Iguana, Inc., manufactures bamboo picture frames that sell for $20
each. Each frame requires 4 linear feet of bamboo, which costs
$1.50 per foot. Each frame takes approximately 30 minutes to build,
and the labor rate averages $13 per hour. Iguana has the following
inventory policies:
Expected unit sales (frames) for the upcoming months
follow:
| March | 345 |
| April | 390 |
| May | 440 |
| June | 540 |
| July | 515 |
| August | 565 |
Variable manufacturing overhead is incurred at a rate of $0.30 per
unit produced. Annual fixed manufacturing overhead is estimated to
be $7,200 ($600 per month) for expected production of 6,000 units
for the year. Selling and administrative expenses are estimated at
$650 per month plus $0.50 per unit sold.
Iguana, Inc., had $15,800 cash on hand on April 1. Of its sales, 80
percent is in cash. Of the credit sales, 50 percent is collected
during the month of the sale, and 50 percent is collected during
the month following the sale.
Of direct materials purchases, 80 percent is paid for during the
month purchased and 20 percent is paid in the following month.
Direct materials purchases for March 1 totaled $3,000. All other
operating costs are paid during the month incurred. Monthly fixed
manufacturing overhead includes $290 in depreciation. During April,
Iguana plans to pay $3,000 for a piece of equipment.
question: Complete Iguana's budgeted income statement for quarter 2. (Round cost per unit in intermediate calculations and final answers to 2 decimal places.)
Need:
April May June Total
Budgeted sales revenue
Budgeted cost of goods sold
Budgeted gross margin
Budgeted selling and administrative expenses
Budgeted net operating income
In: Accounting
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available
| Deacon Company Balance Sheet March 31 |
||
| Assets | ||
| Cash | $ | 68,200 |
| Accounts receivable | 42,000 | |
| Inventory | 63,400 | |
| Buildings and equipment, net of depreciation | 122,000 | |
| Total assets | $ | 295,600 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 96,400 |
| Common stock | 70,000 | |
| Retained earnings | 129,200 | |
| Total liabilities and stockholders’ equity | $ | 295,600 |
| Budgeted Income Statements | |||||||||
| April | May | June | |||||||
| Sales | $ | 178,000 | $ | 188,000 | $ | 208,000 | |||
| Cost of goods sold | 106,800 | 112,800 | 124,800 | ||||||
| Gross margin | 71,200 | 75,200 | 83,200 | ||||||
| Selling and administrative expenses | 19,000 | 20,500 | 23,500 | ||||||
| Net operating income | $ | 52,200 | $ | 54,700 | $ | 59,700 | |||
Budgeting Assumptions:
60% of sales are cash sales and 40% of sales are credit sales. Twenty percent of all credit sales are collected in the month of sale and the remaining 80% are collected in the month subsequent to the sale.
Budgeted sales for July are $218,000.
10% of merchandise inventory purchases are paid in cash at the time of the purchase. The remaining 90% of purchases are credit purchases. All purchases on credit are paid in the month subsequent to the purchase.
Each month’s ending merchandise inventory should equal $10,000 plus 50% of the next month’s cost of goods sold.
Depreciation expense is $1,800 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.
Required:
1. Calculate the expected cash collections for April, May, and June.
April = $163,040 May = $184,800 June = $201,600 Quarter $549,440
2. Calculate the budgeted merchandise purchases for April, May, and June.
3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June.
4. Prepare a budgeted balance sheet at June 30th. (Hint: You need to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30th balance sheet.)
