PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit Sales 46,000 72,000 36,000 72,000 Each T-shirt is expected to sell for $21. The purchasing manager buys the T-shirts for $8 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 31 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $92,000 per quarter plus 20 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expenses for each quarter. 5. Complete the budgeted income statement for each quarter. rev: 10_28_2016_QC_CS-67902 ReferenceseBook

Lee Ltd delivers the goods to customers and gives the customers the right to return the product with no reason within 14 days after delivery. 1st May 20X9, goods were sold and delivered to a customer. The price charged was equal to the cost of $200 plus a 20% profit margin. According to the historical data, a significant amount of goods were returned within 14 days after delivery. Please ignore the GST. Required: (Please label your responses as 1), 2).) 1) Entries on 1st May 20X9 (2/4) 2) Entries on 14th May 20X9 if goods were not returned within 14 days after delivery (2/4)

The following information is related to Stellar Company for 2017. Retained earnings balance, January 1, 2017 $993,230 Sales Revenue 26,284,300 Cost of goods sold 16,139,200 Interest revenue 79,400 Selling and administrative expenses 4,749,600 Write-off of goodwill 824,400 Income taxes for 2017 1,303,600 Gain on the sale of investments 119,300 Loss due to flood damage 397,000 Loss on the disposition of the wholesale division (net of tax) 451,900 Loss on operations of the wholesale division (net of tax) 88,730 Dividends declared on common stock 264,100 Dividends declared on preferred stock 87,850 Stellar Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Stellar sold the wholesale operations to Rogers Company. During 2017, there were 492,800 shares of common stock outstanding all year. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.) STELLAR COMPANY Income Statement $ $ $ : $ $ $ SHOW LIST OF ACCOUNTS Prepare a retained earnings statement. (List items that increase retained earnings first.) STELLAR COMPANY Retained Earnings Statement $ : : $ $ Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

You have just been appointed as the financial accountant at Caulfield Warehouse Direct (CWD), an electrical company. CWD makes all sales under terms of Free On Board (FOB) shipping point. FOB shipping point specifies that the title and responsibility of goods transfer from the seller to the buyer when the goods are placed on the delivery vehicle. During your first week, you have been asked to conduct a review of all income items as the Australian Tax Office wants to know details of all income in the last financial year, which ended on 31 December. During your review, you became aware that CC had post-dated a significant sales transaction of $500,000 (goods were delivered on 27 December, but invoiced on 3 January). Post-dating the sales transaction would lower CWD’s taxable income. You approached the owner, Megan Simpson, and discussed about it. Megan asked you to ignore the finding because it is part of the company’s policy. After all, there was a difference of only one week between 27 December and 3 January.

1. Explain the ethical issue (or dilemma) that you face.
2. Identify four (4) parties (stakeholders) that may be harmed.
3. Discuss three (3) specific interests that are in conflict [HINT: For each, you must identify pairs of stakeholders whose interests might be in conflict and explain why].
4. What are your options and the consequences of each option? Specify two (2) options, and for each option, explain the impact of that option on the stakeholders.

1.)

Prepare adjusting journal entries, as needed, for the following items.

(a) The Supplies account shows a beginning balance of $100. The company purchases an additional $1,300 of office supplies for cash but a count of supplies reveals only $600 on hand at year-end.

Debit                            [ Select ]                       ["Accounts Receivable", "Retained Earnings", "Supplies Revenue", "Inventory", "Supplies", "Accounts Payable", "Cash", "Cost of Goods Sold", "Supplies Expense"]           for                            [ Select ]                       ["$100", "$2,000", "$800", "$700", "$1,400", "$600", "$1,300"]      
           Credit                            [ Select ]                       ["Accounts Receivable", "Inventory", "Cost of Good Sold", "Accounts Payable", "Retained Earnings", "Supplies Revenue", "Supplies Expense", "Supplies", "Cash"]         for                            [ Select ]                       ["$100", "$700", "$1,300", "$600", "$2,000", "$1,400", "$800"]      

(b) The company purchases 12 months of insurance on September 1st for $18,000 by debiting prepaid insurance. It is now December 31st and 4 months of insurance has been used. Record the necessary adjusting entry as of December 31st.

