The actual information pertains to the third quarter. As part of the budgeting process, the controller for Foley Manufacturing had developed the following static budget for the third quarter. The primary reason for high actual operating profits was ________.

                                                  Actual            Flexible                Static

                                                 Results             Budget             Budget

Sales volume (in units)                 11,000                                       10,000

Sales revenues                          $238,000         $                         $230,000

Variable costs                             150,000        $ ________             180,000

Contribution margin                    88,000         $                            50,000

Fixed costs                                  36,000        $ ________               35,000

Operating profit                        $ 52,000         $                          $ 15,000

Select one:

a. increased fixed costs

b. lower sales volume than planned

c. the variable-cost variance

d. flexible budget variance for revenues

A 1960 silver quarter is found to have a mass of 6.25 grams. On a given day, the value of silver is $17.32 per ounce. How much is this coin worth if the coin is 92% silver?

Reflect on the topics covered in the course this quarter, including inventory valuation and the acquisition, disposition, depreciation, impairments, and depletion of property, plant, equipment, and intangibles. Discuss the potential high risks with which your current employer, a previous employer, or company you would like to work for in the future are confronted related to these accounting issues. (Company names should not be disclosed.) Identify the controls, policies, and procedures established to minimize the risks. Analyze the effectiveness of the controls in place and suggest additional improvements to the controls. Generally Accepted Accounting Principles: Please share your thoughts about generally accepted accounting principles (GAAP)

What is the present value of annuity that pays $200 at the end of each quarter of a 10-year term if the interest rate is 5%? a. $3,256.39 b. $4,256.39 c. $5,256.39 d. $6,256.39 e. None of the above.

A company deposited $5,500 into an investment fund at the beginning of every quarter for 5 years. It then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 4.25% compounded monthly.

a. What was the accumulated value of the fund at the end of 5 years ?

b. What was the accumulated value of the fund at the end of 9 years ?

c. What was the amount of interest earned over the 9-year period?

Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted:

Additional data:

(1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000.

(2) Purchases are all on credit, with 40% paid in the month of purchase and 60% paid in the following month.

(3) Operating expenses are paid in the month they are incurred.

(4) A minimum cash balance of $25,000 is required at the end of each month.

(5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made at the end of the month if the cash balance exceeds $25,000.

Prepare the company's cash budget for May. Show the ending loan balance at May 31. Show all calculations.

If the public expects a listed company’s earnings to be $10 per share this quarter and it actually earns $8 per share, the strongest earnings ever announced, what does the efficient markets hypothesis tell us will happen to the price of the stock when the $8 earnings are announced?

The Fortunate Co. is preparing a cash budget for the 2nd quarter. The following information is available:

Projected cash sales:   $10,000 each month

Projected credit sales: $ 8,000 each month

One half of the credit sales are collected in the month of sale, and the remainder collected in the following month (there are no uncollectible accounts).

Accounts receivable on April 1^st were $3,000.

Operating expenses (paid in cash): $20,000 for April, and $13,000 for each of the following two months.

Cash balance-4/1: $7,000

The company must maintain a minimum cash balance at the end of each month of   $5,000.

Any deficiency must be borrowed, and repaid (with no interest) the following month.

Complete the following cash budget for Fortunate (22 points).