Question 1
PROBLEM 7-22B Completing a Master Budget (LO2, LO4, LO7, L08, LO9, LO10) CHECK FIGURE (2a) February purchases: $254,800 (4) February ending cash balance: $30,400 Spektra Company, a home furnishings 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: a. As of December 31 (the end of the prior quarter), the company?s general ledger showed the following account balances: Debits Credits Cash $ 31,000 Accounts Receivable 135,000 Inventory 161,700 Building and Equipment (net) 160,000 Accounts Payable $178,000 Capital Stock 65,000 Retained Earnings 0 244,700 $487,700 $487,700 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) $300,000 January $330,000 February $350,000 March $370,000 April $360,000 c. Sales are 55% for cash and 45% 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. d. The company?s gross margin is 30% of sales. (In other words, cost of goods sold is 70% of sales.) e. Monthly expenses are budgeted as follows: salaries and wages, $18,000 per month: advertising, $15,000 per month; shipping, 4% of sales; other expense, 8% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $24,000. Each month?s ending inventory should equal 70% of the following month?s cost of goods sold. g. 25% of a month?s inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month. h. During February, the company will purchase land for $22,000 cash. During March, land will be purchased for cash at a cost of $2,000. i. During January, the company will declare and pay $30,000 in cash dividends. j. 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, up to a total of $40,000. The interest rate on these loans is 1% per month and for simplicity we will assume the 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. Required: Using the data above, complete the following statements and schedules for the first quarter: 1. Schedule of expected cash collections: January February March Quarter Cash sales $ 181,500 Credit sales 135,000 Total cash collections $ 316,500 2. a. Inventory purchases budget: January February March Quarter Budgeted cost of goods sold $231,000 * $245,000 Add desired ending inventory 171,500 ? Total needs 402,500 Less beginning inventory 161,700 Required purchases $240,800 * $330,000 sales ? 70% cost ratio = $231,000 ?$245,000 ? 70% = $171,500 b. Schedule of expected cash disbursements for merchandise purchases: January February March Quarter December purchases $178,000 $178,000 January purchases 60,200 $180,600 240,800 February purchases March purchases Total cash disbursements for purchases $238,200 3. Schedule of expected cash disbursements for selling and administrative expenses: January February March Quarter Salaries and wages $18,000 Advertising 15,000 Shipping 13,200 Other expenses 26,400 Total cash disbursements for selling and administrative expenses $72,600 4. Cash budget: January February March Quarter Cash balance, beginning $ 31,000 Add cash collections 316,500 Total cash available 347,500 Less cash disbursements: Purchases of inventory 238,200 Selling and administrative expenses 72,600 Purchases of land 0 Cash dividends 30,000 Total cash disbursements 340,800 Excess (deficiency) of cash 6,700 Financing: Etc. 5. Prepare an absorption costing income statement for the quarter ending March 31 as shown in Schedule 9 in the chapter. 6. Prepare a balance sheet as of March 31.,hurry
Question 2
I need an 8-10 pages in APA FORMA WITH CITATIONS AND REFERENCES, an Application Paper on the Corporation Ethics Scandal of Richard Whitney - 1938 who was the scion of a wealthy and socially elite family. His father was president of the North National Union Bank and his brother George Whitney, Jr., was a huge success at the Morgan Bank. Richard Whitney used these influential connections to the best advantage and he was named vice-president of the NYSE. After making losses, he began to borrow heavily. When the source of funds from relatives and friends dried up, he helped himself from the New York Stock Exchange Gratuity Fund. In addition to this, he also embezzled funds from other sources. His fraud was finally exposed by the comptroller for the NYSE and he was subsequently imprisoned. The paper should be in two parts. Part 5: Leadership and Corporate Culture and Part 6: Conclusions. Below is the information that is needed. The paper should concise of 2 relevant, scholarly and current (within last 5 years), the material on the Facts of Case and Civil Trial information includes evidence of critical analysis using research, experience and factual evidence; evidence of complex problem solving shown; extends knowledge base past a simple book/article review; effectively organizes content to create smooth transitions that build to conclusions. Conclusions and recommendation should be logical and reasonable; combines research and analysis to form new insights Part 5: Leadership and Corporate Culture? Questions to be addressed also below Evaluate your subject as a leader. What were some of your subject?s successes? Describe how the company?s culture may have contributed to the scandal. What was your subject?s role in shaping the company?s culture? Using Schein?s definition of Organizational Culture, evaluate your subject organization. Compare and contrast your subject organization against the cultural manifestations outlined in the PowerPoint. Rate your subject organization on the 7 Dimensions of an Organization?s Culture as set forth in the PowerPoint using each of them as continuums. What were some of the challenges your subject faced that may have influenced his/her behavior? Do you consider your subject more of a leader or a manager? Justify your position. Analyze your subject using the Trait and Style approaches to leadership. Was your subject a transformational leader? Part 6: Conclusions ? Questions to be addressed also below No analysis is complete without reaching conclusions with support for how those conclusions were reached. Describe the company after the scandal. Use the same financial metrics you used to show how the company was performing before the scandal in a comparison and contrast. In your opinion, was your subject?s behavior understandable given his/her responsibilities and position? Justify your position. In your opinion, did your subject engage in common business behavior? Do you consider your subject a scapegoat? Justify your position. What do you think the legacy of this case will be? Will it have an impact on business leaders? behavior in the future? Explain. In your opinion, is there something that could have been done to prevent this particular situation from occurring? (e.g. more government regulations and controls, corporate whistle-blowers, etc.). Be specific. What conclusions can be drawn from the corporate scandal in question? What specific recommendations would you make to prevent similar occurrences?
