Accounting homework help

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Managerial Accounting – FALL 2020
Master Budget
Case Analysis Assignment
 
In this assignment you are going to prepare elements of the master budget for Proctor Corporation using the following information. You should prepare individually the answers to the following.  You should have a cover page and type your answers in excel or word.
Cover Page: Your Name
Date of Submission
Course Name
Course Number
Professor Keegan
Content: presented in Excel or Word
This is a quantitative assignment NO critical analysis is necessary
It is taking the place of a Quiz for Chapter 22
 
 
Proctor Corporation, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the third quarter.
 

  1. As of March 31 (the end of the prior quarter), the company’s balance sheet showed the following account balances: Current quarter to be analyzed is 2nd Quarter (Apr. thru June)

 

Cash $   6,700    
Accounts receivable 36,900    
Inventory 11,130    
Buildings and equipment (net) 120,000    
Accounts payable     $ 32,880
Common stock     100,000
Retained earnings                    41,850
  $174,730   $174,730
       
  1. Actual and budgeted sales are as follows:

 

 March (actual) $61,500
  April $79,500
  May $88,800
  June $89,400
  July $58,100

 

  1. Sales are 40% for cash and 60% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales.

 

  1. The company’s gross margin percentage is 30% of sales. (In other words, COGs is 70% of sales.)

 

  1. Each month’s ending inventory should equal 20% of the following month’s budgeted cost of goods sold.
  2. One-quarter of a month’s inventory purchases is paid for in the month of purchase; the other three-quarters are paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory.

 

  1. Monthly expenses are as follows: commissions, $12,150; rent, $2,650; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,550 for the quarter and includes depreciation on new assets acquired during the quarter.

 

  1. Equipment will be acquired for cash: $3,830 in April and $8,100 in May.

 

  1. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. 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 (if needed to maintain the $5,000 cash balance), The company can borrow up to a total loan balance of $50,000. 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 second quarter:
 

  1. Schedule of expected cash collections:

 

  April   May June Total
Cash sales $31,800.00        
Credit sales  36,900.00                                               
Total collections $68,700.00                                               
           
  1. a. Merchandise purchases budget:

 

  April   May June Total  
Budgeted cost of goods $55,650.00 * $62,160.00      
Add desired ending inventory  12,432.00 †        
Total needs 68,082.00          
Less beginning inventory   11,130.00                                                 
Required purchases $56,952.00                                                 
 
*$79,500.00 sales × 70% = $55,650.00.
†$88,800.00 × 70% × 20% = $12,432.00.
 
 
 
 
 
 
 
 

 

  1. Schedule of expected cash disbursements for merchandise purchases:

 

  April   May June Total
March purchases $32,880.00 *     $32,880.00
April purchases 14,238.00   $42,714.00   56,952.00
May purchases 0.00        
June purchases           0.00                                               
Total cash disbursements for purchases $47,118.00                                               
 
*Beginning balance of the accounts payable.

 

  1. Schedule of expected cash disbursements for selling and administrative expenses:

 

  April May June Total
Commissions $12,150.00      
Rent 2,650.00      
Other expenses     6,360.00                                             
Total cash disbursements for selling
and administrative expenses		  
$21,160.00		                                             
         
  1. Cash budget:

 

  April May June Total
Cash balance, beginning $  6,700.00      
Add cash collections  68,700.00                                             
Total cash available  75,400.00                                             
Less cash disbursements:        
                For inventory 47,118.00      
                For operating expenses 21,160.00      
                For equipment    3,830.00                                             
Total cash disbursements  72,108.00                                             
Excess (deficiency) of cash 3,292.00      
Financing        
Etc.        

 

  1. Prepare a budgeted income statement for the quarter ending June 30.

 

  1. Prepare a balance sheet as of June 30.

 
 

Accounting homework help

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Wow! You made it to the end. But it is not over. There is one more task.
We have covered a lot of subjects. We would love to hear what your takeaway is for the following:

  • What things do you think you will use the most?
  • What did you find most interesting?
  • What did you never know before?

Looking back, here is a list of some of the concepts and skills we covered:

  • Use the rational-actor paradigm, identify problems, and then fix them.
  • Use benefit-cost analysis to evaluate decisions.
  • Use marginal analysis to make extent (how much) decisions.
  • Make profitable investments and shutdown decisions.
  • Set optimal prices and price discrimination.
  • Predict industry-level changes using demand and supply analysis.
  • Understand the long-run forces that erode profitability.
  • Develop long-run strategies to increase firm value.
  • Predict how your own actions will influence other people’s actions.
  • Bargain effectively.
  • Make decisions in uncertain environments.
  • Solve the problems caused by moral hazard and adverse selection.
  • Motivate employees to work in the firm’s best interests.
  • Motivate divisions to work in the best interests of the parent company.
  • Manage vertical relationships with upstream suppliers or downstream customers

