The Hale Company is currently working on its cash budget for the coming year. The following information is available:

Projected sales for the coming year:

The collection history of the Hale Company has been as follows:

20% of sales are collected in the month of the sale.

60% of the sales are collected in the month following the sale.

12% of the sales are collected in the 2^nd month following the sale.

5% of the sales are collected in the 3^rd month following the sale.

The following information regarding costs is available:

The cost of goods sold is 54% of sales

Items for sale are purchased in the month of the sale.

80% of accounts payable are paid in the month following when the cost is incurred.

20% of accounts payable are paid in the 2^nd month following when the cost is incurred.

Wages are 28% of sales and are paid currently

Annual general and administrative costs are $1,411,200 and are incurred evenly throughout the year.

Annual property taxes are $14,000 and are paid semi annually in June and October.

A $10,000 cash capital purchase will be made in April.

The beginning cash balance in April is expected to be $47,000. The Hale Company has a policy of maintaining a minimum cash balance of $45,000. The company has an arrangement with a local bank for a line of credit that carries a 10% annual interest rate. If the ending monthly balance falls below $45,000, the company will borrow against the line of credit so that the minimum balance can be maintained. If the company has borrowed against the line of credit and a cash balance is expected to be above $45,000 at the end of a particular month, then repayments will be made bringing the cash balance down to $45,000. Interest on the line of credit is paid monthly. Assume that all line of credit transactions occur on the last day of the month.

Required:

Prepare a cash budget for the Hale Company for the 2^nd quarter of the year. Include April, May, June, and a quarter total in your budget.

The Duncan Company has just completed a number of budgets for the coming year. The cost of goods manufactured schedule, the proforma income statement and the balance sheet still have to be completed. The following information is available:

Prior year Balance Sheet:

Information from recent budgets for the coming year:

1. Projected sales are $1,800,000 (12,690 units)

2. Projected direct material purchases are $500,000
3. Projected direct material usage is $495,000

4. Projected direct labor expense is $400,000

5. Projected overhead is $380,000

6. Projected selling expenses are $120,000
7. Projected administrative expenses are $300,000
8. Projected cash collections are $1,785,000
9. Projected payments for materials (accounts payable) are $520,000
10. Projected payments for other operating expenses (other current liabilities) are $1,130,000

11. Projected depreciation expense is $55,000 and is already included in mfg overhead

Additional information that is available:

1. The expected tax rate is 35%
2. The company is planning a stock issue of $25,000

3. Income taxes are paid 3 months after the year-end

4. The company anticipates purchasing a new patent for $10,000 during the year.

5. WIP inventory is expected to decrease by $2,000

6. Finished goods inventory is expected to increase by $8,000

7. Due to insurance rate increases, it is expected that prepaid expenses will increase by $3,000

Investment information:

1. A purchase of additional equipment for $75,000 is expected on January 1^st.
2. The purchase will be made using $50,000 cash and long-term debt will be increased by $25,000

Long-Term Debt information:

1. All long-term debt will have an 8% annual rate.

2. A payment of $50,000 including BOTH principle and interest will be made on December 31^st.

Required: Prepare a cost of goods manufactured schedule, a proforma income statement and proforma balance sheet.

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $895,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $4,030,000. Bad debt expense is estimated at 1/4 of 1% of sales.

1. Determine the amount of the adjusting entry for uncollectible accounts. $

2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $ Bad Debt Expense $

3. Determine the net realizable value of accounts receivable. $

Note: This problem is for the 2018 tax year.

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm.

During 2018, the Deans had the following receipts:

Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child support—the alimony payments were to terminate if Wanda remarried.

In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained.

The Deans had the following expenditures for 2018:

The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.

The Deans' household includes the following, for whom they provide more than half of the support:

Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $4,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld.

Required:

Determine the Federal income tax for 2018 for the Deans on a joint return by providing the following information that would appear on Form 1040 and Schedule A. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. If an overpayment results, it is to be refunded to them.

Make realistic assumptions about any missing data.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter "0".

