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
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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. |
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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. |
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| 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. |
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| d. |
Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year. |
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| e. |
General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. |
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| 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. |
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| 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. |
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| 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. |
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| i. |
The income tax rate for the company is 37%. Income tax on the first quarter’s income will not be paid |
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|
Answer the following questions(5---8) |
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| 5. |
Monthly capital expenditures budgets. 6.Monthly cash budgets. |
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|
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| 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
|
Maga Company, which has only one product, has provided the following data concerning its most recent month of operations: |
| Selling price | $ | 193 |
| Units in beginning inventory | 0 | |
| Units produced | 3,090 | |
| Units sold | 2,910 | |
| Units in ending inventory | 180 | |
| Variable cost per unit: | ||
| Direct materials | $ | 53 |
| Direct labor | $ | 59 |
| Variable manufacturing overhead | $ | 15 |
| Variable selling and administrative | $ | 13 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 89,610 |
| Fixed selling and administrative | $ | 8,730 |
| Required: |
| a. |
What is the unit product cost for the month under variable costing? (Do not round intermediate calculations. Omit the "$" sign in your response.) |
| Cost per unit | |
| Variable costing | $ |
| b. |
What is the unit product cost for the month under absorption costing? (Omit the "$" sign in your response.) |
| Cost per unit | |
| Absorption costing | $ |
| c. |
Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) |
| Variable Costing Income Statement | ||
| (Click to select) Variable selling and administrative expenses Selling and administrative expenses Manufacturing overhead Variable cost of goods sold Contribution margin Net operating income (loss) Sales | $ | |
| Variable expenses: | ||
| (Click to select) Variable selling and administrative expenses Net operating income Variable cost of goods sold Contribution margin Direct labor Sales Direct materials | $ | |
| (Click to select) Direct materials Contribution margin Variable cost of goods sold Sales Direct labor Net operating income Variable selling and administrative expenses | ||
| (Click to select) Selling and administrative expenses Net operating income (loss) Variable selling and administrative expenses Variable cost of goods sold Sales Manufacturing overhead Contribution margin | ||
| Fixed expenses: | ||
| (Click to select) Contribution margin Fixed selling and administrative expenses Fixed manufacturing overhead Variable selling and administrative expenses Net operating income Sales Variable cost of goods sold | ||
| (Click to select) Variable cost of goods sold Variable selling and administrative expenses Fixed selling and administrative expenses Contribution margin Net operating income Fixed manufacturing overhead Sales | ||
| (Click to select) Selling and administrative expenses Variable selling and administrative expenses Sales Variable cost of goods sold Manufacturing overhead Contribution margin Net operating income (loss) | $ | |
| d. |
Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) |
| Absorption Costing Income Statement | |||
| (Click to select) Cost of goods sold Variable selling and administrative expenses Gross margin Fixed selling and administrative expenses Net operating income (loss) Sales | $ | ||
| (Click to select) Sales Net operating income (loss) Gross margin Variable selling and administrative expenses Fixed selling and administrative expenses Cost of goods sold | |||
| (Click to select) Net operating income (loss) Variable selling and administrative expenses Sales Fixed selling and administrative expenses Gross margin Cost of goods sold | |||
| Operating expenses: | |||
| (Click to select) Net operating income (loss) Cost of goods sold Gross margin Sales Variable selling and administrative expenses Fixed selling and administrative expenses | $ | ||
| (Click to select) Variable selling and administrative expenses Sales Net operating income (loss) Gross margin Cost of goods sold Fixed selling and administrative expenses | |||
| (Click to select) Net operating income (loss) Cost of goods sold Fixed selling and administrative expenses Gross margin Sales Variable selling and administrative expenses | $ | ||
| e. |
Reconcile the variable costing and absorption costing net operating incomes for the month. (Omit the "$" sign in your response.) |
| Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes | |
| Variable costing net operating income | $ |
| (Click to select) Add Deduct : (Click to select) Fixed manufacturing overhead costs released from inventory under absorption costing Fixed manufacturing overhead costs deferred in inventory under absorption costing | |
| Absorption costing net operating income | $ |
In: Finance
Managerical Accounting Chapter 8 problem 30C cash budget, how was the merchandise purchases calculated in step 2 of the problem? The orignial question states "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 $50,000. The answers given was 258,000 318,000, 244,000 and 820,000. I am asking how were figures calculated? This is my first time posting a question please advise what is incomplete about my question and how to remedy it so that I can have a better understanding of how the figures were calculated. Thank you.
