Sales Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: ____________Practice Balls_______________ Match Balls
_______Units_________ Selling Price________ Units _________Selling Price
January ____50,000 ______$8.25____________ 7,000 _________$16.00
February___ 58,000______ $8.25____________ 7,500_________ $16.00
March _____80,000______ $8.25 ___________13,000 _________$16.00
April______ 100,000_____ $8.25___________ 18,000_________ $16.00
Required:
1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
FlashKick Company
Sales Budget
For the First Quarter of Next Year
____________January__________ February_________ March_______ Quarter
Practice ball: Units________?________?______________?_____________?
Unit price________ $ ______________$ ______________$ ____________$
Sales___________ $ ______________$______________ $____________ $
Match ball: Units___?______________?_______________?____________?
Unit price________ $_____________ $_______________ $____________ $
Sales ___________$ _____________$_______________ $____________ $
Total sales_______ $_____________ $_______________ $____________ $
2. What if FlashKick added a third line—tournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of $45 each in January and February, and $48 each in March?
Prepare a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
FlashKick Company
Sales Budget
For the First Quarter
__________January_______ February________ March _____Quarter
Practice ball: Units______?______?_____________?__________?
Unit price_____ $_____________ $_____________ $_________ $
Sales ________$ _____________$ _____________$ _________$
Match ball: Units_____?________?______________?_________?
Unit price_________ $_________ $_____________ $_________ $
Sales ____________$ _________$_____________$ __________$
Tournament ball:
Units____________?__________?______________?__________?
Unit price________ $_________ $______________ $_________ $
Sales___________ $_________ $______________ $_________ $
Total sales _______$ _________$ ______________$ _________$
In: Accounting
Sales Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:
___________________Practice Balls__________________________________ Match Balls
_______________Units________________ Selling Price________________ Units __________________Selling Price
January _________50,000 ________________$8.25_____________________ 7,000 __________________$16.00
February__________ 58,000______________ $8.25_____________________ 7,500___________________ $16.00
March ____________80,000_______________ $8.25 ____________________13,000 __________________$16.00
April_____________ 100,000_______________ $8.25____________________ 18,000__________________ $16.00
Required:
1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
FlashKick Company
Sales Budget
For the First Quarter of Next Year
________________January__________________ February_____________ March____________ Quarter
Practice ball:
Units____________?__________________________?__________________?__________________?
Unit price________ $ __________________________$ _________________$ __________________$
Sales___________ $ __________________________$_________________ $__________________ $
Match ball:
Units____________?__________________________?__________________?__________________?
Unit price________ $__________________________ $_________________ $__________________ $
Sales ___________$ __________________________$_________________ $__________________ $
Total sales_______ $__________________________ $_________________ $__________________ $
2. What if FlashKick added a third line—tournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of $45 each in January and February, and $48 each in March? Prepare a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent.
FlashKick Company
Sales Budget
For the First Quarter
___________________January___________________ February_______________ March ______________Quarter
Practice ball:
Units______________?__________________________?_______________________?__________________?
Unit price__________ $__________________________ $______________________ $__________________ $
Sales _____________$ __________________________$ ______________________$ __________________$
Match ball:
Units_____________?___________________________?_______________________?___________________?
Unit price_________ $___________________________ $______________________ $___________________ $
Sales ____________$ ___________________________$ ______________________$ ___________________$
Tournament ball:
Units____________?____________________________?_______________________?___________________?
Unit price________ $____________________________ $______________________ $___________________ $
Sales___________ $____________________________ $______________________ $___________________ $
Total sales _______$ ____________________________$ ______________________$ ___________________$
In: Accounting
Find the regression equation, letting the first variable be the predictor (x) variable. Find the best predicted Nobel Laureate rate for a country that has 78.1.
Internet users per 100 people. How does it compare to the country's actual Nobel Laureate rate of 1.6 per 10 million people?
Find the equation of the regression line.
Y^= _____ + ______x.
(Round the constant to one decimal place as needed. Round the coefficient to three decimal places as needed.)
The best predicted number of Nobel Laureates when the number of internet users per 100 is 79.9 is _________.
