Sosa Company has provided the following budget information for the first quarter of 2016 Total sales $297,500 Budgeted purchases of direct materials 39,450 Budgeted direct labor cost 38,880 Budgeted manufacturing overhead costs: Variable manufacturing overhead 3,645 Depreciation 600 Insurance and property taxes 9,120 Budgeted selling and administrative expenses: Salaries expense 5,000 Rent expense 3,000 Insurance expense 1,200 Depreciation expense 100 Supplies expense 2,975 Additional data related to the first quarter of 2016 for Sosa Company: a. Capital expenditures include $36,000 for new manufacturing equipment to be purchased and paid in the first quarter. b. Cash receipts are 60% of sales in the quarter of the sale and 40% in the quarter following the sale. c. Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter. d. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. e. Income tax expense for the first quarter is projected at $42,000 and is paid in the quarter incurred. f. Sosa Company expects to have adequate cash funds and does not anticipate borrowing in the first quarter. g.The December 31,2015,balance in Cash is $14,000, in Accounts Receivable is $23,200, and in Accounts Payable is $10,500. 1.Prepare Sosa Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2016. 2.Prepare Sosa Company's cash budget for the first quarter of 2016.

a document that gives a person only the power to transfer property to a revocable trust previously created by the grantor of the power even if the grantor is incapacitated is known as a:

A. broad durable power of attorney

B. directive to physicians

C. health care power of attorney

D. limited durable power of attorney

Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University. Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (29,000 units) $ 1,160,000 Variable expenses: Variable cost of goods sold $ 443,700 Variable selling and administrative 201,550 645,250 Contribution margin 514,750 Fixed expenses: Fixed manufacturing overhead 281,600 Fixed selling and administrative 246,350 527,950 Net operating loss $ ( 13,200) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter. At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow: Units produced 32,000 Units sold 29,000 Variable costs per unit: Direct materials $ 7.50 Direct labor $ 6.00 Variable manufacturing overhead $ 1.80 Variable selling and administrative $ 6.95 Required: 1. Complete the following: a. Compute the unit product cost under absorption costing. b. What is the company’s absorption costing net operating income (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 32,000 units but sold 35,000 units. (Assume no change in total fixed costs.) a. What is the company’s variable costing net operating income (loss) for the second quarter? b. What is the company’s absorption costing net operating income (loss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter. Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (29,000 units) $ 1,160,000

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The major advantage of extending credit sales is that it will increase sales revenue. This is because customers who can't produce cash today are still able to buy the good or service of their choice.

Extending credit sales is usually a good idea for businesses, but there are a few important factors to consider. First, the business needs sufficient cash flow to account for Cost of Goods Sold (inventory). Customers' payments may delayed, but suppliers still have to get paid on time. Thus, the business has to be keenly aware of its cash levels.

This is especially true for businesses that sell large durable goods at low volumes, like airplane engines. If a customer is unable to pay its debt, this bad debt may have a big affect on cash levels available for suppliers and investment in other activities.

The most important factor to consider when deciding whether to offer credit sales is the anticipated bad debt expense. This is the percentage of credit sales that are not ultimately paid. The business will be forced to eventually write this off against the account receivables balance (credit). This may lead to a lower credit rating. A smaller account receivable balance, which is considered liquid, is not good if you wish to borrow against that balance (secured borrowing).

Ultimately, a business has to decide whether 1) the increase in sales revenue will be greater than the bad debt expense arising from extending credit to customers; and 2) whether the increase in sales revenue is sufficient to account for reduced and/or delayed cash flows.

It therefore goes without saying that the credit worthiness of customers should be evaluated before deciding to lend. Background checks and credit scores should be reviewed. The goal of course to minimize any future bad debt expense.

After a dismal start to 2019, the U.S. economy seems to be speeding up in the spring. Growth has appeared to speed up towards the end of the 1st quarter, and after such signs, economists have been ratcheting up their estimates for 1st quarter GDP. Positive areas include a resurgence in consumer spending, a declining U.S. trade deficit, and a solid labor market.