Debit                            [ Select ]                       ["Accounts Receivable", "Deferred Revenue", "Accounts Payable", "Insurance Revenue", "Retained Earnings", "Cash", "Equipment", "Prepaid Insurance", "Insurance Expense"]           for                            [ Select ]                       ["$1,500", "$12,000", "$6,000", "$9,000", "$4,500", "$18,000", "$3,000"]      
           Credit                            [ Select ]                       ["Accounts Payable", "Prepaid Rent", "Insurance Expense", "Prepaid Insurance", "Supplies", "Cash", "Retained Earnings", "Insurance Revenue", "Equipment", "Accounts Receivable"]         for the same amount as above

(c) A company borrows $40,000 with 6% interest on August 1st, 2018. This amount plus interest is due on July 31st, 2019. Record the adjusting entry on December 31, 2018.

Debit                            [ Select ]                       ["Supplies", "Interest payable", "Net Income", "Cash", "Retained Earnings", "Interest expense", "Interest Revenue", "Equipment", "Interest Receivable"]           for                            [ Select ]                       ["$1,000", "$400", "$200", "$1,200", "$40,000", "$42,400", "$800", "$2,400", "$1,400", "$600"]      
           Credit                            [ Select ]                       ["Equipment", "Accounts payable", "Cash", "Retained Earnings", "Interest revenue", "Interest receivable", "Interest expense", "Accounts Receivable", "Interest payable", "Supplies"]         for the same amount as above.

(d) At year-end, the company received a utility bill for December's electricity usage of $200 that will be paid in early January.

Debit                            [ Select ]                       ["Cash", "Accounts Receivable", "Equipment", "Supplies", "Utilities Revenue", "Utilities Payable", "Retained Earnings", "Utilities Expense"]           for $200
           Credit                            [ Select ]                       ["Equipment", "Deferred Revenue", "Rent Expense", "Accounts Receivable", "Supplies", "Utilities Expense", "Utilities Payable", "Cash", "Prepaid Utilities", "Retained Earnings"]         for $200

(e) A company purchases new equipment for $28,000 cash on January 1st, 2010. The equipment is expected to have a $4,000 salvage at the end of it's 4 year useful life. Record the adjusting entry for depreciation using straight-line as of December 31st, 2010

Debit                            [ Select ]                       ["Accounts Receivable", "Cash", "Service Revenue", "Accounts Payable", "Equipment", "Depreciation Expense", "Supplies", "Accumulated Depreciation", "Retained Earnings", "Prepaid Depreciation"]           for                            [ Select ]                       ["$18,000", "7,000", "$24,000", "$4,000", "$28,000", "$6,000"]      
           Credit                            [ Select ]                       ["Accounts Payable", "Equipment", "Supplies", "Depreciation Expense", "Salaries Expense", "Retained Earnings", "Service Revenue", "Accumulated Depreciation", "Cash", "Accounts Receivable"]         for the same amount as above

2.

Roccos Incorporated reports the following amounts at the end of the year.

In addition, the company had common stock of $21,000 at the beginning of the year and issued an additional $2,100 during the year. The company also had retained earnings of $12,600 at the beginning of the year and paid dividends of $3,800 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.

Upload

Choose a File

In the following problems , give a complete hypothesis test for each problem. Use the method described. Make sure you include the original claim in symbols, The null and alternative hypothesis, the significance level, the actual formula and calculation of the test statistic, give the p-value and a  drawing of critical region ,the decision concerning the null hypothesis and a conclusion stated in non technical terms

1. In a recent year, of the 109,857 arrests for Federal Offenses, 31968 were for drug offenses. Use a 0.01 significance level to test the claim that the drug offense rate is less than 30%.

2. In a previous test baseballs were dropped 24 ft. onto a concrete surface, and they bounced an average of 984 in. In a test of a sample of 40 new balls, the bounce heights had a mean of 92.67 in. with a standard deviation of 1.79 in. Use a 0.05 significance level to determine whether there is significant evidence to support the claim that the new balls have bounce heights with a mean different from 92.84.

3. A communications industry spokesperson claims that over 80% of Americans either own a smart phone or have a family member that does.  In a random survey of 1036 Americans, 956 said that they or a family member owns a smart phone. Test the spokesperson’s claim at the  level.

