Cash Budget
Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 80 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $41,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $40,000.

Prepare monthly cash budgets for February, March, and April.

Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers.

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,800 units, but its actual level of activity was 5,760 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

Actual results for June:

The activity variance for net operating income in June would be closest to:

Multiple Choice

$548 F

$548 U

$4,394 U

$4,394 F

The following information is related to Tamarisk Company for 2017.

Tamarisk Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Tamarisk sold the wholesale operations to Rogers Company. During 2017, there were 518,000 shares of common stock outstanding all year.

Please Prepare a Multi-Step Income Statement

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data: B: Percent for company 2 5 29 8 21 14 13 12 A: Percent for CEO -1 5 21 13 12 18 9 8 Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 1% level of significance. Will you use a left tailed, right tailed, or two tailed test? Select one: a. two tailed test b. right tailed test c. left tailed test

P4-1 (Multiple-Step Income, Retained Earnings) The following information is related to Dickinson Company for 2014.Retained earnings balance, January 1, 2014 $ 980,000Sales revenue 25,000,000Cost of goods sold 16,000,000Interest revenue 70,000Selling and administrative expenses 4,700,000Write-off of goodwill 820,000Income taxes for 2014 1,244,000Gain on the sale of investments (normal recurring) 110,000Loss due to fl ood damage—extraordinary item (net of tax) 390,00Loss on the disposition of the wholesale division (net of tax) 440,000Loss on operations of the wholesale division (net of tax) 90,000 Dividends declared on common stock $250,000Dividends declared on preferred stock 80,000Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2014, there were 500,000 shares of common stock outstanding all year.InstructionsPrepare a multiple-step income statement and a retained earnings statement.

The following information is related to Sandhill Company for 2017.

Retained earnings balance, January 1, 2017 $984,980

Sales Revenue 26,208,100

Cost of goods sold 16,176,000

Interest revenue 80,400

Selling and administrative expenses 4,730,800

Write-off of goodwill 822,700

Income taxes for 2017 1,410,700

Gain on the sale of investments 118,000

Loss due to flood damage 398,500

Loss on the disposition of the wholesale division (net of tax) 443,800

Loss on operations of the wholesale division (net of tax) 93,420

Dividends declared on common stock 274,100

Dividends declared on preferred stock 75,970

Sandhill Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sandhill sold the wholesale operations to Rogers Company. During 2017, there were 494,700 shares of common stock outstanding all year.

Prepare Multiple Step Income Statment and a Statement of Retained Earnings

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data:

B: Percent for company 28 16 25 26 18 20 7 10

A: Percent for CEO 23 14 23 18 23 10 4 14

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. Find (or estimate) the P-value.

Select one:

a. P-value = 0.50

b. P-value = 0.40

c. 0.02 < P-value < 0.05

d. 0.20 < P-value < 0.40

e. 0.01 < P-value < 0.02

The following information is related to Buffalo Company for 2017.

Buffalo Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Buffalo sold the wholesale operations to Rogers Company. During 2017, there were 490,600 shares of common stock outstanding all year.

Prepare a multistep income statement.

The following information is related to Skysong Company for 2020.

Skysong Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Skysong sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.

Prepare a multi step income statement: