Storm Tools has formed a new business unit to produce battery-powered drills. The business unit was formed by the transfer of selected assets and obligations from the parent company. The unit's initial balance sheet on January 1 contained cash ($500,000), plant and equipment ($2,500,000), notes payable to the parent ($1,000,000), and Common Stock ($2,000,000). The business unit is expected to repay the note at $50,000 per month, plus all accrued interest at 1/2% per month. Payments are made on the last day of each month. The unit is scheduled to produce 25,000 drills during January, with an increase of 2,500 units per month for the next three months. Each drill requires $40 of raw materials. Raw materials are purchased on account, and paid in the month following the month of purchase. The plant manager has established a goal to end each month with raw materials on hand, sufficient to meet 25% of the following month's planned production. The unit expects to sell 20,000 drills in January; 25,000 in February, 25,000 in March, and 30,000 per month thereafter. The selling price is $100 per drill. Half of the drills will be sold for cash through a website. The others will be sold to retailers on account, who pay 40% in the month of purchase, and 60% in the following month. Uncollectible accounts are not material. Each drill requires 20 minutes of direct labor to assemble. Labor rates are $24 per hour. Variable factory overhead is applied at $9 per direct labor hour. The fixed factory overhead is $25,000 per month; 60% of this amount is related to depreciation of plant and equipment. With the exception of depreciation, all overhead is funded as incurred. Selling, general, and administrative costs are funded in cash as incurred, and consist of fixed components (salaries, $100,000; office, $40,000; and advertising, $75,000) and variable components (15% of sales).

Prepare the master budget for the quarter ended March 31, 2018.

Can an expert help prepare the master budget with the template below

The FIFO inventory method requires that a. the cost of the first items purchased be assigned to cost of goods sold. b. the cost of the last items purchased be assigned to cost of goods sold. c. the earliest goods purchased be allocated to ending inventory. d. the company uses a perpetual inventory system.

Ezekiel Elliot (a professional football player) recently signed a contract that will pay him the following amount (in millions)

If the annual interest rate is 5%, what is the present value (in millions) of Elliot’s contract (consider 2020 as time 0)?

Grab a blank sheet of paper and try some inflation analysis on your own. Take a picture or scan your sheet, and upload it after you are finished. This contributes to your participation grade in the class.

1. Because inflation increased by only 1.7% in 2008, the American Association of Retired Persons comments that this is “an unfortunate side effect of inflation, since Social Security payments, which are indexed to inflation, will increase by only 1.7% in 2008.” Comment on whether this is an “unfortunate side effect of inflation” or not.
2. The Federal Reserve Bank (Fed) can impact the economy through changes in the Federal funds rate, because changes in this interest rate will change all interest rates throughout the economy. The Federal funds rate was constant at 5.25% from 1996–1998, a time of falling inflation. What impact did this have on real interest rates during this time? What was likely to happen to investment spending?
3. “Traveling in Turkey is much cheaper now than it was 10 years ago,” says a friend. "Ten years ago, a dollar bought 1,000 lira; this year, a dollar buys 1,500 lira.” Total inflation over this period was 25% in the United States and 100% in Turkey. Is your friend right or wrong—has it become more or less expensive to travel in Turkey?

Diversified Inc. is a retailer that sells a variety of goods under three major business units. Its Home Appliances Division manufactures and sells home kitchen appliances such as refrigerators, microwave ovens and dishwashers.During his annual review of the company’s financial condition, Diversified’s president notes that the company’s inventory included a material reduction described as an allowance to reduce inventory to market. While the Home Appliances Division had received a considerable amount of negative publicity related to fires caused by defective switches in its products, the president felt that any reduction in the market value of these products that was taken in the third quarter was more than offset by the high margins the High Fashion Division. Therefore, the president felt that no write down should have been taken. Further, the president notes that the company had replaced the faulty switches in the third fiscal quarter and subsequent sales had shown that the market value of its appliances had partially recovered. All estimates are that the value of the appliance inventory should be completed recovered by the fourth quarter of the next fiscal year.Research the related generally accepted accounting principles and prepare a short memo to the accounting file not to exceed two pages that addresses the president’s concerns. Cite your references and applicable paragraph numbers.

