Question 1
ACME Heating and Cooling Company Cash Budget 2010 2011 WORKSHEET November December January February March April May June July Sales Collections: Cash (20%) First Month: (20%) Second Month (60%) Total Collections Purchases (55% of second month?s sales) Payments (one month lag) CASH BUDGET Cash Receipts Total Collections Cash Disbursements Purchases Wages & Salaries Rent Other Expenses Interest Expense (on new debt) Taxes Purchases of Equipment Loan Repayment Total Disbursements Net Monthly Change in Cash Plus: Beginning Cash Balance Equals: Ending Cash Bal. before ST borrowing Financing Needed Ending Cash Balance Cum Debt,Prepare a Cash Budget for the first 6 months of 2011 usng the following information: 1 ACME Forecasted Sales are as follows in 2011: January February March April May June July August 100,000 95,000 88,000 88,000 98,000 111,000 111,000 125,000 2 Historical Sales for 2010 were: November December 97,000 123,000 3 20% of ACME's Sales are CASH. 20% is collected the month after the sale, and the remaning 60% is collected the second month after the sale. SO for example if in January $100,000 sales were made, $20,000 would be colleced in January, $20,000 in February and the remaining $60,000 in March. 4 ACME raw materials are 55% of the final sales price and they are all purchased 2 months prior to the forecasted sale. Those purchases are paid for the month after the purchase is made. So for example in November 2010 $55,000 of Raw Materials would have been purchased. $55,000 would have been paid to the Supplier in December 2010. 5 ACME monthly expenses are: Rent $12,000 Salaries $16,500 6 ACME has to purchase two new delivery trucks in March at $75,000 7 ACME pays Quarterly Taxes of $4,000 in January, April, July and October 8 ACME has a pre existing note to pay back in April 2011 of $35,000 9 ACME maintains a minimum cash balance of $20,000. Anyshprtfall must be borrowed on a short term basis at $1.25% per month Question The Marketing Manager has asked for $45,000 advertsising spend in August 2011 that must be prepaid on July 1 2011 to secure the advertising space. Does ACME forecast that it will have the cash to make that payment?,Breakeven Questions 7 San Diego Cake Store manufactures the finest Red Velvet Cakes in the world. The Cakes are each sold for $45. Variable costs are 65% of Sales and Fixed Costs are $405,000. How many Red Velvet Cakes must San Diego Cake Store sell in order to break even? 8 ACME heating company expects to make $40,000 in earnngs after taxes (EAT) with Sales of $400,000. Heaters are sold for $20 each. The Variable Cost per heater is $10 and ACME pays 35% taxes. 8.1 What are ACME's Fixed Costs expected to be next year? 8.2 Calculate ACME's Break even number of heaters in units and dollars.,Calculate the Future Values of the following: $6,000 invested for 13 years at 3% $24.50 invested for 4 years at 8% $1,000 invested for 15 years at 11% Calculate each one with the Financial Tables and then agan using Excel functions Calculate the Present Values of the following: $15,000 to be received 12 years from now discounted back to the present at 5%. $10,000 to be received 6 years from now discounted back to the present at 11%. $400 to be received 10 years from now discounted back to the present at 3%. Calculate each one with the Financial Tables and then agan using Excel functions Calculate the Future Values of the following Ordinary Annuities: $1,000 a year for 5 years compounded at 7%. $500 a year for 20 years compounded at 5% $25 a year for 4 years compounded at 12% Calculate each one with the Financial Tables and then agan using Excel functions Calculate the Present Value of the following Ordinary Annuities $4,000 a year for 15 years discounted back to the present at 5% $125 a year for 11 years discounted back to the present at 3% $3,500 year for 5 years discounted back to the present at 8% Calculate each one with the Financial Tables and then agan using Excel functions In 10 years I am going to retire and buy condo in Naples, Florida. The condo has recenty been appraised at $400,000. It is estimated to ncrease in value by 5% per year. Assuming I can earn 7% per year how much do I have to invest each year to have enough to buy my dream house? Note this is a Future Value Annuity question You borrow $100,000 at 10% compounded annually from the bank to buy a yacht. Ths loan is to be repaid in 5 years in 5 equal annual installments How much will each annual payment be? Note - this is a loan amortization question solving for PMT in a Present Value Annuity question.
