Income statements for Gibson Company for Year 3 and Year 4 follow:

Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

nformation pertaining to Noskey Corporation’s sales revenue follows:

Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price.

Required:

Determine for Noskey:

1. Budgeted cash collections in December 2018 from November 2018 credit sales.

2. Budgeted total cash receipts in January 2019

*the question gives the following layout:

January 2019

Cash sales in January

Collections from credit sales in January:

Total collectible from credit sales

Percentage to be collected in January

Collections from credit sales in December:

Total collectible from credit sales

Percentage to be collected in January

Budgeted total cash receipts in January

3. Budgeted total cash payments in December 2018 for inventory purchases.

*layout given in problem:

Total inventory purchases in November:

For November Sales:

For December Sales:

Percentage of November purchases to be paid in December:

Payment in December for purchases in November:

Budgeted purchases in December:

For December sales:

For January sales:

Percentage of December purchases to be paid in December

Payment in December for purchases in December

Budgeted cash payment in December for inventory purchases

Use the format in Exhibit 9-1 to compute the ending FIFO inventory and cost of goods sold assuming: $600,000 in sales Beginning inventory 1125 units @ $175 Purchases of 890 units @ $150 450 units @ $165 200 units @ $140 Ending inventory 845 units Using the FIFO method, what is the cost of goods sold percentage of sales? Use the format in Exhibit 9-1 to compute the ending FIFO inventory and cost of goods sold assuming: $560,000 in sales Beginning inventory 1125 units @ $175 Purchases of 890 units @ $150 450 units @ $165 200 units @ $140 Ending inventory 845 units What is the cost of goods sold?

Beta has an opportunity to automate some of the billing process so that customers can use a direct account deduction. Moving to an automated billing process is voluntary for customers and Beta does not know what percentage will move.

There are currently 100,000 customers. The cost of the billing process as currently constituted is $40,000 of annual fixed cost and $0.20 per bill. Automating the billing will result in a total of $50,000 of annual fixed cost, which is to say that some of the prior fixed cost will continue and Beta will need new software and equipment. Variable costs for any automated bill will drop to $0.04 per bill.

How many customers must switch to the automated billing process to break even with this opportunity?

This solution is to be written in JAVA

It is difficult to make a budget that spans several years, because prices are not stable. If your company needs 200 pencils per year, you cannot simply use this year’s price as the cost of pencils two years from now. Because of inflation, the cost is likely to be higher than it is today.

The program asks for the cost of the item, the number of years from now that the item will be purchased, and the rate of inflation. The program then outputs the estimated cost of the item after the specified period. Have the user enter the inflation rate as a percentage, such as 5.6 (percent). Your program should then convert the percent to a fraction, such as 0.056, and should use a loop to estimate the price adjusted for inflation.

Consider the following investment cash flows:

a. What is the return expected on this investment measured in dollar terms if the opportunity cost is 6%.

b. What is the return on this investment measured in percentage terms?

c. Is the investment profitable? Explain your answer.

1. What is the CPI? What does the percentage change in the CPI measure? What does the “core CPI” measure?
2. Why might the consumer price index overstate changes in the cost of living?
3. Why have economists defined and used price indexes other than the CPI?
4. What does indexing mean?
5. What is hyper-inflation, and what can cause it?

Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures: Remo Co. Angelo Inc. Sales revenue $ 275,000 $ 275,000 Less: Variable cost 200,000 125,000 Contribution margin $ 75,000 $ 150,000 Less: Fixed cost 35,000 110,000 Net operating income $ 40,000 $ 40,000 Required: Calculate the break-even sales revenue for each company. (Round your "Contribution Margin Ratio" percentage to 2 decimal places (i.e. .1524 = 15.24%) and final answers to 2 decimal places.)

tastykreme and krispy kake are both producers of baked goods, but each has followed a different production strategy. The differences in their strategies resulted in differences in their cost structure, as shown in the following table:

TastyKreme and Krispy Kake

Estimated sales in units: 20,000 and 35,000

Unit price: 6 and 8

Variable cost per unit: 3 and 3

Total fixed costs: 30,000 and 105,000

a) Compute the operating income and degree of operating leverage for each company

b) Assuming sales volume for each company will decline by 10% and that their cost structures will not change, compute the percentage and dollar amount of the change in operating income for each company.