Data shows graduate program admission decisions (Yes: 1 and No: 2), GRE score and undergraduate GPA for twenty-five students.

Tasks:

Examine if the given data is suitable for the application of linear discriminant analysis.

Create a linear discriminant function predicting admission decisions.

Comment on the classification accuracy.

Predict the admission decision given GRE score = 690 and GPA = 3.2.

Perform logistic regression analysis for the data.

Compare the classification accuracies of both methods.

Use Minitab

Data shows graduate program admission decisions (Yes: 1 and No: 2), GRE score and undergraduate GPA for twenty-five students.

Tasks:

Examine if the given data is suitable for the application of linear discriminant analysis.

Create a linear discriminant function predicting admission decisions.

Comment on the classification accuracy.

Predict the admission decision given GRE score = 690 and GPA = 3.2.

Perform logistic regression analysis for the data.

Compare the classification accuracies of both methods.

The manager of a computer retails store is concerned that his suppliers have been giving him laptop computers with lower than average quality. His research shows that replacement times for the model laptop of concern are normally distributed with a mean of 4 years and a standard deviation of 0.4 years. He then randomly selects records on 49 laptops sold in the past and finds that the mean replacement time is 3.8 years.

Assuming that the laptop replacement times have a mean of 4 years and a standard deviation of 0.4 years, find the probability that 49 randomly selected laptops will have a mean replacement time of 3.8 years or less.
P(M < 3.8 years) =  
Enter your answer as a number accurate to 4 decimal places. NOTE: Answers obtained using exact z-scores or z-scores rounded to 3 decimal places are accepted.

Based on the result above, does it appear that the computer store has been given laptops of lower than average quality?

• Yes. The probability of this data is unlikely to have occurred by chance alone.
• No. The probability of obtaining this data is high enough to have been a chance occurrence.

Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

• The company sells each unit for $45.

Budgeted Sales:

• Collections are expected to be 70% in the month of sale, 30% in the month following the sale.
• The A/R balance at September 30th will be collected in full in October.
• The cost of the merchandise is $38 per unit.
• In addition to meeting the current month’s sales demand, management wants to maintain and ending inventory balance of 10% of the next month’s sales.
• The beginning inventory balance at October 1st is 3,000 units.
• Payment for merchandise is made as follows: ½ paid in the month of the purchase, ½ paid the month following the purchase.
• The A/P balance at September 30th will be paid in full in October.
• A dividend was paid in October for $500,000.
• Minimum cash balance is $100,000.
• The company has a line of credit for $500,000 at an annual interest rate of 12%.
• Loans are taken out on first day of month borrowed and repaid at the end of the quarter with interest.

            Required:

1. Prepare a Sales Budget for October, November, December, and Quarter.
2. Prepare a Schedule of Expected Cash Collections for October, November, December, and Quarter.
3. Prepare a Merchandise Purchases Budget for October, November, December, and Quarter.
4. Prepare a Schedule of Expected Cash Disbursements for October, November, December, and Quarter.
5. Prepare Cash Budgets for October, November, December, and Quarter.

1. Calculating the Cash Budget Wiggles, Inc., has estimated sales (in millions) for the next four quarters as follows: (40 ptos)

Sales for the first quarter of the year after this one are projected at $120 million. Accounts receivable at the beginning of the year were $34 million. Wiggles, has a 45-day collection period.

Wiggle’s purchases from suppliers in a quarter are equal to 45 percent of the next quarter’s forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 30 percent of sales. Interest and dividends are $6 million per quarter.

Wiggles plans a major capital outlay in the second quarter of $40 million. Finally, the company started the year with a $32 million cash balance and wishes to maintain a $15 million minimum balance.

Complete a cash budget for Wiggles by filling in the following:

Assume that Wiggles can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter, and can invest any excess funds in short-term marketable securities at a rate of 2 percent per quarter. Prepare a short-term financial plan by filling in the following schedule. What is the net cash cost (total interest paid minus total investment income earned) for the year?

please present the calculations