|
Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: |
|
Superior Markets, Inc. Income Statement For the Quarter Ended September 30 |
||||||||||||
| Total |
North Store |
South Store |
East Store |
|||||||||
| Sales | $ | 3,300,000 | $ | 760,000 | $ | 1,320,000 | $ | 1,220,000 | ||||
| Cost of goods sold | 1,815,000 | 433,000 | 711,000 | 671,000 | ||||||||
| Gross margin | 1,485,000 | 327,000 | 609,000 | 549,000 | ||||||||
| Selling and administrative expenses: | ||||||||||||
| Selling expenses: | 823,000 | 234,400 | 316,500 | 272,100 | ||||||||
| Administrative expenses | 398,000 | 109,000 | 155,400 | 133,600 | ||||||||
| Total expenses | 1,221,000 | 343,400 | 471,900 | 405,700 | ||||||||
| Net operating income (loss) | $ | 264,000 | $ | (16,400 | ) | $ | 137,100 | $ | 143,300 | |||
|
The North Store has consistently shown losses over the past two
years. For this reason, management is giving consideration to
closing the store. The company has asked you to make a
recommendation as to whether the store should be closed or kept
open. The following additional |
| a. | The breakdown of the selling and administrative expenses is as follows: |
| Total |
North Store |
South Store |
East Store |
|||||
| Selling expenses: | ||||||||
| Sales salaries | $ | 227,200 | $ | 65,500 | $ | 81,800 | $ | 79,900 |
| Direct advertising | 182,000 | 54,000 | 75,000 | 53,000 | ||||
| General advertising* | 49,500 | 11,400 | 19,800 | 18,300 | ||||
| Store rent | 315,000 | 88,000 | 123,000 | 104,000 | ||||
| Depreciation of store fixtures | 17,500 | 4,900 | 6,300 | 6,300 | ||||
| Delivery salaries | 21,900 | 7,300 | 7,300 | 7,300 | ||||
| Depreciation of delivery equipment | 9,900 | 3,300 | 3,300 | 3,300 | ||||
| Total selling expenses | $ | 823,000 | $ | 234,400 | $ | 316,500 | $ | 272,100 |
| *Allocated on the basis of sales dollars. |
| Total |
North Store |
South Store |
East Store |
|||||
| Administrative expenses: | ||||||||
| Store management salaries | $ | 74,500 | $ | 22,500 | $ | 31,500 | $ | 20,500 |
| General office salaries* | 49,500 | 11,400 | 19,800 | 18,300 | ||||
| Insurance on fixtures and inventory | 28,000 | 8,400 | 10,500 | 9,100 | ||||
| Utilities | 107,535 | 31,695 | 39,540 | 36,300 | ||||
| Employment taxes | 55,965 | 16,005 | 21,060 | 18,900 | ||||
| General office —other* | 82,500 | 19,000 | 33,000 | 30,500 | ||||
| Total administrative expenses | $ | 398,000 | $ | 109,000 | $ | 155,400 | $ | 133,600 |
| *Allocated on the basis of sales dollars. |
| b. | The lease on the building housing the North Store can be broken with no penalty. |
| c. |
The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed. |
| d. |
The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $10,400 per quarter. The general manager of the North Store would be retained at her normal salary of $11,400 per quarter. All other employees in the store would be discharged. |
| e. |
The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person’s salary is $4,300 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete. |
| f. | The company’s employment taxes are 15% of salaries. |
| g. | One-third of the insurance in the North Store is on the store’s fixtures. |
| h. |
The “General office salaries” and “General office—other” relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person’s compensation is $5,700 per quarter. |
| Required: | |
| 1. |
Prepare a schedule showing the change in revenues and expenses and the impact on the company’s overall net operating income that would result if the North Store were closed. (Any losses/ reductions should be indicated by a minus sign.) |
| 2. |
Based on your computations in (1) above, what recommendation would you make to the management of Superior Markets, Inc.? |
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|
| 3. |
Assume that if the North Store were closed, at least one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. The East Store has enough capacity to handle the increased sales. You may assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in that store. |
| a. |
Calculate the net advantage of closing the North Store. (Any reductions or outflows should be indicated by a minus sign.) |
| b. | What recommendation would you make to the management of Superior Markets, Inc.? | ||||
|
In: Accounting
Progressive Studios Corporation’s sales in Year 2019 is 800 million dollars. Let’s make the following assumptions on the firm’s performance to forecast its free cash flow in Year 2020:
• Sales grow 25% from Year 2019 to Year 2020.
