Problem 07-8AA Merchandising: Preparation of a complete master budget LO P4

Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019.

To prepare a master budget for January, February, and March of 2020, management gathers the following information.

1. The company’s single product is purchased for $20 per unit and resold for $57 per unit. The expected inventory level of 5,000 units on December 31, 2019, is more than management’s desired level, which is 20% of the next month’s expected sales (in units). Expected sales are January, 6,500 units; February, 9,250 units; March, 11,500 units; and April, 10,500 units.
2. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 57% is collected in the first month after the month of sale and 43% in the second month after the month of sale. For the December 31, 2019, accounts receivable balance, $125,000 is collected in January 2020 and the remaining $395,000 is collected in February 2020.
3. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2019, accounts payable balance, $65,000 is paid in January 2020 and the remaining $295,000 is paid in February 2020.
4. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year.
5. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash.
6. Equipment reported in the December 31, 2019, balance sheet was purchased in January 2019. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $38,400; February, $91,200; and March, $24,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased.
7. The company plans to buy land at the end of March at a cost of $180,000, which will be paid with cash on the last day of the month.
8. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $42,000 at the end of each month.
9. The income tax rate for the company is 43%. Income taxes on the first quarter’s income will not be paid until April 15.

Required:
Prepare a master budget for each of the first three months of 2020; include the following component budgets.

6. Monthly cash budgets.
7. Budgeted income statement for the entire first quarter (not for each month).
8. Budgeted balance sheet as of March 31, 2020.

Low concentrations of EDTA near the detection limit gave the following dimensionless instrument readings: 175, 104, 164, 193, 131, 189, 155, 133, 151, and 176. Ten blanks had a mean reading of 50.0. The slope of the calibration curve is 1.75 x 10^-9 M^-1.

1. Estimate the signal detection limit for EDTA. (with correct sig figs)

2. What is the concentration detection limit? (with correct sig figs)

3. What is the lower limit of quantification? (with correct sig figs)

Thirty small communities in Connecticut (population near 10,000 each) gave an average of x-bar = 138.5 reported cases of larceny per year. Assume that σ is known to be 44.5 cases per year.

(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(b) Find a 95% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(c) Find a 99% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(d) Compare the margins of error for parts (a) through (c). As the confidence levels increase, do the margins of error increase?

As the confidence level increases, the margin of error decreases.

As the confidence level increases, the margin of error remains the same.     

As the confidence level increases, the margin of error increases.

(e) Compare the lengths of the confidence intervals for parts (a) through (c). As the confidence levels increase, do the confidence intervals increase in length?

As the confidence level increases, the confidence interval remains the same length.

As the confidence level increases, the confidence interval increases in length.     

As the confidence level increases, the confidence interval decreases in length.

Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. They would like to test whether the mean family income is different at the two parcels. The mean family income for a sample 17 families at the first development is $159,000 with a sample standard deviation of $42,000. A sample of 24 families at the second development had a mean family income of $177,000 with a sample standard deviation of $30,000. The population standard deviations are unknown but assumed to be equal.

At temperatures near absolute zero, Bc approaches 0.142 T for vanadium, a type-I superconductor. The normal phase of vanadium has a magnetic susceptibility close to zero. Consider a long, thin vanadium cylinder with its axis parallel to an external magnetic field B? 0 in the +x-direction. At points far from the ends of the cylinder, by symmetry, all the magnetic vectors are parallel to the x-axis.

Part B

What is the direction of the resultant magnetic field B?  inside the cylinder for this case?

What is the direction of the resultant magnetic field  inside the cylinder for this case?

Part E

What is the magnitude of the magnetization M?  inside the cylinder for this case?

Part G

What is the magnitude of the magnetization M?  outside (far from the ends) the cylinder for this case?

Thirty-two small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 43.5 cases per year.

(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(b) Find a 95% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(c) Find a 99% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(d) Compare the margins of error for parts (a) through (c). As the confidence levels increase, do the margins of error increase?

As the confidence level increases, the margin of error decreases.

As the confidence level increases, the margin of error increases.    

As the confidence level increases, the margin of error remains the same.

(e) Compare the lengths of the confidence intervals for parts (a) through (c). As the confidence levels increase, do the confidence intervals increase in length?

As the confidence level increases, the confidence interval decreases in length

.As the confidence level increases, the confidence interval increases in length.    

As the confidence level increases, the confidence interval remains the same length.

ASAP due tonight!

In Assignment 2 you considered the following setting: Near-sightedness (myopia) afflicts roughly 10% of children at age 5.

Assume that the school has a total of 600 students.

Part A. In this school, what is the expected number of students to have myopia? What is the variance?

Part B. If we assume that the students in the school form an independent and random sample, then approximate the probability that at most 60 of the students in the 600 student school have myopia.

When calculating the approximate probability, please be sure to justify the approximation (i.e. check any conditions) and show all your work in the calculation.

Part C. If we assume that the students in the school form an independent and random sample, then what is the approximate probability that at least 55 and less than 65 of the students in the 600 student school have myopia? Again, show all necessary work in this calculation.

Thirty-two small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 41.5 cases per year.

(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(b) Find a 95% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

(c) Find a 99% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)

Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $1.50 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by 50 percent a year for 3 years. Dividends are expected to grow at a rate of 20 percent for another 2 years. After the sixth year, dividend growth is expected to settle down to a more moderate long-term growth rate of 8 percent. If the firm’s investors expect to earn a return of 20 percent on this stock, what must be its price?