(Round to one decimal place as needed).
| Internet Users Per 100 | Nobel Laureates |
| 79.4 | 5.6 |
| 79.4 | 24.4 |
| 78.1 | 8.6 |
| 44.9 | 0.1 |
| 83.5 | 6 |
| 38.1 | 0.1 |
| 90.5 | 25.2 |
| 90.2 | 7.5 |
| 79.2 | 9 |
| 83.7 | 12.7 |
| 53.3 | 1.9 |
| 77.5 | 12.6 |
| 57.1 | 3.3 |
| 78.8 | 1.5 |
| 92.8 | 11.4 |
| 93.2 | 25.5 |
| 64.4 | 3.1 |
| 57.2 | 1.9 |
| 67.7 | 1.7 |
| 94 | 31.9 |
| 85.5 | 31.7 |
| 87.2 | 18.9 |
| 77.4 | 10.8 |
In: Statistics and Probability
F Question 1: Evaluating investment projects
You are planning to invest $75,000 in new equipment. This
investment will generate net cash flows of $45,000 a year for the
next 2 years. The salvage value after 2 years is zero. The cost of
capital is 25% a year.
a) Compute the net present value
NPV = $
Enter negative numbers with a minus sign, i.e., -100 not ($100) or
(100).
Should you invest? Why?
YES -- the NPV is positive, which indicates that the investment is
profitable
YES -- the NPV is negative, which indicates that the investment
will reduce costs
NO -- the NPV is negative, which indicates that the investment is
unprofitable
b) Compute the payback period.
payback period = years
c) Compute the accounting rate of return (ARR).
To compute ARR, first compute:
annual depreciation=$
annual income=$
average investment=$
ARR = %
d) Which of the three methods in (a)-(c) should you use in real
life?
NPV only
payback method only
ARR only
always use all three methods to reach the best decision
In: Accounting
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:
| Driver and guard wages | $ | 940,000 |
| Vehicle operating expense | 370,000 | |
| Vehicle depreciation | 250,000 | |
| Customer representative salaries and expenses | 280,000 | |
| Office expenses | 140,000 | |
| Administrative expenses | 440,000 | |
| Total cost | $ | 2,420,000 |
The distribution of resource consumption across the activity cost pools is as follows:
| Travel |
Pickup and Delivery |
Customer Service |
Other | Totals | ||||||
| Driver and guard wages | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
| Pickup and | Customer | ||||
| Travel | Delivery | Service | Other | Totals | |
| Driver and Guard wages | |||||
| Vehicle operating expense | |||||
| Vehicle Depreciation | |||||
| Customer Representative salaries and expenses | |||||
| Office Expenses | |||||
| Administrative expenses | |||||
| Total Cost |
In: Accounting
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:
| Driver and guard wages | $ | 720,000 |
| Vehicle operating expense | 280,000 | |
| Vehicle depreciation | 120,000 | |
| Customer representative salaries and expenses | 160,000 | |
| Office expenses | 30,000 | |
| Administrative expenses | 320,000 | |
| Total cost | $ | 1,630,000 |
The distribution of resource consumption across the activity cost pools is as follows:
| Travel |
Pickup and Delivery |
Customer Service |
Other | Totals | ||||||
| Driver and guard wages | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
|
In: Accounting
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:
| Driver and guard wages | $ | 1,040,000 |
| Vehicle operating expense | 470,000 | |
| Vehicle depreciation | 350,000 | |
| Customer representative salaries and expenses | 380,000 | |
| Office expenses | 240,000 | |
| Administrative expenses | 540,000 | |
| Total cost | $ | 3,020,000 |
The distribution of resource consumption across the activity cost pools is as follows:
| Travel | Pickup and Delivery |
Customer Service |
Other | Totals | ||||||
| Driver and guard wages | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
|
In: Accounting
SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:
| Driver and guard wages | $ | 920,000 |
| Vehicle operating expense | 350,000 | |
| Vehicle depreciation | 230,000 | |
| Customer representative salaries and expenses | 260,000 | |
| Office expenses | 120,000 | |
| Administrative expenses | 420,000 | |
| Total cost | $ | 2,300,000 |
The distribution of resource consumption across the activity cost pools is as follows:
| Travel | Pickup and Delivery |
Customer Service |
Other | Totals | ||||||
| Driver and guard wages | 50 | % | 35 | % | 10 | % | 5 | % | 100 | % |
| Vehicle operating expense | 70 | % | 5 | % | 0 | % | 25 | % | 100 | % |
| Vehicle depreciation | 60 | % | 15 | % | 0 | % | 25 | % | 100 | % |
| Customer representative salaries and expenses | 0 | % | 0 | % | 90 | % | 10 | % | 100 | % |
| Office expenses | 0 | % | 20 | % | 30 | % | 50 | % | 100 | % |
| Administrative expenses | 0 | % | 5 | % | 60 | % | 35 | % | 100 | % |
Required:
Complete the first stage allocations of costs to activity cost pools.
|
In: Accounting
compute the statement of cash flows -- compute the amount of cash from operating activities, cash from investing activities, and cash from financing activities.
INCOME STATEMENT, 2018
|
REVENUES |
$1,000 |
|
COGS EXCL. DEPRECIATION |
600 |
|
DEPRECIATION |
100 |
|
EXPENSES |
200 |
|
EBIT |
100 |
|
INTEREST |
50 |
|
EBT |
50 |
|
TAXES @ 40% |
20 |
|
NET INCOME |
30 |
BALANCE SHEETS
|
12/31/17 |
12/31/18 |
|
CASH $100 |
CASH $280 |
|
A/R 50 |
A/R 100 |
|
INVENTORIES 90 |
INVENTORIES 150 |
|
CURRENT ASSETS 240 |
CURRENT ASSETS 530 |
|
GROSS PP&E 1,000 |
GROSS PP&E 1,000 |
|
- ACCUM. DEPRE. 300 |
- ACCUM. DEPRE 400 |
|
NET PP&E 700 |
NET PP&E 600 |
|
TOTAL ASSETS 940 |
TOTAL ASSETS 1,130 |
|
A/P 40 |
A/P 50 |
|
ACCRUALS 50 |
ACCRUALS 50 |
|
ST DEBT 50 |
ST DEBT 100 |
|
CURRENT LIAB. 140 |
CURRENT LIAB. 200 |
|
LONG TERM DEBT 400 |
LONG TERM DEBT 500 |
|
TOTAL LIAB. 540 |
TOTAL LIAB 700 |
|
TOTAL EQUITY 400 |
TOTAL EQUITY 430 |
|
TOTAL LIAB.+EQ. 940 |
TOTAL LIAB.+EQ. 1,130 |
|
TOTAL COMMON SH. 200 |
TOTAL COMMON SH. 200 |
CURRENT PRICE/SHARE = $10
In: Finance
This company uses a perpetual inventory system. It had the following beginning inventory and current year purchases of its product.
Jan 1. Beginning Inventory ..... 50 units @ $100 = $5,000
Jan 14. Purchase .......................150 units @ $120 = 18,000
Apr 30. Purchase........................ 200 units @ $150= 30,000
Sept 26th. Purchase................... 300 units @ $200= 60,000
The company transacted sales on the following dates at $350 per unit sales price.
Jan 10. 30 units (specific cost: 30 @ $100)
Feb 15. 100 units (specific cost: 100 @ $120)
Oct 5. 350 units (specific cost: 100 @ $150 and 250 @ $200)
USING (THE WEIGHTED AVERAGE COSTING METHOD) ANSWER THE FOLLOWING QUESTIONS:
A. Identify and compute the costs to assign to the units sold. (Round per unit costs to three decimals.)
B. Identify and compute the costs to assign to the units in ending inventory. (Round inventory balances toe the dollar)
C. How likely is it that the Weighted Average method will reflect the actual physical flow of goods? How relevant is that factor in determining wether this is an acceptable method to use?
D. What is the impact of this method versus others in determining net income and income taxes?
E. How closely does the ending inventory amount reflect replacement cost?
In: Accounting