On Jan. first, 2018, Snuff Company accepts 60000 non-interest bearing note from a customer for the sale of goods. The note is to be paid in 3 equal installments every Dec. 31st (first payment on Dec. 31, 2018). An assumed interest rate of 10% is implied. Round installment payments to the nearest dollar.

pt 1: Determine the PV of the note. Show all computations or calculator imputs.

pt 2: Prepare an amortization table in Excell to show the revenue recognized each year

pt 3: Prepare the journal entries for the dates listed below.

jan 1, 2018

Dec 31,2018

Dec 31, 2019

Which of the following production levels represents an inefficient use of the economy's resources?

Question 1 options:

A) 600,000 bushels of food and 0 skeins of cloth.

B) 500,000 bushels of food and 30,000 skeins of cloth.

C) 300,000 bushels of food and 30,000 skeins of cloth.

D) 200,000 bushels of food and 20,000 skeins of cloth.

Question 2

(1 point)

Suppose the economy is producing 500,000 bushels of food and 20,000 skeins of cloth. What is the opportunity cost of producing an additional 10,000 skeins of cloth?

Question 2 options:

A) 70,000 bushels of food.

B) 100,000 bushels of food.

C) 200,000 bushels of food.

D) 500,000 bushels of food.

Question 3

(1 point)

Suppose the economy is producing 500,000 bushels of food and 20,000 skeins of cloth. To increase cloth production to 30,000 skeins without reducing food production, the economy must

Question 3 options:

A) acquire new resources or better technology.

B) eliminate the current inefficient use of resources.

C) fire some workers and replace them with machines.

D) lower taxes and reduce government spending.

Question 4

(1 point)

Which fundamental economic question is most closely related to the issues of income distribution and poverty?

Question 4 options:

A) The What to Produce question.

B) The Why to Produce question.

C) The How to Produce question.

D) The For Whom to Produce question

Question 5

(1 point)

A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $30 to $40 per acre. According to marginal analysis, the farmer should add additional fertilizer if it costs less than

Question 5 options:

A) $10 per pound.

B) $20 per pound.

C) $30 per pound.

D) $40 per pound.

Question 6

(1 point)

If society fully employs its resources to their capacity, then it will be operating at a point

Question 6 options:

A) beneath its production possibilities curve.

B) at a corner of its production possibilities curve.

C) somewhere along its production possibilities curve.

D) outside of its production possibilities curve.

Question 7

(1 point)

The law of increasing opportunity costs causes the production possibilities curve to

Question 7 options:

A) be a straight line.

B) slope upwards.

C) have a bowed-out shape.

D) shift inward.

Question 8

(1 point)

Additions to available resources will cause the production possibilities curve to

Question 8 options:

A) shift outward.

B) disappear.

C) become vertical.

D) contract.

Question 9

(1 point)

Which of the following will not shift a production possibilities curve outward?

Question 9 options:

A) An increase in the supply of resources.

B) A technological improvement.

C) A decrease in the unemployment rate.

D) A better trained labor force.

Question 10

(1 point)

Which of the following is most likely to stimulate a nation's economic growth?

Question 10 options:

A) Investing in new capital goods.

B) Raising taxes on goods imported from abroad.

C) Expanding the money supply.

D) Imposing new, lower mandatory retirement age.

Question 1(a) “Chain Saw”AL and Sunbeam (1995-1998)AL Dunlop was proud of the fact that he was at the bottom of his West Point class (he did graduate). Afrightening thought worthy of Dr.Strangelove is that as an officer he was assigned to a missile silo and the missiles were armed with nuclear weapons.He was chosen to turn around Scott Paper company. Within six months he had dismissed 11,200 employees including 50 percent of all managers and 70 percent of all corporate staff and paid off a significant amount of Scott’s long term debt. He then sold the company to Kimberly-Clark making over $100 million from his stock options.In the spring of 1995 AL Dunlop gave a talk at the Johnson School in Professor Bierman’s finance course. He received a standing ovation for his talk which stressed that managers should increase shareholder value.That night there was a dinner in his honour at Renees attended by Charles Elson (law school professor and friend of AL), Bob Gibbons, Jerry Hass and Hal Bierman(the last three wereJohnson School professors). It was a dinner from hell. Dunlop insisted on using profanity continuously and incorrectly and insulting each of the professors in sequence. Attempts at peace making were turned into profane tirades. He was actually an unintelligent, dislikeable and uninformed man. The next day a group of students came to Professor Bierman’s office and advocatedALDunlop for Dean of the School. Bierman suggested that they approach the tenth person they met incollegetown and offer the job to that person since he would perform better.July 18, 1996 Dunlop (now 59) was made Chairman of the Board of the Sunbeam Corporation, a company in need of help. On July 17, the stock price was $12.25. By July 19, the stock reached a price of $19.50. This wasthe biggest gain prompted by a chief executive announcement in the history of theNew York Stock Exchange. Professor Bierman took it as a matter of honour to sell the stock short.

