Questions
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to...

Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.

Sales
Unit sales for November 2019 113,000
Unit sales for December 2019 101,000
Expected unit sales for January 2020 114,000
Expected unit sales for February 2020 111,000
Expected unit sales for March 2020 117,000
Expected unit sales for April 2020 124,000
Expected unit sales for May 2020 139,000
Unit selling price $12


Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $181,800.

Direct Materials

Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit.

Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2019, totaled 11,370 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $102,870.

Direct Labor
Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour.
Manufacturing Overhead
Indirect materials 30¢ per labor hour
Indirect labor 50¢ per labor hour
Utilities 50¢ per labor hour
Maintenance 20¢ per labor hour
Salaries $43,000 per month
Depreciation $18,200 per month
Property taxes $2,900 per month
Insurance $1,100 per month
Maintenance $1,200 per month
Selling and Administrative
Variable selling and administrative cost per unit is $1.60.
   Advertising $16,000 a month
   Insurance $1,300 a month
   Salaries $72,000 a month
   Depreciation $2,600 a month
   Other fixed costs $3,100 a month


Other Information

The Cash balance on December 31, 2019, totaled $100,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.30 per share for 4,910 shares outstanding. The company has an open line of credit with Romney’s Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $500,000 equipment purchase is planned for February.

For the first quarter of 2020, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,520.)

In: Accounting

Not just shoes and handbags Zentos is an $800 million a year online retailer of shoes...

Not just shoes and handbags

Zentos is an $800 million a year online retailer of shoes and handbags. Zentos prides itself on its superior customer service and views this as a way of becoming an online store selling just about anything. Most online retailers and brick-and-mortar stores say they focus on their customers. What makes Zentos so special is that they really do.

New shoes for mom

Cecelia bought several pairs of shoes from Zentos for her ailing mother. She was unsure about the size as her mother had lost a lot of weight and her shoe size had changed. Zentos has free return shipping with UPS, so Cecelia was not worried about the cost to return those shoes that did not fit her mother. Only two pairs of shoes fit. Cecelia had intended to return the others, but her mother died, and returning the shoes slipped her mind. She got an email from Zentos asking her about the shoes. Cecelia replied that her mother had just died and that she would send the shoes back soon.

That little something extra

Zentos emailed Cecelia back saying UPS would pick up the shoes for return so she would not have to make the trip to UPS. This was not Zentos’ general policy. The next day, Zentos sent Cecelia a big, beautiful flower arrangement. This was definitely not Zentos’ policy! This was something one compassionate person (who happened to work at Zentos) did for another person. The amazing part was that Zentos was flexible enough to allow this extraordinary gesture to happen.

Spreading the news

Cecelia was so moved by Zentos’ show of compassion that she posted on the Great Customer Service blog telling the world about what Zentos had done for her. Her post was viewed by millions of people, many of whom responded with blogs postings of their own saying how they would be making their next shoe purchase at Zentos. The company delivered on its superior customer service promise - look where it got them.

What is your recommendation for zentos?

In: Operations Management

A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year...

A PO and IO class of securities is formed backed by a $7,500,000 pool of 10-year FRMs making annual payments with a 10% interest rate. There are no prepayments or servicer/guarantee fee. What is the present value of the PO class if the discount/market rate is 9%? Excel is recommended for this problem

In: Finance

A company issues a $10,000 bond with an interest rate of 4% per year. Interest is...

A company issues a $10,000 bond with an interest rate of 4% per year. Interest is paid once per year, and it will mature in 5 years. Investors expect bonds of similar risk and maturity to pay interest of 7%: Show work

a.

Calculate the selling price of the bond. Round to two decimal places.

b. Record the journal entry that the company would record when this bond is issued

c. Record the journal entry for the first interest payment

In: Accounting

The draft financial statements of Socket Limited for the year ended 31 December 2017 are as...

The draft financial statements of Socket Limited for the year ended 31 December 2017 are as below:


Statement of profit or loss and other comprehensive income for the year ended 31 December 2017

? ? ? ? $m
Revenue ? ? ? ? 168,300
Cost of sales ? ? ? ? -115,850
Gross profits ? ? ? ? 52,450
Administration expense ? ? ? ? -2,750
Distribution expense ? ? ? ? -1,200
Profits before tax ? ? ? ? 48,500
Taxation ? ? ? ? -10,340
Profits for the year (Note 1) ? ? ? ? 38,160
Other comprehensive income ? ? ? ? ?
Revaluation of property (net of tax) ? ? ? ? 8,400
Total comprehensive income for the year ? ? ? ?

