JC Floor Design makes ceramic tiles
December sales were:
|
500,000 units |
Selling price $2 per unit |
1,000,000 total sales |
The Marketing Department, projects sales to:
increase by 5% in January
February sales will be 15,000 units less than January
March sales will be 3% higher than February sales
April sales will be the 5,300 units less than march
The price is not expected to increase
JC inventory policy is to maintain an ending inventory equals to 30% of next month sales. Actual inventory is 168,000 units
Clay the material to make the tiles cost $.50 per pound and each tile requires .6 pound. Actual clay inventory is 60,000 pounds and the inventory policy is to maintain an inventory equal to 25% of next month production requirement.
April production is expected to be 525,000 units. The cost of direct materials purchased in December was $150,000
Each tile requires .10 hours and the labor hourly rate is $8.00 per hour
Variable overhead rate is 20% of labor and fixed overhead is 25,000 monthly
Selling and administrative expenses are expected to be
|
Administrative salaries |
$15,000 per month |
|
Sales salaries |
$12,000 per month |
|
Sales commissions |
10% of sales |
70% of sales are cash sales and the remaining are collected in the next month
Material are paid 60% cash and the remaining the next month
The company has the following obligations:
100,000 in dividends will be paid in February
A new machine will be acquired in January with a cost of 250,000
A short-term loan with an outstanding balance of $150,000 is used to manage the cash position. Interest on the short-term loan are 1% monthly
Taxes of last quarter were $240,000 and will be paid in March. The company tax rate is 35%. and taxes are paid in the next quarter.
REQUIRED
Compute the total sales for the quarter, units sales expected in February, units to produce in March, Required Units of available production in January, March Finished goods ending inventory, materials to be purchased in March, Direct Materials Cost for January, Labor needed in hours for March, Direct Labor Cost for January, and Total Overhead for the quarter.
In: Accounting
Hamby 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:
| Hamby Corporation | ||
| Balance Sheet | ||
| June 30 | ||
| Assets | ||
| Cash | $ | 76,000 |
| Accounts receivable | 137,000 | |
| Inventory | 86,100 | |
| Plant and equipment, net of depreciation | 230,000 | |
| Total assets | $ | 529,100 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 91,000 |
| Common stock | 312,000 | |
| Retained earnings | 126,100 | |
| Total liabilities and stockholders’ equity | $ | 529,100 |
The company managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, respectively.
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.
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.
Monthly selling and administrative expenses are always $58,000. Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 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.
questions:
a)How much is the Company's expected cash collections in the month of August?
b)How much is the Company's expected cash disbursement for merchandise in the month of July?
c)How much is the Company's expected merchandise purchases in the month of September?
d)How much is the Company's expected Net Operating Income for the quarter ending on September 30?
e) How much is the Company's expected Accounts Receivable balance on September 30?
pls help!!!
In: Accounting
Hamby 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:
| Hamby Corporation | ||
| Balance Sheet | ||
| June 30 | ||
| Assets | ||
| Cash | $ | 76,000 |
| Accounts receivable | 137,000 | |
| Inventory | 86,100 | |
| Plant and equipment, net of depreciation | 230,000 | |
| Total assets | $ | 529,100 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 91,000 |
| Common stock | 312,000 | |
| Retained earnings | 126,100 | |
| Total liabilities and stockholders’ equity | $ | 529,100 |
The company managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, respectively.
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.
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.
Monthly selling and administrative expenses are always $58,000. Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 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.
a - How much is the Company's expected cash collections in the month of August?
b - How much is the Company's expected cash disbursement for merchandise in the month of July?
c - How much is the Company's expected merchandise purchases in the month of September?
d - How much is the Company's expected Net Operating Income for the quarter ending on September 30?
e - How much is the Company's expected Accounts Receivable balance on September 30?
In: Accounting
Case Analysis: Xample Manufacturing Annual Draft
Operating Budget
[WLO: 2] [CLO: 6]
Prior to beginning work on this assignment, read A
Budget Model for a Small Manufacturing Firm (1995).