• Corporate tax rate is 25%.
• COGS is 40% of the sales in Year 2020.
• SG&A is 20% of the sales in Year 2020.
• Depreciation is 10% of the sales in Year 2020.
• Net working capital amounts to 30% of the sales for each year (i.e., NWC for 2019 is 30% sales in 2019, NWC for 2020 is prediced to be 30% sales in 2020).
• Capital expenditure is 5% of the sales in Year 2020.
a. What is the forcasted EBIT of Progressive Studios Corporation in Year 2020? Progressive Studios Corporation’s forecasted EBIT in Year 2020 is $___.(Round to the nearest dollar.)
b. What is Progressive Studios Corporation’s forecasted free cash flow in Year 2020? Progressive Studios Corporation’s forecasted free cash flow in Year 2020 is $___.(Round to the nearest dollar.)
c. Assume that starting from Year 2021 and beyond, Progressive Studios' free cash flow will grow 2% per year. The weighted average cost of capital is 12%. The corporation has debt outstanding of $100 million and cash of $50 million in Year 2019. The number of shares outstanding is 100 million shares. What is the price of Progressive Studios stock will be consistent with the forecast? The price per share of $___ will be consistent with the forecast
In: Finance
Sarah Allen Company was formed on December 1, 2019. The
following information is available from Allen’s inventory records
for Product BAP.
|
Units |
Unit Cost |
|||
| January 1, 2020 (beginning inventory) | 1,620 | $ 8 | ||
| Purchases: | ||||
| January 5, 2020 | 3,240 | 9 | ||
| January 25, 2020 | 3,510 | 10 | ||
| February 16, 2020 | 2,160 | 11 | ||
| March 26, 2020 | 1,620 | 12 |
A physical inventory on March 31, 2020, shows 4,320 units on
hand.
a. Prepare schedule to compute the ending inventory at March 31, 2020, under FIFO inventory method.
|
SARAH ALLEN COMPANY |
| Units | Units Cost | Total Cost |
b. Prepare schedule to compute the ending inventory at March 31,
2020, under LIFO inventory method.
|
SARAH ALLEN COMPANY |
| Units | Units Cost | total cost |
Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.)
Weighted Average-Cost per Units $________
Compute the ending inventory at March 31, 2020, under Weighted-average inventory method. (Round answer to 0 decimal places, e.g. 2,760.)
Weighted Average
Ending Inventory at March 31, 2020 $______________
In: Accounting
Write a function that accepts a dictionary and produces a sorted list of tuples
The dictionary looks like this:
{‘US’: [{'Chicago, IL': ('2/1/2020 19:43', 2, 0, 0)}, {'San Benito, CA': ('2/3/2020 3:53', 2, 0, 0)}, {'Santa Clara, CA': ('2/3/2020 0:43', 2, 0, 0)}, {'Boston, MA': ('2/1/2020 19:43', 1, 0, 0)}, {'Los Angeles, CA': ('2/1/2020 19:53', 1, 0, 0)}, {'Orange, CA': ('2/1/2020 19:53', 1, 0, 0)}, {'Seattle, WA': ('2/1/2020 19:43', 1, 0, 0)}, {'Tempe, AZ': ('2/1/2020 19:43', 1, 0, 0)}], 'Australia' : [{'New South Wales': ('2/1/2020 18:12', 4, 0, 2)}, {'Victoria': ('2/1/2020 18:12', 4, 0, 0)}, {'Queensland': ('2/4/2020 16:53', 3, 0, 0)}, {'South Australia': ('2/2/2020 22:33', 2, 0, 0)}]
For these counts, I need to use the numbers that are bolded above). The returned sorted list (in descending order) will contain key-value pairs such that each key is a country and the corresponding value is the number of cases observed within that country.