46,560

Statement of financial position as at 31 December 2017 (with comparative figures)

2017 2016
$m $m
Non-current assets
Property, plant and equipment 198,250 125,040
Investment properties 5,000 4000
Intangibles assets 6,000 6500
Inventories 4,545 4900
Trade receivables (net) 7,410 8600
Short-term investments 500
Cash and bank 13,650 8000
Total assets 235,355 157040
Equity and liabilities
Share capital 54,500 42,800
Other reserves 12,700 4,300
Retained profits 57,300 22,900
Long term bank loans 82,500 62,500
Deferred tax liabilities 13,885 9,800
Trade payables 8,745 9,340
Other payables 1,100 800
Interest payables 2,900 3,000
Tax payables 1,725 1,100
Bank overdraft 500
Total equity and liabilities 235,355 157,040

The following information is available:

1 Profits for the year have been arrived at after charging (crediting):

$m
Interest expense 5,650
Depreciation charge 6,300
Rental income received 20,000
Change in fair value of investment properties -1,000
Loss on sale of property, plant and equipment 160
Impairment loss on intangible assets 500
Inventories written down 270
Decrease in provision for bad debts -120

2 In September 2017, an equipment with a carrying amount of $480 million was sold for a loss of $160 million.

3 The short-term investments represented marketable securities purchased on 25 December 2017. They matured on 28 February 2018.

4. Socket made a rights issue in November 2017 generating additional share capital. There was no other issue of ordinary shares during the year

5. It is Socket Limited’s policy to perform an impairment loss test on its assets at year end. Impairment losses, if any, were written off immediately as expenses

Required:

Prepare the statement of cash flows for the year ended 31 Decemb er 2017, using the indirect method to determine the cash flows from operating activities, for Socket Limited in accordance with HKAS 7 Statement of cash flows.

In: Accounting

Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for the year ended...

Forecast the Balance Sheet

Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016.

Medtronic plc
Consolidated Balance Sheets
($ millions) Apr. 29, 2016 Apr. 24, 2015
Current assets
Cash and cash equivalents $2,768 $4,843
Investments 9,758 14,637
Accounts receivable 5,562 5,112
Inventories 3,473 3,463
Tax assets 697 1,335
Prepaid expenses and other current assets 1,234 1,454
Total current assets 23,492 30,844
Property, plant, and equipment, net 4,841 4,699
Goodwill 41,500 40,530
Other intangible assets, net 26,899 28,101
Long-term tax assets 1,383 774
Other assets 1,559 1,737
Total assets $99,674 $106,685
Current liabilities
Short-term borrowings $885 $2,434
Accounts payable 1,709 1,610
Accrued compensation 1,712 1,611
Accrued income taxes 566 935
Deferred tax liabilities - 119
Other accrued expenses 2,185 2,464
Total current liabilities 7,057 9,173
Long-term debt 30,247 33,752
Long-term accrued compensation 1,759 1,535
Long-term accrued income taxes 2,903 2,476
Long-term deferred tax liabilities 3,729 4,700
Other long-term liabilities 1,916 1,819
Total liabilities 47,611 53,455
Shareholders’ equity
Ordinary shares - -
Retained earnings 53,931 54,414
Accumulated other comprehensive (loss) (1,868) (1,184)
Total shareholders’ equity 52,063 53,230
Total liabilities and shareholders’ equity $99,674 $106,685

Use the following assumptions to forecast the company’s balance sheet for FY2017.

Forecasted FY2017 net income $4,839

million
Forecasted FY2017 net sales $34,079

million
Accounts receivable 19.3%

of net sales
Inventories 12.0%

of net sales
Tax assets 2.4%

of net sales
Prepaid expenses and other current assets 4.3%

of net sales
Long-term tax assets 4.8%

of net sales
Other assets 5.4%

of net sales
Accounts payable 5.9%

of net sales
Accrued compensation 5.9%

of net sales
Accrued income taxes 2.0%

of net sales
Other accrued expenses 7.6%

of net sales
Long-term accrued income taxes 10.1%

of net sales
Long-term deferred tax liabilities 12.9%

of net sales
Other long-term liabilities 6.6%

of net sales
Investments No change
Goodwill No change
Long-term accrued compensation and retirement benefits No change
Ordinary shares No change
Accumulated other comprehensive (loss) No change
CAPEX 3.6%

of net sales
Depreciation expense 18.9%

of prior year PPE, net
Amortization expense in FY2016 $1,931

million
Current maturities of debt due in FY2017 $885

million
Current maturities of debt due in FY2018 $6,176

million
Dividend payout ratio 60.5%

Round your answers to the nearest whole number.

