Tableau Assignment Journalists Deaths This is NOT a group project! Do your own work! This dropbox is in conjunction with your weekly discussion board. Download all of the attached files to your local computer. Start with the Tableau-Tutorial for Beginners file. Tableau Assignment Journalists Deaths This is NOT a group project! Do your own work! This dropbox is in conjunction with your weekly discussion board. Download all of the attached files to your local computer. Start with the Tableau-Tutorial for Beginners file.
Tableau Supply Chain Deep Dive (alt 1) This is NOT a group project! Do your own work! Data visualization has become a standard analytical tool which capitalizes on the ability of humans to recognize patterns within massive quantities of multi-dimensional data generated by business information systems. Many scientific studies have led to the creation of visualization models that utilize human perception and cognition. Continuing our work on data visualization, this week we take a deep dive into Supply Chain Logistics. Detailed instructions are in the attached file. You will need to download both the exercise and the dataset to work with Tableau. Note, the dataset is large so be patient when downloading and importing to Tableau. Tableau Supply Chain Deep Dive (alt 1) This is NOT a group project! Do your own work! Data visualization has become a standard analytical tool which capitalizes on the ability of humans to recognize patterns within massive quantities of multi-dimensional data generated by business information systems. Many scientific studies have led to the creation of visualization models that utilize human perception and cognition. Continuing our work on data visualization, this week we take a deep dive into Supply Chain Logistics. Detailed instructions are in the attached file. You will need to download both the exercise and the dataset to work with Tableau. Note, the dataset is large so be patient when downloading and importing to Tableau.
Anylogistix Supply Chain Management This is NOT a group project! Do your own work! In this course you were previously exposed to supply chain management, specifically with the e-beer simulator. This week we're going to work individually on a simulator/software for designing supply chains and managing them with a digital twin. It integrates supply chain design, optimization, and simulation with operations data enabling network analysis and improvement. There are 4 videos to watch as you go through the assignment document. Be sure to submit your work on the Student Submission file. The book, ivanov-supply chain simulation has been included but is not needed for this assignment. It's really there for reference should you choose to peruse it. Anylogistix Supply Chain Management This is NOT a group project! Do your own work! In this course you were previously exposed to supply chain management, specifically with the e-beer simulator. This week we're going to work individually on a simulator/software for designing supply chains and managing them with a digital twin. It integrates supply chain design, optimization, and simulation with operations data enabling network analysis and improvement. There are 4 videos to watch as you go through the assignment document. Be sure to submit your work on the Student Submission file. The book, ivanov-supply chain simulation has been included but is not needed for this assignment. It's really there for reference should you choose to peruse it.
AnyLogistix GFA-NO Supply Chain Exercise This is NOT a group project! Do your own work! Download attached documents for additional instructions. Start with the Polarbear-GBI consolidation exercise and read through this first. Use the Polarbear-GBI Answer sheet to submit your answers. The two Excel file provide are called for as you go through the exercise. Note: This product only works on PC, no MAC. If you have a MAC, find a friend with a PC that you can borrow. AnyLogistix GFA-NO Supply Chain Exercise This is NOT a group project! Do your own work! Download attached documents for additional instructions. Start with the Polarbear-GBI consolidation exercise and read through this first. Use the Polarbear-GBI Answer sheet to submit your answers. The two Excel file provide are called for as you go through the exercise. Note: This product only works on PC, no MAC. If you have a MAC, find a friend with a PC that you can borrow.
