Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

1. As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

2. Actual sales for December and budgeted sales for the next four months are as follows:

3. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

4. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

5. Monthly expenses are budgeted as follows: salaries and wages, $30,000 per month: advertising, $66,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $44,500 for the quarter.

6. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

7. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

8. During February, the company will purchase a new copy machine for $2,500 cash. During March, other equipment will be purchased for cash at a cost of $77,500.

9. During January, the company will declare and pay $45,000 in cash dividends.

10. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local 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. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the data above, complete the following statements and schedules for the first quarter:

1. Schedule of expected cash collections:

2-a. Merchandise purchases budget:

2-b. Schedule of expected cash disbursements for merchandise purchases:

3. Cash budget:

4. Prepare an absorption costing income statement for the quarter ending March 31.

5. Prepare a balance sheet as of March 31.

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

1. As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

2. Actual sales for December and budgeted sales for the next four months are as follows:

3. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

4. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

5. Monthly expenses are budgeted as follows: salaries and wages, $21,000 per month: advertising, $61,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $43,060 for the quarter.

6. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

7. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

8. During February, the company will purchase a new copy machine for $1,600 cash. During March, other equipment will be purchased for cash at a cost of $73,000.

9. During January, the company will declare and pay $45,000 in cash dividends.

10. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local 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. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the data above, complete the following statements and schedules for the first quarter:

1. Schedule of expected cash collections:

2-a. Merchandise purchases budget:

2-b. Schedule of expected cash disbursements for merchandise purchases:

3. Cash budget:

4. Prepare an absorption costing income statement for the quarter ending March 31.

5. Prepare a balance sheet as of March 31.

1. Falling average prices and continued full employment most likely come from

A) a negative demand shock.

B) a negative supply shock.

C) a positive demand shock.

D) a positive supply shock.

E) OPEC

2. Rising average prices and lower unemployment most likely come from

A) higher interest rates.

B) lower income tax rates.

C) increases in the value of the Canadian dollar.

D) improved technologies.

E) investor pessimism.

3. Supply shocks move unemployment and inflation in

A) the same directions, as the Phillips Curve suggests.

B) opposite directions, as the Phillips Curve suggests.

C) the same directions, which is not what the Phillips Curve suggests.

D) opposite directions, which is not what the Phillips Curve suggests.

E) circles.

1)The real exchange rate: A. measures how many Japanese yen one really gets for a U.S. dollar. B. is equal to the nominal exchange rate multiplied by the domestic price level divided by the foreign price level. C. is equal to the nominal exchange rate multiplied by the foreign price level divided by the domestic price level. D. is the price of a domestic car divided by the price of a foreign car.

2).Net exports equal GDP minus domestic spending on: A. all goods and services. B. all goods and services plus foreign spending on domestic goods and services. C. domestic goods and services. D. domestic goods and services minus foreign spending on domestic goods and services.

3). In a small open economy, if the introduction of automatic-teller machines reduces the demand for money, then net exports: A. fall and the real exchange rate falls. B. fall but the real exchange rate remains unchanged. C. remain unchanged but the real exchange rate falls. D. and the real exchange rate remain unchanged.

4.) Which of the following would decrease the real exchange rate in a small open economy in the long run? A. a personal income tax cut B. a reduction in government spending C. a tariff on imports D. an increase in investment

5). In a small open economy, if consumers shift their preference toward Japanese cars, then net exports: A. fall and the real exchange rate falls. B. fall but the real exchange rate remains unchanged. C. remain unchanged but the real exchange rate falls. D. and the real exchange rate remains unchanged.

In the "Drop Zone" ride at Canada's Wonderland, riders are dropped from a great height and then decelerated safely to a stop before hitting the ground. One possible technological application of Faraday's principle and Lenz's law is the ride's braking mechanism. If the ride is simulated by dropping a magnet with the north side down into an open copper pipe,

a) What is the direction of current flow in the pipe?

b) What is the direction of the induced magnetic field?

c) Why does this situation result in decreased acceleration of the magnet/ride? Explain well.

d) Would this situation be any different if the south end of the magnet was dropped down instead? Explain.

The main question I am stuck on is part d - especially the explanation.

In the "Drop Zone" ride at Canada's Wonderland, riders are dropped from a great height and then decelerated safely to a stop before hitting the ground. One possible technological application of Faraday's principle and Lenz's law is the ride's braking mechanism. If the ride is simulated by dropping a magnet with the north side down into an open copper pipe,

a) What is the direction of current flow in the pipe?

b) What is the direction of the induced magnetic field?

c) Why does this situation result in decreased acceleration of the magnet/ride? Explain well.

d) Would this situation be any different if the south end of the magnet was dropped down instead? Explain.

The main question I am stuck on is part d - especially the explanation.

Exercise 21-4 Partially correct answer. Your answer is partially correct. Try again. Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,100 2 7,490 3 8,330 4 10,350 The January 1, 2017, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017. Prepare quarterly production budgets for each quarter and in total for 2017. TURNEY COMPANY Production Budget Entry field with incorrect answer now contains modified data For the Quarter Ended December 31, 2017 Product HD-240 Quarter 1 2 3 4 Year Entry field with correct answer Expected Unit Sales Entry field with correct answer 5100 Entry field with correct answer 7490 Entry field with correct answer 8330 Entry field with correct answer 10350 Entry field with correct answer Add : Entry field with correct answer Desired Ending Finished Goods Unit Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer Total Required Units Entry field with incorrect answer Entry field with incorrect answer now contains modified data Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer Less : Entry field with correct answer Beginning Finished Goods Unit Entry field with incorrect answer now contains modified data Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer Required Production Units Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer