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 | $ 90,000 |
| Accounts receivable | 136,000 |
| Inventory | 62,000 |
| Plant and equipment, net of depreciation | 210,000 |
| Total assets | $ 498,000 |
| Liabilities and Stockholders’ Equity | |
| Accounts payable | $ 71,100 |
| Common stock | 327,000 |
| Retained earnings | 99,900 |
| Total liabilities and stockholders’ equity | $ 498,000 |
Beech’s managers have made the following additional assumptions and estimates:
1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, respectively.
2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% 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 20% of the cost of next month’s sales. The cost of goods sold is 60% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% 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 $60,000. Each month $5,000 of this total amount is depreciation expense and the remaining $55,000 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.
2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.
In: Accounting
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 | $ | 96,000 |
| Accounts receivable | 139,000 | |
| Inventory | 70,200 | |
| Plant and equipment, net of depreciation | 228,000 | |
| Total assets | $ | 533,200 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 89,000 |
| Common stock | 333,000 | |
| Retained earnings | 111,200 | |
| Total liabilities and stockholders’ equity | $ | 533,200 |
Exercise 8-13
Beech’s managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $390,000, $410,000, $400,000, and $420,000, respectively.
All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.
Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 60% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.
Monthly selling and administrative expenses are always $54,000. Each month $7,000 of this total amount is depreciation expense and the remaining $47,000 relates to expenses that are paid in the month they are incurred.
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. Also compute total cash collections for the quarter ended September 30.
In: Accounting
Plot the below description
A parcel of land located in North East quarter of Section, Township 28 South, Range 20 East.
The North 325’ of the East 300’ of the Northwest one-quarter of the Northeast one-quarter of the Northeast quarter of Section, Township 28 South, Range 20 East.
In: Civil Engineering
It is the beginning of January. Actual sales for the previous quarter (Q4) and estimated sales for the next five quarters are as follows (in $ million):
| Quarter | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
| Sales | 24 | 25.2 | 26.46 | 27.78 | 29.17 | 30.63 |
You collect 20% of sales in the current quarter and the remainder in the following quarter. You expect to spend 40% of the following quarter's sales on purchases of components from suppliers, and to pay 70% of those purchases in the current quarter and the remainder in the following quarter. Wages and other expenses add up to 30% of each quarter's sales.
You have to pay $4 million in interest and dividends each quarter, and plan to spend $7 million on new machinery in Q3.
Assume that each quarter has 90 days, sales occur evenly throughout the quarter and all other cash flows occur at the end of the quarter.
1. What is your expected net cash flow in Q1 (in $ million)?
2. What is your expected net cash flow in Q2 (in $ million)?
3. What is your expected net cash flow in Q3 (in $ million)?
4. What is your expected net cash flow in Q4 (in $ million)?
In: Finance
In: Finance
We have all heard about what is going on in the news today. Think about something you see as falling in the category of “crime” and an instance of “deviance” in the news. Please be clear and fully explain your response using the appropriate terms for the example.
In: Psychology
NC3A -
3.6 What are the principal ingredients of a public-key cryptosystem?
3.7 List and briefly define three uses of a public-key cryptosystem.
3.8 What is the difference between a private key and a secret key?
3.9 What is a digital signature?
In: Computer Science
Question 1.
The following data is from the accounting records of Padcore Ltd. for the year just ended:
|
Administrative expenses |
64,000 |
|
Administrative salaries |
110,000 |
|
Depreciation, factory |
25,000 |
|
Depreciation, office equipment |
8,000 |
|
Direct labour |
400,000 |
|
Factory equipment maintenance |
15,000 |
|
Factory supervisor's salary |
80,000 |
|
Insurance, factory |
22,000 |
|
Raw materials purchased |
260,000 |
|
Sales |
1,700,000 |
|
Sales salaries and commissions |
120,000 |
|
Selling expenses |
40,000 |
|
Supplies, factory |
9,000 |
|
Utilities, factory |
12,000 |
|
Beginning of |
End of |
|||
|
the Year |
the Year |
|||
|
Raw Materials |
20,000 |
35,000 |
||
|
Work in process |
40,000 |
30,000 |
||
|
Finished goods |
65,000 |
40,000 |
Calculate the cost of goods manufactured, cost of goods sold and net income for the year just ended:
Question 2.
