Klon Corporation owns 70 percent of Brant Company’s stock and 60 percent of Torkel Company’s stock. During 20X8, Klon sold inventory purchased in 20X7 for $66,000 to Brant for $110,000. Brant then sold the inventory at its cost of $110,000 to Torkel. Prior to December 31, 20X8, Torkel sold $50,000 of inventory to a nonaffiliate for $80,000 and held $60,000 in inventory at December 31, 20X8.
a. Prepare the journal entries recorded by Klon, Brant, and Torkel during 20X8 relating to the intercorporate sale and resale of inventory. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the sale of inventory to Brant Company.
• Record the cost of goods sold.

Entries recorded by Brant Company:

• Record the purchase of inventory from Klon.
• Record the sale of inventory to Torkel Company.
• Record the cost of goods sold.

Entries recorded by Torkel Company:

• Record the purchase of inventory from Brant.
• Record the sale of inventory to the nonaffiliates.
• Record the cost of goods sold.

b. What amount should be reported in the 20X8 consolidated income statement as cost of goods sold?

c. What amount should be reported in the December 31, 20X8, consolidated balance sheet as inventory?

d. Prepare the consolidation entry needed at December 31, 20X8, to remove the effects of the inventory transfers. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the consolidation entry for inventory.

please help!

EXAMPLE: 1

You are the Nutrition and Food Services Director and your Chief Financial Officer (CFO) has requested that you evaluate the inventory within the department. Specifically, the CFO wishes to know if the facility is effectively managing the inventory.  

To accomplish this task, you will evaluate the inventory turnover from the previous period. You have determined the following information:

Inventory value at the beginning of the period                      $47,000

Purchases made during the period:                                         $225,000

Inventory at the end of the period:                                         $67,999

Your Procurement Specialist has determined the value of inventory for each month of the period. Those figures are as follows:

                                                            Month #1 = $42,000               Month #4 = $48,353

                                                            Month #2 = $44,996               Month #5 = $45,921

Month #3 = $49,214               Month #6 = $46,555

To assist you in completing this question, you will need the following calculations:

A).

Inventory at beginning of period        $XXX

+ Purchases during the period            +XXX

Total value of available food              $XXX

-Inventory at end of period                 -XXX

Cost of goods sold during period       $XXX

B). Inventory turnover = Cost of goods sold/Average inventory value

What is your inventory turnover ratio?

What does a high inventory ratio indicate?

What does a low inventory ratio indicate?

How do you interpret your inventory ratio to your CFO?

EXAMPLE: 2

You are the Nutrition and Food Services Director and your Chief Financial Officer (CFO) has requested that you evaluate the inventory within the department. Specifically, the CFO wishes to know if the facility is effectively managing the inventory.  

To accomplish this task, you will evaluate the inventory turnover from the previous quarter. You have determined the following information:

Inventory value at the beginning of the quarter:                    $52,000

Purchases made during the quarter:                                       $193,000

Inventory at the end of the period:                                         $69,999

Your Procurement Specialist has determined the value of inventory for each month of the quarter. Those figures are as follows:

                                                            Month #1 = $56,001

                                                            Month #2 = $57,996

                                                            Month #3 = $58,214

To assist you in completing this question, you will need the following calculations:

A).

Inventory at beginning of period        $XXX

+ Purchases during the period            +XXX

Total value of available food              $XXX

-Inventory at end of period                 -XXX

Cost of goods sold during period       $XXX

B). Inventory turnover = Cost of goods sold/Average inventory value

What is your inventory turnover ratio?

What does a high inventory ratio indicate?

What does a low inventory ratio indicate?

How do you interpret your inventory ratio to your CFO?

BREAKEVEN POINT: Point at which profit is not being made and losses are not being incurred.

• Fixed costs: do not vary with changes in volume of sales.
• Variable costs: do vary directly with changes in sales.
• Semi-variable costs: include elements of both fixed and variable costs. Before completing a breakeven point, you need to divide the semi-variable costs into their fixed and variable components before you can complete the breakeven point analysis.

EXAMPLE #3

Your CFO has asked you to conduct a break-even analysis of your hospital cafeteria for the upcoming fiscal year.

