Hamby Corporation Balance Sheet June 30 Assets Cash $ 71,000 Accounts receivable 131,000 Inventory 45,500 Plant and equipment, net of depreciation 215,000 Total assets $ 462,500 Liabilities and Stockholders’ Equity Accounts payable $ 76,000 Common stock 307,000 Retained earnings 79,500 Total liabilities and stockholders’ equity $ 462,500 The company managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $260,000, $280,000, $270,000, and $290,000, respectively. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. Monthly selling and administrative expenses are always $48,000. Each month $5,000 of this total amount is depreciation expense and the remaining $43,000 relates to expenses that are paid in the month they are incurred. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. How much is the Company's expected cash collections in the month of August?

How much is the Company's expected merchandise purchases in the month of September?

Adams Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Adams made 70,000 tennis racquets and 29,400 badminton racquets).

   
Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment.

   
Required

1. Compute the cost per unit for each product.

2. If management wants to price badminton racquets 30 percent above cost, what price should the company set?

Company ABC uses the last-in, first-out (LIFO) dollar value retail inventory method. It adopted this method at the beginning of this year. The cost index for the year was 1.12. Below is information for the first year. Cost Retail BI 1082.0 1542.0 Net purchases 3462.4 5088.6 Net Sales 0.0 4579.7 Ending inventory at retail is: Answer The cost to retail conversion for beginning inventory is (round to at least 3 decimal points): Answer The cost to retail conversion for the layer added is (round to at least 3 decimal points): Answer Ending inventory at cost is: Answer Cost of goods sold is: Answer

Gladstone Limited tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Required:
1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods. For Specific identification, assuming that the March 14, sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31, was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round Weighted average cost per unit. Round your final answers to the nearest dollar amount.)

2-a. Of the three methods, which will result in the highest gross profit?

• Weighted average cost

• First-in, first-out

• Specific identification

2-b. Of the three methods, which will result in the lowest income taxes?

• Weighted average cost

• First-in, first-out

• Specific identification

Gladstone Limited tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost Beginning inventory, January 1 1,600 $ 7.00 Transactions during the year: a. Purchase, January 30 2,200 10.00 b. Sale, March 14 ($15 each) (1,000 ) c. Purchase, May 1 1,200 12.00 d. Sale, August 31 ($15 each) (1,900 ) Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods. For Specific identification, assuming that the March 14, sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31, was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round Weighted average cost per unit. Round your final answers to the nearest dollar amount.) 2-a. Of the three methods, which will result in the highest gross profit? Weighted average cost First-in, first-out Specific identification 2-b. Of the three methods, which will result in the lowest income taxes? Weighted average cost First-in, first-out Specific identification

Gladstone Limited tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Required:

1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods. For Specific identification, assuming that the March 14, sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31, was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round Weighted average cost per unit. Round your final answers to the nearest dollar amount.)

2-a. Of the three methods, which will result in the highest gross profit?

• Weighted average cost

• First-in, first-out

• Specific identification

2-b. Of the three methods, which will result in the lowest income taxes?

• Weighted average cost

• First-in, first-out

• Specific identification

The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with discount brokers. As part of the survey, members were asked to rate the quality of the speed of execution with their broker as well as provide an overall satisfaction rating for electronic trades. Possible responses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). For each broker summary scores were computed by calculating a weighted average of the scores provided by each respondent. Suppose a portion of the survey results follow.

These ratings data on x = the quality of the speed of execution and y = overall satisfaction with electronic trades provided the estimated regression equation ŷ = 0.078 + 0.946x. At the 0.05 level of significance, test whether speed of execution and overall satisfaction are related. (Use the F test.)

State the null and alternative hypotheses.

H₀: β₁ ≠ 0
H_a: β₁ = 0H₀: β₀ ≠ 0
H_a: β₀ = 0    H₀: β₁ = 0
H_a: β₁ ≠ 0H₀: β₁ ≥ 0
H_a: β₁ < 0H₀: β₀ = 0
H_a: β₀ ≠ 0

Set up the ANOVA table. (Round your for F to two decimal places and all other values to three decimal places.)

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

What is your conclusion?

Reject H₀. We cannot conclude that the relationship between speed of execution and overall satisfaction is significant.Reject H₀. We conclude that the relationship between speed of execution and overall satisfaction is significant.     Do not reject H₀. We cannot conclude that the relationship between speed of execution and overall satisfaction is significant.Do not reject H₀. We conclude that the relationship between speed of execution and overall satisfaction is significant.

Government per capita spending on health has been trending upwards.

A. True

B. False

C. Uncertain

How can changes in federal intergovernmental aid have more than a proportionate impact on state and local spending?