Question 1
2. Loblaw Manufacturing has asked you to create a cash budget in order to determine its borrowing needs over June to October period. You have gathered the following information. Month Sales Other Payments June 160,000 80,000 July 130,000 65,000 August 95,000 60,000 September 84,000 45,000 October 76,000 48,000 November 2010 90,000 April and May sales were $125,000 and $140,000, respectively. The firm collects 30% of its sales during the month, 60% the following month, and 10% two months after the sale. Each month it purchases inventory equal to 65% of the next month?s expected sales. The company pays for 40% of its inventory purchases in the same month and 60% in the following month. However, the firm?s suppliers give it a 2% discount if it pays during the same month as the purchase. A minimum cash balance of $25,000 must be maintained each month, and the firm pays 8% annually for short-term borrowing from its bank. a. Create a cash budget for June to October 2010. The cash budget should account for short-term borrowing and payback of outstanding loans. The firm ended May with a $30,000 cash balance. b. Bob Loblaw, the president, is considering stretching out its inventory payments. He believes that it may be less expensive to borrow from suppliers than from the bank. He has asked you to use the Scenario Manager to see what the total interest cost for this time period would be if the company paid for 0%, 10%, 30%, or 40% of its inventory purchases in the same month. The balance would be paid in the following month. Create a scenario summary and describe whether or not the results support Bob?s beliefs.
Question 2
For July: 1.The June 30 bank reconciliation indicated that deposits in transit total $580. During July, the general ledger account Cash shows deposits of $16,900, but the bank statement indicates that only $15,600 in deposits were received during the month. 2.The June 30 bank reconciliation also reported outstanding checks of $940. During the month of July, Arora Company books show that $17,500 of checks were issued, yet the bank statement showed that $16,400 of checks cleared the bank in July. For September: 3.In September, deposits per bank statement totaled $25,900, deposits per books were $26,400, and deposits in transit at September 30 were $2,200. 4.In September, cash disbursements per books were $23,500, checks clearing the bank were $24,000, and outstanding checks at September 30 were $2,100. There were no bank debit or credit memoranda, and no errors were made by either the bank or Arora Company. Answer the following questions. (a) In situation 1, what were the deposits in transit at July 31? The deposits in transit at July 31 $ (b) In situation 2, what were the outstanding checks at July 31? The outstanding checks at July 31 $ (c) In situation 3, what were the deposits in transit at August 31? The deposits in transit at August 31 $ (d) In situation 4, what were the outstanding checks at August 31? The outstanding checks at August 31 $ Click here if you would like to Show Work for this question,thank you,thank you
Question 3
Bullen Inc. acquired 100% of the voting common stocks of Vicker, Inc. on January 1, 20X1. The book value and fair value of Vicker?s accounts on that date (prior to creating the combination) follow, along with the book value of Bullen?s accounts: Bullen Vicker Vicker Book Book Fair Value Value Value Retained Earnings $250,000 $240,000 Cash & Receivables170,000 70,000 $70,000 Inventory 230,000 170,000 210,000 Land 280,000 220,000 240,000 Building (net) 480,000 240,000 270,000 Equipment (net) 120,000 90,000 90,000 Liabilities 650,000 430,000 420,000 Common Stock 360,000 80,000 APIC 20,000 40,000 ?Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value to obtain all of Vicker?s outstanding stock. In this acquisition transaction, how much goodwill should be recognized? ?Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $42 fair value of the outstanding stock of Vicker. What is the consolidated Land as a result of this acquisition transaction? ?Assume the Bullen issued preferred stock with a par value of $240,000 and a fair value of $500,000 for all the outstanding shares of Vicker in an acquisition business combination. What will be the balance in the consolidated inventory and Land accounts? ?Assume that Bullen paid a total of $480,000 in cash for all of the shares of Vicker. In addition, Bullen paid $35,000 for secretarial and management time allocated to the acquisition trans action. What will be the balance in consolidated goodwill? ?Assume that Bullen paid a total of $480,000 in cash for all of the shares of Vicker. In addition, Bullen paid $35,000 to a group of attorneys for their work in arranging the combination to be accounted for as an acquisition. What will be the balance in consolidated goodwill?,I have now had to resubmit this question 3 times to CourseHero and I can not understand why I keep getting a message that you need more time to work on it. It has now been days and I have paid a significant amount of money per month to utilize your services and feel that my questions are just keep getting pushed bad and then I have to keep losing my "Question Submission Attempts" yet again to 're-submit' the very same question. How is that far. I keep extending the time period and I still don't get an answer. I am on a deadline too. Is there more than one person there qualified to review my accounting questions? See the attached file again in case the formatting did not come through with my question submission.
