Critical Thinking: Cost of Production (50 points)

Hillyard Company, an office supplies specialty 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:

Cash $48,000 (debit) Accounts receivable $224,000 (debit) Inventory $60,000 (debit) Buildings and equipment, net $370,000 (debit) Accounts payable $93,000 (credit) Capital stock $500,000 (credit) Retained earnings $109,000 (credit)

b. Actual sales for December and budgeted sales for the next four months are as follows: December $280,000, January $400,000, February $600,000, March $300,000 and April $200,000.

c. Sales are 20% for cash and 80% 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 40% of sales. (In other words, cost of goods sold is 60% of sales.)

e. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month; advertising, $70,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,000 per quarter.

f. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

g. One half of the month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

h. During February, the company will purchase a new copy machine for $1,700 cash. During March, other equipment will be purchased for cash at a cost of $84,500.

i. During January, the company will declare and pay $45,000 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. The interest rate on these loans is 1% per month and for simplicity we will assume that 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. Submit your responses in an Excel spreadsheet:

1. Schedule of expected cash collections

Schedule of Expected Cash Collections January February March Quarter Cash sales

$80,000

Credit sales

$224,000

Total Collections

$304,000

2. Merchandise purchases budget

Merchandise Purchases Budget January February March Quarter Budgeted Cost of Goods Sold

$240,000*

$360,000

Add desired ending inventory

$90,000**

Total needs

$330,000

Less beginning inventory

$60,000

Required purchases

$270,000

*$400,000 sales x 60% cost ratio = $240,000 ** $360,000 x 25% = $90,000

3. Schedule of expected cash disbursements-merchandise purchases

Schedule of Expected Cash Disbursements-Merchandise Purchases January February March Quarter December purchases

$93,000

$93,000 January purchases

$135,000

$135,000

$270,000 February purchases

March purchases

Total disbursements

$228,000

4. Schedule of expected cash disbursements-selling and administrative expenses

Schedule of Expected Cash Disbursements-Selling and Administrative Expenses January February March Quarter Salaries and wages

$27,000

Advertising

$70,000

Shipping

$20,000

Other expenses

$12,000

Total disbursements

$129,000

5. Cash budget:

Cash Budget January February March Quarter Cash balance, beginning

$48,000

Add cash collections

$304,000

Total cash available

$352,000

Less cash disbursements

For inventory

$228,000

For selling and admin expenses

$129,000

For purchase of equipment

——

For cash dividends

$45,000

Total cash disbursements

$402,000

Excess (deficiency) of cash

($50,000)

Financing needed

Cash balance, ending

Provide your answers in an Excel spreadsheet, clearly organized. Check spelling and formatting for readability. Be sure to review the Module

what is the weighted average cost to the problem The target capital structure for qm industries is 40% common stock 13% preferred stock 47% debt. If the cost of the common equity for the firm is 18.3% the cost of the preferred stock is 18.3% The cost of the preferred stock 9.8% The before tax cost of debt is 7.6% and the firm tax rate is 35% what is qm weighted average cost of capital

While servant leadership is often associated with Christianity and the Bible, one could argue it is compatible with most religions and philosophies and that it transcends cultures. This assignment presents you with an opportunity to explore other cultures, philosophies, and religions and asks you to think critically about how servant leadership practices are apparent in other religious and cultural values.

Select one cultural context and one religious viewpoint (other than Christianity, its denominations, or something already discussed in the textbook) and examine how the principles of servant leadership are evident in that culture and religion. In a 1,250-1,500-word essay, identify similarities and differences between servant leadership’s philosophies and the values evident in the selected cultural context and religious viewpoint. Be sure to provide specific examples of practices and/or values in your discussion.

You are required to locate two articles that examine servant leadership from a different cultural perspective and two articles that examine servant leadership from a different religious perspective. Be sure to select academic articles from reputable sources that are 10-20 pages in length. Include information from the articles in your discussion.

http://www.hulu.com/watch/440838

 

 

i want an essay about this episode 

 

MLA 4 pages 

Test T4