In: Accounting
Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies: Ending finished goods inventory should be 40 percent of next month’s sales. Ending raw materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow: March 365 April 430 May 480 June 580 July 555 August 605 Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $4,800 ($400 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $450 per month plus $0.50 per unit sold. Iguana, Inc., had $11,000 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $3,400. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $330 in depreciation. During April, Iguana plans to pay $2,000 for a piece of equipment. 1. Compute the following for Iguana, Inc., for the second quarter (April, May, and June). Budgeted Sales Revenue- Budgeted Production in Units-Budgeted Cost of Raw Materials-Budgeted direct Labor cost- budgeted manufactued overhead- budgeted cost of goods sold And budgeted selling and admin expenses
In: Accounting
|
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. |
|
Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and other areas to gather the information assembled below. |
|
The company sells many styles of earrings, but all are sold for the same price—$16 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): |
| January (actual) | 22,000 | June (budget) | 52,000 |
| February (actual) | 28,000 | July (budget) | 32,000 |
| March (actual) | 42,000 | August (budget) | 30,000 |
| April (budget) | 67,000 | September (budget) | 27,000 |
| May (budget) | 102,000 | ||
|
The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. |
|
Suppliers are paid $5 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. |
| Monthly operating expenses for the company are given below: |
| Variable: | |||
| Sales commissions | 4% | of sales | |
| Fixed: | |||
| Advertising | $ | 300,000 | |
| Rent | $ | 28,000 | |
| Salaries | $ | 126,000 | |
| Utilities | $ | 12,000 | |
| Insurance | $ | 4,000 | |
| Depreciation | $ | 24,000 | |
| Insurance is paid on an annual basis, in November of each year. |
|
The company plans to purchase $21,000 in new equipment during May and $50,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $22,500 each quarter, payable in the first month of the following quarter. |
| A listing of the company’s ledger accounts as of March 31 is given below: |
| Assets | ||
| Cash | $ | 84,000 |
| Accounts receivable ($44,800 February sales; $537,600 March sales) | 582,400 | |
| Inventory | 134,000 | |
| Prepaid insurance | 26,000 | |
| Property and equipment (net) | 1,050,000 | |
| Total assets | $ | 1,876,400 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 110,000 |
| Dividends payable | 22,500 | |
| Common stock | 1,000,000 | |
| Retained earnings | 743,900 | |
| Total liabilities and stockholders’ equity | $ | 1,876,400 |
|
The company maintains a minimum cash balance of $60,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. |
|
The company has an agreement with a 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. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $60,000 in cash. |
| Required: | |
| 1. | Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: |
| a. | A sales budget, by month and in total. | |||||||||||||||||||||||||||||||||
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| b. | A schedule of expected cash collections from sales, by month and in total. | ||||||||||||||||||||||||||||||||||||||||||||||||
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| c. | A merchandise purchases budget in units and in dollars. Show the budget by month and in total. (Round "Unit cost" answers to 2 decimal places.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| d. |
A schedule of expected cash disbursements for merchandise purchases, by month and in total. |
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| 2. |
A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $60,000 (Cash deficiency, repayments and interest should be indicated by a minus sign.) |
| 3. |
A budgeted income statement for the three-month period ending June 30. Use the contribution approach. |
| 4. | A budgeted balance sheet as of June 30. |
In: Accounting
Montana State Savings Bank is currently scheduling $10 million in deposits. First trust deeds yield 9%, second trust deeds 10.5%, automobile loans 12.25%, and business loans 11.75%. In addition, Montana State Savings Bank can invest in risk free securities yielding 6.75%. Regulatory commissions of the state and federal governments require the following: • At most one-third of deposits must be in risk-free securities. • Home loans (first and second trust deed) cannot exceed the amount in risk-free securities. • Business loans may not account for more than 49% of the total loans and trust deed investments (deeds and loans, but not securities). • Automobile loans may not exceed 50% of the home loans (first and second trust deeds). a) Formulate the mathematical linear programming model for this problem. Solve the problem. b) What is the total profit? c) Which one is the biggest investment? What is the value? d) Does the bank deposit in all of these possible investments? e) The Bank deposits a significant amount in the Risk Free Securities although its yield is the lowest. Explain why.
In: Operations Management
There are five primary causes of hypoxaemia (low blood oxygen content):
The first four of these can be helped by giving the patient oxygen which in turn increases their arterial PO2. However, giving oxygen has little impact on a patient with a pulmonary shunt.
For each of the above causes, briefly (1-2 sentences) describe how it would lead to low arterial PO2. Then describe why giving a patient 100% oxygen would increase their arterial PO2 (for the first four), and why it would not significantly improve in a patient with a pulmonary shunt. Explain your reasoning. 4 and 5 are the most challenging and will require more description than the first 3. (2-6 total sentences each)
Diffusion Limitation :
Hypoventilation :
Reduced atmospheric oxygen :
V/Q Mismatch:
Shunt
In: Anatomy and Physiology
Use the following information regarding ABC Co. in 2020 (assume this is the first year of operations for ABC Co., and assume ABC pays cash unless noted otherwise). Assume ABC uses FIFO perpetual for inventory, straight-line depreciation, and estimates it will not collect 4% of accounts receivable.
1/1 Issues 10,000 shares of common stock for $5
each.
2/15 Purchase 2,000 units of inventory at
$4/unit.
3/1 Sells 500 units of inventory for $16/unit,
customer pays on account.
4/1 Signs a 2-year lease for its manufacturing
facility, paying the first years’ rent of $3,600 upfront.
6/1 Purchases equipment for $60,000 on account, 6
year useful life, $7,000 salvage value. It cost ABC $10,000 to have
the equipment installed, also paid on account.
7/1 Sells 100 units of inventory for $20 per unit,
customer pays on account.
9/1 The customer from the 3/1 sale of inventory
paid back 70% of their balance.