4. A large university says the mean number of classroom hours per week for full-time faculty is more than 9. A random sample of the number of classrooms hours for full-time faculty for one week is listed. At  test the university’s claim. Assume normality

10.7     9.8       11.6     9.7       7.6       11.3     14.1     8.1       11.5     8.5       6.9

5. USA Today ran a report about a University of North Carolina poll of 1248 adults from the southern United States. The poll asked them if they believed that Elvis was alive. 99 of the 1248 adults believed that Elvis still lives. The article began with the claim that almost 1 out of 10 Southerners still think Elvis is alive. At the 0.01 significance level, test the claim that the true percentage is less than 10%.

6. The FDA regulates that fish that is consumed is allowed to contain 1.0 mg/kg of mercury. In Florida, bass fish were collected in 53 different lakes to measure the amount of mercury in the fish. The data for the average amount of mercury in each lake is in table below Do the data provide enough evidence to show that the fish in Florida lakes has more mercury than the allowable amount? Test at the 10% level.

7. The Kyoto Protocol was signed in 1997, and required countries to start reducing their carbon emissions. The protocol became enforceable in February 2005. In 2004, the mean CO₂ emission was 4.87 metric tons per capita. The data below are a random sample of CO₂ emissions in 2010. Is there enough evidence to show that the mean CO₂ emission is lower in 2010 than in 2004? Test at the 1% level.

Beaver Ltd. is a retail company that sells sporting goods. It has a customer loyalty program that allows customers to earn points based on sales made. These points can be accumulated and used for future purchases. One customer loyalty point is awarded for every $1 of purchases. During March 20X4, the company recorded sales of $1,725,000 to customers who were accumulating points. The stand-alone value of these goods sold was $1,725,000. Beaver has also determined that each point has a fair value of $0.017. The loyalty account had a balance of $870,000 at the beginning of March. During the month of March, customers used 1,200,000 points to purchase goods in the store.

Required:
Prepare the entries for the above transactions for the month of March 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar.)

ABC COMPANY

Products: Producing heating equipment for the construction industry in Turkey.

Manufacturing: Computerized production are used for manufacturing. Manufacturing process is dominated by robots and there is a small team of engineers and technicians monitor the process and intervene if necessary.

Customers: Customers are the construction firms in Turkey. They are looking for new and innovative products, which can be input for low-cost, efficient and user-friendly buildings and facilities.

Environment: Number of competitors is increasing, and big companies want to enter the market. Sales teams of the competitors develop strong relationships with the customers through offering them new products.

It is said that main supplier will make an agreement with a competitor, and will produce for only that competitor in the next year. As there is no alternative for the main supplier in terms of product quality and price, ABC faces a serious problem.

1. Analyze uncertainty sources for ABC’s environment. (15 POINTS)
2. Which type of structure (organic or mechanistic) is suitable for ABC company? Why? (20 POINTS)

Consider an x distribution with standard deviation σ = 48.

(a) If specifications for a research project require the standard error of the corresponding x distribution to be 3, how large does the sample size need to be?
n =  

(b) If specifications for a research project require the standard error of the corresponding x distribution to be 1, how large does the sample size need to be?
n =

Suppose x has a distribution with μ = 27 and σ = 24.

(a) If a random sample of size n = 42 is drawn, find μ_x, σ_x and P(27 ≤ x ≤ 29). (Round σ_x to two decimal places and the probability to four decimal places.)

(b) If a random sample of size n = 62 is drawn, find μ_x, σ_x and P(27 ≤ x ≤ 29). (Round σ_x to two decimal places and the probability to four decimal places.)

(c) Why should you expect the probability of part (b) to be higher than that of part (a)? (Hint: Consider the standard deviations in parts (a) and (b).)
The standard deviation of part (b) is  ---Select--- the same as larger than smaller than part (a) because of the  ---Select--- larger same smaller sample size. Therefore, the distribution about μ_x is  ---Select--- wider the same narrower .

43. A company is involved in  financing activities when these:

31. Expenses

24. A decrease in accounts receivable turnover ratio is indicative of:

23. Which of the following is  not an expense?

13. The unadjusted trial balance:

12. When cash is paid  before the expense is incurred to generate revenue, costs are stated as:

11.Company A receives $10,000 in advance this month for work to be performed next month. This month, the company should: