Near the end of 2017, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2017.

To prepare a master budget for January, February, and March of 2018, management gathers the following information.

1. The company’s single product is purchased for $30 per unit and resold for $57 per unit. The expected inventory level of 5,250 units on December 31, 2017, is more than management’s desired level, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,000 units; February, 9,000 units; March, 11,500 units; and April, 10,500 units.
2. Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 59% is collected in the first month after the month of sale and 41% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February.
3. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $60,000 is paid in January and the remaining $310,000 is paid in February.
4. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $72,000 per year.
5. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,100 per month and is paid in cash.
6. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $33,600; February, $96,000; and March, $24,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased.
7. The company plans to buy land at the end of March at a cost of $145,000, which will be paid with cash on the last day of the month.
8. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $28,000 at the end of each month.
1. The income tax rate for the company is 41%. Income taxes on the first quarter’s income will not be paid until April 15.

Required:
Prepare a master budget for each of the first three months of 2018; include the following component budgets:

8. Budgeted balance sheet as of March 31, 2018.

Charlene Hickman expected the price of Bio International shares to drop in the near future in response to the expected failure of its new drug to pass FDA tests. As a​ result, she sold short 100 shares of Bio International at ​$26.91. How much would Charlene earn or lose on this transaction if she repurchased the 100 shares four months later at each of the following prices per​ share?  

a.​$23.95

b.​$24.62

c.​$31.14

d. ​$26.63

a. The amount Charlene would earn or lose on this transaction if she repurchased the 100 shares four months late at $23.95 each is_​$

b. The amount Charlene would earn or lose on this transaction if she repurchased the 100 shares four months late at $24.62 each is_​$

c. The amount Charlene would earn or lose on this transaction if she repurchased the 100 shares four months late at $31.14 each is_​$

d. The amount Charlene would earn or lose on this transaction if she repurchased the 100 shares four months late at $26.63 each is_​$

This week's discussion board will focus on cancer, a topic very near and dear to my heart, as I lost my first husband in his early 30's over 10 years ago to stage IV brain cancer, so I not only have a lot of experience professionally but also personally in this space.

We all know or have known someone touched by the deadly condition. It's a very devastating disease that affects millions of lives per year. Still, we don't have a strong handle on how exactly some cancers form in the body and what they are caused from- still determined to be "unknown". Nutrition is extremely critical though, to help prevent cancer, but more importantly if you have developed it, to help aid in healing throughout the treatment process. Surgery, radiation and chemotherapy can all take an extreme toll on the body and there are a lot of side effects patients experience which render them malnourished. You can choose to discuss an important type of supplement or food that cancer patients should focus on to assist their body through treatments OR choose to discuss an alternative therapy that individuals use to combat side effects of the treatment and how that is tied to their nutrition.

On June 12, because management knew with near certainty that it had no chance of collection, Sheave Company wrote off a customer's account balance in the amount of $350. On November 3, the customer mailed a payment for $350 to Sheave. To record the receipt of this payment from the customer, the company would debit:

a. Bad Debt Expense and credit Cash

b. Accounts Receivable and credit Bad Debt Expense, then debit Cash and credit Allowance for Doubtful Accounts

c. Cash and credit Accounts Receivable

d. Accounts Receivable and credit Allowance for Doubtful Accounts, then debit Cash and credit Accounts Receivable

The geographical principle of nearness states that everything is related to everything else but near things are more related than distant things. In your own lives and experience, does this principle seem accurate? What other geographical concepts can you use to support or challenge the principle of nearness, and to describe your own social, economic, political, etc., connections and interactions?

2. The owner and manager of a duplicating service near a major university, is contemplating keeping his shop open in the evening until midnight. In order to do so, he would have to hire additional workers. He estimates that the additional workers would generate the following total output (where each unit of output refers to 100 pages duplicated). If the price of each worker hired must be paid $95 and the price of each unit of output duplicated is $6, how many workers should he hire? (10 points)

Workers Hired   0              1              2              3              4              5              6

Total Product     0              21           40           59 75 85           92                                                                          

                To work this problem you will need to compare MRP to MRC

The owner and manager of a duplicating service near a major university, is contemplating keeping his shop open in the evening until midnight. In order to do so, he would have to hire additional workers. He estimates that the additional workers would generate the following total output (where each unit of output refers to 100 pages duplicated). If the price of each worker hired must be paid $100 and the price of each unit of output duplicated is $6, how many workers should he hire? (10 points)

Workers Hired   0              1              2              3              4              5              6

Total Product     0              21           43           60           76           91            102                                                                        

To work this problem you will need to calculate the MRP values and then compare them to the MRC.

1. Chum salmon (Oncorhynchus keta) are born in freshwater environments and then migrate to the sea. Near the end of their lives, they return to the freshwater stream where they were born to spawn. In freshwater, water constantly diffuses into the body and ions are lost from the body. In salt water, body water diffuses out of the body and excess ions are gained from the water. A salmon's gills have special cells to pump salt in or out of the body to maintain homeostasis. In response to the salmon's moves between freshwater and salt water, some cells in the gills are produced and others are destroyed. These changes made in the cells of the gills during the lifetime of an individual salmon are an example of which of the following

   	a.	evolution
   	b.	trade-offs
   	c.	acclimatization
   	d.	adaptation

   A researcher is setting up an experiment to measure basal metabolic rate in songbirds. Which of the following would be the best set of conditions for the birds immediately before and during the measurement?

   	a.	House the birds in a cage with no food for a few hours before measurement; conduct measurements in a room the same temperature as the room where housed
   	b.	House the birds in a cage with no food for a few hours before measurement; conduct measurements in a colder room than the room where housed, and exercise the birds.
   	c.	House the birds in a cage with plenty of food and water to avoid stress; conduct measurements in a room the same temperature as the room where housed.
   	d.	House the birds in a cage with plenty of food and water to avoid stress; conduct measurements in a warmer room than the room where housed.

2. Which of the following events produces the "pull" that is associated with myosin and actin sliding past one another?

   	a.	the binding of ATP to the myosin head
   	b.	the hydrolysis of ATP
   	c.	the release of a phosphate from the myosin head after ATP is hydrolyzed
   	d.	the myosin head with an empty ATP binding site

(a) Sally is the owner of a huge bookstore in Quarry Bay. Near retirement age, she is looking for opportunities to sell her business. One day, Ricky, who was interested to buy the bookstore, was invited by Sally to visit her bookstore. Ricky was excited to see that there was a small tea shop inside the bookstore selling Taiwanese style drinks. Ricky was led by Sally to visit the whole bookstore including a tea shop. Sally told Ricky that the customers enjoyed having a cup of takeaway drink from the tea shop before reading and purchasing books in the bookstore. She also mentioned that the tea shop and the bookstore together attracted many students and youngsters nearby, generating a total monthly revenue of over HK$800,000. Ricky was very satisfied with what he saw that day. Thinking that he was buying the bookstore together with the tea shop, he immediately placed a deposit with Sally for purchase of her business. However, one week later, Ricky learned from a reliable source of information that the tea shop inside the bookstore actually belonged to another owner. Sally did not share any profits from the tea shop, neither could she influence the tea shop’s operation.

Required:

(a) Discuss whether the conduct of Sally constitutes misrepresentation. You are required to cite a relevant case in your explanation but do NOT need to discuss the different types of misrepresentation.

(b) In February, Mr and Mrs Lee engaged Susan, a famous ballerina to perform a private show at their villa in the New Territories to celebrate their 30th wedding anniversary in August. At the same time, Mr and Mrs Lee paid Susan HK$10,000 as deposit for her performance. In March, Susan’s left ankle was injured badly while practising. She was told by her doctor that the injury was very serious and she would probably have difficulty walking for the rest of this year. Susan decided to take her doctor’s advice and cancel the ballet show. There is no provision in the contract between Susan and Mr and Mrs Lee in respect of Susan’s injury. When Mr and Mrs Lee were informed of Susan’s injury and the cancellation of her ballet show, they were shocked and very disappointed.

Required:

(bi) Discuss whether Susan’s contract with Mr and Mrs Lee can be discharged by frustration.

(bii) Discuss whether Mr and Mrs Lee are entitled to demand a refund of their deposit and claim for additional compensation.

Near the end of 2017, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2017. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2017 Assets Cash $ 35,500 Accounts receivable 520,000 Inventory 157,500 Total current assets $ 713,000 Equipment 576,000 Less: accumulated depreciation 72,000 Equipment, net 504,000 Total assets $ 1,217,000 Liabilities and Equity Accounts payable $ 370,000 Bank loan payable 14,000 Taxes payable (due 3/15/2018) 89,000 Total liabilities $ 473,000 Common stock 474,000 Retained earnings 270,000 Total stockholders’ equity 744,000 Total liabilities and equity $ 1,217,000 To prepare a master budget for January, February, and March of 2018, management gathers the following information. a. The company’s single product is purchased for $30 per unit and resold for $57 per unit. The expected inventory level of 5,250 units on December 31, 2017, is more than management’s desired level, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,000 units; February, 9,000 units; March, 11,500 units; and April, 10,500 units. b. Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 59% is collected in the first month after the month of sale and 41% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $60,000 is paid in January and the remaining $310,000 is paid in February. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $72,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,100 per month and is paid in cash. f. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $33,600; February, $96,000; and March, $24,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased. g. The company plans to buy land at the end of March at a cost of $145,000, which will be paid with cash on the last day of the month. h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $28,000 at the end of each month. i. The income tax rate for the company is 41%. Income taxes on the first quarter’s income will not be paid until April 15. Required: Prepare a master budget for each of the first three months of 2018; include the following component budgets. 6. Monthly cash budgets. 7. Budgeted income statement for the entire first quarter (not for each month). 8. Budgeted balance sheet as of March 31, 2018.