As they get closer to the end of the current year, John and Chan begin to think about next year. John is the head of the budget team and he has already gathered some of the information he needs to prepare the next year’s budget. His sales forecast remains 30,000 Men’s Razors and 10,000 Women’s Razors at a selling price of $45.00 and $55.00 for the whole year. John would consider changing the selling price of one or both of the products if he felt it would increase profits or market share.

The Men’s Razor is made out of 1 pound of raw materials at a cost of $5.00 per unit. The Women’s Razor uses 1.5 pounds of raw materials at a cost of $7.00 per unit. Raw Materials are purchased on credit and paid for fifty percent in the first quarter following the purchase and the remainder in the second quarter following the purchase. The last year’s Q3 and Q4 purchases of raw materials were $45,000 and $95,000 respectively. John wants an ending balance of raw materials equal to ten percent of the raw materials needed in the next quarter. The beginning balance of raw materials was 1,200 pounds split equally between the two products.

Unit sales for 2017 are forecasted to be:

      Sales are forty percent cash and sixty percent credit. Credit sales are collected fifty percent in the quarter following the sale and forty-five percent in the second quarter following the sale. Five percent of credit sales are expected to go uncollected. Total sales for Q3 and Q4 of the previous year, which are expected to be partially collected during this year, were $300,000 and $850,000.

12. Prepare a Sales (Revenues) Budget and Cash Collection schedule for the year ended December 31, 2017.

13. Prepare a Raw Materials Purchases budget and Cash Payments schedule for the year ended December 31, 2017.

14. Prepare a Direct Labor budget for the year ended December 31, 2017. Recall from a previous part of the project that the Men’s Razor takes 1.5 DL hours to manufacture and the Women’s Razor takes 2.0 DL hours and that the subcontractors who assembly the razors get paid $10.00 per hour.

Hit or Miss Sports is introducing a new product this year. It is a see at night soccer ball. If the balls are a hit, the firm expects to be able to sell 50,000 balls at a price of 60$ each. If the new product is a bust, only 30,000 units can be sold at a price of $55. The variable cost of each ball is $30 and fixed costs are zero. The cost of the manufacturing equipment is $6 million and the project life is estimated at 10 years. The firm will use straight line depreciation. The firm’s tax rate is 35% and the discount rate is 12%

1. If each outcome is equally likely what is the expected NPV?
2. Now if the firm can abandon the project after 1 year if the sales are weak and sell of the remaining manufacturing equipment for 5.4 million, would this change the decision?

One year ago, a machine was purchased at a cost of $2,000, to be useful for 6 years. However, the machine has failed to perform properly and has a cost of $500 per year per year for repairs, adjustments, and shutdowns. A new machine is available to accomplish the functions desired and has an initial cost of $3,500. Its maintenance costs are expected to be $50 per year during its service life of 5 years. The approximate market value of the present machine has been roughly $1,200. If the operating costs (other than maintenance) for both machines are equal, show whether it is economical to purchase the new machine. Perform a before-tax study using an interest rate of 12%, and assume that the salvage values will be negligible.

In 2018, as a way of commemorating the 10-year anniversary of the release of the first smartphone, an undergraduate student polled a random sample of 26 her peers in hopes of estimating the average time (in hours) such students spend on their smartphone each day, on average. Using the data she collected, she produced a 95% confidence interval for the true mean time college students spend on their phone each day: (5.035, 6.165)

1. What was the margin of error of this confidence interval?

2. What was the sample mean time (in hours) for the n = 26 students?

3. What was the sample standard deviation (in hours) for the n = 26 students? Submit your answer rounded to four decimals.

Show work please and thank you.

You are offered an investment with returns of $ 2,757 in year 1, $ 4,958 in year 2, and $ 4,839 in year 3. The investment will cost you $ 6,064 today. If the appropriate Cost of Capital (quoted interest rate) is 12.2 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.

1. The following is an incomplete pension spreadsheet for the current year for Desperado Corporation.

Required:

1) Complete the pension spreadsheet.

2) Prepare the journal entry to record pension expense for the year.

The company takes a physical inventory count at the end of the year and adjusts their inventory and cost of goods sold if there is a difference between the inventory value determined from the actual count compared to the value in the general ledger. The information below includes the number of units counted in inventory at the end of the year and the purchases of inventory during the month.
Number of units held in the company's inventory at 12/31/2016 based on a count of the inventory was 17,728 units. A listing of purchases during the month of December are as follows:

Date Quantity Purchased Unit Cost Total Cost
12/5/16 15,000 3.75 56,250
12/14/16 6,500 4.00 26,000
12/21/16 7,500 4.50 33,750

The company uses FIFO to account for its inventory cost.
What is the cost of the company's ending inventory (round answer to nearest dollar and show your calculation below for full credit)?

The balance in inventory per the unadjusted trial balance before making any adjustments is $76,730.
What is the amount of the December 31 adjustment to inventory cost (show your calculation below for full credit)?

Complete below the adjusting journal entry necessary for inventory:

The company has estimated, based on historical information, that 4.4% of its accounts receivable will ultimately not be collected. Therefore, they provide an allowance for bad debts at that level.

Calculate the appropriate amount for the allowance at December 31, 2016.

Accounts receivable balance per the unadjusted trial balance 42,400

Estimated allowance amount (Round answer to the nearest dollar and show your calculation below for full credit).

Amount of adjustment needed to the allowance account (Show your calculation below to receive full credit).

Complete below the adjusting journal entry necessary for the allowance for bad debts:

5) On July 31, 2016 the company purchased new warehouse equipment in the amount of $50,000. No depreciation has been recorded yet in 2016 for this new asset. It is estimated to have a useful life of 7 years and a salvage value of $4,700. What is the depreciation expense for 2016 using the straight-line method? (Round answer to the nearest dollar and show your calculation below for full credit).

Complete below the adjusting journal entry necessary for depreciation:

6) The company issued a $75,000 bond dated August 1, 2016 to finance the purchase of warehouse equipment and provide the company additional cash. The bond has a contractual interest rate of 6.7% and was issued at par. The bond matures in 10 years and pays interest on July 31 and January 31 each year. What is the amount of interest to be accrued at December 31, 2016? (Round answer to nearest dollar and show your calculation below for full credit)

Complete below the adjusting journal entry necessary for accrued interest:

A closed-end fund’s NAV is $78 at the beginning of the year and $84 at the end of the year. At the beginning of the year the fund was selling at a 2% premium to NAV, at the end of the year it was selling at a 2% discount to NAV. The fund paid year-end distributions of income and capital gains of $1. What is the rate of the return to an investor, who bought the fund at the beginning of the year? (Provide your answer in percent rounded to two decimals omitting the % sign)

The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 14 Units @ $16 = $224 Beginning Inventory at LIFO: 14 Units @ $12 = $168 Transactions Units Unit Cost Total Cost Purchase, January 9 28 $ 14 $ 392 Purchase, January 20 54 19 1,026 Sale, January 21 (at $42 per unit) 37 Sale, January 27 (at $43 per unit) 27

Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

                  Equipment purchased at the beginning of the fiscal year for $455,000 is expected to have a useful life of 5 years, or 15,000 operating hours, and a residual value of $3,000. Compute the depreciation for the first and second years of use by each of the following methods:

(Round the answer to the nearest dollar.)

First Year

                              Second Year