Question 2
The following information is available to reconcile Clark Company?s book balance of cash with its bank statement cash balance as of July 31, 2011. a. On July 31, the company?s Cash account has a $26,193 debit balance, but its July bank statement shows a $28,020 cash balance. b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,230. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF. f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. g. Clark?s July 31 daily cash receipts of $10,152 were placed in the bank?s night depository on that date, but do not appear on the July 31 bank statement. The following information is available to reconcile Clark Company?s book balance of cash with its bank statement cash balance as of July 31, 2011. a. On July 31, the company?s Cash account has a $26,193 debit balance, but its July bank statement shows a $28,020 cash balance. b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,230. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF. f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. g. Clark?s July 31 daily cash receipts of $10,152 were placed in the bank?s night depository on that date, but do not appear on the July 31 bank statement. . Prepare the bank reconciliation for this company as of July 31, 2011
Question 3
Common stock?$26 par value, 48,000 shares authorized, 38,000 shares issued and outstanding $ 988,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 260,000 Total stockholders? equity $ 1,308,000 In year 2012, the following transactions affected its stockholders? equity accounts. Jan. 2 Purchased 3,200 shares of its own stock at $26 cash per share. Jan. 7 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July 9 Sold 500 of its treasury shares at $31 cash per share. Aug. 27 Sold 2,700 of its treasury shares at $24 cash per share. Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $12,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions for 2012. (Omit the "$" sign in your response.) Jan. 2 Jan. 7 Feb. 28 July 9 Aug. 27 Sept. 9 Oct. 22 Dec. 31 2. Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) KROLL CORPORATION Statement of Retained Earnings For Year Ended December 31, 2012 $ $ 3. Prepare the stockholders? equity section of the company?s balance sheet as of December 31, 2012. (Omit the "$" sign in your response.) KROLL CORPORATION Stockholders? Equity Section of the Balance Sheet December 31, 2012 $ Total stockholders? equity $
Question 4
E6-11 Reporting Net Sales with Credit Sales and Sales Discounts [LO6] The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $670. 15 Sold merchandise to Claudio's Chair Company at a selling price of $5,900 on terms 3/10, n/30. The goods cost Evergreen Company $3,953. 20 Sold merchandise to Otto's Ottomans at a selling price of $4,900 on terms 3/10, n/30. The goods cost Evergreen Company $3,283. 23 Collected payment from Claudio's Chair Company from the July 15 sale. Aug. 25 Collected payment from Otto's Ottomans from the July 20 sale.,Enter your follow up question here...,Q2) (a) Ebert Electronics distributes consumer electronics. One product has been selected for use in this case. Assume the completion of the following summarized transactions during the month of March 2008 in the order given. All transactions involved cash. Units Unit Cost Beginning inventory (March 1) 11 $200 New inventory purchases (March 15) 5 208 Sales (March 19) (selling price, $420) 12 ? New inventory purchases (March 21) 9 220 Compute the following amounts using the FIFO and LIFO methods applied on a perpetual basis Answer:- FIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value LIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value (b)Which method of Inventory Valuation do you recommend and why? Q3) Kat Bardash, a student at a small state college, has just received her first checking account statement for the month ended September 30. This is her first chance to attempt bank reconciliation. The bank?s statement of account shows the following information: Bank balance, September 1 $1,150 Deposits during September 650 Checks cleared during September 900 Bank service charge 25 Interest earned 5 Bank balance, September 30 880 Kat is surprised that her bank has not yet reported the $50 deposit that she made on September 29 and pleased that her $200 rent check has not yet cleared her account. Her September 30 checkbook balance is $750. Required: 1. Complete Kat?s bank reconciliation. What adjustments, if any, does she need to make in her checkbook? 2. Why is it important for individuals and businesses to prepare bank reconciliation each month? Answer:-,Q2) (a) Ebert Electronics distributes consumer electronics. One product has been selected for use in this case. Assume the completion of the following summarized transactions during the month of March 2008 in the order given. All transactions involved cash. Units Unit Cost Beginning inventory (March 1) 11 $200 New inventory purchases (March 15) 5 208 Sales (March 19) (selling price, $420) 12 ? New inventory purchases (March 21) 9 220 Compute the following amounts using the FIFO and LIFO methods applied on a perpetual basis Answer:- FIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value LIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value (b)Which method of Inventory Valuation do you recommend and why? Q3) Kat Bardash, a student at a small state college, has just received her first checking account statement for the month ended September 30. This is her first chance to attempt bank reconciliation. The bank?s statement of account shows the following information: Bank balance, September 1 $1,150 Deposits during September 650 Checks cleared during September 900 Bank service charge 25 Interest earned 5 Bank balance, September 30 880 Kat is surprised that her bank has not yet reported the $50 deposit that she made on September 29 and pleased that her $200 rent check has not yet cleared her account. Her September 30 checkbook balance is $750. Required: 1. Complete Kat?s bank reconciliation. What adjustments, if any, does she need to make in her checkbook? 2. Why is it important for individuals and businesses to prepare bank reconciliation each month? Answer:-,Q2) (a) Ebert Electronics distributes consumer electronics. One product has been selected for use in this case. Assume the completion of the following summarized transactions during the month of March 2008 in the order given. All transactions involved cash. Units Unit Cost Beginning inventory (March 1) 11 $200 New inventory purchases (March 15) 5 208 Sales (March 19) (selling price, $420) 12 ? New inventory purchases (March 21) 9 220 Compute the following amounts using the FIFO and LIFO methods applied on a perpetual basis Answer:- FIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value LIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value (b)Which method of Inventory Valuation do you recommend and why? Q3) Kat Bardash, a student at a small state college, has just received her first checking account statement for the month ended September 30. This is her first chance to attempt bank reconciliation. The bank?s statement of account shows the following information: Bank balance, September 1 $1,150 Deposits during September 650 Checks cleared during September 900 Bank service charge 25 Interest earned 5 Bank balance, September 30 880 Kat is surprised that her bank has not yet reported the $50 deposit that she made on September 29 and pleased that her $200 rent check has not yet cleared her account. Her September 30 checkbook balance is $750. Required: 1. Complete Kat?s bank reconciliation. What adjustments, if any, does she need to make in her checkbook? 2. Why is it important for individuals and businesses to prepare bank reconciliation each month? Answer:-,Enter your follow up question here...
