Problem 15-28 (Algorithmic)

South Shore Construction builds permanent docks and seawalls along the southern shore of long island, new york. Although the firm has been in business for only five years, revenue has increased from $320,000 in the first year of operation to $1,188,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars:

1. Use Excel Solver to find the coefficients of a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. Round your answers to two decimal places.
   
   F_t =  + Qtr1 + Qtr2 + Qtr3
   
2. Let Period = 1 to refer to the observation in Quarter 1 of year 1; Period = 2 to refer to the observation in Quarter 2 of year 1; . . . and Period = 20 to refer to the observation in Quarter 4 of year 5. Using the dummy variables defined in part (b) and Period, develop an equation to account for seasonal effects and any linear trend in the time series using Excel Solver. Round your answers to two decimal places. If your answer is negative value enter minus sign.
   
   F_t =  + Qtr1 + Qtr2 + Qtr3 + Period
   
   Based upon the seasonal effects in the data and linear trend, compute estimates of quarterly sales for year 6. Round your answers to one decimal place.
   
   Quarter 1 forecast =  
   
   Quarter 2 forecast =  
   
   Quarter 3 forecast =  
   
   Quarter 4 forecast =

Blocher Company is evaluating the following methods of accounting for depreciation of long-lived assets and inventory:

Depreciation: straight-line; double-declining balance (DDB)
Inventory: first in, first out (FIFO); last in, first out (LIFO)

Assuming a deflationary environment (prices are falling), which of the following combinations will result in the highest net income in year 1?

Group of answer choices

A) DDB; FIFO.

B) Straight-line; LIFO.

C) Straight-line; FIFO.

Garver Industries has budgeted the following unit sales:

The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016.
For the first quarter of 2017, prepare a production budget.

For the first quarter of 2017, prepare a direct materials budget.

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Garver Industries has budgeted the following unit sales:

The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016.
For the first quarter of 2017, prepare a production budget.

For the first quarter of 2017, prepare a direct materials budget.

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Garver Industries has budgeted the following unit sales:

The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016.
For the first quarter of 2017, prepare a production budget.

For the first quarter of 2017, prepare a direct materials budget.

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1.  What are the ways in which the health education/promotion community can make the message of prevention more palatable to to the public? What are the major barriers you must address? How might you implement your ideas?

2. what major demographic trend will most impact the delivery of health education/promotion in the next several decades? Given your answer, describe the health education specialist in the year 2025?

ps. if you answer it in a paragraph u get 3 checks :)

Explain the six main factors (Social and demographic forces, Economic forces, Political forces, Technological forces, Informational forces and Ecological Forces) that will determine the future change in health care.

Please then list each factor, summarize the information, and provide examples of each. In addition, please explain which of the six factors you feel will be most relevant in the future.

Review four separate articles (don't forget to reference) from the Internet relevant to the future of health care by 2025.

“We really need to get this new material-handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank.” This statement by Beth Davies-Lowry, president of Intercoastal Electronics Company, concluded a meeting she had called with the firm’s top management. Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firm’s main product lines are small kitchen appliances and power tools. Marcia Wilcox, Intercoastal’s General Manager of Marketing, has recently completed a sales forecast. She believes the company’s sales during the first quarter of 20x1 will increase by 10 percent each month over the previous month’s sales. Then Wilcox expects sales to remain constant for several months. Intercoastal’s projected balance sheet as of December 31, 20x0, is as follows:

Jack Hanson, the assistant controller, is now preparing a monthly budget for the first quarter of 20x1. In the process, the following information has been accumulated:

1. Projected sales for December of 20x0 are $500,000. Credit sales typically are 70 percent of total sales. Intercoastal’s credit experience indicates that 20 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month.

2. Intercoastal’s cost of goods sold generally runs at 70 percent of sales. Inventory is purchased on account, and 30 percent of each month’s purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the firm attempts to have inventory at the end of each month equal to half of the next month’s projected cost of goods sold.

3. Hanson has estimated that Intercoastal’s other monthly expenses will be as follows:

   Sales salaries	$	34,000
   Advertising and promotion		16,000
   Administrative salaries		34,000
   Depreciation		20,000
   Interest on bonds		3,600
   Property taxes		900

   In addition, sales commissions run at the rate of 1 percent of sales.

4. Intercoastal’s president, Davies-Lowry, has indicated that the firm should invest $125,000 in an automated inventory-handling system to control the movement of inventory in the firm’s warehouse just after the new year begins. These equipment purchases will be financed primarily from the firm’s cash and marketable securities. However, Davies-Lowry believes that Intercoastal needs to keep a minimum cash balance of $40,000. If necessary, the remainder of the equipment purchases will be financed using short-term credit from a local bank. The minimum period for such a loan is three months. Hanson believes short-term interest rates will be 10 percent per year at the time of the equipment purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the first quarter if possible.

5. Intercoastal’s board of directors has indicated an intention to declare and pay dividends of $75,000 on the last day of each quarter.

