Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.

Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $185,400.

Direct Materials

Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit.

Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2019, totaled 11,370 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $104,580.

Other Information

The Cash balance on December 31, 2019, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.60 per share for 5,280 shares outstanding. The company has an open line of credit with Romney’s Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $490,000 equipment purchase is planned for February.

Question:

For the first quarter of 2020, prepare a direct materials budget. (Round cost per pound to 2 decimal places, e.g. 0.25 and all other answers to 0 decimal places, e.g. 2,520.)

If the company paid $12,500 in salaries and wages in 2020, what was the balance in salaries and wages payable on December 31.2019?

Presented below are adjusted and unadjusted trial balance

The following purchases and sales for Smith Company are for November 2020. There was no inventory on November 1.

Required:

A. Compute the ending inventory as of November 30, 2020, using the perpetual inventory procedure, under each of the following methods: (1) FIFO, (2) LIFO, and (3) Weighted Average (please carry unit costs to four decimal places, and round the total cost to the nearest dollar).

B. Repeat Part A using the periodic inventory procedure.

The following purchases and sales for Sipple Company are for November 2020. There was no inventory on November 1.

Required:

A. Compute the ending inventory as of November 30, 2020, using the perpetual inventory procedure, under each of the following methods: (1) FIFO, (2) LIFO, and (3) Weighted Average (please carry unit costs to four decimal places, and round the total cost to the nearest dollar).

B. Repeat Part A using the periodic inventory procedure.

Starting:

One class has 30 students. Ten are women (F) and US citizens (U); 12 are male (M) and US citizens; 6 are women who are not US citizens (N); 2 are men who are not US citizens. A name is selected at random from the class list and it is female. Determine the following probabilities:

1. P (FU)
2. P (FN)
3. P (MU)
4. P (MN)
5. P (F)
6. P (M)
7. P (U)
8. P (N)
9. P (U/F)

1- As a leader, how specifically would you demonstrate your newly developed ethics to others who may doubt you?  

Understanding how others perceive us can assist in helping us to become stronger leaders. However, getting others to provide us with an honest opinion of their perception of us, may be a difficult task. How specifically would you go about gathering this information, particularly from those who work for you?

leadership management 7th edition

Quality Assurance in Foundry

Quality Foundry was established in the mid 2000’s in a 300 square metre building with 10 people as a small family business to produce castings. In the 2000s as business grew, the company expanded its facilities and its capability to develop its own tooling patterns and eventually moved into a 4000 square metre building. Over this time period from 2000s to 2010s, the foundry industry
declined from more than 1200 companies to about 400.

With such a shrinking market, Quality Foundry began to listen more to its customers. They discovered that customers were not happy with the quality of the products supplied by them. In 2000, Quality Foundry made a commitment to quality by hiring a quality assurance manager Mr.Jim. Mr. Jim felt that the top management was committed to quality and saw an opportunity to change the company's culture. He also firmly believed in Deming's philosophy. The
first thing he did was to work with top management to develop a mission statement which reads as below: Our mission at Quality Foundry is to improve the return on investment. We can achieve this by changing attitudes and incorporating a quality team environment. This will improve the quality of our products, enhance our productivity and elevate our service and response level to our customers.

As we are in a low-growth, mature market arid the standards for competitive levels of quality and service are becoming more demanding, we must develop a strategy to improve quality and responsiveness in all areas of the company in order to improve our return on investment. We need to have all employees recognize the importance of product quality and service and move toward
more favorable pricing. We need to change thinking throughout the organization to get employees involved, to encourage team work, to develop a more flexible workforce and adaptable organization. We need to instill pride in the work place and the product.

Under Mr.Jim's direction, Quality Foundry made some substantial improvements in the quality of castings, particularly reducing scrap and reject rates. Mr.Jim worked closely with the factory workers directly responsible for the products, asking them what they needed to get the job done and ensuring management commitment to provide the necessary resources. Quality Foundry
invested in new control equipments for furnaces to control temperatures with digital read out. This helped the workers to adjust the process as needed. The success of this project led the company to empower employees to control many other aspects of the system.

Five years later, the chief executive officer (CEO) of Quality Foundry retired and the General Manager of a manufacturing company was appointed as the new CEO. The new CEO felt that the mission statement did not provide a clear direction. Consequently, he set up a new task for senior management (including Mr. Jim) to develop a new strategic vision.

Answer the following Questions with 150-200 words each.
1. Comment on the current mission statement of the company. Does it provide a strategic direction necessary for success for Quality Foundry?   

2. If you are Quality Assurance Manager, How can the mission statement be improved? Suggest a better statement of mission and vision.

Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question.

1. Purchase equipment for $50,000 in cash
2. Borrow $67,000 from a bank
3. Issue $80,000 in stock

What is the final amount in Total Equity?

Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.

Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).

1. The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 20% for all years. Pretax accounting income $800,000 Excess tax depreciation (480,000) Litigation accrual 70,000 Unearned rent revenue deferred on the books but appropriately recognized in taxable income 60,000 Interest income from New York municipal bonds (20,000) Taxable income $430,000

1. Excess tax depreciation will reverse equally over a four-year period, 2021-2024.

2. It is estimated that the litigation liability will be paid in 2024.

3. Rent revenue will be recognized during the last year of the lease, 2024.

4. Interest revenue from the New York bonds is expected to be $20,000 each year until their maturity at the end of 2024.

(a)   Prepare a schedule of future taxable and (deductible) amounts.

(b)   Prepare a schedule of the deferred tax (asset) and liability at the end of 2020.