Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $24.
• The purchasing manager buys the T-shirts for $10 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 34 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $98,000 per quarter plus 14 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for each quarter.



2. Determine budgeted cost of merchandise purchased for each quarter.



3. Determine budgeted cost of good sold for each quarter.



4. Determine selling and administrative expenses for each quarter.



5. Complete the budgeted income statement for each quarter.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $16.
• The purchasing manager buys the T-shirts for $6 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 26 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $82,000 per quarter plus 12 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for each quarter.



2. Determine budgeted cost of merchandise purchased for each quarter.



3. Determine budgeted cost of good sold for each quarter.



4. Determine selling and administrative expenses for each quarter.



5. Complete the budgeted income statement for each quarter.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $11.
• The purchasing manager buys the T-shirts for $4 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 21 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $72,000 per quarter plus 10 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for each quarter.



2. Determine budgeted cost of merchandise purchased for each quarter.



3. Determine budgeted cost of good sold for each quarter.



4. Determine selling and administrative expenses for each quarter.



5. Complete the budgeted income statement for each quarter.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit Sales 37,000 57,000 28,500 57,000 Each T-shirt is expected to sell for $12. The purchasing manager buys the T-shirts for $5 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 22 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $74,000 per quarter plus 20 percent of total sales revenue. Required:

1. Determine budgeted sales revenue for each quarter.

2. Determine budgeted cost of merchandise purchased for each quarter.

3. Determine budgeted cost of good sold for each quarter.

4. Determine selling and administrative expenses for each quarter.

5. Complete the budgeted income statement for each quarter.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

Each T-shirt is expected to sell for $11.

The purchasing manager buys the T-shirts for $4 each.

The company needs to have enough T-shirts on hand at the end of each quarter to fill 21 percent of the next quarter’s sales demand.

Selling and administrative expenses are budgeted at $72,000 per quarter plus 10 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for each quarter.



2. Determine budgeted cost of merchandise purchased for each quarter.



3. Determine budgeted cost of good sold for each quarter.

4. Determine selling and administrative expenses for each quarter.



5. Complete the budgeted income statement for each quarter.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $17.
• The purchasing manager buys the T-shirts for $7 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 27 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $84,000 per quarter plus 14 percent of total sales revenue.

Required:
1.Determine budgeted sales revenue for each quarter.



2. Determine budgeted cost of merchandise purchased for each quarter.



3. Determine budgeted cost of good sold for each quarter.



4. Determine selling and administrative expenses for each quarter.



5. Complete the budgeted income statement for each quarter.

On January 2, 2018, Athol Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $1,500. The company provided the following information:

1. Invoice price of the machine, $73,150.
2. Freight paid by the vendor per sales agreement, $770.
3. Installation costs, $1,670 cash.
4. Cost of cleaning up the supplies, boxes, and other garbage that remained after the installation of the machine, $80 cash.
5. Payment of the machine's price was made as follows:

January 2:

• Issued 1,080 common shares of Athol Company at $5 per share.
• Signed a $42,000 note payable due April 16, 2018, plus 12 percent interest.
• Balance of the invoice price to be paid in cash. The invoice allows for a 2 percent cash discount if the cash payment is made by January 11.

January 15: Paid the balance of the invoice price in cash.

April 16: Paid the note payable and interest in cash.

6. On June 30, 2020, the company completed the replacement of a major part of the machine that cost $12,350. This expenditure is expected to reduce the machine’s operating costs, increase its estimated useful life by two years, and decrease its estimated residual value to $1,000.
7. Assume that on October 1, 2025, the company decided to replace the machine with a newer, more efficient model. It then sold the machine to Sako Ltd. on that date for $25,400 cash.

1. Compute the acquisition cost of the machine.

2. Prepare the journal entries to record the purchase of the machine and subsequent cash payments on January 15 and April 16, 2018. (Do not round intermediate calculations and round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

January 2, 2018: Record purchase of machine by issuing shares, signing a note and the balance on account.

January 2, 2018: Record payment of machine installation costs.

January 15, 2018: Record payment made after discount period.

April 16, 2018: Record payment of note and interest

3. Compute the depreciation expense for each of the years 2018, 2019, and 2020, assuming the company’s fiscal year ends on December 31. Use the straight-line depreciation method. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

4. Prepare the journal entry to record the sale of the machine on October 1, 2025. (Hint: First determine the balance of the accumulated depreciation account on that date.) (Do not round intermediate calculations and round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Both Keynes with his view of Fiscal Policy and Supply-Siders are in favor of tax cuts, but for different reasons. What is the reason that each would want a tax cut? Which makes the most sense to you? Would you consider the latest Tax Cut that Congress passed to be a Keynesian or Supply-Side Policy?  In other words, will it stimulate spending (Keynesian Theory) or worker productivity and output (Supply-Side). If you were to choose one of the policy options to implement (Fiscal Policy, Monetary Policy, or Supply-Side Policy) which would it be? Why?

A financial advisor has up to 50,000$ to invest, with the stipulation that at least $15000 is used to purchase Treasury bonds and at most $25,000 in corporate bonds. a) Construct a set of inequalities that describes the relationship between buying corporate vs Treasury bonds, where the total amount invested must be less than or equal to $30,000. ( Let C be the amount of money invested in corporate bonds, and T the amount invested in Treasury bonds) b) construct a feasible region of investment; that is, shade in the area on a graph that satisfies the spending constraints on both corporate and treasury bonds.

1a.

A change in aggregate supply would be caused by a change in:

Multiple Choice

• the quantity output supplied.

• input prices.

• aggregate demand.

• the price level.

1b.

Which would most likely shift the aggregate supply curve? A change in:

Multiple Choice

• consumer expectations.

• excess capacity of capital.

• government spending.

• prices of imported resources.

1c.

During a period of demand pull inflation Congress passes legislation to raise taxes, this would be an example of a(n):

• political business cycle.

• contractionary fiscal policy.

• expansionary fiscal policy.

• nondiscretionary fiscal policy.