What do you think would happen if an Asiatic Streptococcus strain acquired genetic information from a European Streptococcus by means of a plasmid, integrated it into a CRISPR array, and then was shipped on a load of “active culture” Yak milk to London?

Presented below is the comparative balance sheet for Martinez Company.

Prepare a comparative balance sheet of Martinez Company showing the percent each item is of the total assets or total liabilities and stockholders’ equity. (Round percentages to 2 decimal places, e.g. 2.25%.)

Blooms Enterprise Project

Blooms Enterprise is a retail company that sells household electronics. The budget for the forthcoming period January to March 2021 is to be prepared. Expectations for the forthcoming period include the following:

1. Expected Statement of Financial Position as at 31 December 2020

2. Sales data – the company’s sales for December 2020 are expected to be $900,000 and it is expected that it will increase by 10% each month over the previous month for the quarter ending March 31, 2021. Sales are expected to remain constant at March 31, 2021 level for the next three months.

3. Collections – credit sales are typically 70% of total sales. Outstanding amounts from sales are normally collected as follows:

1. 80% during the month of sale
2. 20% during the month after sale

4. Cost of goods sold – this is normally 70% of total sales. To have adequate stocks of inventory on hand, the company attempts to have inventory at the end of each month equal to half (50%) of the next month’s projected cost of goods sold. Inventory is purchased on account and usually settled as follows:

1. 40% during the month of purchase
2. 60% during the month after purchase

5. Other monthly expenses:

6. Equipment is to be purchased on January 1, 2021 for cash in the amount of $700,000.

7. The directors have indicated an intention to declare and pay dividends of $120,000 on the last day of each quarter.

8. The executives believe that the company should maintain a minimum cash balance of $60,000. If the cash balance in any month is less than $60,000, then the company can borrow to cover the shortfall. Amounts borrowed must be in multiples of $1,000 (for example, $50,000 or $51,000 but not $51,500 or 51,566). The interest rate is 10% per annum. Repayment of principal and interest must be made on the last day of each quarter.

1. Tax payable represents 20% of Profit before Tax and will be paid April 30, 2021 (after the end of the first quarter).

Required:

Prepare the following budgets for Blooms Enterprise by month and the quarter in total for the period ending March 31, 2021:

1. Schedule showing breakdown of sales between cash and credit (Hint: show December 2020 and April 2021 as well).                                                                            

2. Schedule of cash collected from customers.                                                              

3. Purchases budget (Hint: show April 2021 as well).                                            

4. Schedule of cash disbursement to suppliers of products for resale.                        

5. Cash budget for the period.                                                                               

Blooms Enterprise is a retail company that sells household electronics. The budget for the forthcoming period January to March 2021 is to be prepared. Expectations for the forthcoming period include the following:

a.      Expected Statement of Financial Position as at 31 December 2020

b.     Sales data – the company’s sales for December 2020 are expected to be $900,000 and it is expected that it will increase by 10% each month over the previous month for the quarter ending March 31, 2021. Sales are expected to remain constant at March 31, 2021 level for the next three months.

c.      Collections – credit sales are typically 70% of total sales. Outstanding amounts from sales are normally collected as follows:

                 i.          80% during the month of sale

               ii.          20% during the month after sale

d.     Cost of goods sold – this is normally 70% of total sales. To have adequate stocks of inventory on hand, the company attempts to have inventory at the end of each month equal to half (50%) of the next month’s projected cost of goods sold. Inventory is purchased on account and usually settled as follows:

                  i.          40% during the month of purchase

                ii.          60% during the month after purchase

e.      Other monthly expenses:

f.      Equipment is to be purchased on January 1, 2021 for cash in the amount of $700,000.

g.     The directors have indicated an intention to declare and pay dividends of $120,000 on the last day of each quarter.

h.      The executives believe that the company should maintain a minimum cash balance of $60,000. If the cash balance in any month is less than $60,000, then the company can borrow to cover the shortfall. Amounts borrowed must be in multiples of $1,000 (for example, $50,000 or $51,000 but not $51,500 or 51,566). The interest rate is 10% per annum. Repayment of principal and interest must be made on the last day of each quarter.

i.       Tax payable represents 20% of Profit before Tax and will be paid April 30, 2021 (after the end of the first quarter).

Required:

Prepare the following budgets for Blooms Enterprise by month and the quarter in total for the period ending March 31, 2021:

(a)    Schedule showing breakdown of sales between cash and credit (Hint: show December 2020 and April 2021 as well).                                                                             

(b)    Schedule of cash collected from customers.                                                              

(c)    Purchases budget (Hint: show April 2021 as well).                                             

(d)    Schedule of cash disbursement to suppliers of products for resale.                         

(e)    Cash budget for the period.                                                                                

Solomon Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash.