Question 4
Problem 6-2B Pepco Co. estblishes a petty cash find for payments of small amounts. The following transactions involving the petty cash fund occurred in January (the last month of the company's fiscal year). Jan. 3 A company check for $150 is written and made payable to the petty cashier to establish the petty cash fund. Jan. 14 A company check is written to replenish the fund for the following expenditures made since January 3. a. Purchased office supplies for $16.29 that are immediately used up. b. Paid $17.60 COD shipping charges on merchandise purchased for resale, terms FOB ship c. Paid $36.57 to All-Tech for minor repairs to a computer. d. Paid $14.82 for items classified as miscellaneous expenses. e. Counted $62.28 remaining in the petty cash box. Jan. 15 Prepared a company check for $25 to increase the fund to $175. Jan. 31 The petty cashier reports that $17.35 remains in the fund. A company check is written to replenish the fund for the following expenditures made since January 14. f. Paid $40 to the Smart Shopper for an advertisement in January's newsletter. g. Paid $38.19 for postage expenses h. Paid $58 to Take-You-There for delivery of merchandise, terms FOB destination. Jan 31 The company decides that the January 15 increase in the fund was too little. It increases the fund by another $75, leaving a total of $250. * Prepare journal entries to establish the fund on January 3, to replenish it on January 14 and January 31, and to reflect any increase or decrease in the fund balance on January 15 and 31. Problem 6-4B The following information is available to reconcile Style Co.'s book balance of cash with its bank statement cash balance as of December 31, 2011. a. The December 31 cash balance according to the accounting records is $31,743.70, and the bank statement cash balance for that date is $45,091.80. b. Check No. 1273 for $1,084.20 and Check No. 1282 for $390, both written and entered in the accounting records in December, are not among the canceled checks. Two checks, No. 1231 for $2,289 and No. 1242 for $370.50, were outstanding on the most recent November 30 reconciliation. Check No. 1231 is listed with the December canceled checks, but Check No. 1242 is not. c. When the December checks are compared with entries in the accounting records, it is found that Check No. 1267 had been correctly drawn for $2,453 to pay for office supplies but was erroneously entered in the accounting records as $2,453. d. Two debit memoranda ae enclosed with the statement and are unrecorded at the time of the reconciliation. One debit memorandum is for $749.50 and dealt with a NSF check for $732 received from a customer, Titus Industries, in payment of its account. The bank assessed a $17.50 fee for processing it. The second debit memorandum is a $79 charge for check printing. Style did not record these transactions before receiving the statement. e. A credit memorandum indicates that the bank collected $20,00 cash on a note receivable for the company, deducted a $20 collection fee, and credited the balance to the company's Cash account . Style did not record this transaction before receiving the statement. f. Style's December 31 daily cash receipts of $7,66.10 were placed in the bank's night depository on that date, but do not appear on the December 31 bank statement. * 1) Prepare the bank reconciliation for this company as of December 31, 2011. 2) Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of December 31, 2011.
Question 5
10. In order to estimate production requirements, we: (Points: 5) add beginning inventory to projected sales in units and subtract desired ending inventory. add projected sales in units to desired ending inventory and subtract beginning inventory. add beginning inventory to desired ending inventory and divide by two. add beginning inventory to desired ending inventory and subtract projected sales in units. 11. A firm utilizing FIFO inventory accounting would, in calculating gross profits, assume that: (Points: 5) all sales were from current production. all sales were from beginning inventory. sales were from beginning inventory until it was depleted, and then use sales from current production. all sales were for cash. 12. The need for an increase or decrease in short-term borrowing can be predicted by: (Points: 5) ratio analysis. trend analysis. a cash budget. an income statement. 13. The difference between total receipts and total payments is referred to as: (Points: 5) cumulative cash flow. beginning cash flow. net cash flow. cash balance. 14. Firms that successfully increase their rates of inventory turnover will, among other things: (Points: 5) be able to reduce their borrowing needs. be able to reduce their dividend payments to stockholders. find it more difficult to be given credit by their resource suppliers. have a greater need for high balances in their cash accounts. 15. The concept of operating leverage involves the use of______ costs to magnify returns at high levels of operations. Fixed variable marginal semi-variable 16.A highly automated plant would generally have: more variable than fixed costs more fixed than variable costs all fixed costs all variable costs 17. If a firm has fixed costs of $20k, variable cost per unit of 50 cents, and a break- even point of 5k units, what is the price? $2.50 $5.00 $4.00 $4.50 18. A firms break even point will rise if: fixed costs decrease contribution margins increase price per unit rise variable cost per unit rises 19. Firms with a high degree of operating leverage are: easily capable of surviving large changes in sales volume usually trading off lower levels of risk for higher profits significantly afftected by changes in interest rates trading off higher fixed costs for lower per unit variable costs 20. If TechCor has fixed costs of 80K, variable costs of $1.20/unit, sales price/unit of $6, and depreciation expense of 25K, what is its cash break even in units? 9167 11458 21875 45833