For example: [('Australia', 13),(‘US’: 11)]
In: Computer Science
Your firm has been engaged to examine the financial statements
of Headland Corporation for the year 2020. The bookkeeper who
maintains the financial records has prepared all the unaudited
financial statements for the corporation since its organization on
January 2, 2015. The client provides you with the
information.
|
Headland Corporation |
||||||
|---|---|---|---|---|---|---|
|
Assets |
Liabilities |
|||||
|
Current assets |
$1,860,000 |
Current liabilities |
$959,000 | |||
|
Other assets |
5,147,280 |
Long-term liabilities |
1,472,000 | |||
|
Stockholders’ equity |
4,576,280 | |||||
| $7,007,280 | $7,007,280 | |||||
| An analysis of current assets discloses the following. | ||
| Cash (restricted in the amount of $297,000 for plant expansion) | $566,000 | |
| Investments in land | 181,000 | |
| Accounts receivable less allowance of $31,000 | 476,000 | |
| Inventories (LIFO flow assumption) | 637,000 | |
| $1,860,000 | ||
| Other assets include: | ||
| Prepaid expenses | $64,000 | |
| Plant and equipment less accumulated depreciation of $1,435,000 | 4,054,000 | |
| Cash surrender value of life insurance policy | 84,000 | |
| Unamortized bond discount | 98,280 | |
| Notes receivable (short-term) | 162,000 | |
| Goodwill | 247,000 | |
| Land | 438,000 | |
| $5,147,280 | ||
| Current liabilities include: | ||
| Accounts payable | $510,000 | |
| Notes payable (due 2023) | 156,000 | |
| Estimated income taxes payable | 144,000 | |
| Premium on common stock | 149,000 | |
| $959,000 | ||
| Long-term liabilities include: | ||
| Unearned revenue | $492,000 | |
| Dividends payable (cash) | 200,000 | |
| 8% bonds payable (due May 1, 2025) | 780,000 | |
| $1,472,000 | ||
| Stockholders’ equity includes: | ||
| Retained earnings | $2,746,280 | |
| Common stock, par value $10; authorized 200,000 shares, 183,000 shares issued | 1,830,000 | |
| $4,576,280 |
The supplementary information below is also provided.
| 1. | On May 1, 2020, the corporation issued at 87.40, $780,000 of bonds to finance plant expansion. The long-term bond agreement provided for the annual payment of interest every May 1. The existing plant was pledged as security for the loan. Use the straight-line method for discount amortization. | ||
| 2. | The bookkeeper made the following mistakes. | ||
| a. | In 2018, the ending inventory was overstated by $181,000. The ending inventories for 2019 and 2020 were correctly computed. | ||
| b. | In 2020, accrued wages in the amount of $224,000 were omitted from the balance sheet, and these expenses were not charged on the income statement. | ||
| c. | In 2020, a gain of $176,000 (net of tax) on the sale of certain plant assets was credited directly to retained earnings. | ||
| 3. | A major competitor has introduced a line of products that will compete directly with Headland’s primary line, now being produced in a specially designed new plant. Because of manufacturing innovations, the competitor’s line will be of comparable quality but priced 50% below Headland’s line. The competitor announced its new line on January 14, 2021. Headland indicates that the company will meet the lower prices that are high enough to cover variable manufacturing and selling expenses, but permit recovery of only a portion of fixed costs. | ||
| 4. | You learned on January 28, 2021, prior to completion of the audit, of heavy damage because of a recent fire to one of Headland’s two plants; the loss will not be reimbursed by insurance. The newspapers described the event in detail. | ||
Analyze the above information to prepare a corrected balance sheet
for Headland in accordance with proper accounting and reporting
principles. Prepare a description of any notes that might need to
be prepared. The books are closed and adjustments to income are to
be made through retained earnings.