Solar PV Group Assignment Work with your group within this discussion area to build your group PPT. Complete the assignment using this document: Solar PV Assignment Here's an interesting NEW article https://electrek.co/2020/10/25/tesla-next-killer-product-solar-roof-elon-musk/ Solar PV Group Assignment Work with your group within this discussion area to build your group PPT. Complete the assignment using this document: Solar PV Assignment Here's an interesting NEW article https://electrek.co/2020/10/25/tesla-next-killer-product-solar-roof-elon-musk/
Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement Nish Corporation has provided the following data for the month of April:Sales...............................................$220,000Raw materials purchases...............$50,000Direct labor cost............................$23,000Manufacturing overhead cost........$59,000Selling expense..............................$18,000Administrative expense.................$43,000Inventories:Beginning Ending Raw materials........$26,000$35,000Work in process.....$18,000$22,000Finished goods.......$42,000$29,000Required:a.Prepare a Schedule of Cost of Goods Manufactured in good form for April.b.Prepare an Income Statement in good form for April. Part B: Application of Job Order Costing Scanlon Company has a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate for the most recent year:Machine-hours...............................95,000Manufacturing overhead cost........$1,710,000During the most recent year, a severe recession in the company’s industry caused a buildup of inventory in the company’s warehouses. The company’s cost records revealed the following actual cost and operating data for the year:Machine-hours.............................................................................75,000Manufacturing overhead cost......................................................$1,687,500Amount of applied overhead in inventories at year-end:Work in process........................................................................$337,500Finished goods..........................................................................$253,125Amount of applied overhead in cost of goods sold..................$759,375Required:a.Compute the company's predetermined overhead rate for the year and the amount of underapplied or overapplied overhead for the year.b.Determine the difference between net operating income for the year if the underapplied or overapplied overhead is allocated to the appropriate accounts rather than closed directly to Cost of Goods Sold. Part C: Process Costing using Weighted AverageTimberline Associates uses the weighted-average method in its process costing system. The followingdata are for the first processing department for a recent month:Work in process, beginning:Units in process........................................................2,400Percent complete with respect to materials..............75%Percent complete with respect to conversion...........50%Costs in the beginning inventory:Materials cost...........................................................$8,400Conversion cost........................................................$7,200Units started into production during the month...........20,800Units completed and transferred out...........................22,200Costs added to production during the month:Materials cost...........................................................$97,400Conversion cost........................................................$129,600Work in process, ending:Units in process........................................................1,000Percent complete with respect to materials..............80%Percent complete with respect to conversion...........60%Required:a.Determine the equivalent units of production.b.Determine the costs per equivalent unit.c.Determine the cost of ending work in process inventory.d.Determine the cost of the units transferred to the next department. Part D: Process Costing usingFirst-in-First Out (FIFO)Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October.Cost in beginning work in process inventory........$1,920Units started and completed this month................3,130MaterialsConversionCost per equivalent unit.........................................$9.50$20.40Equivalent units required to complete the units in beginning work in process inventory.................360140Equivalent units in ending work in process inventory............................................................330264Required:Determine the cost of ending work in process inventory and the cost of units transferred out of the department duringOctober using the FIFO method. PartE: Activity-Based CostingWelk Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, H16Z and P25P, about which it has provided the following data:H16ZP25PDirect materials per unit................$10.20$50.50Direct labor per unit......................$8.40$25.20Direct labor-hours per unit............0.401.20Annual production.........................30,00010,000The company’sestimated total manufacturing overhead for the year is $1,464,480 and the company’s estimated total direct labor-hours for the year is 24,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:Activities and Activity MeasuresEstimated Overhead CostSupporting direct labor (DLHs).................$552,000Setting up machines (setups).....................132,480Parts administration (part types)................780,000Total...........................................................$1,464,480H16ZP25PTotalSupporting direct labor......12,00012,00024,000Setting up machines...........8642401,104Parts administration...........6009601,560Required:a.Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.b.Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement Nish Corporation has provided the following data for the month of April:Sales...............................................$220,000Raw materials purchases...............$50,000Direct labor cost............................$23,000Manufacturing overhead cost........$59,000Selling expense..............................$18,000Administrative expense.................$43,000Inventories:Beginning Ending Raw materials........$26,000$35,000Work in process.....$18,000$22,000Finished goods.......$42,000$29,000Required:a.Prepare a Schedule of Cost of Goods Manufactured in good form for April.b.Prepare an Income Statement in good form for April. Part B: Application of Job Order Costing Scanlon Company has a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate for the most recent year:Machine-hours...............................95,000Manufacturing overhead cost........$1,710,000During the most recent year, a severe recession in the company’s industry caused a buildup of inventory in the company’s warehouses. The company’s cost records revealed the following actual cost and operating data for the year:Machine-hours.............................................................................75,000Manufacturing overhead cost......................................................$1,687,500Amount of applied overhead in inventories at year-end:Work in process........................................................................