6. The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Intercoastal’s bonds is paid semiannually on January 31 and July 31 for the preceding six-month period.

7. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period.

Required:

Prepare Intercoastal Electronics Company’s master budget for the first quarter of 20x1 by completing the following schedules and statements.

I need both of these, thanks!

The Austin, Texas plant of Computer Products produces disk units for personal and small business computers. Gerald Knox, the plant’s production planning director, is looking over next year’s sales forecasts for these products and will be developing an aggregate capacity plan for the plant. The quarterly sales forecasts for the disk units are as follows:

Ample machine capacity exists to produce the forecast. Each disk unit takes an average of 20 labor-hours. In addition, you have collected the following information:

1. Inventory holding cost is $100 per disk unit per quarter. The holding cost is based on the inventory at the end of the quarter.
2. The plant works the same number of days in each quarter, 12 five-day weeks, 6 hours per day.
3. Beginning inventory is 90 (ninety) disk units and these will be used to meet the initial demand in the first quarter and there is no holding cost associated with these units.
4. In a backlog situation, the customer will wait for his order to be filled but will expect a price reduction each quarter he waits. The backlog costs are $300 per disk for the first quarter the customer waits, $700 for the second quarter the customer waits, and $900 for the third quarter the customer waits. In any quarter, if there is a backlog, this backlog will be filled before the demand for that period is fille
5. The cost of hiring a worker is $800 while the cost of laying off a worker is $950.
6. The straight time labor rate is $20 per hour for the first quarter and increases to $22 per hour beginning in the third quarter.
7. Overtime work is paid at time and a half (150%) of the straight time work.
8. Outsourcing (contract work) is paid at the rate of $480 per disk unit for the labor and you provide the material.
1. Demand is projected to increase this year. Demand during the fourth quarter of the prior year was 2,340 units. The demand for the first quarter of the next year (year following the year you are analyzing) is projected to be at the 2,700 unit level.

a) You want to maintain a work force capable of producing 2,520 in a quarter outsourcing any disk units over this quantity. Excess units produced in a quarter would be carried over to meet demand in a subsequent quarter. Any additional demand is met through outsourcing. All workers will be fully utilized each quarter. In other words, there is no under utilization. What is the total cost of this option, excluding the material cost? Be sure to include any hiring and layoff costs.

b) The company will maintain a work force capable of producing 2,430 units in a quarter. It will allow backlogs to occur until the fourth quarter when it will outsource all demand that cannot be met with its own workforce. All workers will be fully utilized each quarter. In other words, there is no under utilization. What is the total cost of this option, excluding the material cost? Be sure to include any hiring and layoff costs.

The Austin, Texas plant of Computer Products produces disk units for personal and small business computers. Gerald Knox, the plant’s production planning director, is looking over next year’s sales forecasts for these products and will be developing an aggregate capacity plan for the plant. The quarterly sales forecasts for the disk units are as follows:

Ample machine capacity exists to produce the forecast. Each disk unit takes an average of 20 labor-hours. In addition, you have collected the following information:

1. Inventory carrying cost is $100 per disk unit per quarter. The cost is applied to all units in inventory at the end of a quarter.
2. The plant works the same number of days in each quarter, 12 five-day weeks, 6 hours per day.
3. Beginning inventory is 150 disk units. These will be used to help satisfy the 1^st Quarter demand.
4. In a backlog situation, the customer will wait for his order to be filled but will expect a price reduction each quarter he waits. The backlog costs are $300 per disk for the first quarter the customer waits, $700 for the second quarter the customer waits, and $900 for the third quarter the customer waits. In filling orders, backlogged items will always be filled before current quarter items,
5. The cost of hiring a worker is $800 while the cost of laying off a worker is $950.
6. The straight time labor rate is $20 per hour for the first quarter and increases to $22 per hour in the fourth quarter.
7. Overtime work is paid at time and a half (150%) of the straight time work.
8. Outsourcing (contract work) is paid at the rate of $475 per disk unit for the labor and Computer Products provides the material.
1. Demand during the fourth quarter of the prior year was 1,800 units and was fulfilled using a workforce working at full utilization. The demand for the first quarter of the next year (year following the year you are analyzing) is projected to be at the 2,340 unit level.

Compare the following two sales and operations plans.

i) The company will use a matching (chasing) demand strategy for the first two quarters. For quarters three and four, it will use a level production strategy with no overtime, no shortages during these quarters and no inventory leftover at the end of the fourth quarter. What is the total cost of this option, excluding the material cost?

ii) The company will establish in quarter one and then maintain a workforce capable of producing 2,160 units in a quarter. If there are more workers in a quarter than required to produce the demand for that quarter, only the units required will be produced in that quarter and there will be underutilization. If demand is greater in a quarter than can be produced by the available workforce using straight time labor, the excess units will be outsourced. What is the total cost of this option, excluding the material cost?