The following information pertains to the first year of operation for Crystal Cold Coolers Inc.:

Required:

Prepare Crystal Cold’s full absorption costing income statement and variable costing income statement for the year.

Variable costing statement please

The following are several transactions of Ardery Company that occurred during the current year and were recorded in permanent (that is, balance sheet) accounts unless indicated otherwise: Date Transaction

Apr. 1 Purchased a delivery van for $16,000, paying $1,000 down, and issuing a 1-year, 6% note payable for the $15,000 balance. It is estimated that the van has a 4-year life and an $800 residual value; the company uses straight-line depreciation. The interest on the note will be paid on the maturity date.

May 15 Purchased $800 of office supplies.

June 2 Purchased a 2-year comprehensive insurance policy for $1,200.

Aug. 1 Received 6 months' rent in advance at $300 per month and recorded the $1,800 receipt as Rent Revenue.

Sept. 15 Advanced $600 to sales personnel to cover their future travel costs.

Nov. 1 Accepted a $6,000, 6-month, 10% (annual rate) note receivable from a customer, the interest to be collected when the note is collected.

The following information also is available:

1. On January 1, the Office Supplies account had a $250 balance. On December 31, an inventory count showed $180 of office supplies on hand.

2. The weekly (5-day) payroll of Ardery Company amounts to $2,000. All employees are paid at the close of business each Wednesday. A 2-day accrual is required for the current year.

3. Sales personnel travel cost reports indicate that $500 of advances had been used to pay travel expenses.

4. The income tax rate is 30% on current income and is payable in the first quarter of next year. The pretax income before the adjusting entries is $8,655.

Required: On the basis of the above information, prepare journal entries to record whatever adjustments are necessary to bring the accounts up to date on December 31.

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $96 per unit, and variable expenses are $66 per unit. Fixed expenses are $830,400 per year. The present annual sales volume (at the $96 selling price) is 25,400 units.

Required:

1. What is the present yearly net operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales?

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

Personal Budget At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $6,350 Purchase season football tickets in September 90 Additional entertainment for each month 220 Pay fall semester tuition in September 3,400 Pay rent at the beginning of each month 310 Pay for food each month 170 Pay apartment deposit on September 2 (to be returned December 15) 400 Part-time job earnings each month (net of taxes) 790 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign. KATHERINE MALLOY Cash Budget For the Four Months Ending December 31 September October November December Estimated cash receipts from: Part-time job $ $ $ $ Deposit Total cash receipts $ $ $ $ Estimated cash payments for: Season football tickets $ Additional entertainment $ $ $ Tuition Rent Food Deposit Total cash payments $ $ $ $ Overall cash increase (decrease) $ $ $ $ Cash balance at beginning of month Cash balance at end of month $ $ $ $

The following revenue and expense figures relate to the first year of the rodeo.

Receipts

Contributions from sponsors $22,000

Receipts from ticket sales $28,971

Share of concession profits $1,513

Sale of programs   $600

Total receipts $53,084

Expenses

Livestock contractor $26,000

Prize money $21,000

Contestant hospitality $3,341*

Sponsor signs for arena $1,900

Insurance $1,800

Ticket printing $1,050

Sanctioning fees $925

Entertainment $859

Judging fees $750

Port-a-potties $716

Rent $600

Hay for horses $538

Programs $500

Western hats to first 500 children $450

Hotel rooms for stock contractor $325

Utilities $300

Sand for arena $251

Miscellaneous fixed costs                  $105

Total expenses $61,410

Net loss $ (8,326)

*The club contracted with a local caterer to provide a tent and food for the contestants. The cost of the food was contingent on the number of contestants each evening. Information concerning the number of contestants and the costs incurred are as follows:

                                    Contestants                  Total Cost

Friday                                  68 $998

Saturday                              96                          $1,243

Sunday 83 $1,100

                                                                        $3,341

Break-even point in Dollars is fixed cost / contribution margin ratio

Since the variable is at 4% total revenue, the contribution margin ratio is 96% or .96

$51,000/ .96 = $53,125

Contributions from sponsors = $25,600

Amount from ticket sales for break-even = $27,525

Compute the break-even point in dollars of ticket sales assuming Adrian and Jonathan's assumptions are correct as given in the case. This requirement is to calculate break even in dollars. The amount you calculate will be from all sources of revenue including contributions from sponsors. The requirement is for ticket sales only. Contributions from sponsors is stated in the case as $25,600. As an example, let's say that using the break even formula you calculate break even in dollars as $60,000. This is not the answer for the requirement. You need the amount of ticket sales which would be the $60,000 less $25,600 or $34,400 in ticket sales. It is critical that you account for the contributions from the sponsors. The rest of the case deals with ticket sales revenue. If you don't calculate ticket sales correctly, all of the other case answers you get will be wrong.

Note: The case states that variable costs are 4% of total revenue. What must the contribution margin ratio be if variable costs are 4% of total revenue?

Section 2

Shelley has just learned you are calculating the break-even point in dollars of ticket sales. She is still convinced the Club can make a profit using the assumptions above (second bullet point above).

Calculate the dollars of ticket sales needed to earn a target profit of $6,000.

Calculate the dollars of ticket sales needed to earn a target profit of $12,000.

Are the facilities at the fairgrounds adequate to handle crowds needed to generate ticket revenues calculated above (third bullet point above) to earn a $6,000 profit? Show calculations to support your answers.

You are considering the purchase of an investment that would pay you $66 per year for Years 1-4, $45 per year for Years 5-7, and $98 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.

Mary has to prepare a budget for the upcoming year. To know how much to set aside for medical expenses, she decides to take a look at how much she spent last year on keeping herself healthy. She pays $100 a month for her health insurance. Here are the details of her health insurance plan: the policy pays 80% of all hispital and pharamcy bills, with no out-of-pocket maximum of $400 befoer the insurer pays 100% The plan also requires a $20 co-pay each time she visits a doctor or picks up a prescribed medicine. The plan does not cocver dental or vision health needs. She has kept receipts for the last calendar year:

February

- Two doctors visits, costing $250

- One co-pay for prescription medicine, a $60 cosst

April

- Emergency visit to the dentist to remove tooth: $600

August

- Doctors visits, costing $250

- Visit to the Radiolosgist for x-rays, costing $850

- Follow-up visit to the radiologist: $300

November

- One doctors visit for a yearly physical, costing $400

Last year:

a- How much did Mary pay in co-pay overf the course of the year?

b- What percent of the dentist's bill did Mary have to pay herselft?

c- What was the total cost of doctor's bills and medicine?

d- In what month did Mary meet the out-of-pocket maximum of $400?

e- Of the $400 cost of the annual physical exam, how much did Mary have to pay?

Calculate the NPV for a 3-year project with the following cash flows and a required return of 15%:
CF0 = -$800,000 ATCF1 = $160,000 ATCF2 = $160,000 ATCF3 = $160,000 ATER = $600,000

Calculate the IRR for a 2-year project with the following cash flows and a required return of 12%:
CFO = -$375,000 ATCF1 = $27,500 ATCF2 = -$134,800 ATER = $596,000

ATER = After-Tax Equity Reversion

ATCF = After-Tac Cash Flow

Please show me how you answer the problem.

The net income reported on the income statement for the current year was $410,400. Depreciation recorded on store equipment for the year amounted to $17,470. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Required:

Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows:

Complete the table below to determine the net income Margaret should show on her Schedule C.

If an amount is zero, enter "0". If required, round the amounts to the nearest dollar.