1. Acquired $890,000 of cash from the owners.
2. Purchased $340,000 of manufacturing equipment. The equipment has a $44,000 salvage value and a four-year useful life.
3. The company started and completed 6,400 modems. Direct materials purchased and used amounted to $54 per unit.
4. Direct labor costs amounted to $39 per unit.
5. The cost of manufacturing supplies used amounted to $18 per unit.
6. The company paid $64,000 to rent the manufacturing facility.
7. Solomon sold all 6,400 units at a cash price of $190 per unit.
8. The sales staff was paid a $13.00 per unit sales commission.
9. Paid $53,000 to purchase equipment for administrative offices. The equipment was expected to have a $4,400 salvage value and a three-year useful life.
10. Administrative expenses consisting of office rental and salaries amounted to $80,100.

Required

1. Use the following partially completed form to prepare an income statement using the contribution margin format.

2. Determine the break-even point in units and in dollars.

3. Assume that next year’s sales are budgeted to be the same as the current year’s sales. Determine the margin of safety expressed as a percentage.

On January 1, 2016, Sunland Corporation acquired equipment costing $73,280. It was estimated at that time that the equipment would have a useful life of eight years and no residual value. The company uses the straight-line method of depreciation for its equipment, and its year end is December 31.

1. Calculate the equipment’s accumulated depreciation and carrying amount at the beginning of 2018.

---Equipment’s accumulated depreciation =

----Carrying amount=

2.What is the amount of the gain or loss that would arise when a quarter of the equipment was sold on January 1, 2018, for cash proceeds of $19,760?

gain / loss ? from sale of equipment =?

3. What is the depreciation expense for January 1, 2018, to October 31, 2018? Depreciation expense=

4.On November 1, 2018, the company purchased additional equipment for $9,600 that also had a useful life of eight years and no residual value. What is the depreciation for the two months ending December 31, 2018? Total depreciation for 2 months=

5. On December 31, 2018, the company sold some equipment for a loss of $3,020. After recording the sale, the balances in the Equipment account and Accumulated Depreciation account were $52,760 and $14,418, respectively. Based on this information, what were the proceeds received when this equipment was sold?

Cash proceeds from sale =

Plexis Corporation holds 70 percent of Solar Company's voting common shares, acquired at book value, but none of its preferred shares. At the date of acquisition, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Solar Company. Summary balance sheets for the companies on December 31, 20X5, are as follows:

Neither of the preferred issues is convertible. Plexis's preferred pays a 9 percent annual dividend, and Solar's preferred pays a 10 percent dividend. Solar reported net income of $40,000 and paid a total of $15,000 of dividends in 20X5. Plexis reported income from its separate operations of $80,000 and paid total dividends of $45,000 in 20X5.

50) Based on the preceding information, what is the consolidated earnings per share for 20X5?

A) $16.97

B) $17.42

C) $18.72

D) $19.17

Answer: A

Please explain how to get this number!!!

You are a new consultant with the Boston Group and have been sent to advise the executives of penury Company. The company recently acquired product line L from an out-of-state concern and now plans to produce it, along with its old standby K, under one roof in a newly renovated facility. Management is quite proud of the acquisition, contending that the larger size and related cost savings will make the company far more profitable. The planner results of the month’s operations, based on management’s best estimates of the maximum product demanded at today’s selling price are:

Required:

Based on historical operations, K alone incurred fixed expenses of $40,000, and L alone incurred fixed expenses of $20,000. Find the break-even point in sales dollars and units for each product separately.

Give reasons why the fixed cost for the two products combined are expected to be less than the sum of the fixed costs of each product line operating as a separate business.

You are a new consultant with the Boston Group and have been sent to advise the executives of penury Company. The company recently acquired product line L from an out-of-state concern and now plans to produce it, along with its old standby K, under one roof in a newly renovated facility. Management is quite proud of the acquisition, contending that the larger size and related cost savings will make the company far more profitable. The planner results of the month’s operations, based on management’s best estimates of the maximum product demanded at today’s selling price are:

Required:

Based on historical operations, K alone incurred fixed expenses of $40,000, and L alone incurred fixed expenses of $20,000. Find the break-even point in sales dollars and units for each product separately.

Give reasons why the fixed cost for the two products combined are expected to be less than the sum of the fixed costs of each product line operating as a separate business.

Chapter 5: Customer and Sales

Additionally, please refer to Chapter 6 in your Cengage Accounting eText, accessible from the eText link in the Course Navigation Panel to the left of your screen.

Requirement 1:

Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors to increase earnings, and the president of the company expects the accounting department to “make this happen.” Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated.

Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The amount is so large that it will result in a significant drop in earnings this period. Margie's boss asks her not to make the adjusting entry for shrinkage this period. He assures her that they will get “caught up” on shrinkage in the next period, after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do this as a personal favor to him.

What should Margie do in this situation? Why?

Requirement 2:

On April 18, 2020, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2020.

Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even though the discount period had expired.

Responses to Classmates:

Please let your classmates know if you agree or disagree with the information that they provided in Requirement 1 or Requirement 2 and explain why.

Response to Instructor:

Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.

Writing:

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