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 a master budget for the upcoming second quarter. 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—$10 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) | 20,000 | June (budget) | 50,000 |
| February (actual) | 26,000 | July (budget) | 30,000 |
| March (actual) | 40,000 | August (budget) | 28,000 |
| April (budget) | 65,000 | September (budget) | 25,000 |
| May (budget) | 100,000 |
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 $4 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. 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 |
$200,000 |
|
Rent |
$18,000 |
|
Salaries |
$106,000 |
|
Utilities |
$7,000 |
|
Insurance |
$3,000 |
|
Depreciation |
$14,000 |
Insurance is paid on an annual basis, in November of each year.
The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter.
The company’s balance sheet as of March 31 is given below:
| Assets | |
| Cash | $ 74,000 |
|
Accounts receivable
($26,000 February sales; |
346,000 |
| Inventory | 104,000 |
| Prepaid insurance | 21,000 |
| Property and equipment (net) | 950,000 |
| Total assets | $1,495,000 |
| Liabilities and Stockholders’ Equity | |
| Accounts payable | $ 100,000 |
| Dividends payable | 15,000 |
| Common stock | 800,000 |
| Retained earnings | 580,000 |
| Total liabilities and stockholders’ equity | $1,495,000 |
The company maintains a minimum cash balance of $50,000. 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 $50,000 in cash.
Required:
Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:
A sales budget, by month and in total.
A schedule of expected cash collections, by month and in total.
A merchandise purchases budget in units and in dollars. Show the budget by month and in total.
A schedule of expected cash disbursements for merchandise purchases, by month and in total.
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 $50,000.
A budgeted income statement for the three-month period ending June 30. Use the contribution approach.
A budgeted balance sheet as of June 30.
In: Accounting
A firm practices the pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and firing cost is $5 per unit. Over the next year, the sum of hiring and layoff costs will be
In: Other
You buy 100 shares of Apple common stock at a price of $55.75. One quarter later, you collect a dividend of $1.51 per share and sell your stock for $66.38 per share. What is the rate of return on your investment? (You may ignore commissions and taxes.) Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol. If the return is negative, then include a minus sign.
In: Finance
Company X's current return on equity (ROE) is 17.06%. It pays out one-quarter of earnings as cash dividends, i.e. its payout ratio is 29.1%. Current book value per share is $38.71. The company has 5.68 million shares outstanding. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces the ROE to 11.02% and the company changes the payout ratio to 71.52%. The company does not plan to issue or retire shares. The cost of capital is 10.77%.
(a) What is the price of stock X?
(b) How much of stock X's value is attributable to growth opportunities (PVGO)? Note that here we cannot use P=(EPS/r)+PVGO because ROE changes over time. PVGO is defined by the difference between the price of stock and the value of share if there is no growth for every period.
In: Finance
|
August |
September |
October |
|
|
Cash Sales |
$40,000 |
$60,000 |
$100,000 |
|
Credit Sales |
300,000 |
340,000 |
440,000 |
|
Total |
$340,000 |
$400,000 |
$540,000 |
Experience reveals that 6% of credit sales will be uncollectible. Of the sales that are collectable 50% are collected in the month of the sale; 35% are collected in the month following the sale, and the remainder are collected in the next following month. (Credit sales were $200,000 in July).
Inventory purchases each month are 100% of the cost of the following month’s projected sales. Occipital’s gross profit rate is 50%, that is a 100% markup on cost. All merchandise purchases are made on credit and paid for in the month following the purchase. Administrative costs are expected to be $150,000 per month.
The cash balance on September 1 is expected to be $20m,000. The minimum cash balance is $10,000.
Required:
-Prepare the cash budget for September and October.
-Why are budgets important for business organizations?
In: Accounting
Volkswagen saw a 95% drop in its fourth quarter profits in 2004 after an unexpected surge in the value of the Euro left the company with losses of $1.5 billion.
1. What is hedging? Explain how Volkswagen's failure to fully protect itself against foreign exchange fluctuations had a negative effect on the company? What can Volkswagen and other companies learn from this experience?
2. Why was Volkswagen so vulnerable to the change in the value of the Euro against the US Dollar relative to the US Dollar?
3. In 2015 and 2016 strong dollar affected several US companies. Please see the one of the examples in the following links (2015 and 2016) where the strong dollar hurt the company. What can this company do to protect itself from exchange rate fluctuations? Since the beginning of 2017, the dollar has been weakening. What does that mean for US companies? How will the weaker dollar affect US businesses?
only need to anwser to question 3
In: Economics