Noventis Corporation prepared the following estimates for the four quarters of the current year:
| First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||
| Sales | $ | 1,150,000 | $ | 1,380,000 | $ | 1,610,000 | $ | 1,840,000 | ||||
| Cost of goods sold | 415,000 | 495,000 | 565,000 | 615,000 | ||||||||
| Administrative costs | 280,000 | 170,000 | 175,000 | 185,000 | ||||||||
| Advertising costs | 0 | 160,000 | 0 | 0 | ||||||||
| Executive bonuses | 0 | 0 | 0 | 64,000 | ||||||||
| Provision for bad debts | 0 | 0 | 0 | 58,000 | ||||||||
| Annual maintenance costs | 66,000 | 0 | 0 | 0 | ||||||||
Additional Information
a. Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.
b. Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year.
In: Accounting
Noventis Corporation prepared the following estimates for the four quarters of the current year:
| First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||
| Sales | $ | 1,150,000 | $ | 1,380,000 | $ | 1,610,000 | $ | 1,840,000 | ||||
| Cost of goods sold | 415,000 | 495,000 | 565,000 | 615,000 | ||||||||
| Administrative costs | 280,000 | 170,000 | 175,000 | 185,000 | ||||||||
| Advertising costs | 0 | 160,000 | 0 | 0 | ||||||||
| Executive bonuses | 0 | 0 | 0 | 64,000 | ||||||||
| Provision for bad debts | 0 | 0 | 0 | 58,000 | ||||||||
| Annual maintenance costs | 66,000 | 0 | 0 | 0 | ||||||||
Additional Information
First-quarter administrative costs include the $130,000 annual insurance premium.
Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year.
No special items affect income during the year.
Noventis estimates an effective income tax rate for the year of 40 percent.
A. Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.
B. Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year.
In: Accounting
Noventis Corporation prepared the following estimates for the four quarters of the current year:
| First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||
| Sales | $ | 1,150,000 | $ | 1,380,000 | $ | 1,610,000 | $ | 1,840,000 | ||||
| Cost of goods sold | 415,000 | 495,000 | 565,000 | 615,000 | ||||||||
| Administrative costs | 280,000 | 170,000 | 175,000 | 185,000 | ||||||||
| Advertising costs | 0 | 160,000 | 0 | 0 | ||||||||
| Executive bonuses | 0 | 0 | 0 | 64,000 | ||||||||
| Provision for bad debts | 0 | 0 | 0 | 58,000 | ||||||||
| Annual maintenance costs | 66,000 | 0 | 0 | 0 | ||||||||
Additional Information
First-quarter administrative costs include the $130,000 annual insurance premium.
Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year.
No special items affect income during the year.
Noventis estimates an effective income tax rate for the year of 40 percent.
a. Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.
b. Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year.
In: Accounting
Comptel International is a manufacturer of the MX7500 cell phone. The following are its sales in units for the first quarter and its anticipated sales in units for the coming quarter. The distributor price is $300 per unit
.Units
September (actual) 90,000
October (actual ) 90,000
November (actual) 100,000
December (actual ) 98,000
January 100,000
February 90,000
March 110,000
April 125,000
May 150,000
June 165,000
July 155,000
August 140,000
Comptel likes to keep 10% of the following month’s sales in units in inventory. In addition, the most expensive part for the cell phone is the touchscreen. Because that part is essential and has stock-out issues, Comptel requires 25% of the following month’s production requirements to be held in ending inventory. Each touchscreen costs $9.00. Inventory of touchscreens as at December 31 of the previous year was 24,750 units.Comptel’s customers have historically paid their account balances as follows: 15% of total sales pay cash, 20% pay in the month of purchase, 16% pay in the month following purchase, 19% pay in the second month after purchase, and 28% pay in the third month after purchase. The 2% balance remains as bad debts. The customers that paid in cash receive a 1% discount.
a) Develop the production budget for the MX7500 for the first quarter (January to March) and the second quarter (April to June).
b) Develop the purchase budget for the touchscreen for the first quarter (January to March) by each month and total quarter and second quarter (April to June) by each month and total quarter.
c) Develop the cash receipts section of the cash budget for the first quarter (January to March) by each month and total quarter and second quarter (January to March) by each month and total quarter.
d) If the accounts receivable balance at December 31 is $42,620,100, what is the accounts receivable balance (not the balance net of the allowance for doubtful accounts) at the end of June?
In: Accounting
Question 23
A company shows the following balances:
| Cost of goods sold | $900,000 |
| Sales | 2,000,000 |
| Sales discounts | 25,000 |
| Sales returns and allowances | 225,000 |
What is the gross profit margin?
| 42.5% |
| 48.6% |
| 49.3% |
| 55.0% |
26 Sales Allowances and Sales Discounts
| both have a normal debit balance and are therefore regarded as expense accounts. |
| are both designed to encourage customers to pay their accounts promptly. |
| are both contra revenue accounts to Sales. |
| both have a normal credit balance. |
27.Which one of the following statements is true?
| When the terms of sale are FOB shipping point, the seller is responsible for any damages to the goods during shipping. |
| When returned merchandise is defective, the seller's sales account is debited. |
| The first-in, first-out (FIFO) inventory cost method results in cost of goods sold valued at the most recent cost. |
| In periods of falling prices, FIFO will result in a higher ending inventory valuation than the average cost formula. |
| None of the above is true. |
Question 32
A company just starting its business made the following four
inventory purchases in June:
| Date | Number of Units | Total Cost |
| Jun 1 | 150 | $480 |
| Jun 10 | 200 | 660 |
| Jun 15 | 200 | 680 |
| Jun 28 | 150 | 525 |
On June 25, the company made its first sale when a local customer
purchased 500 units for $3,500. The company uses a perpetual
inventory system.