$337,500Finished goods..........................................................................$253,125Amount of applied overhead in cost of goods sold..................$759,375Required:a.Compute the company's predetermined overhead rate for the year and the amount of underapplied or overapplied overhead for the year.b.Determine the difference between net operating income for the year if the underapplied or overapplied overhead is allocated to the appropriate accounts rather than closed directly to Cost of Goods Sold. Part C: Process Costing using Weighted AverageTimberline Associates uses the weighted-average method in its process costing system. The followingdata are for the first processing department for a recent month:Work in process, beginning:Units in process........................................................2,400Percent complete with respect to materials..............75%Percent complete with respect to conversion...........50%Costs in the beginning inventory:Materials cost...........................................................$8,400Conversion cost........................................................$7,200Units started into production during the month...........20,800Units completed and transferred out...........................22,200Costs added to production during the month:Materials cost...........................................................$97,400Conversion cost........................................................$129,600Work in process, ending:Units in process........................................................1,000Percent complete with respect to materials..............80%Percent complete with respect to conversion...........60%Required:a.Determine the equivalent units of production.b.Determine the costs per equivalent unit.c.Determine the cost of ending work in process inventory.d.Determine the cost of the units transferred to the next department. Part D: Process Costing usingFirst-in-First Out (FIFO)Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October.Cost in beginning work in process inventory........$1,920Units started and completed this month................3,130MaterialsConversionCost per equivalent unit.........................................$9.50$20.40Equivalent units required to complete the units in beginning work in process inventory.................360140Equivalent units in ending work in process inventory............................................................330264Required:Determine the cost of ending work in process inventory and the cost of units transferred out of the department duringOctober using the FIFO method. PartE: Activity-Based CostingWelk Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, H16Z and P25P, about which it has provided the following data:H16ZP25PDirect materials per unit................$10.20$50.50Direct labor per unit......................$8.40$25.20Direct labor-hours per unit............0.401.20Annual production.........................30,00010,000The company’sestimated total manufacturing overhead for the year is $1,464,480 and the company’s estimated total direct labor-hours for the year is 24,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:Activities and Activity MeasuresEstimated Overhead CostSupporting direct labor (DLHs).................$552,000Setting up machines (setups).....................132,480Parts administration (part types)................780,000Total...........................................................$1,464,480H16ZP25PTotalSupporting direct labor......12,00012,00024,000Setting up machines...........8642401,104Parts administration...........6009601,560Required:a.Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.b.Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system
Part A: Fixed and Variable CostStuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below:Last yearThis yearUnits sold...................................................50,00070,000Sales...........................................................$800,000$1,120,000Cost of goods sold.....................................550,000710,000Gross margin.............................................250,000410,000Selling and administrative expense...........150,000190,000Net operating income................................$100,000$220,000The company has no beginning or ending inventories.Required:a.Estimate the company's total variable cost per unit and its total fixed costs per year. (Remember that this is a manufacturing firm.)b.Compute the company's contribution margin for this year. Part B: Cost-Volume-Profit AnalysisBelli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows:Sales...................................$540,000Variable expenses..............360,000Contribution margin..........180,000Fixed expenses..................120,000Net operating income........$60,000The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories.Required:a.Given the present situation, compute1.The break-even sales in kilograms.2.The break-even sales in dollars.3.The sales in kilograms that would be required to produce net operating income of $90,000.4.The margin of safety in dollars.b.An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease.1.Should the company choose the lease or the royalty plan?2.Under the royalty plan compute break-even point in kilograms.3.Under the royalty plan compute break-even point in dollars.4.Under the royalty plan determine the sales in kilograms that would be required to produce net operating income of $90,000. Part C: Relevant Cost/Special OrderGottshallInc. makes a range of products. The company's predetermined overhead rate is $19 per direct labor-hour, which was calculated using the following budgeted data:Variable manufacturing overhead.......$225,000Fixed manufacturing overhead............$630,000Direct labor-hours................................45,000Component P0 is used in one of the company’s products. The unit cost of the component according to the company’s cost accounting system is determined as follows:Direct materials.........................................$21.00Direct labor................................................40.80Manufacturing overhead applied...............32.30Unitproductcost.......................................$94.10An outside supplier has offered to supply component P0 for $78 each. The outside supplier is known for quality and reliability. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by this decision. Gottshall chronically has idle capacity.Required:Is the offer from the outside supplier financially attractive? Why? Part D: Relevant Cost/Make or Buy DecisionPart U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 7,000 units of the part that are needed every year.Per UnitDirect materials..........................................$8.70Direct labor................................................$2.70Variable overhead......................................$3.30Supervisor’s salary.....................................$1.90Depreciation of special equipment............$1.80Allocated general overhead........................$5.50An outside supplier has offered to make the part and sell it to the company for $21.