.

True    False

18.

Most consumers view specialty goods as having a variety of acceptable substitutes.

True    False

19.

The classification of goods or services into a particular class depends on the individual consumer.

True    False

20.

A shopping good for one consumer could be a specialty good for another consumer.

True    False

21.

Organizations that assist in moving goods and services from producers to business and consumer users are called supply-side transition specialists.

True    False

22.

Agents and brokers and wholesalers are types of marketing intermediaries.

True    False

23.

Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

True    False

24.

A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers.

True    False

25.

Brokers are marketing intermediaries that do not take title to the goods they help distribute.

True    False

26.

Retailers are marketing intermediaries who sell to ultimate consumers.

True    False

27.

Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

True    False

28.

The promotional budget will clarify how much can be spent on advertising and personal selling.

True    False

29.

The first step in creating a promotional campaign is to define the objectives for each element of the marketing mix.

True    False

30.

The last step in creating a promotional campaign is to evaluate the effectiveness of each element of the promotional mix.

True    False

31.

The development of a unified promotional strategy that uses each element of the promotion mix to create a favorable brand image is the goal of a primary promotional process.

True    False

32.

Phil's activities as a salesperson for Marquette Publishing are part of Marquette's promotion mix.

True    False

33.

A firm's promotion mix consists of its pricing and distribution strategies.

True    False

34.

After adopting integrated marketing communication, Madison Furniture puts less emphasis on public relations, sales promotion, and personal selling, and concentrates on advertising designed to provide a uniform message to all markets.

True    False

35.

36.

When developing the promotional campaign for a new product, the first step for a firm is to identify their target market.

True    False

Essay Question: Describe the relationship between the BCG Matrix, Product Diffusion Curve, and Product Lifecycle.

In: Operations Management

Exercise 8-16 Direct Materials and Direct Labor Budgets [LO8-4, LO8-5] The production department of Zan Corporation...

Exercise 8-16 Direct Materials and Direct Labor Budgets [LO8-4, LO8-5]

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 7,000 10,000 9,000 8,000

In addition, 8,750 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $5,200.

Each unit requires 5 grams of raw material that costs $1.60 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 6,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $13.50 per hour.

Required:

1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.

3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.

4. Calculate the estimated direct labor cost for each quarter and for the year as a whole.

1. 2 Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.

1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter Year
Estimated grams of raw material to be purchased 38,750 correct 48,750 correct
Cost of raw materials to be purchased $62,000 correct $78,000 correct

3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.

1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter Year
Total cash disbursements for materials

4. Calculate the estimated direct labor cost for each quarter and for the year as a whole. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2 decimal places.)

1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter Year
Total direct labor cost

In: Accounting