Schedule of Cash Receipts
Del Spencer is the owner and founder of Del Spencer's Men's Clothing Store. Del Spencer's has its own house charge accounts and has found from past experience that 10 percent of its sales are for cash. The remaining 90 percent are on credit. An aging schedule for accounts receivable reveals the following pattern:
15 percent of credit sales are paid in the month of sale.
65 percent of credit sales are paid in the first month following
the sale.
14 percent of credit sales are paid in the second month following
the sale.
6 percent of credit sales are never collected.
Credit sales that have not been paid until the second month following the sale are considered overdue and are subject to a 3 percent late charge.
Del Spencer's has developed the following sales forecast:
| May | $60,000 |
| June | 55,000 |
| July | 45,000 |
| August | 56,000 |
| September | 82,000 |
Required:
Prepare a schedule of cash receipts for August and September. Round all amounts to the nearest dollar.
| Del Spencer's Men's Clothing Store | ||
| Schedule of Cash Receipts | ||
| For the Months of August and September | ||
| August | September | |
| Cash sales | $ | $ |
| Received from sales in: | ||
| June: | ||
| July: | ||
| August: | ||
| September: | ||
| Total cash receipts | $ | $ |
In: Accounting
An example of a manager exhibiting transformational leadership is Kathy Savitt, founder and chief executive officer of Lockerz. The company operates an e-commerce website that uses social networking tools to engage teens in shopping online. Teens who visit the site can help themselves and their friends earn points toward discounts on the merchandise by clicking images of the items and viewing various kinds of promotional content. The company grew out of Savitt’s passion for serving this young demographic group. Savitt has a vision not only for the company’s place as an Internet marketer but also for the kind of company it should be for its employees. Her vision is of a business in which the employees respect one another and are fearless about innovation. In hiring, Savitt seeks people who not only are highly intelligent but also listen attentively, demonstrate respect for others, and can laugh at themselves. She models her vision of the workplace by addressing problems and setbacks frankly and with a focus on solutions, saying it takes courage to work through failure. Savitt expresses confidence that by bringing in people who have talent plus a drive to contribute, she can create a company culture that avoids cynical practices she has experienced at other companies in the past. For example, she has seen business meetings that play a kind of stump-the-chump game, in which if one employee tries to answer a question or offer an idea, others pile on with criticism. Savitt believes she can avoid that by communicating the values of courage, innovation, and results.
1) What kind of behaviour does Savitt exhibit in her actions?
Transformational leader or a transactional leader?
What effects does it have on her team?
2) What is the difference between transformational leadership and transactional leadership
3) What are different types of powers? Explain each with an example
In: Operations Management
Chowdhury is the co-founder of Drinkwell, a social enterprise that turns global water crisis to entrepreneurial opportunity. Drinkwell gives clean and safe water to countries like India, Cambodia, Bangladesh, and Laos. Water filtration technology and business tools are introduced to local communities affected by arsenic. At this time, over 200 water sources are using their water filtration units. This has improved health outcomes and created job opportunities for the locals in the process.
1- Discuss about his mission, benefir and the mechansim of his business (200 words)
2- What are the challenger, risk and orstacles he faced ? (150 words)
In: Operations Management
Osama Bin Noor is the co-founder of Youth Opportunities and he is one of good social entrepreneur. Youth Opportunities is an award-winning global platform aimed at empowering youth by connecting local youth to their global counterparts while bringing the opportunity providers closer to the seekers. Noor got awarded as the 2016 Queen’s Young Leaders for his social entrepreneur initiative. He has received the award from Her Majesty, the Queen at the Buckingham Place. Noor got enlisted as the Forbes 30 Under 30 Social Entrepreneur in Asia. As a social entrepreneur, Noor is promoting volunteerism in Bangladesh for the last 8 years with many national and international organizations.
1- Discuss what are the mission, benefit and the mechanism of their business venture (200 words).
2 - What are the challenge, risk or obstacles he faced ? (150 words)
In: Operations Management
1) Masaru Ibuka, founder and chairman of Japan's
Sony Corp, was asked in an interview, "What is the secret of your
success?" He said he had a ritual.
Preceding a business decision, he would drink herbal tea. Before he
drank, he asked himself, "Should I make this deal or not?" If the
tea gave him indigestion, he wouldn't make the deal. "I trust my
gut, and I know how it works," he said.
"My mind is not that smart, but my body is."
"My mind is not that smart, but my body is", which way of
thinking does this quote reflects? Explain your answer. .
Is it always right to do so? If not, what is the other way of
thinking to be followed? .
2) When German car manufacturer Volkswagen (VW) was
discovered in 2015 to have cheated on emissions test, the company’s
reputation was very badly affected. The company’s employees
reported a drop in trust for their company. It was the first time
this happens. VW
Employees’ feelings have changed as VW won
back the respect of its personnel
What is the type of problem Volkswagen was facing? Why? And how
this problem was solved?
made sure that everyone knew what happened and also what would
happen next. The company
also publicly admitted guilt. VW encouraged employees to express
their feelings and concerns.