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $6,000 of these allocated general overhead costs would be avoided.Required:a.Prepare a report that shows the effect on the company's total net operating income of buying part U67 from the supplier rather than continuing to make it inside the company.b.Which alternative should the company choose? Part E: Relevant Cost/Sell or Process FurtherFarrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into end product X. Intermediate product B can be further processed into end product Y. The common input is purchased in batches that cost $36 each and the cost of processing a batch to produce intermediate products A and B is $15. Intermediate product A can be sold as is for $21 or processed further for $14 to make end product X that is sold for $32. Intermediate product B can be sold as is for $44 or processed further for $28 to make end product Y that is sold for $64.Required:a.Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of the common input into the end products X and Y? Show your work!b.Should each of the intermediate products, A and B, be sold as is or processed further into an end product? Explain. Part F: Relevant Cost/Dropping a ProductThe management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system appear below:Sales................................................................$150,000Variable expenses............................................$72,000Fixed manufacturing expenses........................$50,000Fixed selling and administrative expenses......$33,000In the company's accounting systemall fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued.A. According to the company's accounting system, what is the net operating income earned by product V86O?B. What would be the effect on the company's overall net operating income if product V86O were dropped? Part A: Fixed and Variable CostStuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below:Last yearThis yearUnits sold...................................................50,00070,000Sales...........................................................$800,000$1,120,000Cost of goods sold.....................................550,000710,000Gross margin.............................................250,000410,000Selling and administrative expense...........150,000190,000Net operating income................................$100,000$220,000The company has no beginning or ending inventories.Required:a.Estimate the company's total variable cost per unit and its total fixed costs per year. (Remember that this is a manufacturing firm.)b.Compute the company's contribution margin for this year. Part B: Cost-Volume-Profit AnalysisBelli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows:Sales...................................$540,000Variable expenses..............360,000Contribution margin..........180,000Fixed expenses..................120,000Net operating income........$60,000The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories.Required:a.Given the present situation, compute1.The break-even sales in kilograms.2.The break-even sales in dollars.3.The sales in kilograms that would be required to produce net operating income of $90,000.4.The margin of safety in dollars.b.An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease.1.Should the company choose the lease or the royalty plan?2.Under the royalty plan compute break-even point in kilograms.3.Under the royalty plan compute break-even point in dollars.4.Under the royalty plan determine the sales in kilograms that would be required to produce net operating income of $90,000. Part C: Relevant Cost/Special OrderGottshallInc. makes a range of products. The company's predetermined overhead rate is $19 per direct labor-hour, which was calculated using the following budgeted data:Variable manufacturing overhead.......$225,000Fixed manufacturing overhead............$630,000Direct labor-hours................................45,000Component P0 is used in one of the company’s products. The unit cost of the component according to the company’s cost accounting system is determined as follows:Direct materials.........................................$21.00Direct labor................................................40.80Manufacturing overhead applied...............32.30Unitproductcost.......................................$94.10An outside supplier has offered to supply component P0 for $78 each. The outside supplier is known for quality and reliability. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by this decision. Gottshall chronically has idle capacity.Required:Is the offer from the outside supplier financially attractive? Why? Part D: Relevant Cost/Make or Buy DecisionPart U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 7,000 units of the part that are needed every year.Per UnitDirect materials..........................................$8.70Direct labor................................................$2.70Variable overhead......................................$3.30Supervisor’s salary.....................................$1.90Depreciation of special equipment............$1.80Allocated general overhead........................$5.50An outside supplier has offered to make the part and sell it to the company for $21.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $6,000 of these allocated general overhead costs would be avoided.Required:a.Prepare a report that shows the effect on the company's total net operating income of buying part U67 from the supplier rather than continuing to make it inside the company.b.Which alternative should the company choose? Part E: Relevant Cost/Sell or Process FurtherFarrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into end product X. Intermediate product B can be further processed into end product Y. The common input is purchased in batches that cost $36 each and the cost of processing a batch to produce intermediate products A and B is $15. Intermediate product A can be sold as is for $21 or processed further for $14 to make end product X that is sold for $32. Intermediate product B can be sold as is for $44 or processed further for $28 to make end product Y that is sold for $64.Required:a.Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of the common input into the end products X and Y? Show your work!b.Should each of the intermediate products, A and B, be sold as is or processed further into an end product? Explain. Part F: Relevant Cost/Dropping a ProductThe management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system appear below:Sales................................................................$150,000Variable expenses............................................$72,000Fixed manufacturing expenses........................$50,000Fixed selling and administrative expenses......$33,000In the company's accounting systemall fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued.A. According to the company's accounting system, what is the net operating income earned by product V86O?B. What would be the effect on the company's overall net operating income if product V86O were dropped?