The inventory cost formula that results in the highest gross profit
for June is
| average. |
| gross profit is the same under both cost formulas. |
| not determinable. |
| FIFO. |
In: Accounting
Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $2.10 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:
| Year 2 | Year 3 | ||||||
| First | Second | Third | Fourth | First | |||
| Budgeted production, in bottles | 98,000 | 128,000 | 188,000 | 138,000 | 108,000 | ||
Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 78,400 grams of musk oil will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.)
|
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In: Accounting
Pargo Company is preparing its budgeted income statement for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,800,000 units. Quarterly sales are 20%, 24%, 27%, and 29%, respectively. The sales price is expected to be $41 per unit for the first three quarters and $46 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 12% higher than the budgeted sales for the first quarter of 2017. Production. Management desires to maintain the ending finished goods inventories at 19% of the next quarter’s budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $9 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. Assume the production requirements for first quarter of 2018 are 497,000 pounds. Pargo budgets 0.2 hours of direct labor per unit, labor costs at $11 per hour, and manufacturing overhead at $18 per direct labor hour. Its budgeted selling and administrative expenses for 2017 are $6,929,000.
In: Accounting
The Bear Corporation will begin business operations on January 1, 2020. Below is the anticipated SALES BUDGET (in units):
Jan. 30,000
Feb. 60,000
Mar. 70,000
Apr. 70,000
May 80,000
ADDITIONAL INFORMATION
a. Ending finished goods inventory should be equal to 10% of next month's sales projection.
b. Each unit requires 3 pounds of material at a raw material cost of $5 per pound.
c: Labor cost is $10 per unit produced.
d. Ending raw material inventory should be equal to 20% of next month's material requirement.
e. Factory overhead is $18,000 per month of which $8,000 is for depreciation.
f. All costs are paid in the month incurred except for purchases which is paid in the following month.
g. The selling price per unit is $100.
REQUIRED: Using Excel, in good form:
Prepare a SALES BUDGET for the first
quarter (January through March).
Prepare a PRODUCTION BUDGET for the first
quarter (January through March).
Prepare a Raw Materials PURCHASES BUDGET for the first quarter (Jan. through Mar.)
Prepare a CASH DISBURSEMENTS budget for the first quarter (January through March).
In: Accounting
81. The most common cause of airway obstruction is *
a. the tongue falling back into the throat.
b. laughing and talking while eating.
c. putting foreign objects into the mouth.
d. allergic reaction to a substance.
This is a required question
82. The restorative environment provides all of the following except *
a. giving the patient a sense of control.
b. providing opportunities to make decisions.
c. encouraging patients to be part of the community.
d. providing complete care to make ADLs easier.
83. When administering a nonsterile vaginal douche, *
a. insert the nozzle 6 inches.
b. rotate the nozzle up and down.
c. rotate the nozzle from side to side.
d. always use medicated solutions.
84. When performing the Heimlich maneuver, your hands should be placed *
a. on the diaphragm.
b. immediately below the ribcage.
c. slightly above the navel.
d. on the lower abdomen.
85. If vomiting occurs during resuscitation, *
a. call for an advanced provider with special airway equipment.
b. ignore the vomitus and continue ventilation.
c. stop and wait until suction arrives to clear the mouth.
d. turn the patient, clear the mouth, and continue.
86. Once you begin CPR, you should not stop until *
a. an equally qualified rescuer instructs you to.
b. you believe the CPR will not be effective.
c. the patient’s color improves.
d. you are exhausted and unable to continue.
87. Cholecystitis is *
a. inflammation of the colon.
b. stones in the bladder.
c. caused by constipation.
d. inflammation of the gallbladder.
88. Before using an AED on a patient, make sure the patient is *
a. in respiratory distress.
b. unresponsive, not breathing, and pulseless.
c. indicating that he or she is choking.
d. able to provide signed consent.
89. After delivery, the vital signs should be checked *
a. every 5 minutes for 4 hours, then hourly.
b. hourly for 8 hours, then every 8 hours.
c. as ordered until stable, then every 4 hours.
d. every 15 minutes until stable, then every shift.
In: Nursing
1. Which of the following is an economic indicator that economists should use to understand the state of the U.S economy?
A. stock market trends over the past few months
B. cost of housing
C. the inflation rate
2. What is included in the GDP calculation of consumption?
A. imported goods
B. purchase of new manufacturing plant
C. nondurable and durable goods
3. Labor productivity is
A. the value of the production or output per worker.
B. the production or output per hour.
C. the production or output per worker per hour.
In: Economics