Question 5
See Attachment. This exercises are based on the Managing Enginnering and Technology textbook by Lucy Morse and Daniel Babcock. A am resubmitting the questions and included one more. Please let me know if you can finish it today by 2:00 p.m.,Thank you Rachel I really appreciate the help. I tried my best but could not solve these problems. Please help me on these three problems I truly appreciate it.,Thank you very much Rachel do you know who may be able to help me with the first four problems I wrote them down here and its also in the attachment: 1.For the upcoming planting season, Farmer McCoy has four options: A1: Plant corn A3: Plant soybean A2: Plant wheat A4: Use the land for grazing The payoffs associated with the different actions are influenced by the amount of rainfall, which could be one of four states: S1: Heavy rainfall S3: Light rainfall S2: Moderate rainfall S4: Drought season The payoff matrix (in $1,000) is estimated as S1 S2 S3 S4 A1 -30 80 30 -5 A2 40 60 35 0 A3 -60 100 25 -10 A4 10 15 20 15 Determine the best decision according to a) the maximin rule; b) the maximax rule; c) the Laplace rule (Equally likely) d) the Hurwicz rule with ? = 0.30; and e) the minimax regret rule. 2. Using Holt?s Trend Model with the following data sets, 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Actual 125 139 146 156 178 185 204 209 225 239 255 264 a) Make forecast for 2006. (Use 6 data sets for initiation and 6 sets for testing, ?= 0.3, ?=0.6) b) Calculate the bias, MAD, MPE, and MAPE using the actual data during the testing phase. 3. ABC Corp. produces both interior and exterior paints from two raw materials, M1 and M2. The following table provides the basic data: Tons of raw material per ton of Maximum daily availability (tons) Exterior paint Interior paint Raw material, M1 6 4 36 Raw material, M2 2 3 18 Profit per ton ($1,000) 8 6 A market survey indicates that the daily demand for interior paint cannot exceed that of exterior paint by more than 2 tons. Also, the maximum daily demand of interior paint is 4 tons. ABC Corp. wants to determine the optimal product mix of interior and exterior paints that maximizes the total daily profit. a) Formulate the linear programming model for this problem. b) Solve this model using the graphical approach, EXCEL, or LINDO. c) What is the limiting raw material? What alternatives could you suggest? 4. Two products are manufactured in a machining center. The production times per unit of products X and Y are 9 and 12 minutes, respectively. The total regular machine time is 2500 minutes per day. Daily demand is 200 units for product X and 100 units for Y.,Rachel please work on the last three that you said you were able to do 7-9. I wrote the problems below: Do you know anyone who may be able to help with problems 1-4 on the attachment. Please let me know. 7. Excelsior Corporation reported the following status (in thousands of dollars) as of December 31, 2001: accounts payable of $150; accounts receivable of $250; cash of $150; inventory of $200; long-term debt of $260; net plant and equipment of$500; notes payable during 2001 of $250; and stockholders' equity of $440. (a) Prepare a balance sheet as of 12/31/2001, and (b) calculate as many financial ratios as you can with the information provided. 8 For 2001 a company reported (in millions of dollars) net sales of $10.0, cost of goods sold of $4.4, other (sales, G&A, and interest) expense of $1.2, and income taxes of $1.6. As of December 31, 2001, the company had $1.0 cash and securities, $1.4 accounts receivable, and $2.0 inventory; it owed $2.0 in current liabilities (including unpaid taxes) and $2.5 in long-term debt. Calculate as many financial ratios as you can with the information provided. 9 ABC Corporation produces 50,000 units of product X and 5,000 units of product Y at a direct materials cost of $3 per unit. Product X requires 3 minutes and product Y 30minutes direct labor per unit (at $20 per hour). Other costs (tooling, setup, and equipment depreciation and maintenance) for this period amount to $60,000. (a) If these "other costs" are allocated on the basis of direct labor hours, what is the apparent unit cost of each product? (b) Production of product X is highly automated to reduce direct labor cost; it is responsible for $55,000 of this "other cost," and product Y only $5,000. Using activity-based costing, what do the unit costs now become? (c) What difference might this make in ABC Corporation's actions?
