1. Development of new housing tracts in New Mexico is counted in GDP under: (a) personal consumption expenditures for durable goods; (b) personal consumption expenditures on housing services; (c) gross private domestic investment; (d) business fixed investment.

2. . The possibility that even a relatively or seemingly minor event somewhere in the world could spread and disrupt the entire real economy is known as: (a) operational risk; (b) credit risk; (c) a liquidity trap; (d) systemic risk.

3. The Federal Open Market Committee of the Fed consists of: (a) the 7 members of the Board of Governors; (b) the Presidents of the 12 Federal Reserve Banks; (c) the 7 Governors and 12 Presidents; (d) the 7 Governors, the 12 Presidents and the Secretary of the Treasury.

Woodside Global Trading Limited, a company listed on the Roman Stock Exchange, is a trading and investment entity. The company trades exclusively in golf equipment, and invests in property and other firms.

Woodside Global Trading Limited have just engaged you as their external accountant to assist in the preparation of the entity’s 2025 financial statements. The financial period of the company is from January 1 to December 31.

The company has provided you the following list of accounts, and the trial balance totals per account as at December 31, 2025:

Additional Information:

1.       The trial balance amount for Plant and Equipment is a gross amount. The total accumulated depreciation of applied to Plant and Equipment as at December 31, 2025 is $6,000,000. It is the policy of Woodside Global Trading Limited to show the value of Plant and Equipment as a net amount in the financial statements.

2.       For the period ended December 31, 2025, Woodside Global Trading Limited recorded a profit of $7,500,000. This amount has yet to be included in the Retained Earnings balance as per the trial balance.

3.       The substantial shareholder has indicated that to settle the advance amount, the substantial shareholder as indicated a very strong preference and probability for payment by issuance of new equity.

4.       All prepaid expenses as at December 31, 2025 are expected to be consumed by the end of December 31, 2026.

5.       The land held for investment is separate from the property the plant and equipment (owned by Woodside Global Trading Limited) resides on.

6.       In the forthcoming 12 months Woodside Global Trading Limited is predicting the entity will purchase plant and equipment to the value of $14,000,000.

7.       The value of the Inventory as shown in the trial balance is the net realizable value. The value of inventory at cost is $15,650,000.

8.       The effective tax rate that Woodside Global Trading Limited is subject to is 21%.

Required:

Using the information supplied, prepare a balance sheet/statement of financial position for Woodside Global Trading Limited for the end of 2025 that conforms with recommended presentation of IFRS IAS 1 requirements and as preferred for the course.

1) Sales Budget and Expected Cash Collections

The marketing department of Alex Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

The selling price of the company’s product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200.

Required:

1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.

2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.

You have been hired as an outside consultant for a large durable medical equipment and medical supply company. The company specializes in a wide range of medical supplies and equipment. Some of its most profitable offerings include hospital bed rental to private residents, wheelchairs, walkers, scooter and other mobility equipment. However, they have come to realize that competition is increasing and market share is getting tight. They note that most of their customers are new costumers and very few are repeat customers. They are concerned with customer loyalty. The medical supply company owner has asked you to train develop a plan to improve customer loyalty and train the staff.

1.Be sure to discuss the (multiple) benefits that loyal, repeat customers offer to health care organizations.

2. Develop and defend at least 4 recommendations for the medical supply company based on your research on how to improve customer loyalty. Include a brief overview of how each recommendation would be implemented at the company.

Part One: Gordon, Inc. makes toys and projects production to be 6100, 5900, 6000, and 5500 for the next four quarters. Direct materials are $8 per kit. Beginning Raw Material Inventory is $20,000 and the company desires to end each quarter with 25% of the material needed for the next two quarter's production. Direct Materials needed for production in the First Quarter of the following year is $45,000. Gordon desires a balance of $25,000 in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 1.3 hours of direct labor at an average cost of $30 per hour. Each kit requires 1.25 machine hours. Manufacturing overhead is allocated using machine hours as the allocation base. Variable overhead is $50 per kit and fixed overhead is $30,000 in the first two quarters and $32,000 in the third and fourth quarter.

5. Prepare a balance sheet as of March 31.Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

Actual sales for December and budgeted sales for the next four months are as follows:

Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

Monthly expenses are budgeted as follows: salaries and wages, $35,000 per month: advertising, $61,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $45,300 for the quarter.

Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

During February, the company will purchase a new copy machine for $3,000 cash. During March, other equipment will be purchased for cash at a cost of $80,000.

During January, the company will declare and pay $45,000 in cash dividends.

Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

3. Cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.)

4. Prepare an absorption costing income statement for the quarter ending March 31.

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

Actual sales for December and budgeted sales for the next four months are as follows:

Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

Monthly expenses are budgeted as follows: salaries and wages, $18,000 per month: advertising, $58,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,580 for the quarter.

Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

During February, the company will purchase a new copy machine for $1,300 cash. During March, other equipment will be purchased for cash at a cost of $71,500.

During January, the company will declare and pay $45,000 in cash dividends.

Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

2a. Cash budget:

b. Prepare an absorption costing income statement for the quarter ending March 31.

c. Prepare a balance sheet as of March 31.

Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2016, the following data are developed:

1.   Sales: 20,000 units; unit selling price:                       $35

2.   Variable costs per dollar of sales:

            Sales commissions                                                6%

            Delivery expense                                                   2%

            Advertising                                                             4%

3.   Fixed costs per quarter:

            Sales salaries                                                $24,000

            Office salaries                                                  17,000

            Depreciation                                                       5,000

            Insurance                                                           1,000

            Utilities                                                               2,000

Instructions

Prepare a selling and administrative expense budget for the first quarter of 2016.

Which of the following is correct?   A. When marginal product is falling, total product must be falling.    B. All of the other answers are incorrect    C. When marginal product is falling, total product must also be falling.    D. Marginal product rises faster than total product and also falls faster than marginal cost.    E. When total product is rising, both average product and marginal cost must also be rising.