Milden Company is a merchandiser that plans to sell 25,000 units during the next quarter at a selling price of $52 per unit. The company also gathered the following cost estimates for the next quarter:

Required:

1. Prepare a contribution format income statement for the next quarter.

2. Prepare a traditional format income statement for the next quarter.

Prepare a contribution format income statement for the next quarter.

11. Within 5 years and three months from now on you will go to college and wish to be able to withdraw $ 3,000 each quarter from your bank account to cover college expenses for the next four years of the race . If the account pays 3.65% interest, how much do you need to have in your bank account today to meet your spending needs during the next four years? How much you need to deposit each month until you start your career to meet your spending needs during the next four years.

TRW Inc. began business in 2018 and incurred net operating losses for its first two years. In 2020, it became profitable. The following table shows TRW’s taxable income before consideration of these NOLs.

DURBAN FIRMS PRODUCING ONLY TWO GOODS, DIAMOND AND GOLD. THE PROCEED OF WHICH IT USES TO PURCHASE GOODS AND SERVICES FROM NEIGHBORING TOWNS THROUGH BANKS. DISCUSS THE CIRCULAR FLOW OF INCOME AND SPENDING IN DURBAN.

GrowMaster Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm’s marketing director, has completed the following sales forecast. Month Sales Month Sales January $900,000 July $1,500,000 February $1,000,000 August $1,500,000 March $900,000 September $1,600,000 April $1,150,000 October $1,600,000 May $1,250,000 November $1,500,000 June $1,400,000 December $1,700,000 Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information. ● All sales are made on credit. ● GrowMaster’s excellent record in accounts receivable collection is expected to continue, with 60% of billings collected in the month after sale and the remaining 40% collected two months after the sale. ● Cost of goods sold, GrowMaster’s largest expense, is estimated to equal 40% of sales dollars. Seventy percent of inventory is purchased one month prior to sale and 30% during the month of sale. For example, in April, 30% of April cost of goods sold is purchased and 70% of May cost of goods sold is purchased. ● All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, and the remaining 25% in the month following purchase. ● Hourly wages and fringe benefits, estimated at 30% of the current month’s sales, are paid in the month incurred. ● General and administrative expenses are projected to be $1,550,000 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter. Salaries and fringe benefits $ 324,000 Advertising 372,000 Property taxes 136,000 Insurance 192,000 Utilities 180,000 Depreciation 346,000 Total $ 1,550,000 ● Operating income for the first quarter of the coming year is projected to be $320,000. GrowMaster is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter. ● GrowMaster maintains a minimum cash balance of $50,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12% line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1,000). Accrued interest is paid in full with each principal repayment. The projected cash balance on April 1 is $50,000.

*Prepare the cash receipts budget for the second quarter.

*Accounts Receivable balance at the end of second quarter of 2015

*Prepare the purchases budget for the second quarter.

*Prepare the cash payments budget for the second quarter.

*Prepare the cash budget for the second quarter.

*

3. The spending multiplier effect

Consider a hypothetical economy. Households spend $0.75 of each additional dollar they earn and save the remaining $0.25. The spending multiplier for this economy is.

Suppose investment in this economy increases by $100 billion. The increase in investment will lead to an increase in income, generating an increase in consumption that increases income yet again, and so on.

Fill in the following table to show the impact of the change in investment on the first two rounds of consumption spending and, eventually, on total spending and income.

Now consider the impacts of a change in taxes. The tax multiplier in this question will be____, thus, if taxes increase by $100 billion then spending will change by $ _____ billion.

Stillwater Video Company, Inc. produces and markets two popular video games, High Range and Star Boundary. The closing account balances on the company's balance sheet for the last year are as follows: Cash, $18,735; Accounts Receivable, $19,900; Materials Inventory, $18,510; Work in Process Inventory, $24,680; Finished Goods Inventory, $21,940; Prepaid Expenses, $3,420; Plant and Equipment, $262,800; Accumulated Depreciation-Plant and Equipment, $55,845; Other Assets, $9,480; Accounts Payable, $52,640; Mortgage Payable, $70,000; Common Stock, $90,000; and Retained Earnings, $110,980.

Operating budgets for the first quarter of the coming year show the following estimated costs: direct materials purchases, $58,100; direct materials usage, $62,400; direct labor expense, $42,880; overhead, $51,910; selling expenses, $35,820; general and administrative expenses, $60,240; cost of goods manufactured, $163,990; and cost of goods sold, $165,440. Estimated ending cash balances are as follows: January, $34,610; February, $60,190; and March, $54,802. The company will have no capital expenditures during the quarter.

Sales are projected to be $125,200 in January, $105,100 in February, and $112,600 in March. Accounts receivable are expected to double during the quarter, and accounts payable are expected to decrease by 20 percent. Mortgage payments for the quarter will total $6,000 of which $2,000 will be interest expense. Prepaid expenses are expected to go up by $20,000, and other assets are projected to increase by 50 percent over the budgeted period. Depreciation for plant and equipment (already included in the overhead budget) averages 5 percent of total plant and equipment for the year. Federal income taxes (34 percent of profits) are payable in April. The company pays no dividends.

1. Prepare a budgeted balance sheet as of March 31.​

show work in excel document

Pletcher Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the first 2 quarters of 2017. All that remains in this process is the cash budget. The following information has been collected from other portions of the master budget and elsewhere.

Prepare a cash budget for each of the first two quarters of 2017. (Do not leave any answer field blank. Enter 0 for amounts.)