Volkswagen’s efforts seem to have paid off.
and its image among the public also seems to have recovered.
In: Operations Management
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position):
Cash $ 3,700
Accounts receivable 5,900
Supplies inventory 29,300
Land 168,500
Buildings 116,500
Accumulated depreciation, buildings 37,500
Equipment 58,500
Accumulated depreciation, equipment 18,000
Accounts payable 25,200
Income tax payable 16,600
Interest payable 4,200
Wages payable (due in 2020) 15,700
9% Notes payable ($10,000 due June 30, 2021,
balance due June 30, 2022) 61,500
Common shares 151,500
Retained earnings, Dec. 31, 2019 52,200
Transactions during 2020:
1.The company provided sales services to customers, on credit, for $ 210,300. In addition, the company produced cash sales to customers of $ 62,300.
2.Accounts receivable from customers of $ 15,600 remain to be collected at December 31, 2020.
3.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.
4.Minor parts were purchased with cash for $ 7,400 and debited to the supplies inventory account.
5.Wages payable at the beginning of 2020 were paid early in 2020. In addition, wages were earned by employees and paid during 2020 in the amount of $ 112,000.
6.Income tax payable at the beginning of 2020 was paid early in 2020.
7.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.
8.One year’s interest at 9% was paid on the notes payable at July 1, 2020.
9. During 2020, Don Tallint, the principal shareholder, purchased a new car for his wife
Debbie. The new car cost $ 45,000 and was paid for with cash from personal sources.
10.Property taxes were paid on the land and buildings in the amount of $ 17,000 with cash.
11.Dividends were declared and paid in caah in the amount of $ 7,200.
Information available for year end adjusting entries:
12.•Supplies inventory was counted on December 31, 2020 and it was determined the supplies inventory still on hand at yearend was $ 31,900.
13. •Annual depreciation on the buildings is $ 6,000.
14•Annual deprecation on the equipment is $ 5,500
15•Additional wages of $4,000 were earned but are unpaid and unrecorded at December 31, 2020.
16•Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020..
17•Income taxes of $ 16,500 were unpaid and unrecorded at December 31, 2020.
Required:
1.Record beginning 2020 beginning balances in T accounts. Prepare journal entries for transactions 1 to 11 above as required and record the journal entries in T accounts while
adding any new T accounts that you need as you complete this task.
2.Prepare any necessary adjusting journal entries fpr items 11 to 17 above and record the adjusting journal entries in the T accounts while adding any new T accounts that you need as you complete this task.
3. Prepare a single step income statement for Marmidan Mold Shop Inc. for the year ended December 31, 2020.
4.Prepare a statement of retained earnings for Marmidan Mold Shop Inc. for the year ended December 31, 2020.
5.Prepare a classified statement of financial position for Marmidan Mold Shop Inc. as at December 31, 2020
In: Accounting
A 40 yr old man presents for a routine examination. He appears well but complains of some mild dysuria and increasing frequency of urination. He has never had a UTI and thought that the increasing urination was a normal part of aging. He has not seen any blood in his urine but indicates his urine is darker than usual. He smokes a pack a day and was a recent immigrant from Egypt who has lived in the U.S. for the past 3 years.
1. What are some parasitic organisms that could be the cause of this disease?
2. What are some tests that would be ordered to look for the parasites above? Are there any specialized tests that would be most helpful to the patient?
3. How would the most likely parasitic infection be acquired?
4. Diagram the general life cycle of the most likely infection.
In: Biology
Cool Cargo Corporation is considering going public. Managers want to estimate common stock value. Cool Cargo’s CFO has collected data for valuation using the free cash flow method as follows…
The firm’s weighted average cost of capital is 11%, and it has $1.5 million of debt at market value, and $500,000 of preferred stock also at market value. The estimated free cash flows over the next 5 years, 2017-2021, are given as follows:
Year Estimated Free Cash Flow
2017 $200,000
2018 $250,000
2019 $310,000
2020 $350,000
2021 $390,000
After 2020, to infinity, the firm expects free cash flow to grow at a rate of 3% per year.
Estimate the value of Cool Cargo’s entire company using the free cash flow valuation model.
Use your finding in part (a), along with the data provided above, to find Cool Cargo’s common stock value.
If the firm has 200,000 shares of common stock outstanding, what is its estimated value per common share?
Cool Cargo Corporation is too small to immediately become part of the S&P 500. How are stocks weighted in the S&P 500, and how is this different from the DJIA and NASDAQ 100? Which of the three indices is most representative of the U.S. stock market?
The above Free Cash Flow estimates were based on the 2017 tax code (i.e., before the recent income tax cuts were passed). Describe how you think the new corporate and personal income tax cuts passed by the Trump Administration and Congress effective 2018 will help or hurt Cool Cargo Corporation.
