Herbal Care Corp., a distributor of herb-based sunscreens, is ready to begin its third quarter, in which peak sales occur. The company has requested a $40,000, 90-day loan from its bank to help meet cash requirements during the quarter. Since Herbal Care has experienced difficulty in paying off its loans in the past, the loan officer at the bank has asked the company to prepare a cash budget for the quarter. In response to this request, the following data have been assembled: a. On July 1, the beginning of the third quarter, the company will have a cash balance of $47,500. b. Actual sales for the last two months and budgeted sales for the third quarter follow (all sales are on account): May (actual) $ 290,000 June (actual) $ 330,000 July (budgeted) $ 450,000 August (budgeted) $ 660,000 September (budgeted) $ 340,000 Past experience shows that 25% of a month’s sales are collected in the month of sale, 70% in the month following sale, and 3% in the second month following sale. The remainder is uncollectible. c. Budgeted merchandise purchases and budgeted expenses for the third quarter are given below: July August September Merchandise purchases $ 270,000 $ 396,000 $ 204,000 Salaries and wages $ 42,000 $ 52,000 $ 53,000 Advertising $ 170,000 $ 128,000 $ 93,000 Rent payments $ 7,400 $ 7,400 $ 7,400 Depreciation $ 8,000 $ 8,000 $ 8,000 Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases on June 30, which will be paid during July, total $198,000. d. Equipment costing $10,000 will be purchased for cash during July. e. In preparing the cash budget, assume that the $40,000 loan will be made in July and repaid in September. Interest on the loan will total $1,200. Required: 1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. 2. Prepare a cash budget, by month and in total, for the third quarter. (Cash deficiency, repayments and interest should be indicated by a minus sign.)

The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:

The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in

Exhibit 3

, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.

Question not attempted.

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3. Determine the gross profit from sales for the period.

4. Determine the ending inventory cost as of March 31.

5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Lower

Higher

The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in

Exhibit 3

, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

3. Determine the gross profit from sales for the period.

4. Determine the ending inventory cost as of March 31.

5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Higher

Lower

In your scholarly opinion, is the First World a viable model for political and especially economic development for contemporary Second World countries and Third World countries? Most importantly, explain why/how or why/how not?

Which of these ethical theories: egoism, Utilitarianism, Kant and Deontology, First Formula of the Categorical imperative, Second formula of the categorical imperative, or virtue ethics, would be most applicable in addressing accounting ethical dilemmas, why?

2.From which diagnostic category is one least likely to recover?

3.What is the first and second most common mental disorders in the USA?

4.How does "culture" relate to the diagnostic categories?

1. What are first-mover advantages? Discuss these advantages.

2.  Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

1. Homer Simpson gets a monthly salary of $90, which he spends on donuts and other goods. The donut store charges a price of $3 per donut.

1. Homer always consumes donuts with other goods – 2 units of other goods with 1 donut. Show the indifference map of Homer and determine his best affordable bundle. Briefly explain your method. (5 points)
2. The donut store changes its pricing policy. For the first 10 donuts, the price is still $3, but it is $2 per donut for purchases more than 10 donuts. Draw the budget line of Homer. Show the affordable set. Briefly explain your method. (5 points)