Accounting homework help

/in /by
EXCELacc
 
Question Set 7:
If necessary, implement the feedback from submission 2 and complete the budgeted 3-month income statement and balance sheet.
Question Set 8:
Using your budgeted income statement (static budget), make a flexible budget showing the projected net income at a lower sales level and projected net income at a higher level of sales.
Question Set 9:
1) Go to the the Management Discussion and Analysis section in the annual report of your company (If one exists). List a long-term finanical goal.
2) List 3 non-financial goals that your company may use in a balanced scorecard.
3) With the current economy conditions in mind, name one weakness of your company and one strength of your company.
4) How will these strenghts and weaknesses be visable in the financial statements?
Question Set 10:
1) Find as recent a news article as you can that involves your company and any accounting topic covered in this course or from Financial Accounting. This can be an ethical issue, or change in a leadership position (CFO or auditing firm). How does this affect the financial statements of the company going forward?
2) What advice can you give the managerial accountant of your company going forward?
 

Accounting homework help

/in /by
EXCELacc
 
Question Set 7:
If necessary, implement the feedback from submission 2 and complete the budgeted 3-month income statement and balance sheet.
Question Set 8:
Using your budgeted income statement (static budget), make a flexible budget showing the projected net income at a lower sales level and projected net income at a higher level of sales.
Question Set 9:
1) Go to the the Management Discussion and Analysis section in the annual report of your company (If one exists). List a long-term finanical goal.
2) List 3 non-financial goals that your company may use in a balanced scorecard.
3) With the current economy conditions in mind, name one weakness of your company and one strength of your company.
4) How will these strenghts and weaknesses be visable in the financial statements?
Question Set 10:
1) Find as recent a news article as you can that involves your company and any accounting topic covered in this course or from Financial Accounting. This can be an ethical issue, or change in a leadership position (CFO or auditing firm). How does this affect the financial statements of the company going forward?
2) What advice can you give the managerial accountant of your company going forward?
 

Accounting homework help

/in /by
asapurgent
its actually that we have 13 million to invest in usa and Europe stock market for buying medical companies shares and in this I want the name of the shares in which I can invest with their current market value of the stock name of market and the currency
  • attachment

Accounting homework help

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MAT
 Employees from Company A and Company B both receive annual bonuses. What information would you need to test the claim that the difference in annual bonuses is greater than $100 at the 0.05 level of significance? Write out the hypothesis and explain the testing procedure.

Accounting homework help

/in /by
Wow! You made it to the end. But it is not over. There is one more task.
We have covered a lot of subjects. We would love to hear what your takeaway is for the following:

  • What things do you think you will use the most?
  • What did you find most interesting?
  • What did you never know before?

Looking back, here is a list of some of the concepts and skills we covered:

  • Use the rational-actor paradigm, identify problems, and then fix them.
  • Use benefit-cost analysis to evaluate decisions.
  • Use marginal analysis to make extent (how much) decisions.
  • Make profitable investments and shutdown decisions.
  • Set optimal prices and price discrimination.
  • Predict industry-level changes using demand and supply analysis.
  • Understand the long-run forces that erode profitability.
  • Develop long-run strategies to increase firm value.
  • Predict how your own actions will influence other people’s actions.
  • Bargain effectively.
  • Make decisions in uncertain environments.
  • Solve the problems caused by moral hazard and adverse selection.
  • Motivate employees to work in the firm’s best interests.
  • Motivate divisions to work in the best interests of the parent company.
  • Manage vertical relationships with upstream suppliers or downstream customers

Accounting homework help

/in /by
Wow! You made it to the end. But it is not over. There is one more task.
We have covered a lot of subjects. We would love to hear what your takeaway is for the following:

  • What things do you think you will use the most?
  • What did you find most interesting?
  • What did you never know before?

Looking back, here is a list of some of the concepts and skills we covered:

  • Use the rational-actor paradigm, identify problems, and then fix them.
  • Use benefit-cost analysis to evaluate decisions.
  • Use marginal analysis to make extent (how much) decisions.
  • Make profitable investments and shutdown decisions.
  • Set optimal prices and price discrimination.
  • Predict industry-level changes using demand and supply analysis.
  • Understand the long-run forces that erode profitability.
  • Develop long-run strategies to increase firm value.
  • Predict how your own actions will influence other people’s actions.
  • Bargain effectively.
  • Make decisions in uncertain environments.
  • Solve the problems caused by moral hazard and adverse selection.
  • Motivate employees to work in the firm’s best interests.
  • Motivate divisions to work in the best interests of the parent company.
  • Manage vertical relationships with upstream suppliers or downstream customers

Accounting homework help

/in /by

Employees from Company A and Company B both receive annual bonuses. What information would you need to test the claim that the difference in annual bonuses is greater than $100 at the 0.05 level of significance? Write out the hypothesis and explain the testing procedure.