[The following information applies to the questions displayed below.]

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $220,000, $240,000, $230,000, and $250,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Exercise 8-12

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $350,000, $370,000, $360,000, and $380,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 30% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $46,000. Each month $7,000 of this total amount is depreciation expense and the remaining $39,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.

3. Prepare an income statement that computes net operating income for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Exercise 8-12

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $250,000, $270,000, $260,000, and $280,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 30% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $46,000. Each month $5,000 of this total amount is depreciation expense and the remaining $41,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 80,000 Accounts receivable 135,000 Inventory 41,250 Plant and equipment, net of depreciation 211,000 Total assets $ 467,250 Liabilities and Stockholders’ Equity Accounts payable $ 72,000 Common stock 345,000 Retained earnings 50,250 Total liabilities and stockholders’ equity $ 467,250 Beech’s managers have made the following additional assumptions and estimates: 1.Estimated sales for July, August, September, and October will be $220,000, $240,000, $230,000, and $250,000, respectively. 2.All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 3.Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. 4.Monthly selling and administrative expenses are always $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 relates to expenses that are paid in the month they are incurred. 5.The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. Required: 1. Prepare a schedule of expected cash collections for July, August, and September. 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. 2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Loading...

As you know the corona vires has cause a massive decline (shift to the left) in the aggregate demand curve. Remember that the GDP is equal to consumption (C), gross investment (I), government expenditures (G) and net exports (Imports minus Exports or E_x) and this spending GDP is equal to the Price times the Quantity of all final goods and services (P * Q = Y) and also equal to the money supply times the velocity of circulation (M * V = Y). So the full formula is listed below:

             aggregate demand                                             money and spending

                C   +   I   +   G   +   E_x                   =                    P * Q = M * V

According to the text per chapter 15 the main argument between the Monetarist and the Keynesians is the velocity of money (V). Is it stable or unstable. Three questions for you to answer:

1. The Federal Reserve Bank has been increasing (decreasing) the money supply. Why?

2. If as the Monetarist believe, V is stable, what would happen to prices (P)?

3. Since the consumer price index (CPI) has fallen over the last two months, what must have happened to aggregate demand or Q?

Suppose that Consumption = $190 billion, Taxes = $60 b, Net Investment = $30 b, Depreciation = $50 b, Government Spending = $100 b, interest rate is 2.5%, Exports = $40 b, and Imports = $70 b. What does this country's Gross Domestic Product equal?

Select one:

a. $370 billion

b. $340 billion

c. $310 billion

e. $280 billion

Which of these is a reason why Real GDP per Capita is NOT a good measure of social welfare? Check all that apply.

Select one or more:

a. Real GDP per Capita does not account for longevity (how long people live)

b. Real GDP per Capita does not account for inflation

c. Real GDP per capita does not account for services (it only counts physical goods)

Suppose that Consumption = $200 billion, Gross Investment = $120 b, Depreciation = $80 b, Government Spending = $110 b, Exports = $80 b and Imports = $50 b. What does net investment equal as a percent of Gross Domestic Product?

Select one:

a. 8.7%

b. 9.8%

c. 11.2%

d. 14.4%

question 20

Three identical units of merchandise were purchased during July, as follows:

Assume one unit sells on July 28 for $34.

Determine the gross profit, cost of goods sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods.

Three identical units of merchandise were purchased during July, as follows:

Assume one unit sells on July 28 for $40.

Determine the gross profit, cost of goods sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods.

1. The following data has been extracted from the following budgets and standard costs of Storm Limited, a company which manufactures and sells two products J & K.

Storm cost and revenue

                                                                      Per unit

Fixed production overhead costs are budgeted at £2,000,000 per quarter. Normal production is planned to be 500,000 machine hours per quarter.

Budgeted selling and distribution costs are as follows:

Variable                  £1.50 per unit sold

Fixed                      £800,000 per quarter

Budgeted administration costs are £1,200,000 per quarter. The company allocates production overheads to products based on machine hours.

The following pattern of sales and production is expected during the first six months of the year:

Production is higher than sales in order to meet seasonal demand in July – September.

          There is no stock on January 1^st

You should assume that actual fixed costs for the two quarters were the same as budgeted fixed costs.

Required:

1. Prepare profit statements for each of the two quarters, in a columnar format, using:

1. marginal costing
2. absorption costing

2. Reconcile the profits reported for each quarter in your answer to (a) above.

(c)      State and explain briefly why companies might decide to use marginal costing as the basis of management reporting.

2.       Compare and contrast the different worldviews on which ABC and Throughput Accounting are based.

As a student, consider the determinants of demand (e.g. tastes and preferences, income, price of related goods, future expectations on price). What two determinants would most impact your decision to continue to “purchase” education and why?