Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company uses a periodic inventory system and the LIFO cost method for its grill inventory. Cast Iron's December 31, 2018, fiscal year-end inventory consisted of the following (listed in chronological order of acquisition):

The replacement cost of the grills throughout 2019 was $1,200. Cast Iron sold 41,000 grills during 2019. The company's selling price is set at 200% of the current replacement cost.

Required:
1. & 2. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2019 under two different assumptions. First, that Cast Iron purchased 42,000 units and, second, that Cast Iron purchased 22,000 units during the year.
4. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2019 assuming that Cast Iron purchased 42,000 units (as per the first assumption) and 22,000 units (as per the second assumption) during the year and uses the FIFO inventory cost method rather than the LIFO method.
  

1. Prepare a sales budget for January through May. The selling price per unit is $40.00.

December of the previous year-40,000

January-90,000

February-80,000

March-70,000

April-40,000

2. Prepare a purchases budget for January through March, and the first quarter in total. Assume that the company only sells one product that can be purchased at $15.00 per unit. The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 5% of next month’s projected sales.

3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $50,000.00, and this was the balance in the cash account on January 1. Past experience shows that 30% of sales are collected in the month of the sale, and 70% in the month following the sale. Labor cost is $15 per unit. Other expenses include $37,000 per month for rent, $4,000 for advertising, and $6,000 per month for depreciation. All costs are paid in the current month except inventory purchases, which are paid in the month following purchase (i.e. January purchases are paid in February). On January 1st there was an accounts receivable balance of $60,000 and an outstanding accounts payable balance of $100,000. The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month when borrowing is needed and repayments are made at the end of a month when there is enough cash to make the payment. Also, interest is only paid at the time when a repayment is made. Additionally, all loans and repayments (not the interest portion) can only be made in increments of $1000 and the company would like to pay its debts, or a portion thereof, as soon as it has enough cash to do so.

4. Prepare the Budgeted Income Statement based on the information given above.

I did questions 1-3, I need help with 4. Thanks!

Crude futures in New York were lower on Wednesday, following a record decline in the first quarter

Oil held near $20 a barrel as Saudi Aramco’s output surged above 12 million barrels a day, but Russia said it would refrain from further production hikes.

Crude futures in New York were lower on Wednesday, following a record decline in the first quarter.

While state-run Aramco’s oil supply has surpassed 12 million barrels a day and is ticking higher, Russia said it won’t lift output as it’s not profitable to do so, according to a government official familiar with the country’s plans.

President Trump has said the US will meet with Saudi Arabia and Russia in an attempt to bolster prices.

The market is grappling with a bumper oversupply, while demand is set to fall by as much as 30 million barrels a day in April, according to an executive at the world’s largest independent oil trader.

Any agreement to cut output would likely be too late and would fall short of the loss in consumption, according to Goldman Sachs Group Inc.

Industry data signaled that US oil stockpiles are set for their biggest weekly increase since 2017.

“I don’t think they’re going to come to the table for talks just yet, because for both sides, it would require a significant step-down,” Amrita Sen, chief oil analyst at Energy Aspects said in a Bloomberg TV interview. “I do think both Russia and Saudi Arabia will be forced to cut back production, not because there’s a deal or they’re talking, but because of market forces.”

Prices:
West Texas Intermediate lost 21 cents to $20.27 a barrel as of 10.35am in London
Brent crude for June settlement fell 4.8 per cent to $25.09
Dated Brent, the benchmark for two-thirds of the world’s real oil supply, was assessed at $17.675 on Tuesday, down 11.5 cents from Monday when it was already the lowest price since 2002

.

Required Question

Question 01: What are the entrepreneurial skills needed in order to draw different businesses in the Gulf countries?

Crude futures in New York were lower on Wednesday, following a record decline in the first quarter

Oil held near $20 a barrel as Saudi Aramco’s output surged above 12 million barrels a day, but Russia said it would refrain from further production hikes.

Crude futures in New York were lower on Wednesday, following a record decline in the first quarter.

While state-run Aramco’s oil supply has surpassed 12 million barrels a day and is ticking higher, Russia said it won’t lift output as it’s not profitable to do so, according to a government official familiar with the country’s plans.

President Trump has said the US will meet with Saudi Arabia and Russia in an attempt to bolster prices.

The market is grappling with a bumper oversupply, while demand is set to fall by as much as 30 million barrels a day in April, according to an executive at the world’s largest independent oil trader.

Any agreement to cut output would likely be too late and would fall short of the loss in consumption, according to Goldman Sachs Group Inc.

Industry data signaled that US oil stockpiles are set for their biggest weekly increase since 2017.

“I don’t think they’re going to come to the table for talks just yet, because for both sides, it would require a significant step-down,” Amrita Sen, chief oil analyst at Energy Aspects said in a Bloomberg TV interview. “I do think both Russia and Saudi Arabia will be forced to cut back production, not because there’s a deal or they’re talking, but because of market forces.”

