| Wentworth Products has projected the following sales for the coming year: |
| Q1 | Q2 | Q3 | Q4 | |
| Sales | $650 | $740 | $875 | $805 |
| Sales in the year following this one are projected to be 15 percent greater in each quarter. |
| a. |
Assume that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assuming that the company pays immediately, what is the payables period? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| b. |
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16) |
| c. | Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| d. | Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Q1 | Q2 | Q3 | Q4 | ||
| B. | Payment of Account | ||||
| C. | Payment of Account | ||||
| D. | Payment of Account |
In: Accounting
A common size income statement for Creek Enterprises 2018 operations follows. Using the firms 2019 income statement presented in 3-16, develop the 2019 common size income statement and compare it with the 2018 statement. (I don't know how to get the answers for the 2019 common size income statement)
2018 common size income statement:
| Sales Revenue ($35,000,000) | 100% |
| Less: Cost of goods sold | 65.9 |
| Gross Profits | 34.1 |
| Less: Operating expenses | |
| Selling expense | 12.7% |
| General and administrative expenses | 6.3 |
| Lease expense | 0.6 |
| Depreciation expense | 3.6 |
| Total operating expense | 23.2% |
| Operating profits | 10.9% |
| Less: Interest expense | 1.5 |
| Net profits before taxes | 9.4% |
| Less: Taxes (rate=40%) | 3.8 |
| Net profits after taxes | 5.6% |
| Less: Preferred stock dividends | 0.1 |
| Earnings available for common stockholders | 5.5% |
3-16 Income Statement:
| Sales Revenue | 30,000,000 |
| Less: cost of goods sold | 21,000,000 |
| gross profits | 9,000,000 |
| Less: operating expenses | |
| selling expense | 3,000,000 |
| general and administrative expenses | 1,800,000 |
| Lease expense | 200,000 |
| Depreciation expense | 1,000,000 |
| total operating expense | 6,000,000 |
| operating profits | 3,000,000 |
| less:interest expense | 1,000,000 |
| net profits before taxes | 2,000,000 |
| Less: taxes (rate=40%) | 800,000 |
| net profits after taxes | 1,200,000 |
| Less: preferred stock dividends | 100,000 |
| Earnings available for common stockholders | 1,100,000 |
In: Finance
In: Biology
For each of the following questions, explain why you have answered with the policy that you have, and explain why you have chosen that policy over the other two.
In: Economics
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows :
|
Units |
Cost per unit |
||
|
Begin Inventory |
100 |
12 |
|
|
Jan 5 |
Sale |
50 |
|
|
10 |
Purchase |
70 |
16 |
|
15 |
Sale |
25 |
|
|
25 |
Sale |
35 |
Required:
C. Compute gross profit under for a and b.
The selling price for number 3 items is $50 per unit.
In: Accounting







Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation
a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):
21,000 7,500 8,000 31,000 72,ee8 41,000 October July August September November December
The selling price of the beach umbrellas is $11 per unit
b. All sales are on account. Based on past experience, sales are collected In the following pattern:
38% in the month of sale 65% in the month following sale 5% uncollectible
c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June.
d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:
e. Giden costs $ 0.60 per foot One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $ 35,790.
In: Accounting
Consider the following text "Our agreement states that either no
crashes will occur in 2018’s first quarter or the average response
time of requests is under an hour. If the agreement is broken, you
will pay $8000 in damages. As shown in these records, the average
response time is over two hours. You have paid us $8000. I can only
conclude that a crash, or multiple crashes, have occurred."
Represent the propositions and
the conclusion, clearly labeling propositional
atoms (e.g., what is p?). Prove the argument or show that it is
incorrect.
In: Computer Science
On January 1, 2020, Kingbird Inc. issued $350,000 of 6-year, 3% bonds to yield a market interest rate of 4%. Interest is paid every quarter on January 1, April 1, July 1, and October 1. Kingbird has a calendar year end. After recording the December 31, 2021 accrual for quarterly interest, and making the payment on January 1, 2022, all the bonds were redeemed at 101.
Prepare a bond amortization schedule for the first two years (8 interest periods)
In: Accounting
Topic: CONDUCTING MARKETING RESEARCH AND FORECASTING DEMAND Suppose the annual plan called for selling 34,000 widgets in the first quarter at $2 per widget, for total revenue of $68,000. At quarter's end, only 30,000 widgets were sold at $1.80 per widget, for total revenue of $54,000. Based on the Sales-variance analysis, how much of the sales performance is due to the price decline and how much to the volume decline? Note: Sales-variance analysis measures the relative contribution of different factors to a gap in sales performance.
In: Economics
Financial Statements of a Manufacturing Firm
The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes:
| • | Purchased $481,100 of materials. |
| • | Used $413,700 of direct materials in production. |
| • | Incurred $356,000 of direct labor wages. |
| • | Applied factory overhead at a rate of 80% of direct labor cost. |
| • | Transferred $1,012,300 of work in process to finished goods. |
| • | Sold goods with a cost of $962,200. |
| • | Sold goods for $1,722,300. |
| • | Incurred $413,700 of selling expenses. |
| • | Incurred $154,000 of administrative expenses. |
a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method.
| Chi-Lite Inc. | ||
| Income Statement | ||
| For the Month Ended June 30 | ||
| Revenues | $ | |
| Cost of Goods Sold | ||
| Gross Profit | $ | |
| Selling and Administrative Expenses: | ||
| Selling Expenses | $ | |
| Administrative Expenses | ||
| Total Selling and Administrative Expenses | ||
| Income from Operations | $ | |
Feedback
a. Both product and period costs must be reported on the income statement and are necessary to measure income.
b. Determine the inventory balances at the end of the first month of operations.
| Materials inventory, June 30 | $ |
| Work in process inventory, June 30 | $ |
| Finished goods inventory, June 30 | $ |
In: Accounting