In: Accounting
Robert Reid, a 48-year-old African American computer programmer, is 5 feet 9 inches tall and weight 240 pounds. He sits for long hours at work and is too tired to exercise when he gets home at night. His meals usually includes fatty meats, eggs, and cheese, and he likes dairy desserts such as pudding and ice cream. He has a family history of CHD and HTN. His recent laboratory tests show that his blood pressure is 160/100 mmHg, and LDL and HDL levels are 160 mg/dl and 35 mg/dl, respectively. He smokes a pack of cigarettes each day and usually has two glasses of wine at both lunch and dinner.
What dietary changes would you recommend that could help to improve Nr. Reid’s blood pressure and his LDL cholesterol? Explain the rationale for each dietary change. Prepare a day’s menu for Mr. Reid using the DASH eating plan as an outline for your choices?
In: Nursing
Robert Reid, a 48-year-old African American computer programmer, is 5 feet 9 inches tall and weight 240 pounds. He sits for long hours at work and is too tired to exercise when he gets home at night. His meals usually includes fatty meats, eggs, and cheese, and he likes dairy desserts such as pudding and ice cream. He has a family history of CHD and HTN. His recent laboratory tests show that his blood pressure is 160/100 mmHg, and LDL and HDL levels are 160 mg/dl and 35 mg/dl, respectively. He smokes a pack of cigarettes each day and usually has two glasses of wine at both lunch and dinner.
Identify Mr. Reid’s major risk factors for CHD and HTN. which can be modified? What complications might occur if he delays treatment for his blood lipids and blood pressure?
In: Nursing
Infectious Disease DDA
Jim is a 29 year old computer programmer. He presents today c/o feeling badly for 7-10 days. He states that he has had fever of 100-103 degrees, sore throat and body aches all over. He denies cough, shortness of breath, dysuria or frequency.
Jim says that he is healthy, with no chronic health problems. He has never had surgery. He takes no routine meds. He does not smoke. He has no known allergies. He drinks alcohol 3-4 times per week, 3-4 glasses of red wine. He says that he has done some street drugs, smoking and injecting cocaine. Jim states that he has given up the cocaine, has not used any in 4-6 weeks. He admits to recreational use for only a 3 month period earlier this year, with the last episode being 4-6 weeks ago.
Jim is single. He and his girlfriend of 4 years broke up about 6 months ago and he has had unprotected intercourse 3 times since then with different partners.
On his physical, Jim is a well-developed white male in no acute distress. His vital signs are: 99.6-84-18 120/66 72” 180#
His skin, hair and nails are normal. He has some cervical lymphadenopathy and his spleen is one finger breadth below the left costal margin. The remainder of his physical is normal.
What are his medical diagnoses?
What are his differential diagnoses, with rule outs?
What diagnostics are needed?
What prescriptions does he need?
What education does he need?
In: Anatomy and Physiology
A five-year loan is being repaid with level monthly installments, one at the end of each month beginning on 1/1/2018 and ending on 12/31/2022. A 12% nominal annual interest rate compounded monthly was used to determine the amount of each monthly installment.
In which of the following periods does the outstanding loan balance first fall below one-half of the original amount of the loan?
a) January 2018 through March 2020
b) April 2020 through June 2020
c) July 2020 through September 2020
d) October 2020 through December 2020
e) January 2021 through December 2022
In: Finance
exothermic methods to create a closed system using an immersion heat coil...for 5,000 gallon tank....no judgement all methods or ideas welcome
In: Mechanical Engineering