Review the Xample Manufacturing Case below. Using the
information and the financial data derived in the Xample Case, and
after reading Fleming’s article, create an annual budget in draft
form divided into four periods (Quarter 1, Quarter 2, Quarter 3,
and Quarter 4) using the provided budget template.
Xample Manufacturing Case:
Consider the following case scenario: Imagine you are
a manager of a small plastic parts manufacturing contracting
business making parts under contract to electronic consumer goods
industry and defense industry companies, and you are in charge of
developing a projected annual operating budget.
Your budgetary figures are as follows: For fiscal year
2019, your firm received a $3 million contract from Sony to provide
small parts for its current Ultra HD Blu Ray Player, as well as
various contracts totaling $1.75 million from other business.
Xample also has an $180,000 annual contract from Boeing, and a
contract for small plastic parts contract from Ratheon totaling
$1.6 million annually.
Your chief financial officer (CFO) has provided you
with the following annual expenses:
Xample Manufacturing Expenses
Annual
Salaries
$1.63 million
Annual
Benefits
$ 245,000
Annual
Rent
$ 760,000
Annual
Insurance
$ 45,000
Annual
Depreciation
$ 780,000
Annual
Overhead
$ 180,000
Annual
Supplies
$ 96,000
Annual Raw
Materials
$ 2.6 million
Using the Xample Manufacturing Operating Budget
Template,
Complete a 12-month operating budget in which you
include the projected net profit (or loss). Turn in with the
summary,
After completing the budget template, please write a
two- to three-page summary including the following:
Explain the process for creating an operating budget
and its importance.
Describe how revenues and expenses are grouped for
planning and control in the financial statements.
The Case Analysis: Xample Manufacturing Annual Draft
Operating Budget paper
In: Accounting
Hamby 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:
| Hamby Corporation | ||
| Balance Sheet | ||
| June 30 | ||
| Assets | ||
| Cash | $ | 85,000 |
| Accounts receivable | 141,000 | |
| Inventory | 83,250 | |
| Plant and equipment, net of depreciation | 226,000 | |
| Total assets | $ | 535,250 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 87,000 |
| Common stock | 350,000 | |
| Retained earnings | 98,250 | |
| Total liabilities and stockholders’ equity | $ | 535,250 |
The company managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $370,000, $390,000, $380,000, and $400,000, respectively.
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.
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.
Monthly selling and administrative expenses are always $50,000. Each month $7,000 of this total amount is depreciation expense and the remaining $43,000 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.
A.How much is the Company's expected cash collections in the month of August?
B. How much is the Company's expected cash disbursement for merchandise in the month of July?
C.How much is the Company's expected merchandise purchases in the month of September?
D. How much is the Company's expected Net Operating Income for the quarter ending on September 30?
E.How much is the Company's expected Accounts Receivable balance on September 30?
In: Accounting
Hughes Co. is growing quickly. Dividends are expected to grow at a 15.8 % rate for the next three years, with the growth rate falling off to a constant 3.1 % thereafter.
If the required return is 8.4 % and the company just paid a $1.69 dividend, what is the current share price? (Round answer to 2 decimal places. Do not round intermediate calculations).
In: Finance
You are on the council of economic advisors team for the president. The country is experiencing recession. The president is asking your team for advice.
Explain in details what kind of monetary policy would the Federal Reserve probably follow if the country was in a severe recession with high unemployment and falling prices. Why?
Describe the details of each tool they will use and impact on the economy as a whole.
In: Economics
Assume that you are the president of your company and paid a year-end bonus according to the amount of net income earned during the year. When prices are rising, would you choose a FIFO or weighted average cost flow assumption? Explain, using an example to support your answer. Would your choice be the same if prices were falling?
In: Accounting
|
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. |
|
If the required return is 12 percent and the company just paid a $1.50 dividend. what is the current share price? |
Multiple Choice
$48.12
$50.08
$44.43
$47.06
$49.10
In: Finance
|
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 27 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. |
|
If the required return is 14 percent and the company just paid a $2.20 dividend. what is the current share price? |
Multiple Choice
$54.72
$51.68
$49.01
$53.62
$55.81
In: Finance