3-19 Jaime’s Hat Shop sells hats with college logos on them; the hats sell for $22 each. This year, Jaime’s expects to sell 350 hats in May, 300 in June, 400 in July, 800 in August, 1,040 in September, and 750 in October. On average, 25 percent of its customers purchase on credit. Jaime’s allows those customers to pay for their purchases the month after they have made their purchases. Required: Prepare a sales budget for Jaime’s Hat Shop for the third quarter of this year.
I'VE ALREADY DONE THIS, JUST NEED HELP WITH THE QUESTION BELOW, THE QUESTION ABOVE (3-19) IS JUST FOR REFERENCE
Refer to 3-19. Jaime’s Hat Shop expects to incur the following expenses for each month of the third quarter of this year:
Rent (30% general and administrative, 70% selling) 1,200
Utilities (30% general and administrative, 70% selling) 600
Advertising 400
Salaries (50% general and administrative, 50% selling) 5,000
Commissions (for each hat sold) 2
In January, Jaime’s had prepaid the rent for the whole year. Jaime plans to pay for all the other expenses in the month they occur.
Required:
(1) Prepare a selling expenses budget for the third quarter of this year.
(2) Prepare a general and administrative expenses budget for the third quarter of this year.
In: Accounting
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 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?
In: Accounting
| Romano Services provides room-cleaning arrangements for hotels. On April 1, Swanky Hotels & Resorts signed an agreement to outsource its room cleaning functions to Romano. The contract specifies the service fee to be $45,000 per month, and all payments are to be made shortly after the end of each quarter. It also specifies that Romano will receive an additional quarterly bonus of $6,000, if during that quarter, Swanky receives no more than five complaints from customers about room cleanliness. | |||||||||
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On April 1, based on historical experience, Romano estimated that there is a 75% chance that it will earn the quarterly bonus. |
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On May 5, Romano learned that, during March, there were two complaints from customers related to room cleanliness. Based on this new information, Romano revised its estimate downward to 40% that it would earn the quarterly bonus. |
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On June 30, Swanky notified Romano that, for the quarter ended, there were four complaints associated with room cleanliness, so Romano would receive the bonus. Two days later, Romano received all payments due for all services rendered in the second quarter, including the bonus |
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Romano estimates any variable consideration on the expected value of the consideration it expects to receive. Prepare the required journal entry for Romano Services on April 30th, May 30th, and June 30th |
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In: Accounting
Jordan and Taylor are too busy baking brownies to schedule an appointment with you. They did send you the enclosed questions for you to answer.
1. Units to be produced annually: 200,000 tins
Direct labor: 1 hour per 100 tins
Variable overhead costs per direct labor hour:
Indirect materials $2.05
Indirect labor $1.20
Utilities $9.25
Maintenance $3.50
Fixed overhead costs per quarter:
Insurance $3,000
Depreciation $2,000
Rent $12,000
What is the budgeted total manufacturing overhead for the year? (5
points)
2. Sales: 60,000 tins per quarter
Variable costs per dollar of sales: sales commissions 5%, delivery
expense .5%, and advertising 1.5%.
Fixed costs per quarter: sales salaries $40,000, office rent
$1,500, utilities $1,200, and repairs expense $200.
Selling price: $10 per tin
What is the budgeted total selling and administrative expenses for the quarter? (5 points)
3. Sales are 30% cash and 70% on credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale. Sales were December $180,000; January $220,000; February $250,000; and March $300,000.
What was total cash received in March? (5 points)
In: Accounting
Actual and adjusted prices of a stock on January 15 were $45.75 and $12.4578, respectively. On February 22, the stock had a 3-for-1 split. On March 10, the stock paid a dividend of $0.75 per share. On April 15, the actual and adjusted prices of the stock were $20.45 and $17.3217. What was the return on the stock between January 15 and April 15?
а. - 53.66%
b. 34.10%
c. 35.74%
d. 39.04%
You invested $25,000 in a mutual fund 3 years ago. The mutual fund paid dividends of $800, $875 and $975 at the end of years 1, 2 and 3. After the third dividend you cashed your investment for $29,000. What was your annual rate of return on this investment?
a. 8.42%
b. 8.87%
c. 16.00%
d. 26.60%
3. A stock provided a return of 3 percent in the first quarter,
15 percent in the second quarter, −10 percent in the third quarter
and 5 percent in the fourth quarter. The return over the year from
this stock was
a. 13% b.11.94% c. -23% d.- 0.23%
If the effective annual rate of return is 16 percent per year,
the equivalent quarterly rate of return is
a. less than 4 percent
b. equal to 4 percent
c. more than 4 percent
d. 16 percent
In: Finance
In late 2015, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 4,000,000 shares of common stock carrying a $1 par value, and 1,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2, 2016, 2,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also on January 2, all 1,000,000 shares of preferred stock are issued at $20 per share.
