Pillows Unlimited makes decorative throw pillows for home use. The company sells the pillows to home décor retailers for $14 per pillow. Each pillow requires 1.25 yards of fabric, which the company obtains at a cost of $6 per yard. The company would like to maintain an ending stock of fabric equal to 10% of the next month’s production requirements. The company would also like to maintain and ending stock of finished pillows equal to 20% of the next month sales.

Sales (in units) are projected to be as follows for the first 3 months of the year:

Requirements:

1.Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter:

Prepare the sale budget, including a separate section that details the types of sales made. For this section, assume that 20% of the company’s pillows are cash sales, while the remaining 80% are sold on credit terms.

2.Prepare the production budget. Assume that the company anticipates selling 240,000 units in April.

3.Prepare the direct materials purchase budget assume that the company need 300,000 yards of fabric for production in April.

Please explain what you did

Splat Candies is planning on building a new gumball factory that will have an estimated construction cost of $44 million. One-quarter of the cost of construction will be spent in the first year, with the remainder spent in the second year. During the third year (first year of operation), the gumminess of the gumballs slows down production so that profit of only $8 million is achieved. After that, the net yearly profit is $12 million for 9 years. At the end of the 12-year project life, the factory is shut down and sold as scrap metal for $2 million. Assume MACRS depreciation with a 7 year recovery period, a 9% interest rate and a corporate tax rate of 29%.

(a) Make a table showing cash flow, depreciation charge, taxes paid and after-tax cash flows for the 12 year project life, plus the year after the project ends. Excel is very useful for this.

(b) What is the cumulative net present value of the plant? (Hint: see Towler example 9.4)

(c) Calculate overall after-tax ROI for the project.

(d) Determine the internal rate of return (IRR, which is the same as DCFROR) for the project.

Describe in detail the action of a full wave plate, half wave plate and quarter wave plate

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A. Fill in the blank

- cyclical - countervailing            - medium of exchange

           - expansionary        -expansionary monetary policy                 - trough

            - bank rate      - required reserve ratio                                        - frictional

              - dumping                                    - contractionary monetary policy      - automatic

             - excess reserve ratio           - store of value                          - contraction

a) Commercial banks hold a fraction of their deposits in cash in their vaults (or as deposits with the central bank). This fraction is known as the

b) The most direct way in which money replaces barter is through its use as a

c) A company of the Kenya has excess products that it does not want to sell into the Kenya market because it will bring down the domestic price and instead sells it in another country at below the cost of production. This situation is referred to as

d) The period of the business cycle in which real GDP is decreasing is called the

e) Workers at a steel plant are laid off because the economy is weak and the demand for       products         requiring         steel    has      is         an example   of unemployment.    

f) Declining oil prices from 2008 through the second quarter of 2010 has caused many economies to slow down. This has caused bank profits to decline, making Canadian banks vulnerable to a recession. The appropriate policy to be implemented is fiscal policy.

g) As housing prices began to drop and the economy slowed, the central bank began cutting its discount rate from 5.25% in June 2005 all the way to 0% by the end of 2006. With the economy still weak, it embarked on purchases of government securities from January 2007 until August 2012, for a total of $3.7 trillion. This is an example of

B. State the type of discretionary fiscal policy implemented or to be implemented by the government of Lota in the following events:

Listen to the investor call on the Anthony's Orchards website. Write a 1- to 2-page paper analyzing the investor call. State how the business plans to adjust and indicate whether you agree with the business decision. If not, how would you adjust the forecast in the next quarter based on the earnings call (i.e., second quarter numbers would go up instead of third; costs will go up in December, etc.)? Based upon the information, is it important to forecast? How is a forecast different than a budget?

A common stock is expected to pay no dividends during the next 7 quarters but at the end of 6th quarter, it is expected to pay DPS of $1.0 and thereafter dividends are expected to be paid quarterly and into indefinite future. The quarterly growth rate of dividends stream is 1.0% and it is expected to stay the same into indefinite future. The required expected rate of return on the common stock is 12% per annum.

Find:

(i)The current price per share of the stock.

(ii)The expected price per share at the beginning of the 8th quarter.

According to Thomson financials, through January 25,2006, the majority of companies reporting profits had beaten estimates. Now suppose that for the 4th quarter of 2012, 173 of a random sample of 270 companies reported profits that had beaten estimates.. Use this latest information to answer the following questions.

1) Does the data indicates the proportion of companies in the 4th quarter of 2012 that beat estimates is greater than 59% at a=0.01?

Please show all 7 steps in detail. step by step.

Accusoft Systems is offering small business owners a software package that keeps track of many accounting functions from bank transactions to sales invoices. The site license will cost $50,000 to install and will require a fee of $6000 every 3 months. If your company can save $13,500 every quarter and have the security of managing its books in-house, how long will it take for you to recover the investment at an interest rate of 12% per quarter?

The time taken to recover the investment is determined to be ............ quarters.

Environmental recovery company RexChem Partners plans to finance a site reclamation project that will require a 4-year cleanup period. If the company borrows $4.1 million now, how much will the company have to get at the end of each quarter in order to earn 15% per year, compounded weekly on its investment? Calculate the answer using both formula and spreadsheet function?

In order to earn 15% per year compounded weekly on its investment at the end of each quarter, the company will have to get $  .