Prices:
West Texas Intermediate lost 21 cents to $20.27 a barrel as of 10.35am in London
Brent crude for June settlement fell 4.8 per cent to $25.09
Dated Brent, the benchmark for two-thirds of the world’s real oil supply, was assessed at $17.675 on Tuesday, down 11.5 cents from Monday when it was already the lowest price since 2002

.

Required Question

Question 01: Discuss the major drawbacks in the Gulf Countries economy?

The Spokane Recycling Company (SRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first​ melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. SRC can produce 27 table​ covers, 77 chair covers and 9 pounds of package filler from 100 pounds of bottles.

In June, SRC had no beginning inventory. It purchased and processed 110,000 pounds of bottles at a cost of $ 880,000. SRC sold 22,000 table covers for $11 each, 77,000 chair covers for $12 each, and 4,000 pounds of package filler at $0.90 per pound.

Requirement 1. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for SRC?

​First, allocate the joint costs. ​(Round the weighting values to two decimal​ places.)

Now complete the statement below for SRC.

​(Do not round intermediary calculations. Only round the amount you input in the cell to the nearest​ dollar.)

Requirement 2. Assume that SRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the sales method. What is the ending inventory cost for each product and gross margin for SRC?

​First, allocate the joint costs. ​(Round the weighting values to two decimal​ places.)

Now complete the statement below for SRC

​(If a box is not used in the​ table, leave the box​ empty; do not enter a zero. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest​ dollar.)

Given the following banks:

Bank 1: Neighborhood Partner Community Bank and Trust
• $35 to open an account.
• Accrues 1% interest per quarter (compounded quarterly)
• No monthly maintenance or annual fee.
• First box of checks (200 total) for free.
• Free ATM/debit card. Photo on front of card for $4.95 (one-time fee).
• Low ATM withdrawal fees: $1.00 per transaction.
• Overdraft protection, $22 per transaction.
• Direct deposit, $6.95 per month.
• Hours: Mon. - Fri. 8 a.m. - 8 p.m., Sat. 8 a.m. - 5 p.m.
• Many banking locations, including most grocery stores throughout Oklahoma.
• Member: OBTA.

Bank 2: OSTCU
• $5 to open an account.
• Accrues 3 percent interest per year, compounded annually.
• No monthly maintenance fee.
• Annual fee of $25.00.
• ATM/debit card with photo on the front, $8.95 per month.
• Online banking and smartphone app, $5.95 per month.
• Free direct deposit and online billpay.
• “Good Grades, Get Money” program for students. Earn money for your grades!
• Free checks for students.
• Many convenient bank and ATM locations, throughout the city and the state.
• Hours: Mon. - Fri. 8 a.m. - 6 p.m., Sat. 9 a.m. - 12 p.m.
• Member: NCUA.

Bank 3: First National Bank of USA
• $50 to open an account.
• $6.95 monthly maintenance fee.
• Free checks.
• Free ATM/debit card with free photo identification on the front.
• Free online banking and smartphone app.
• Free direct deposit.
• Overdraft protection, $30 per transaction.
• ATMs at 11,000 locations in the United States and abroad.
• Hours - Mon. through Thurs. 8 a.m. - 4 p.m., Fri. 8 a.m. - 5 p.m., Sat. closed.
• Three convenient bank locations
• Member: FDIC

1. Per year, which bank provides the lowest total amount of the following: maintenance/annual fee, debit card cost for a photo ID, and direct deposit fee?

2. Which bank provides someone with the highest value interest bearing opportunity for their account?

Was there discrimination on the Titanic? Were first-class passengers given greater
access to life boats?
The unsinkable liner Titanic collided with an iceberg on her maiden voyage
in 1912 and sank with great loss of life. On board were 1317 passengers, some of
whom had paid a very much higher fare than others for the voyage. A not very
subtle sub-text in the most recent Titanic movie was the notion that the first class
passengers survived at a higher rate than other passengers.
Imagine we can regard the first class passengers as a sample of the total population
on board at the time of the collision. There were 324 first class passengers of whom
62% survived the sinking. In other words our sample proportion p^ = 0:62 while n is
324. The proportion of survivors from the total population (all passengers) on board
was p = 0:38:
Using a 0.05 significance level, test whether the survival rate for first class passengers
was greater than that for all passengers. Do the six steps of the test.

Answer True or False

1. Finished goods are the equivalent of merchandise inventory for a retailer or a wholesaler in that both represent the inventory of goods held for sale.
2. Petty cash typically is composed of coins and currency kept on hand in a business to make minor disbursements.
3. When reconciling a bank account, the company does not have to prepare an adjusting entry for outstanding checks.
4. On a bank reconciliation outstanding checks are added to the cash per the bank statement.
5. When a bank pays interest or collects an amount owed to a company by one of the banks customers the bank issues a debit memorandum.
6. An advantage of a strong system of internal control is that less testing of the accounting system is done by the outside auditors.
7. A company’s internal control system is designed by its external auditors
8. Most merchandisers receive checks and currency from customers in two ways 1) cash received over the counter from cash and sales and 2) cash received in the mail from credit sales.
9. A company’s internal control system is designed by its external auditors.

Should US consumers increase spending by more than the increase in personal income?
Instruction: You could use an example from your life or another example to relate to this topic.