Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 90 units at $95 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 214-unit purchase at $108 per unit; the second was a 252-unit purchase at $114 per unit. During the period, it sold 354 chairs.

Required
Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses

a. FIFO.
  
Cost of Goods Sold

Ending Inventory

b. LIFO.
  
Cost of Goods Sold

  
Ending Inventory

c. Weighted average. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
  

The city of Charleston had the following sales of water for the selected months of 2017: Month Sales February $60,000 March 45,000 April 65,000 May 43,350 June 110,000 July 120,000 All sales are on credit. Historically, 60 percent is collected in the month of sale, 30 percent during the first month following the sale, and 10 percent in the second month following the sale. Water purchases by month are as follows: Month February $45,000 March 45,000 April 40,000 May 59,750 June 52,500 July 90,000 Water is purchased in the month of sale. All purchases are paid during the month following the purchase. Operating costs are $18,000 and everything is paid in cash except for depreciation, which totals $8,000 a month. The city plans on purchasing some new equipment in May for $25,000 in exchange for a note payable. The April 1 cash balance is expected to be $5,000. The city must maintain a minimum cash balance of $10,500, and money can be borrowed from a local bank in increments of $1,000. The city borrows money at the beginning on the first day of the month and repays loans and interest on the last day of the month. The bank charges the city an annual interest rate of 15%.

Prepare a cash budget for April, May, June and in for the quarter, and based on your answer complete the following table:

Round to the nearest dollar and DO NOT enter decimals, or commas and if a zero needs to be entered, enter "0".

Practice with the Expenditure-Output Model

Complete the following. Write your answers in the green spaces. When you are finished, save your work and upload it to the appropriate folder in the Assignments section of D2L.

Note: all of the following calculations are in $billions (e.g. $100 = $100 billion). Economists sometimes express their formulas in $billions to avoid writing out a large number of ‘0’s.

In country X, potential GDP is $3,200.

BENCHMARK CASE. Spending is guided by the following equations:

C = $600 + 0.75(Y – T)

I = $200

G = $0

T = $0

EX = $0

IM = $0

Compute the current level of GDP: ________________

Is there an inflationary gap, recessionary gap, or no gap? ______________________

PESSIMISM. Investors in the economy become pessimistic about the future. Spending is now guided by the following equations:

C = $600 + 0.75(Y – T)

I = $100

G = $0

T = $0

EX = $0

IM = $0

Compute the current level of GDP: ________________

Is there an inflationary gap, recessionary gap, or no gap? ______________________

GOVERNMENT SPENDING. Country X decides to increase government spending on infrastructure but keep taxes fixed, causing a budget deficit. Spending is now guided by the following equations:

C = $600 + 0.75(Y – T)

I = $200

G = $100

T = $0

EX = $0

IM = $0

Compute the current level of GDP: ________________

Is there an inflationary gap, recessionary gap, or no gap? ______________________

TRADE. Country X opens its borders to international trade. Given interest in foreign and domestic products, a trade deficit appears. Spending is now guided by the following equations:

C = $600 + 0.75(Y – T)

I = $200

G = $0

T = $0

EX = $100

IM = $200

Compute the current level of GDP: ________________

Is there an inflationary gap, recessionary gap, or no gap? ______________________

BONUS. Imports in Country X become tied to GDP. Imports amount to 5% of GDP. Spending is now guided by the following equations:

C = $600 + 0.75(Y – T)

I = $200

G = $0

T = $0

EX = $100

IM = 0.05Y

Compute the current level of GDP: ________________

Is there an inflationary gap, recessionary gap, or no gap? ______________________

Wahlund Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. They prepared the following budget for October, when they planned on selling 6,500 units.

Actual results for October were:

Prepare a Flexible Budget Performance Report (complete Flexible Budget Analysis), including the total Activity Variance, total Revenue and Spending Variance, and individual Revenue and Spending Variances. All variances must be labeled as unfavorable (U) or favorable (F). Match each of the following items to the appropriate answer. Prepare the Flexible Budget Performance Report BEFORE you attempt to answer the questions.

Interest Rate Target: Most modern central banks announce a target for a specific interest rate. Consider each of the two scenarios below, and describe how the central bank would react to maintain a constant interest rate. Draw an IS-LM graph that shows the initial shock. Then discuss the change to the money supply that would keep interest rates constant, the open market operation (bond market transactions) that the central bank does to accomplish that change, and how it shows up in the IS-LM graph. Note you don’t need to do any of the long, 3-part story discussion: just the graph and a sentence or two about the central bank’s action.

a) Uncertain about future profitability, firms reduce their investment spending.

b) Concerns about the Y2K computer bug lead to significant withdrawals of cash from banks in December 1999.

The Town Council of Flic-en-Flac in Mauritius wonders if the town’s public beach should be kept cleaner. The Council estimates that the benefit of a cleaner beach would be a 6% increase in annual tourist spending from the current level of $2 million per year. The main cost is paying staff for picking up debris on the beach, most of which is plastic trash left by beach users. The Council estimates that 6 staff will be needed for 4 hours per day, every day of the year, and the local wage is $11 per hour. There is an initial expense of $40,000 to build a small shelter and buy equipment for the staff. If the Council uses a discount rate of 8%, is it beneficial to run this program as a 3-year pilot? (The program may or may not be continued after 3 years.) In your report for the Town Council, provide an answer to their question along with the actual B/C ratio.

Nadia Company, a merchandising company, prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master budget for the second quarter.

a. As of March 31 (the end of the prior quarter), the company’s balance sheet showed the following account balances:

b. Sales for March total 10,000 units. Each month’s sales are expected to exceed the prior month’s results by 5%. The product selling price is $25.00 per unit.

c. Sales are 20% for the cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales.

d. Company’s policy calls for a given month’s ending inventory to equal 80% of the next month’s expected unit sales. The March 31 inventory is 8,400 units, which complies with the policy. The purchase price is $15.

e. Monthly selling and administrative expenses are budgeted as follows: salaries and wages, $7500 per month; shipping 6% of sales; advertising, $6,000 per month; other expenses, 4% of sales. Depreciation including depreciation on new assets acquired during the quarter, will be $6,000 for the quarter. Sales representatives’ commissions are 12.5 % of sales and are paid in the month of the sales. The sales manager’s salary will be $3,500 in April and $4,000 per month thereafter.

f. Half a month’s inventory purchases are paid in the month of purchase and half in the following month.

g. Equipment purchases during the quarter will be as follows: April, $11,500; and May, $3,000.

h. Dividends totaling $3,500 will be declared and paid in June.

j. No cash payment for income taxes are to be made during the second calendar quarter. Income taxes will be assessed at 35% for the quarter.

k. Management wants to maintain a minimum cash balance of $8,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total balance of $20,000. The interest rate of these loans is 1% per month, and for simplicity, we will assume that the interest is not compounded. The company would as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required: Using the above data, complete a CASH BUDGET for the second quarter.

Consider the following time series data.

problem 08-23 Algo (Using Regression Analysis for Forecasting

Quarter:1,2,3,4

year 1: 2,0,5,5

year 2: 5,2,8,8

year 3: 7,6,10,10

Can you please show me how to step up excel spreadsheet for this problem. How to figure out the problems on this question.

If you use Ali International Station, what kind of Chinese products will you choose to sell to your country? Why?