Does the United States economy seem to be safe from a recession in the near future?

Use a government website (such as BEA.gov, historical data) and complete the data for the components of GDP 2010-2017. You should only report data on personal consumption expenditures, gross private domestic investment spending, government purchases, net exports (in a base year). Then, add up all of these components to get the GDP for 2010-2017 in a base year price. In other words, complete the following table.

HINT: A. go to www.bea.gov B. Under U.S. Economic accounts, select GDP C. Under the latest NIPA tables, select interactive NIPA tables D. Choose frequently requested NIPA tables. Please note that every year they change these tables. Finally, select First and Last year. Report the data for the last quarter of each year (fourth quarter).For example, for the year 2013, select the GDP and its components reported for the fourth quarter of this year. Do the same thing for other years and complete the following table.

Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.

Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. What is the company’s absorption costing net operating income (loss) for the quarter?

c. Reconcile the variable and absorption costing net operating income (loss) figures.

3. During the second quarter of operations, the company again produced 31,600 units but sold 34,600 units. (Assume no change in total fixed costs.)

a. What is the company’s variable costing net operating income (loss) for the second quarter?

b. What is the company’s absorption costing net operating income (loss) for the second quarter?

c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.

How will marketing be different by 2025?

Consider an economy described by the following equations Y = C + I + G Y=4,000 G= 1,000 T=800 C =400 + 0.75(Y–T) I = 1,000–50r(a) For this economy, compute the following [1.5 Points each; 6 Points total]1. Private Savings2. Public Savings3. National Savings4. Equilibrium interest rate

(b) Is this economy running a budget surplus, budget

deficit or a balanced budget? Explain.

[2 Points]

(c) Suppose that

Congress

decides to reduce government spending.

The new level of government spending is now G=800 Assume all other variables are held constant. Compute the following variables after this falling government spending

1. Private Savings

2. Public Savings

3. National Savings

4. Equilibrium interest rate

(d)

Graphically illustrate the increase of consumer confidence on

the Savings- Investment diagram. Be sure to clearly label your curves and the axis. In

your graph, clearly indicate any shifts of curves and equilibrium points.

Comprehensive Master (Operating) Budget

Bee Gee Distributors, a wholesale company, is considering whether to open a new distribution center near Bowling Green, Ohio. The center would open January 1, 2020. The economic outlook is reasonable, but extensive advance planning is required if such a commitment is to be made. As a part of the planning process, The Board of Directors requires a Master (i.e. Operating) Budgetfor the center’s first quarter of operations(i.e. January, February & March of 2020).  In order to prepare anybudget, management must make reasonable assumptions about expected sales, inventory levels and cash flows.  

Required:  Your help is needed to construct the entire first quarter Master Budget based upon the following two pages of management assumptions:

SALES BUDGET: “What is the Profit Plan?”

        ** It all starts with a sales forecast **

a.     January sales are estimated to be $400,000 of which $100,000 (25%) will be cash and $300,000 will be on credit.  Management expects the above sales pattern to continue with an overall grow rate of 10% per month.  Prepare a sales budget.

b.     The company expects to collect 100% of the accounts receivable in the month following the month of the sale.  Prepare a schedule of expected cash receipts.

c.     Use the information developed above in requirements a and bto determine the amount of accounts receivable on the March 31 pro forma balance sheet and the amount of sales on the first quarter pro forma income statement.

_____________________________________________________________________

PURCHASES BUDGET: “What are our total needs, less what do we have”?

d.     Cost of goods sold will be 60% of sales.  Company policy is to budget an ending inventory balance equal to 25% of the next month’s projected cost of goods sold.  Prepare an inventory purchases budget.

Note: For March analysis needs, Aprilcost of goods sold is expected to be $314,000.