Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2017. January February March April May Estimated unit sales 10,700 11,000 9,000 8,700 8,900 Sales price per unit $50.60 $47.90 $47.90 $47.90 $47.90 Direct labor hours per unit 2.1 2.1 1.5 1.5 1.5 Wage per direct labor hour $7.00 $7.00 $7.00 $8.00 $8.00 Lowell has a labor contract that calls for a wage increase to $8.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lowell expects to begin the year with 18,400 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month’s sales, plus 70% of the second following month’s sales. Prepare a production budget for Lowell Company by month and for the first quarter of the year. LOWELL COMPANY Production Budget Jan Feb Mar Total : : Prepare a direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours. (Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.) LOWELL COMPANY Direct Labor Budget Jan Feb Mar Total $ $ $ $ $ $ $
In: Accounting
Sesnie Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Sesnie Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 18% received two months after the sale 7% of the credit sales are never received November sales for last year were $ 80,000, while December sales were $ 110,000. Projected sales for the next three months are as follows: January sales $145,000 February sales $130,000 March sales $195,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.) Sesnie Corporation Cash Collections Budget For the Months of January through March January Cash sales Collections on credit sales: 25% Month of sale 50% Month after 18% Two months after Total cash collections
In: Accounting
Problem 18-10 Calculating Cash Collections
The following is the sales budget for Shleifer, Inc., for the
first quarter of 2017:
| January | February | March | |||||||
| Sales budget | $ | 215,000 | $ | 235,000 | $ | 258,000 | |||
Credit sales are collected as follows:
55 percent in the month of the sale.
30 percent in the month after the sale.
15 percent in the second month after the sale.
The accounts receivable balance at the end of the previous quarter
was $99,000 ($69,000 of which was uncollected December
sales).
a. Calculate the sales for November. (Do
not round intermediate calculations and round your answer to the
nearest whole dollar, e.g., 32.)
November sales
$
b. Calculate the sales for December. (Do
not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
December sales
$
c. Calculate the cash collections from sales for
each month from January through March. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
| Cash collections | |||
| January | $ | ||
| February | $ | ||
| March | $ | ||
In: Finance
LaChutCorporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, LaChut Corporation has experienced the following collection pattern:
|
25% received in the month of the sale |
|
|
50% received in the month after the sale |
|
|
24% received two months after the sale |
|
|
1% of the credit sales are never received |
November sales for last year were $90,000,
while December sales were $125,000.
Projected sales for the next three months are as follows:
|
January sales. . . . . . . . . . . . . . . . . . . . . . . . . . . |
$155,000 |
|
February sales. . . . . . . . . . . . . . . . . . . . . . . . |
$135,000 |
|
March sales. . . . . . . . . . . . . . . . . . . . . . . . . . . |
$180,000 |
Requirement
Prepare a cash collections budget for the first quarter, January-March, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)
|
LaChut Corporation |
||
|
Cash Collections Budget |
||
|
For the Months of January through March |
|
January |
|
|
Cash sales |
|
|
Collections on credit sales: |
|
|
25% Month of sale |
|
|
50% Month after |
|
|
24% Two months after |
|
|
Total cash collections |
In: Accounting
|
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: |
| Q1 | Q2 | Q3 | Q4 | |||||||||
| Sales | $ | 105 | $ | 125 | $ | 145 | $ | 175 | ||||
|
Sales for the first quarter of the following year are projected at $120 million. Accounts receivable at the beginning of the year were $47 million. Wildcat has a 45-day collection period. |
|
Wildcat’s purchases from suppliers in a quarter are equal to 45 percent of the next quarter’s forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 20 percent of sales. Interest and dividends are $11 million per quarter. |
|
Wildcat plans a major capital outlay in the second quarter of $60 million. Finally, the company started the year with a $66 million cash balance and wishes to maintain a $40 million minimum balance. |
| a-1. |
Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter and can invest any excess funds in short-term marketable securities at a rate of 2 percent per quarter. Complete the following short-term financial plan for Wildcat. (Enter your answers in millions. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| a-2. |
What is the net cash cost for the year under this target cash balance? (A negative answer should be indicated by a minus sign. Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b-1. |
Complete the following short-term financial plan assuming that Wildcat maintains a minimum cash balance of $20 million. (Enter your answers in millions. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| b-2. |
What is the net cash cost for the year under this target cash balance? (Enter your answer in millions. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
In: Accounting
|
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: |
| Q1 | Q2 | Q3 | Q4 | |||||||||
| Sales | $ | 170 | $ | 185 | $ | 200 | $ | 225 | ||||
|
Sales for the first quarter of the year after this one are projected at $180 million. Accounts receivable at the beginning of the year were $71 million. Wildcat has a 45-day collection period. |
|
Wildcat’s purchases from suppliers in a quarter are equal to 45 percent of the next quarter’s forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 25 percent of sales. Interest and dividends are $14 million per quarter. |
|
Wildcat plans a major capital outlay in the second quarter of $85 million. Finally, the company started the year with a $54 million cash balance and wishes to maintain a $40 million minimum balance. |
| a-1. |
Assume that Wildcat can borrow any needed funds on a short-term basis at a rate of 3 percent per quarter and can invest any excess funds in short-term marketable securities at a rate of 2 percent per quarter. Complete the following short-term financial plan for Wildcat. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.) |
| a-2. |
What is the net cash cost for the year under this target cash balance? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.) |
| b-1. |
Complete the following short-term financial plan assuming that Wildcat maintains a minimum cash balance of $20 million. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.) |
| b-2. |
What is the net cash cost for the year under this target cash balance? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions, not dollars, rounded to 2 decimal places, e.g., 32.16.) |
In: Finance
Which of the following inventory valuation methods should be used for unique items?
| first-in, first-out |
| last-in, first-out |
| weighted-average |
| specific identification |
Merchandise Inventory and Cost of Goods Sold appear ________.
| on the balance sheet and statement of owner's equity, respectively |
| on the statement of owner's equity and income statement, respectively |
| on the balance sheet and income statement, respectively |
| on the income statement and statement of cash flows, respectively |
In: Accounting
Consider the purchase of a new combine. The specific information is:
Purchase price = $750,000.00, Purchase date = Jan 1, 2020
Useful life =6 years, Salvage value = $100,000.00
Complete each depreciation table.
Note: each highlighted box is worth 1 point – for a total of 10 points possible
Fill in the table using the straight-line method
Year | Remaining value at beginning of year | Depreciation | Remaining value at end of year |
2020 | |||
2021 | |||
2022 | |||
2023 | |||
2024 | |||
2025 |
In: Finance
Bond H, described in the table below, is sold for settlement on 20 April 2020.
|
Annual Coupon |
6% |
|
Coupon Payment Frequency |
Semiannual |
|
Interest Payment Dates |
30 December and 30 June |
|
Maturity Date |
30 December 2025 |
|
Day-Count Convention |
30/360 |
|
Annual Yield-to-Maturity |
7% |
What is the full price (per 100 of par value) that Bond H will settle at on 20 April 2020? Round your answer to three decimal places.
In: Finance
Big Co. owns 60% of the stock of Little Co.
On 1/1/22, Little Co sells land to Big Co for $50,000. The land had cost Little Co. $30,000 several years earlier.
On 3/1/25, Big Co sells the land to a thirds party for $80,000
Little Co reports earnings of $50,000 each year.
What is the unrealized gain on sale in 2022?
What is the income to the NC Interest in 2022 and 2023?
What is the income to the NC Interest in 2025?
In: Accounting