Waldorf Corporation had the following overhead costs for the previous year (Waldorf allocates overhead on the basis of direct labour hours):
|
Labour hours |
Total Overhead |
|||
|
1st Quarter |
7,000 |
$ 75,000 |
||
|
2nd Quarter |
6,000 |
$ 74,000 |
||
|
3rd Quarter |
8,000 |
$ 77,000 |
||
|
4th Quarter |
7,500 |
$ 76,000 |
Assume that total overhead is comprised of Indirect materials (a variable cost), Rent (a fixed cost) and Maintenance (a mixed cost). The breakdown of these three costs at the 6,000 labour hour level is as follows:
|
Indirect materials (V) |
$ 3,600 |
|
|
Rent (F) |
35,000 |
|
|
Maintenance (M) |
35,400 |
|
|
$ 74,000 |
Determine how much of the total overhead at the 8,000 direct labour hour is maintenance. Using the amount just determined and the high low method, estimate a cost formula for maintenance. Determine what the cost formula for total overhead would be and estimate what total overhead costs would be at the 10,000 direct labour hour level.
Question 2A
Question 3.
The income statement for Big Franks Bicycle Emporium for the month just ended is as follows:
|
Sales |
300,000 |
|||
|
Cost of goods sold |
140,000 |
|||
|
Gross margin |
160,000 |
|||
|
Less operating expenses |
||||
|
Selling expenses |
40,000 |
|||
|
Depreciation |
25,000 |
|||
|
Admin expenses |
65,000 |
|||
|
Total operating expenses |
130,000 |
|||
|
Net income |
30,000 |
|||
Additional information:
· On average Frank sells his bikes for $300 each
· The sales department has variable expenses of $12 per bike sold
· Depreciation expense is unaffected by changes in the sales level
· Admin costs are 70% fixed and 30% variable
Prepare an income statement for the month just ended using the contribution margin approach.
Question 4.
Wyatt Enterprises manufactures and sells a single product. The company’s sales and expenses for the month just ended are as follows:
|
Total |
Per Unit |
||
|
Sales |
$ 190,000 |
$ 50 |
|
|
Less variable expenses |
114,000 |
30 |
|
|
Contribution margin |
76,000 |
$ 20 |
|
|
less fixed expenses |
60,000 |
||
|
Net income |
$ 16,000 |
Determine the break-even point in terms of both units and dollars. How many units would need to be sold in a month to achieve a target profit of $25,000? What is Wyatt’s margin of safety in both dollars and as a percentage?
Question 5.
The Happy Cardiologist Ltd. manufactures and sells pacemakers for $3,400 each. Cost information for March was as follows:
|
Variable manufacturing costs per unit |
$ 1,650 |
|
Variable selling costs per unit |
150 |
|
Fixed manufacturing costs |
290,000 |
|
Fixed admin costs |
825,000 |
In March, the company sold 750 pacemakers.
Calculate the margin of safety in both dollars and as a percentage. Compute the company’s degree of operating leverage. If sales increase by 20%, by how much will net income increase?
In: Accounting
Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inventory consisted of 120 units with a unit cost of $375. Transactions for this item during April were as follows:
| April | 9 | Purchased | 40 | units @ | $395 | per unit |
| 14 | Sold | 80 | units @ | $600 | per unit | |
| 23 | Purchased | 20 | units @ | $400 | per unit | |
| 29 | Sold | 40 | units |
Required
a. Calculate the cost of goods sold and the ending inventory
cost for the month of April using the weighted-average cost method.
Do not round until your final answers. Round your final answers to
the nearest dollar.
b. Calculate the cost of goods sold and the ending inventory cost
for the month of April using the first-in, first-out method.
c. Calculate the cost of goods sold and the ending inventory cost
for the month of April using the last-in, first-out method
In: Accounting
Inventory by Three Methods; Cost of Goods Sold
The units of an item available for sale during the year were as follows:
| Jan. 1 | Inventory | 23 units at $1,800 |
| May 15 | Purchase | 30 units at $1,950 |
| Aug. 7 | Purchase | 12 units at $2,040 |
| Nov. 20 | Purchase | 17 units at $2,100 |
There are 19 units of the item in the physical inventory at December 31.
Determine the cost of ending inventory and the cost of goods sold by three methods, presenting your answers in the following form:
Round your final answers to the nearest dollar.
| Cost | ||
| Inventory Method | Ending Inventory | Cost of Goods Sold |
| a. First-in, first-out method | $fill in the blank 1 | $fill in the blank 2 |
| b. Last-in, first-out method | $fill in the blank 3 | $fill in the blank 4 |
| c. Weighted average cost method | $fill in the blank 5 | $fill in the blank 6 |
In: Accounting