Sunbeam paid Dunlop a salary of $1 million a year,2.5 million options to buy at $12.25 and one million shares of restricted stock(worth $18 million). The total package has a value in excess of $38 million.By August 8, he had dismissed the president of Sunbeam’s household products group, the chief financial officer, the chief operating officer North America, and the vice president of strategic planning for North America. Sunbeam had 60 staff people at its Fort Lauderdale headquarters. The market expected headcount reductions. Dunlop sent the following press release “I set as an initial goal the quick appointment of a highly focused management team to provide leadership in the transition to the Sunbeam Corporation”. He also stated “if you can’t rum a company around in a year, you can’t do it at all”.In November 1996, Dunlop announced a major restructuring.Headcount will be reduced by 50% to 6,000. Some of the reductions willbe the result of divestitures. In January 1997, Sunbeam sold its clock, timers, and thermometer units to CIT Group Holdings for $8 million (the units generated $20 million in annual revenues). By the first quarter of 1997, Sunbeam had a positive (but small) profit, Sales were almost as high as in 1995 but not as high as the first halfof 1996.But some critics pointed out that there were last minute sales drives in the first quarter of 1997, including deliveries when the orders had been cancelled because of failure to deliver in time.Dunlop said “we are definitely on schedule and we will probably deliver better results than we expected “.The stock price broke through $30.Professor Bierman sold short more shares.By December 1997,the stock price reached $41.Professor Biermancovered his short position having lost all faith in the efficiency of the stock market.by the end of 1997,the stock reacheda high of $50 7/16 and the company reported net earnings of $109.4 million ($1.41 per share) for the year.In the fall of 1997, Dunlop hired Morgan Stanley to sell Sunbeam. The $50 stock price precluded any bids. Dunlop decided if he could not sell then he would buy. In March1998, Sunbeam purchased Coleman Corporation for $2.2 billion and Signature Brands and First Alert for $425 million. Now Sunbeam had over $2 billion of in debt and itsnet worth was a negative $600 million.

By June 8, 1998, the business press wondered whether Dunlop had manufactured Sunbeam’s 1997 earnings by accelerating the bookings of sales and various accounting tricks .one author estimated the inflation in profits to be $120 million. This estimate was probably too low.On Saturday, June 13, 1998, AlbertJ. Dunlop was fired by Sunbeam. The motion to remove Dunlop was made by Charles Elson, Dunlop’s good friend and staunch alley in the pursuit of shareholders rights. Elson was an honourable person who voted on behalf of Sunbeam’s shareholders and against his friend. Sunbeam’s stock had fallen to $18.0625 on Friday, June 12. The stock continued to fall to $11.25 by June 29. The stock price decline continued with the stock price falling below ten in July (Biermann was right, if poorer).On April 22, 1999, Sunbeam reported a loss of $898 million for 1998. Its warehouses were full of finished goods inventories. The stock sold for $5.375. Finally, AL Dunlop announced that he was ready to another corporation.Required:(i)ALDunlop was a great success at Scott Paper selling out to Kimberly-Clark at a fine profit. Why was he a failure at Sunbeam?(ii)With hindsight we know AL at Sunbeam was a disaster. What hints were there that maybe he was not going to be a success at Sunbeam?(iii)What generalizationsare there?(iv)Sunbeam reported $109.4 million of income for the year 1997. What accounting related actions could Sunbeam have taken that would inflate 1997 income?(v)What real actions in 1996 and 1997 would tend to increase income? Which of these actions are desirable?(vi)As a consultant hired in 1996 would you doas Dunlop wants you to do or would you do what you think is best for Sunbeam? Assume Dunlop’s actions will harm Sunbeam’s stockholders and employees.

Required information

[The following information applies to the questions displayed below.]

Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $15,400. They expect to use the Suburban for five years and then sell the vehicle for $6,200. The following expenditures related to the vehicle were also made on July 1, 2022:

• The company pays $2,650 to GEICO for a one-year insurance policy.
• The company spends an extra $6,400 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.
• An additional $2,850 is spent on a deluxe roof rack and a trailer hitch.

The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $2,100 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.

Required:

1. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the Equipment account. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

2. Prepare a depreciation schedule using the straight-line method.

3. Record the depreciation expense and the expiration of prepaid insurance related to the vehicle on December 31, 2022

The company sells many styles of earrings, but all are sold for the same price—$14 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.

Suppliers are paid $4.80 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.

Monthly operating expenses for the company are given below:

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $20,000 in new equipment during May and $48,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $21,000 each quarter, payable in the first month of the following quarter.

The company’s balance sheet as of March 31 is given below:

The company maintains a minimum cash balance of $58,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $58,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:

1. a. A sales budget, by month and in total.

    b. A schedule of expected cash collections, by month and in total.

    c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

    d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

1. Prepare a sales budget for January through May. The selling price per unit is $40.00.

December of the previous year-40,000

January-90,000

February-80,000

March-70,000

April-40,000

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 $15.00 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 5% of next month’s projected sales.