|
Prepare the shareholders' equity section of the Nicklaus balance
sheet as of March 31, 2016. (Assume net income for the first
quarter 2016 was $1,200,000.) |
|
| Part B | |
| During 2016, the Nicklaus Corporation participated in three treasury stock transactions: |
| a. | On June 30, 2016, the corporation reacquires 130,000 shares for the treasury at a price of $12 per share. |
| b. | On July 31, 2016, 15,000 treasury shares are reissued at $15 per share. |
| c. | On September 30, 2016, 15,000 treasury shares are reissued at $10 per share. |
| Required: |
| 1. |
Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| 2. |
Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance sheet prepared at September 30, 2016. (Assume net income for the second and third quarter was $2,650,000.) |
| Part C |
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On October 1, 2016, Nicklaus Corporation receives permission to replace its $1 par value common stock (4,000,000 shares authorized, 2,000,000 shares issued, and 1,900,000 shares outstanding) with a new common stock issue having a $.50 par value. Since the new par value is one-half the amount of the old, this represents a 2-for-1 stock split. That is, the shareholders will receive two shares of the $.50 par stock in exchange for each share of the $1 par stock they own. The $1 par stock will be collected and destroyed by the issuing corporation. |
|
On November 1, 2016, the Nicklaus Corporation declares a $0.07 per share cash dividend on common stock and a $0.23 per share cash dividend on preferred stock. Payment is scheduled for December 1, 2016, to shareholders of record on November 15, 2016. |
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On December 2, 2016, the Nicklaus Corporation declares a 1% stock dividend payable on December 28, 2016, to shareholders of record on December 14. At the date of declaration, the common stock was selling in the open market at $10 per share. The dividend will result in 38,000 (0.01 × 3,800,000) additional shares being issued to shareholders. |
| Required: |
| 1. |
Prepare journal entries to record the declaration and payment of these stock and cash dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| 2. |
Prepare the December 31, 2016, shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was $2,150,000.) |
| 3. |
Prepare a statement of shareholders' equity for Nicklaus Corporation for 2016. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) |
In: Accounting
1. Relative to horizon stars rise in east and set in west everyday. a) True b) False
2. Relative to horizon the planets rise from west and set in east t every day. a) True b) False
3. During absorption of light electrons move from lower orbits to higher orbits a) True b) False
4. Apparent path of the sun among stars is called zodiac. a) True b) False
5. Galileo is the first astronomer to suggest the sun is at the center of universe. a) True b) False
6. According to Kepler’s second law planets move faster when they are closer to the sun. a) True b) False
7. The objects that exhibit retrograde motion are planets and nearby stars. a) True b) False
8. Babylonians used deferent and epicycles to explain the retrograde motion of planets. a) True b) False
9. Planets closer to the sun take less time to go around the sun once compare to the planets farther away from sun. a) True b) False
10. Refraction telescopes use mirrors as objective. a) True b) False
11. Color of light depends on a) amplitude of the wave b) wavelength of light wave c) medium it travels d) its speed
12. Which of the following did the model of Copernicus and the model of Kepler have in common? a) planets move in elliptical orbits b) planets move around the sun c)the motion of planets are uniform d) both a & b.
13. Circumpolar stars are a) brightest stars b) stars in Zodiac c) stars never set d) none of these
14. Light year is defined as a) distance from earth to sun b) distance to nearest star c) distance that light travels in one year d) distance that earth travels around sun in one year
15. Which of following is not a telescopic discovery of Galileo. a) moons of Jupiter b) mountains of moon c) new planet Pluto d) sunspots
16. Resolution of a telescope depends on its a) length b) diameter c) weight d) location on the earth
17. Who used the telescope to observe the sky first? a) Copernicus b) Aristotle c) Galileo d) Kepler
18. An astronomical unit (a.u) is defined as a) a reference unit of time between stars b) distance that light travels in 1 day c) the average distance between the sun and the earth. d) The average distance between the earth and the moon.
19. Phase of the moon during solar eclipse is a. new moon b. first quarter c. third quarter d. full moon E N S W
20. According to the diagram, what is the approximate time a. 9 AM b. noon c. 3 PM d. 3 AM Sun
21. According to the diagram, what is the phase of the moon? 22. What types of electromagnetic radiation has more energy?
23. What is common to all types of electromagnetic waves? 24. As viewed from the earth, What is the angle from the sun to third quarter moon?
25. Why do we different phases (shapes) of the moon?
In: Physics
|
Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: |
|
Fixed Element per Month |
Variable Element per Customer Served |
Actual Total for May |
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| Revenue | $ | 5,700 | $ | 209,500 | ||
| Employee salaries and wages | $ | 64,000 | $ | 1,100 | $ | 106,400 |
| Travel expenses | $ | 560 | $ | 19,000 | ||
| Other expenses | $ | 43,000 | $ | 40,700 | ||
|
When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers
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| 3. |
What is Adger’s employee salaries and wages spending variance for May?