To assist you in completing this question, you will need the following calculation:

Your costs for the upcoming fiscal year:

Insurance:                               $1,500.00 (fixed cost)

Salaries:                                  $594,259.00 (semi-variable cost—80% is variable)

Utilities:                                  $20,000.00 (semi-variable cost—60% is fixed.)

Food license:                           $2,300.00 (fixed cost)

Supplies:                                 $453,816.00 (variable cost)

Projected Sales:                      $1,253,743.00

What is the break-even point, in sales, for this cafeteria for the upcoming fiscal year?

Other important operating ratios to the Food Service Director:

• Occupancy percentage = # of beds/rooms occupied/# of beds/rooms available

• Average customer check = total sales/# of customer checks

• Food cost percentage = cost of food/sales

(goal is 30% or less)

• Meals per labor hour = total # of meals served/total labor hours to produce meals

(example on page 385 of textbook notes index of 3.5 for acute care facilities)

• Meals per FTEs = total # of meals served/total FTE to produce meals

• Labor minutes per meal = total labor minutes to produce the meals/total number of meals served

• Labor hours per meal = total labor hours to produce the meals/total number of meals served

1. Why do you think counterfeiting is so popular in places like India? Have you had any experience buying counterfeit goods? What are companies doing to fight against counterfeit products?

2. The book lists many advantages and disadvantages of small business ownership, which do you agree with the most? Would you start a business?  How are websites like Kickstarter and Gofundme helping with small business ownership?

The part of corporate profits that is paid to the shareholders of a corporation is

A. retained earnings. B. business revenue. C. dividends. D. shareholders.

2. If​ Dell, a computer​ company, is determining whether to build a new plant in Texas or in New​ Mexico, it is making​ a(n) ________ decision.

A.​short-run

B. immediate-run

C. variabl-input

D. ​long-run

3. If marginal product is​ negative, then

A.average profit is rising.

B.total product is rising.

C.total product is falling.

D.marginal cost is falling.

4. Marginal cost is equal to average variable cost

A.when marginal cost is at its minimum value.

B.when average variable cost is getting smaller

C.when average variable cost is getting larger.

D.when average variable cost is at its minimum value.

5. - The​ long-run average cost curve

A.is a curve which is tangent to each member of a set of​ short-run average cost curves.

B.is always a downward sloping straight line.

C.is identical to the marginal cost curve.

D.should always be horizontal.

6. Due to extremely large fixed​ costs, an electricity generating plant probably experiences which of the following returns to​ size?

A.constant returns to scale

B.diminishing marginal product

C.economies of scale

D.diseconomies of scale

1- The Variable Cost, (VC), of making 10 fidgets is 100, the Variable Cost, (VC), of making 11 fidgets is 110, What is the Marginal Cost, (MC), of making the 11th fidget?

2- The Total Cost, (TC), of making 10 widgets is 490 , the Total Cost, (TC), of making 11 widgets is 550,What is the Marginal Cost, (ATC), of making the 11th widget?

3- The Total Cost, (TC), of making 10 widgets is 490, the Total Cost, (TC), of making 11 widgets is 550,What is the Average Total Cost, (ATC), of making 11 widgets?

4- The Total Cost, (TC), of making 10 widgets is 490, the Total Cost, (TC), of making 11 widgets is 550,What is the Average Total Cost, (ATC), of making 10 widgets?

5- If Marginal Cost is less than (below) Average Total Cost

6-

If Marginal Cost is greater than (above) Average Total Cost

E7-8 Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3]

-A smug little kitten pounces about on the top of a skyscraper. In his excessive confidence, he slips and tumbles over the edge. Don't worry...he manages to cling to a pipe that extends out horizontally from the top of the building and is safe...for now. (Use g=9.80 m/s^2 for the acceleration of gravity for the entire problem.) If kitten has a mass of (m1=2.9 kg) and hangs at rest from the pipe, with what magnitude of force must he cling to the pipe to prevent from falling?

-A child looks out his window and sees the cat hanging from the pipe above, so she decides to act. The child opens the window and flings a lasso at the cat, successfully ensnaring his tail with the rope. If the cat's tail is located (x=1.59 m) from the wall (in the horizontal direction) and (y=3.67 m) from the window (in the vertical direction), what angle does the rope make with the wall? (Give your answer to 3 sig figs. and give the angle in units of degrees [deg]

-Seeing that she has snagged the cat by the tail, she attempts to pull the cat free from the pipe by pulling the rope with a constant force of (F1=26.8 N). What is the magnitude of the upward force that kitten must apply to the pipe to keep from falling? (Give your answer to 3 sig figs.)