3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $50,000.00, and this was the balance in the cash account on January 1. Past experience shows that 30% of sales are collected in the month of the sale, and 70% in the month following the sale. Labor cost is $15 per unit. Other expenses include $37,000 per month for rent, $4,000 for advertising, and $6,000 per month for depreciation. All costs are paid in the current month except inventory purchases, which are paid in the month following purchase (i.e. January purchases are paid in February). On January 1^st there was an accounts receivable balance of $60,000 and an outstanding accounts payable balance of $100,000. 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 when there is enough cash to make the payment. Also, interest is only paid at the time when a repayment is made. 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.

I did questions 1 and 2, I need help with 3. Thanks!

1. Prepare a sales budget for January through May. The selling price per unit is $40.00.

December of the previous year 40,000

January 90,000

February 80,000

March 70,000

April 40,000

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 $15.00 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 90% of next month’s projected sales.

3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $50,000.00, and this was the balance in the cash account on January 1. Past experience shows that 30% of sales are collected in the month of the sale, and 70% in the month following the sale. Labor cost is $15 per unit. Other expenses include $37,000 per month for rent, $4,000 for advertising, and $6,000 per month for depreciation. All costs are paid in the current month except inventory purchases, which are paid in the month following purchase (i.e. January purchases are paid in February). On January 1^st there was an accounts receivable balance of $60,000 and an outstanding accounts payable balance of $100,000. 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 when there is enough cash to make the payment. Also, interest is only paid at the time when a repayment is made. 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.

I did Questions 1 and 2, I need help with #3. Thanks!

Bench Corporation is a merchandising company that is preparing a cash budget for the third quarter. They have the following budget information available.  

1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000. Accounts receivable from June sales are $136,000. All sales are on credit and collected 35% in the month of sale and 65% in the month following sale.

2. Inventory purchases for July, August, and September are budgeted as $129,600, $136,200, and $135,600. Accounts payable from June purchases are $71,100. All purchases are paid 40% in the month of purchase and 60% in the month following purchase.

3. Monthly SGA expenses are $60,000; $5,000 of which represents depreciation.

4. In August, Bench purchases a machine for $90,000.

5. The July 1 cash balance is $20,000. For debt covenants, Bench must maintain a $10,000 cash balance at month end. The company has access to a revolving line of credit at a 6% annual rate. Borrowing occurs in $5,000 increments at the end of a month and is repaid as soon as possible. Interest is paid when the principal is repaid.

What were the total cash receipts for September?

What were the expected cash disbursements for inventory purchases in September?

What was the beginning cash balance for September?

How much money was drawn on the line of credit (e.g., borrowed) for the quarter?

What were total monthly Selling & Administrative (or SGA) expenses?

How much was paid in cash for Selling & Administration per month?

What was the ending cash balance for September?

What was the ending cash balance for the quarter?

What were the total cash receipts for the quarter?

How much interest was paid during the quarter?

What is wrong with this code and how can it be fixed?

import java.util.Scanner;

public class admissionRequirement {

public static void main(String[] args) {

// TODO Auto-generated method stub

Scanner myObj = new Scanner(System.in);

System.out.println("What is your name?");

String name = myObj.nextLine();

System.out.println("What is your Reading Score?");

int reading = myObj.nextInt();

System.out.println("What is your Math Score?");

int math = myObj.nextInt();

System.out.println("What is your Writing Score?");

int writing = myObj.nextInt();

System.out.println("What is your Class Standing?");

int standing = myObj.nextInt();

System.out.println("What is your Class Size?");

int size = myObj.nextInt();

double average = ((reading + math + writing) / 3);

double quarter = (standing/size);

int percentage = (25 /100) * 100;

if (math >= 200 && math <= 800 && reading >= 200 && reading <= 800 && writing >= 200 && writing <= 800)

{

if (math >=800 || reading >=800 || writing >= 800)

{

System.out.print("You are accepted!");

}

else

{

if (math < 300 || reading < 300 || writing < 300);

{

System.out.print("You are rejected because your text scores are below 300.");

}

else

{

if(average > 650 && quarter > percentage)

{

System.out.print("You are accepted!");

}

else

{

if((math < 400 && reading < 400) || (math < 400 && writing < 400) || (reading < 400 && writing < 400) || (quarter < percentage))

{

System.out.print("You are rejected because you have two test scores below 400 or you are in the bottom quarter of your class.");

}

else

{

if ((math > 400 && reading > 400) || (math > 400 && writing > 400) || (reading > 400 && writing > 400) || (quarter < percentage))

{

System.out.print("You are on the waitlist");

}

else

{

System.out.print("You are rejected");

}

}

}

}

}

}

}

}

PROBLEM 2-21B   Predetermined Overhead Rate; Disposition of Underapplied or Overapplied Overhead (LO1, LO7)

CHECK FIGURE

(2) Underapplied: $68,600

Adriana Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:

During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1.       Compute the company’s predetermined overhead rate for the year.

2.       Compute the underapplied or overapplied overhead for the year.

3. Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate entry. Will this entry increase or decrease net operating income?

Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement (LO6)

CHECK FIGURE

Direct labor: $57,000

Alexsandar Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):

Inventory balances at the beginning and end of the year were as follows:

The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $39,000. The company’s overapplied or underapplied overhead is closed entirely to cost of goods sold.

Required:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)