4.What is Adgers travel expenses spending variance for May?
5. What is Adger's other expenses spending variance for May?
6. What amount of revenue would be inculded in Adger's planning budget for May?
7. What amount of employee salaries and wages would be inculded in Adger's planning budget for May?
8. What amount of travel expenses would be inculded in Adger's planning budget for May?
9. What amount of other expenses would be included in Adger's planning budget for May?
10. What exctiving Variance would Adger report in May with respect to its revenue?
11. What activity Variances would Adger report with respect to each of its expenses?
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In: Accounting
|
The following data relate to the operations of Soper Company, a wholesale distributor of consumer goods as of March 31: |
| Cash | $ | 8,000 | |
| Accounts receivable | 20,000 | ||
| Inventory | 36,000 | ||
| Building and equipment, net | 120,000 | ||
| Accounts payable | 21,750 | ||
| Common shares | 150,000 | ||
| Retained earnings | 12,250 | ||
| a. | The gross margin is 25% of sales. |
| b. | Actual and budgeted sales data are as follows: |
| March (actual) | $ | 50,000 | |
| April | $ | 60,000 | |
| May | $ | 72,000 | |
| June | $ | 90,000 | |
| July | $ | 48,000 | |
| c. |
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. |
| d. |
Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. |
| e. |
One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. |
| f. |
Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets). |
| g. |
Equipment costing $1,500 will be purchased for cash in April. |
| h. |
The company must maintain a minimum cash balance of $4,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month. The monthly interest rate is 1%. Interest must be paid at the end of each month based on the total loans outstanding for that month. |
| Required: |
| Using the data above, complete the following statements and schedules for the second quarter: |
| 1. | Schedule of expected cash collections: |
| 2-a. | Merchandise purchases budget : |
| 2-b. |
Schedule of expected cash disbursements for merchandise purchases: |
| 3. |
Schedule of expected cash disbursements for selling and administrative expenses: |
| 4. |
Cash budget: (Round your intermediate calculations and final answers to the nearest whole dollar. Also, round up your interest calculations to the next whole dollar amount. Cash deficiency, repayments and interest should be indicated by a minus sign.) |
| 5. |
Prepare an absorption costing income statement for the quarter ending June 30. |
| 6. | Prepare a balance sheet as of June 30. |
In: Accounting
1. Expected inflation is
a. The inflation rate that governments require form year to year
b. The inflation rate that consumers and businesses expect will hold for some time in the future
c. The inflation rate that is based on GDP growth
d. The inflation rate minus the actual growth rate
2. COLA provisions automatically increase wages or benefits to match
a. Inflation
b. Disinflation
c. Deflation
d. The cost of living
3. In the United States, inflation peaked around
a. 1980
b. 1982-1984
c. 1929
d. 1973
4. Between 2000 and 2015, which of the following experienced a negative inflation rate?
a. Gasoline
b. College tuition
c. Medical care
d. Wireless phone service
5. A dollar-amount increase that has not been adjusted for inflation is called
a. A real increase
b. A normal increase
c. A net increase
d. An inflationary increase
6. Which goods did NOT decrease in price between 2000 and 2015?
a. Personal computers and peripherals
b. Alcoholic beverages away from home
c. Television
d. Toys
7. In 1973, the oil embargo sparked a wage-price spiral due to higher energy costs. In 2004, with a similar spike in oil prices, there was not a corresponding wage-price spiral because
a. Of heavy government regulation
b. Of alternative energy sources
c. The jump in prices did not last very long
d. The economy avoids unanticipated inflation
8. In the aftermath of the Great Recession
a. The U.S., Japan and Europe are all experiencing deflation
b. Deflation concerns have subsided in the U.S., Japan and Europe
c. Policymakers in the U.S., Japan and Europe are working hard to avoid deflation
d. The deflation of the early 2000’s have been reversed
9. Core inflation is defined as
a. Inflation that takes energy and food into account
b. Inflation that does not take energy and food into account
c. Inflation that takes health care and energy into account
d. Inflation that does not take health care and energy into account
10. Inflation is
a. One of the key measures of GDP
b. One of the key measures of the health of an economy
c. Generally steady from year to year
d. Generally beneficial to countries
11. The average price level is equivalent to
a. The price of a single good
b. The price of a market basket of goods
c. The price of exports
d. The price of imports
12. What is the cost of transactions as it relates to the harm caused by inflation?
a. The cost associated with the time and effort of managing your spending
b. The cost of products whose prices are rising
c. Production costs plus profit
d. The cost of the BLS market basket
13. Between 2000 and 2015, the average rate of inflation for all goods was 2.2 percent. Which goods experienced relative price decreases during that same period?
Any goods with negative inflation rates only
Any goods with positive inflation rates higher than 2.2 percent only
Any goods with negative inflation rates or positive inflation rates higher than 2.2 percent
Any goods with negative inflation rates or positive inflation rates lower than 2.2 percent
In: Economics