10/15 Declared and paid $3,000 of dividends.
12/1 Purchase $1,200 worth of supplies. By 12/31,
20% have been used.
What is ABC’s bad debt expense for 2020?
Group of answer choices
$176
$4,000
$400
$320
None of the above.
What is cost of goods sold for 2020?
Group of answer choices
$8,000
None of the above.
$2,400
$5,600
$2,000
What amount is reported on ABC’s 2020 Balance Sheet related to Property, Plant, & Equipment, assuming ABC depreciates beginning with the month of acquisition?
Group of answer choices
$63,875
$59,500
$51,167
None of the above.
$58,847
What is the journal entry related to the 3/1 sale of inventory?
Group of answer choices
Accounts Receivable 8,000
Sales 8,000
Cash 8,000
Sales 8,000
Accounts Receivable 8,000
Inventory 8,000
Cost of Goods Sold 2,000
Sales 2,000
No entry required
Accounts Receivable 8,000
Sales 8,000
Cost of Goods Sold 2,000
Inventory 2,000
In: Accounting
Near the end of 2017, the management of DJS Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2017. DJS SPORTS CO. Estimated Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash 36,000 Accounts Payable $ 360,000 Accounts Receivable 525,000 Bank Loan Payable 15,000 Inventory 150,000 Taxes Payable (due 3/15/17) 90,000 Total Current Assets $ 711,000 Total Liabilities $ 465,000 Equipment 540,000 Common Stock 472,500 Less: Accum Depreciation (67,500) Retained Earnings 246,000 Net Equipment 472,500 Total Stockholder's Equity 718,500 Total Assets $ 1,183,500 Total Liabilities and Equity 1,183,500 To prepare a master budget for January, February, and March of 2018, management gathers the following information.
a. DJS Sport's single product is purchased for $25 per unit and resold for $50 per unit. The expected inventory level of 6,000 units on December 31, 2017, is more than management's desired level for 2018, which is 20% of the next month's expected sales (in units). Expected sales are: January, 8,000 units; February, 9,000 units; March, 10,000 units; and April, 11,000 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $400,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $80,000 is paid in January and the remaining $280,000 is paid in February. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. f. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $36,000; February, $96,000; and March, $28,800. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the month. h. DJS Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $25,000 in each month. i. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until April 15.
Required: 1. Budgeted income statement for the entire first quarter (not for each month).
2. Budgeted balance sheet as of March 31, 2018.
In: Accounting
|
Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated statement of financial position for December 31, 2011. |
|
SIMID SPORTS COMPANY Estimated Statement of Financial position December 31, 2011 |
|||||
| Assets | |||||
| Cash | $ | 35,500 | |||
| Accounts receivable | 520,000 | ||||
| Inventory | 157,500 | ||||
| Total current assets | 713,000 | ||||
| Equipment | $ | 536,000 | |||
| Less accumulated depreciation | 67,000 | 469,000 | |||
| Total assets | $ | 1,182,000 | |||
| Liabilities and Equity | |||||
| Accounts payable | $ | 375,000 | |||
| Bank loan payable | 16,000 | ||||
| Tax payable (due 3/15/2012) | 89,000 | ||||
| Total liabilities | $ | 480,000 | |||
| Share capital—ordinary | 473,500 | ||||
| Retained earnings | 228,500 | ||||
| Total stockholders’ equity | 702,000 | ||||
| Total liabilities and equity | $ | 1,182,000 | |||
|
To prepare a master budget for January, February, and March of 2012, management gathers the following information. |
| a. |
Simid Sports’ single product is purchased for $30 per unit and resold for $54 per unit. The expected inventory level of 5,250 units on December 31, 2011, is more than management’s desired level for 2012, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,000 units; February, 8,750 units; March, 10,500 units; and April, 9,500 units. |
||
| b. |
Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 63% is collected in the first month after the month of sale and 37% in the second month after the month of sale. For the December 31, 2011, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February. |
||
| c. |
Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2011, accounts payable balance, $75,000 is paid in January and the remaining $300,000 is paid in February. |
||
| d. |
Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year. |
||
| e. |
General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. |
||
| f. |
Equipment reported in the December 31, 2011, statement of financial position was purchased in January 2011. It is being depreciated over eight years under the straight-line method with no residual value. The following amounts for new equipment purchases are planned in the coming quarter: January, $34,000; February, $95,000; and March, $28,500. This equipment will be depreciated under the straight-line method over eight years with no residual value. A full month’s depreciation is taken for the month in which equipment is purchased. |
||
| g. |
The company plans to acquire land at the end of March at a cost of $145,000, which will be paid with cash on the last day of the month. |
||
| h. |
Simid Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $32,740 in each month. |
||
| i. |
The income tax rate for the company is 37%. Income tax on the first quarter’s income will not be paid |
||
|
Answer the following questions(5---8) |
|||
| 5. |
Monthly capital expenditures budgets. 6.Monthly cash budgets. |
||
|
|||
| 8. |
Budgeted statement of financial position as at March 31, 2012. |
In: Accounting
Computational Problems: To obtain the correct multiple-choice answers, perform the computational work and save it to review later when you compare your answers with mine, which will be uploaded on Canvas soon after you take the exam.
This is a computational problem that will cover questions A-P. A university security office investigates if there is a statistical difference in public endangerment driving between the three most common traffic violations students commit while driving on the campus streets (Group 1: driving while texting; Group 2: driving while smoking pot; Group 3: driving while eating burger and fries). Do all computational work, including the post-hoc tests and effect size, if necessary.
|
Group 1: x1 |
Group 2: x2 |
Group 3: x3 |
|
9 10 10 9 8 9 9 |
5 4 3 5 2 3 4 |
8 8 7 7 6 6 7 |
a) What is the sum of the squares between?
Group of answer choices
104.666
118.952
104.711
14.286
b) From question 51, what is the sum of the squares within?
Group of answer choices
105
119
118.952
14.286
104.666
c) From question 51, what is the sum of the squares total?
Group of answer choices
118.952
104.667
14.286
104.666
d) From question 51, what are the degrees of freedom?
Group of answer choices
degrees of freedom between
[ Choose ] 3 18 20 21 2
degrees of freedom within
[ Choose ] 3 18 20 21 2
degrees of freedom total
[ Choose ] 3 18 20 21 2
E) From question 51, what are the sample means?
Group of answer choices
sample mean group 1
[ Choose ] 9.714 3.8 3.714 7 -7 9.143
sample mean group 2
[ Choose ] 9.714 3.8 3.714 7 -7 9.143
sample mean group 3
[ Choose ] 9.714 3.8 3.714 7 -7 9.143
F) From question 51, state step 1:
Group of answer choices
H0: Not H1 // H1: u1 = u2 = u3
H1: u1 - u2 - u3 // H0: u + u2 + u3
H0: u1 = u2 = u3 // H1: Not H0
g) From question 51: what are the mean squares?
Group of answer choices
MS between
[ Choose ] .794 65.911 52.333
MS within
[ Choose ] .794 65.911 52.333
H) From question 51, what is the Fobt?
Group of answer choices
5.691
65.911
56.911
I) From question 51, what are the two F critical values?
Group of answer choices
alpha = .05
[ Choose ] 6.01 4.41 8.28 3.55
alpha = .01
[ Choose ] 6.01 4.41 8.28 3.55
K) From question 51, what is your decision, step 4?
Group of answer choices
Reject H0
Retain H0
L) From question 51, what is your conclusion, step 5?
Group of answer choices
It appears that there is a significant difference in public endangerment driving between the three most common traffic violations
It appears that there is no significant difference between driving while texting, driving while vaping marijuana, and driving while eating burger and fries
It appears that there is a difference between the number of endangerments.
M) From question 51, what is the value of Tukey's HSD?
Group of answer choices
1.213
7
1.368
1.579
N) From question 51, of the mean differences, which are significant?
Group of answer choices
5.429
[ Choose ] not significant no statistical significance undetermined significant
2.143
[ Choose ] not significant no statistical significance undetermined significant
-3.286
[ Choose ] not significant no statistical significance undetermined significant
O) From question 51, match the conclusion to each mean difference.
Group of answer choices
mean 1 - mean 2
[ Choose ] It appears that driving while eating burger and fries results in significantly more public endangerment driving than driving while smoking pot It appears that driving while texting results in significantly more public endangerment than driving while smoking pot It appears that driving while texting results in significantly more public endangerment driving than driving while eating burger and fries
mean 1 - mean 3
[ Choose ] It appears that driving while eating burger and fries results in significantly more public endangerment driving than driving while smoking pot It appears that driving while texting results in significantly more public endangerment than driving while smoking pot It appears that driving while texting results in significantly more public endangerment driving than driving while eating burger and fries
mean 2 - mean 3
[ Choose ] It appears that driving while eating burger and fries results in significantly more public endangerment driving than driving while smoking pot It appears that driving while texting results in significantly more public endangerment than driving while smoking pot It appears that driving while texting results in significantly more public endangerment driving than driving while eating burger and fries
p) From question 51, what is the effect size?
.880
Group of answer choices
[ Choose ] Tukey's HSD Eta square Confidence interval Point biserial squared coefficient Cohen's d
In: Statistics and Probability