-What is the magnitude of the horizontal force that kitten must apply to the pipe to keep from falling? (Give your answer to 3 sig figs.)

-Finally, the rope snaps, disorienting kitten. This causes him to lose his grip, plummeting to the ground below (don't worry...I won't let him die). At this very moment, a group of physics students who have been analzing the situation from directly below, band together to construct a large, pillowy pile of trash bags from a nearby dumpster for the cat to land on. Assuming kitten falls from rest, how fast is he going when he arrives at the cozy trash bag landing pad (h=80.7 m) below? (Give your answer to 3 sig figs.)

Waterways Corporation has recently acquired a small manufacturing operation in British Columbia that produces one of its more popular items. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Because the budget prepared by the plant was incomplete, Jordan Leigh, Waterways' CFO, was sent to B.C. to oversee the plant's budgeting process for the second quarter of 2021.

Jordan asked the various managers to collect the following information for preparing the second-quarter budget.

Based on the experience in the home plant, Jordan has suggested that the B.C. plant keep 10% of the next month's unit sales in ending inventory. The plant has contracts with some of the major home hardware giants, so all sales are on account; 50% of the accounts receivable is collected in the month of sale, and the balance is collected in the month after sale. This was the same collection pattern as the previous year. The new plant has no bad debts.

Direct Materials

The combined quantity of direct materials (consisting of metal, plastic, and rubber) used in each unit is 1.1 kg. Metal, plastic, and rubber together amount to $1.50 per kg. Inventory of combined direct materials on March 31 consisted of 12,155 kg.

This plant likes to keep 10% of the materials needed for the next month in its ending inventory. Fifty percent of the payables is paid in the month of purchase, and 50% is paid in the month after purchase.

Accounts payable on March 31 will total $120,600.

Direct Labour

Labour requires 15 minutes per unit for completion and is paid at an average rate of $18 per hour.

Selling and Administrative

Variable selling and administrative expenses per unit are $1.62.

Other Information

The cash balance on March 31 will be $100,500, but Waterways has decided it would like to maintain a cash balance of at least $500,000 beginning on April 30. The company has an open line of credit with its bank. The terms of the agreement require borrowing to be in $1,000 increments at 3% interest. Borrowing is considered to be on the first day of the month and repayments and interest payments are on the last day of the month.

In May, $845,000 of new equipment to update operations will be purchased.

Three months' insurance is prepaid on the first day of the first month of the quarter.

Instructions

For the second quarter of 2021:

a.Prepare a sales budget.

b.Prepare a schedule for expected cash collections from customers.

c.Prepare a production budget.

d.Prepare a direct materials budget.

e.Prepare a schedule for expected payments for materials purchases.

f.Prepare a direct labour budget.

g.Prepare a manufacturing overhead budget.

h.Prepare a selling and administrative expenses budget.

i.Prepare a cash budget.

Include supporting calculations.

December of the previous year 50,000, January70,000, February 100,000, March60,000, April100,000. Past experience shows that 45% of sales are collected in the month of the sale, and 55% in the month following the sale.

    2. Prepare a purchases budget for January through March, and the first quarter in total. Assume that the company only sells one product that can be purchased at $35.00 per unit. The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 45% of next month’s projected sales. All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (i.e. January purchases are paid in February).

3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $70,000, and this was the balance in the cash account on January 1^st. Other expenses include $35,000 per month for rent, $24,000 per month for advertising, and $66,000 per month for depreciation. In addition, variable Selling & Administrative cost is $12 per unit sold, and the company paid a $20,000 dividend in February.

The company has an open line of credit with a bank and can borrow at an annual rate of 12%.
For simplification assume that all loans are made at the beginning of the month when borrowing is needed, and repayments are made at the end of a month if there is enough cash to make the payment. Also, interest associated with a loan is only paid at the time when that loan or a portion thereof is paid. Additionally, all loans and repayments (not the interest portion) can only be made in increments of $1000 and the company would like to pay its debts, or a portion thereof, as soon as it has enough cash to do so.

what are the short term and long term affects of increased government spending?