In: Finance
The comparative balance sheets for 2021 and 2020 and the
statement of income for 2021 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
| DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 141.0 | $ | 38.0 | ||||
| Accounts receivable | 66.0 | 68.0 | ||||||
| Less: Allowance for uncollectible accounts | (3.0 | ) | (2.0 | ) | ||||
| Dividends receivable | 21.0 | 20.0 | ||||||
| Inventory | 73.0 | 68.0 | ||||||
| Long-term investment | 33.0 | 28.0 | ||||||
| Land | 88.0 | 40.0 | ||||||
| Buildings and equipment | 153.0 | 268.0 | ||||||
| Less: Accumulated depreciation | (5.0 | ) | (140.0 | ) | ||||
| $ | 567.0 | $ | 388.0 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 31.0 | $ | 38.0 | ||||
| Salaries payable | 20.0 | 23.0 | ||||||
| Interest payable | 22.0 | 20.0 | ||||||
| Income tax payable | 25.0 | 26.0 | ||||||
| Notes payable | 48.0 | 0 | ||||||
| Bonds payable | 89.0 | 46.0 | ||||||
| Less: Discount on bonds | (2.0 | ) | (3.0 | ) | ||||
| Shareholders' Equity | ||||||||
| Common stock | 210.0 | 200.0 | ||||||
| Paid-in capital—excess of par | 24.0 | 20.0 | ||||||
| Retained earnings | 108.0 | 18.0 | ||||||
| Less: Treasury stock | (8.0 | ) | 0 | |||||
| $ | 567.0 | $ | 388.0 | |||||
| DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) |
||||||
| Revenues | ||||||
| Sales revenue | $ | 470.0 | ||||
| Dividend revenue | 21.0 | $ | 491.0 | |||
| Expenses | ||||||
| Cost of goods sold | 156.0 | |||||
| Salaries expense | 61.0 | |||||
| Depreciation expense | 3.0 | |||||
| Bad debt expense | 1.0 | |||||
| Interest expense | 44.0 | |||||
| Loss on sale of building | 39.0 | |||||
| Income tax expense | 52.0 | 356.0 | ||||
| Net income | $ | 135.0 | ||||
Additional information from the accounting records:
Required:
Prepare the statement of cash flows for Dux Company using the
indirect method. (Amounts to be deducted should be
indicated with a minus sign. Enter your answers in thousands (i.e.,
10,000 should be entered as 10).)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
CHAPTER 18
ALLIED TESTING COMPANY MANUFACTURES AND SELLS THERMOMETERS THAT DETECT BODY TEMPERATURE. IT IS EXPECTING AN INCREASE IN SALES DUE TO THE CORONAVIRUS PANDEMIC. ALLIED HAS APPLIED FOR A LOAN TO FUND EXPANSION AND THE BANK IS REQUIRING FINANCIAL INFORMATION.
2020 ACTIVITY
NET REVENUE FOR THE YEAR $2,700,000
SELLING EXPENSES $ 200,000
ADMINISTRATIVE EXPENSES $ 110,000
BEGINNING FINISHED GOODS INVENTORY $ 40,000
ENDING FINISHED GOODS INVENTORY $ 60,000
BEGINNING WORK IN PROCESS INVENTORY $ 20,000
ENDING WORK IN PROCESS INVENTORY $ 100,000
BEGINNING DIRECT MATERIALS $ 250,000
DIRECT MATERIALS PURCHASED DURING MONTH $ 740,000
ENDING DIRECT MATERIALS $ 80,000
DIRECT LABOR FOR THE MONTH $ 220,000
PLANT UTILITIES FOR THE MONTH $ 27,000
PLANT INSURANCE FOR THE MONTH $ 19,000
PLANT MAINTENANCE FOR THE MONTH $ 30,000
PLANT DEPRECIATION FOR THE MONTH $ 24,000
REQUIRED:
CHAPTER 18
ALLIED TESTING COMPANY MANUFACTURES AND SELLS THERMOMETERS THAT DETECT BODY TEMPERATURE. IT IS EXPECTING AN INCREASE IN SALES DUE TO THE CORONAVIRUS PANDEMIC. ALLIED HAS APPLIED FOR A LOAN TO FUND EXPANSION AND THE BANK IS REQUIRING FINANCIAL INFORMATION.
2020 ACTIVITY
NET REVENUE FOR THE YEAR $2,700,000
SELLING EXPENSES $ 200,000
ADMINISTRATIVE EXPENSES $ 110,000
BEGINNING FINISHED GOODS INVENTORY $ 40,000
ENDING FINISHED GOODS INVENTORY $ 60,000
BEGINNING WORK IN PROCESS INVENTORY $ 20,000
ENDING WORK IN PROCESS INVENTORY $ 100,000
BEGINNING DIRECT MATERIALS $ 250,000
DIRECT MATERIALS PURCHASED DURING MONTH $ 740,000
ENDING DIRECT MATERIALS $ 80,000
DIRECT LABOR FOR THE MONTH $ 220,000
PLANT UTILITIES FOR THE MONTH $ 27,000
PLANT INSURANCE FOR THE MONTH $ 19,000
PLANT MAINTENANCE FOR THE MONTH $ 30,000
PLANT DEPRECIATION FOR THE MONTH $ 24,000
REQUIRED:
In: Accounting