When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.

NOTE: See tax schedules at these two links: http://i67.tinypic.com/k00hog.jpg and http://i66.tinypic.com/23wur9t.jpg

Provide the following that would be reported on Lance and Wanda Dean's Form 1040.

a. Filing status and dependents: The taxpayers' filing status:
Married filing jointly

Qualifies as the taxpayers' dependent: Select "Yes" or "No".
Penny:  Yes
Kyle: Yes

b. Calculate taxable gross income.
$

c. Calculate the total adjustments for AGI.
$

d. Calculate adjusted gross income.
$

e. Calculate the greater of the standard deduction or itemized deductions.
$

f. Calculate total taxable income.
$

g. Calculate the income tax liability.
$

h. Calculate the total tax credits available.
$

i.  Calculate total withholding and tax payments.
$

j. Calculate the amount overpaid (refund):
$

k. Calculate the amount of taxes owed:

Provide the following that would be reported on Lance and Wanda Dean's Schedule A.

l. Calculate the deduction allowed for medical expenses.
$

m. Calculate the deduction for taxes.
$

n. Calculate the deduction for interest.
$

o. Calculate the charitable contribution deduction allowed.
$

p. Calculate total itemized deductions.

Note: This problem is for the 2018 tax year.

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm.

During 2018, the Deans had the following receipts:

Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child support—the alimony payments were to terminate if Wanda remarried.

In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained.

The Deans had the following expenditures for 2018:

The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.

The Deans' household includes the following, for whom they provide more than half of the support:

Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $5,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld.

Required:

Determine the Federal income tax for 2018 for the Deans on a joint return by providing the following information that would appear on Form 1040 and Schedule A. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. If an overpayment results, it is to be refunded to them.

·       Make realistic assumptions about any missing data.

·       Enter all amounts as positive numbers.

·       If an amount box does not require an entry or the answer is zero, enter "0".

·       When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.

Form 1040 Tax Items

Provide the following that would be reported on Lance and Wanda Dean's Form 1040.

1. Filing status and dependents: The taxpayers' filing status:

Qualifies as the taxpayers' dependent: Select "Yes" or "No".
Penny:  
Kyle:

2. Calculate taxable gross income.
$

3. Calculate the total adjustments for AGI.
$

4. Calculate adjusted gross income.
$

5. Calculate the greater of the standard deduction or itemized deductions.
$

6. Calculate total taxable income.
$

7. Calculate the income tax liability.
$

8. Calculate the total tax credits available.
$

9 Calculate total withholding and tax payments.
$

10. Calculate the amount overpaid (refund):
$

11. Calculate the amount of taxes owed:
$

a) Compute the modified duration of a 9% coupon, 4-year corporate bond with a yield to maturity of 10%.
b) Using the modified duration, If the market yield drops by 25 basis points, there will be a __________% (increase/decrease) in the bond's price.

Calculate the present value of a growing annuity at a discount rate of 9% per year. The growth rate (constant) of the annuity is 4% per year. the life of the annuity is 10 years. the first annuity payment is $2000 occurring at the end of year one.

Calculate using Excel please.

Equipment1 was purchased at the beginning of the year 2016 for $50,000 cash. No salvage/residual value. Straight-line depreciation is used over a 10-year life.

Equipment2 was also purchased at the beginning of the year for 550,000 (no salvage) 10 year life. We decided to use SL method. The equipment2 required a $5,000 repair by year-end.

Equipment3 was purchased on 6/1 for 100,000 (20,000 salvage value)., 10 year life. We decided to use SYD as a depreciation method. At 12/31/2016 it required a capital improvements of $40,000 which we signed a note to pay in 9 months.

Prepare Journal entries for all transactions

You are considering the purchase of an investment that would pay you $55 per year for Years 1-4, $30 per year for Years 5-7, and $68 per year for Years 8-10. If you require a 14 percent rate of return, and the cash flows occur at the end of each year, then how much should you be willing to pay for this investment? Show your answer to the nearest $.01. Do not use the $ sign in your answer.