Question 3
"Balance Sheet and Market Value of Your Company's Liabilities and Equity Refer to your Apple's most recent balance sheet. Review the 'liabilities and equity side' of the balance sheet. (a) Short term liabilities (or debt) and long term liabilities Find our from the balance sheet of the company the total of the short term liabilities (also called 'short term debt') and long term liabilities (also called 'long term debt') (b) Equity The market value of equity is by definition equal to the number of shares outstanding times the market price per share. Find out the number of shares outstanding and the recent price per share. Then multiply one by the other in order to find the market value of equity of your company. If you have a problem finding our the number of shares outstanding you may go to http://finance.google.com and insert the name of your company. The market value of equity of your company is what is called 'Mkt Cap' (that is, Market Capitalization) that is market capitalization. An alternative site is http://finance.yahoo.com where again you insert your company's name and get the market capitalization. Once you have this information, prepare a two to three page paper with the following: 1. Compute the debt ratio of Apple (total liabilities divided by the total liabilities plus equity) and the debt to equity ratio, (total liabilities divided by total equity). Also, show these two ratios for short-term liabilities only and for long-term liabilities only (instead of total liabilities use just short-term liabilities and long-term liabilities). Show all of your work and calculations. 2. Give your recommendation as to whether or not you consider these ratios to be too small or too large. Should Apple increase its debt or take steps to pay off its debt? 3. Compute the debt to equity ratios to two other companies in the same industry as Apple. Which of these three companies has the highest debt to equity ratio, and why do you think it chose to have a relatively high ratio? Which of these three companies has the lowest debt to equity ratio, and why do you think it chose to have a relatively lower ratio?",I can give you $50 which is my budget for this month
Question 4
Clinton Company has provided information on intangible assets as follows. A patent was purchased from Reagan Company for $2,000,000 on January 1, 2007. Clinton estimated the remaining useful life of the patent to be 10 years. The patent was carried in Reagan?s accounting records at a net book value of $2,000,000 when Reagan sold it to Clinton. During 2008, a franchise was purchased from Bush Company for $480,000. In addition, 5% of revenue from the franchise must be paid to Bush. Revenue from the franchise for 2008 was $2,500,000. Clinton estimates the useful life of the franchise to be 10 years and takes a full year?s amortization in the year of purchase. Clinton incurred research and development costs in 2008 as follows. Materials and equipment ?.. $142,000 Personnel ???????? 189,000 Indirect costs ??????. 102,000 $433,000 Clinton estimates that these costs will be recouped by December 31, 2011. The materials and equipment purchased have no alternative uses. On January 1, 2008, because of recent events in the field, Clinton estimates that the remaining life of the patent purchased on January 1, 2007, is only 5 years from January 1, 2008. Instructions (a) Prepare a schedule showing the intangibles section of Clinton?s balance sheet at December 31, 2008. Show supporting computations in good form. (b) Prepare a schedule showing the income statement effect for the year ended December 31, 2008, as a result of the facts above. Show supporting computations in good form. Exercise 1 March 1, 2008, Heide Co. issued at 103 plus accrued interest $3,000,000, 9% bonds. The bonds are dated January 1, 2008, and pay interest semiannually on July 1 and January 1. In addition, Heide Co. incurred $27,000 of bond issuance costs. Compute the net amount of cash received by Heide Co. as a result of the issuance of these bonds. (b) On January 1, 2008, Reymont Co. issued 9% bonds with a face value of $500,000 for $469,280 to yield 10%. The bonds are dated January 1, 2008, and pay interest annually. What amount is reported as bond dis- count on the issue date? c) Czeslaw Building Co. has a number of long-term bonds outstanding at December 31, 2009. These long-term bonds have the following sinking fund requirements and maturities for the next 6 years. 2010 $300,000 $100,000 2011 100,000 250,000 2012 100,000 100,000 2013 200,000 ? 2014 200,000 150,000 2015 200,000 100,000 Indicate how this information should be reported in the financial statements at December 31, 2009. (d) In the long-term debt structure of Marie Curie Inc., the following three bonds were reported: mortgage bonds payable $10,000,000; collateral trust bonds $5,000,000; bonds maturing in installments, secured by plant equipment $4,000,000. Determine the total amount, if any, of debenture bonds outstanding. Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries. The balance sheet of Zweifel is given in an abbreviated form below. Moss and Zweifel agree that: 1. Land is undervalued by $30,000. 2. Equipment is overvalued by $5,000. Zweifel agrees to sell the gallery to Moss for $350,000. Instructions Prepare the entry to record the purchase of Zweifel Galleries on Moss?sbooks. Alex Rodriguez Inc., a publishing company, is preparing its December 31, 2008, financial statements and must determine the proper accounting treatment for the following situations; they have retained your group to assist them in this task. (a) Rodriguez sells subscriptions to several magazines for a 1-year, 2-year, or 3-year period. Cash receipts from subscribers are credited to magazine subscriptions collected in advance, and this account had a balance of $2,300,000 at December 31, 2008. Outstanding subscriptions at December 31, 2008, expire as follows. During 2009?$600,000 During 2010? 500,000 During 2011? 800,000 (b) On January 2, 2008, Rodriguez discontinued collision, fire, and theft coverage on its delivery vehicles and became self-insured for these risks. Actual losses of $50,000 during 2007 were charged to delivery expense. The 2006 premium for the discontinued coverage amounted to $80,000 and the controller wants to set up a reserve for self-insurance by a debit to delivery expense of $30,000 and a credit to the reserve for self-insurance of $30,000. (c) A suit for breach of contract seeking damages of $1,000,000 was filed by an author against Rodriguez on July 1, 2008. The company?s legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the court?s award to the plaintiff is in the range between $300,000 and $700,000. No amount within this range is a better estimate of potential damages than any other amount. (d) During December 2008, a competitor company filed suit against Rodriguez for industrial espionage claiming $1,500,000 in damages. In the opinion of management and company counsel, it is reasonably possible that damages will be awarded to the plaintiff. However, the amount of potential damages awarded to the plaintiff cannot be reasonably estimated. Instructions For each of the above situations, provide the journal entry that should be recorded as of December 31, 2008, or explain why an entry should not be recorded.
Question 5
1) Schwert Corp. shows the following information on its 2010 income statement: sales= $193,000; costs = $96,500; other expenses = $5,100; depreciation expenses = $13,800; interest expenses = $10,400; taxes = $23,520; dividends = $12,500. In addition, you?re told that the firm issued $6,000 in new equity during 2010 and redeemed $7,500 in outstanding long term-debt. A. What was the 2010 operating cash flow? B. What was the 2010 cash flow to creditors? C. What was the 2010 cash flow to stockholders? D. If net fixed assets increased by $28,000 during the year, what was the addition to NWC? 2)Sexton Corp. has current liabilites of $325,000, a quick ratio of .85%, inventory turnover of 9.5 and a current ratio of 1.25. What is the cost of goods sold? 3) The Optical Scam Company has forecast an 18% sales growth rate for next year. The current financials are below. Current assets , fixed assets and short-term debt are proportional to sales. +Income Statement Sales $37,000,000 Costs $28,900,000 Taxable Income $8,100,000 Taxes $2,835,000 Net Income $5,265,000 Dividends $1,579,500 Add. To Retained Earnings $3,685,500 +Assets Currents Assets $10,500,000 Fixed Assets $30,000,00 Total Assets$40,500,000 +Liabilities Short Term Debt $6,500,000 Long Term Debt $7,000,000 Common Stock $3,000,000 Accumulated Retained Earnings $24,000,000 Total Equity $27,000,000 Total Liab. & Equity $40,500,000 (A) Calculate external funds for next year. Using equation (B) Construct the firm?s pro forma balance sheet for next year and confirm the external funds needed you calculated in part (a). (C) Calculate the substantial growth rate for the company. (D) Can optical scam eliminate the need for external funds by changing its dividend policy? 4) A company has net income of $187,000, a profit margin of 6.5% and an accounts receivable balance of $145,900. Assuming 80% of sales are on credit, what is the company?s days? sales in receivables? ****Please show steps as I am completely confused on how to do these. I have been trying for hours but cannot get the correct answer that matches my book. These are questions that my professor said will have SIMILAR ones on later tests so I want to make sure I can do them when a test does come around. Thanks for all the help!,I had a question but didnt want to seem like I am rushing you. I was just wondering if you had a timeline of when you might possibly be done? Thanks and just wanted to know. I had some other similar problems to those and would try them after I got these ones back. Thanks again. I appreciate the help. Jake H,so tomorrow?,Thanks! Doe it pay you already or what? Just want to make sure I dont make a mistake. Thanks again.