Do not use negative signs with any of your answers.

Medtronic plc
Forecasted Consolidated Balance Sheet
($ millions) EST. 2017
Current assets
Cash and cash equivalents $Answer
Investments Answer
Accounts receivable Answer
Inventories Answer
Tax assets Answer
Prepaid expenses and other current assets Answer
Total current assets Answer
Property, plant, and equipment, net Answer
Goodwill Answer
Other intangible assets, net Answer
Long-term tax assets Answer
Other assets Answer
Total assets $Answer
Current liabilities
Short-term borrowings $Answer
Accounts payable Answer
Accrued compensation Answer
Accrued income taxes Answer
Other accrued expenses Answer
Total current liabilities Answer
Long-term debt Answer
Long-term accrued compensation Answer
Long-term accrued income taxes Answer
Long-term deferred tax liabilities Answer
Other long-term liabilities Answer
Total liabilities Answer
Shareholders’ equity
Ordinary shares -
Retained earnings Answer
Accumulated other comprehensive (loss) Answer
Total shareholders’ equity Answer
Total liabilities and shareholders’ equity $Answer

In: Accounting

why medical care plan premium increase over year ? (Hmo and PPO)

why medical care plan premium increase over year ?

(Hmo and PPO)

In: Finance

Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to...

Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.

Sales
Unit sales for November 2019 112,000
Unit sales for December 2019 101,000
Expected unit sales for January 2020 114,000
Expected unit sales for February 2020 112,000
Expected unit sales for March 2020 115,000
Expected unit sales for April 2020 127,000
Expected unit sales for May 2020 136,000
Unit selling price $12


Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $181,800.

Direct Materials

Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit.

Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2019, totaled 11,380 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $102,875.

Direct Labor
Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour.
Manufacturing Overhead
Indirect materials 30¢ per labor hour
Indirect labor 50¢ per labor hour
Utilities 40¢ per labor hour
Maintenance 30¢ per labor hour
Salaries $41,000 per month
Depreciation $16,200 per month
Property taxes $3,000 per month
Insurance $1,100 per month
Maintenance $1,100 per month
Selling and Administrative
Variable selling and administrative cost per unit is $1.50.
   Advertising $15,000 a month
   Insurance $1,400 a month
   Salaries $71,000 a month
   Depreciation $2,300 a month
   Other fixed costs $3,000 a month


Other Information

The Cash balance on December 31, 2019, totaled $101,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.40 per share for 5,340 shares outstanding. The company has an open line of credit with Romney’s Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $460,000 equipment purchase is planned for February.



For the first quarter of 2020, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,520.

In: Accounting

There is a 10%, 13 year note bond which has a ytm of 9%. The ytm...

  1. There is a 10%, 13 year note bond which has a ytm of 9%. The ytm alters by half a percent down. By how much does the price alter? If the ytm drops by 3%, by how much does the price change? What is the exact percentage change of the bond in the 2 cases?

Please show formula and show all work.

In: Finance

End of the year, The Vulcan Community Hospital's some parts of the balance sheet, the income...

End of the year, The Vulcan Community Hospital's some parts of the balance sheet, the income statement, and cash flow statement is provided below. Based on the provided information, What is the hospital's the Debt Service Coverage?

Some Accounts From The Balance Sheet

Some Accounts From The Income Statement

Current Assets

Revenues

Cash

$ 569,000.00

Net Patient Services Revenue

$400,000.00

Accounts Receivable,Net

$ 185,000.00

Other Operating Revenue

$ -  

Inventory

$     95,000.00

Total Reveneues from Operations

$400,000.00

Prepaid Expense

$ 5,000.00

Operating Expenses

Total Current Assets

$ 854,000.00

Salaries and Benefits

$ 18,000.00

Liabilities & Net Assets

Medical Supplies and Drugs

$100,000.00

Current liabilities

Insurance

$ 36,000.00

Accounts Payable

$ 320,000.00

Depreciation

$ 40,000.00

Wages Payable

$     13,000.00

Interest

$ 75,000.00

Total Current Liabilities

$ 333,000.00

Provision for Bad Debts

$ 40,000.00

Other Operating Expenses

$ -

Some Accounts From The Cash Flow Statement

Cash Flows from Financing Activities

Payment of mortgage principal

$ (35,000.00)

Net Cash from Financing Activities

$ (35,000.00)

In: Accounting