Part A: Capital Budgeting DecisionsChee Company has gathered the following data on a proposed investment project:Investment required in equipment.............$240,000Annual cash inflows..................................$50,000Salvage value............................................$0Life of the investment...............................8 yearsRequired rate of return..............................10%Assets will be depreciated using straightline depreciation method Required:Using the net present value and the internal rate of return methods, is this a good investment? Part B: Master BudgetYou have just been hired as a new managementtrainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.The company sells many styles of earrings, but all are sold for the same price—$10 per pair. Actual sales of earrings for thelast three months and budgeted sales for the next six months follow (in pairs of earrings):January (actual)20,000June (budget)50,000February (actual)26,000July (budget)30,000March (actual)40,000August (budget)28,000April (budget)65,000September (budget)25,000May (budget)100,000The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.Suppliers are paid $4 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, andthe remaining 10% is collected in the second month following sale. Bad debts have been negligible.Monthly operating expenses for the company are given below:Variable:Sales commissions4% of salesFixed:Advertising$200,000Rent$18,000Salaries$106,000Utilities$7,000Insurance$3,000Depreciation$14,000Insurance is paid on an annual basis, in November of each year.The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter.The company’s balance sheet as of March 31 is given below: AssetsCash$74,000Accounts receivable ($26,000 February sales; $320,000 March sales)346,000Inventory104,000Prepaid insurance21,000Property and equipment (net)950,000Total assets$1,495,000Liabilities and Stockholders’ EquityAccounts payable$100,000Dividends payable15,000Common stock800,000Retained earnings580,000Total liabilities and stockholders’ equity$1,495,000The company maintains a minimumcash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.The company has an agreement with a 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. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $50,000 in cash.Required:Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:1.a. A sales budget, by month and in total.b. A schedule of expected cash collections, by month and in total.c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.2.A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.3.A budgeted income statement for the three-month period ending June 30. Use the contribution approach.4. A budgeted balance sheet as of June 30. Part C: Variance Analysis for Decision MakingBronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given:Standard costs per unit:Raw materials (1.5 grams at $16 per gram)............................$24.00Direct labor (0.75 hours at $8 per hour)..................................$6.00Variable overhead (0.75 hours at $3 per hour)........................$2.25Actual experience for current year:Units produced........................................................................22,400 unitsPurchases of raw materials (21,000 grams at $17 per gram)..$357,000Raw materials used..................................................................33,400 gramsDirect labor (16,750 hours at $8 per hour)..............................$134,000Variable overhead cost incurred..............................................$48,575Required:Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:a.Direct materials price variance.b.Direct materials quantity variance.c.Direct labor rate variance.d.Direct labor efficiency variance.e.Variable overhead spending variance.f.Variable overhead efficiency variance.g.As a manager, why is variance analysis important? Part D: Evaluation of Decentralized OrganizationsThe Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation requires a return on investment of 18%.Required:a.Calculate the company's return on investment (ROI) and residual income (RI).b.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. Would it be in the best interests of the company to make this investment?c.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment?d.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a residual income of $50,000 and its manager is evaluated based on the division's residual income, will the division manager be inclined to request funds to make this investment? Part E: Preparing Statement of Cash FlowsBoscia Corporation's balance sheet appears below:Comparative Balance SheetEnding BalanceBeginning BalanceAssets:Cash and cash equivalents.........................$44$38Accounts receivable..................................8269Inventory...................................................7169Plant and equipment..................................537500Accumulated depreciation.........................(240)(201)Total assets................................................$494$475Liabilities and stockholders’ equity:Accounts payable......................................$70$60Wages payable...........................................2421Taxes payable............................................1922Bonds payable...........................................226300Deferred taxes............................................1918Common stock...........................................2220Retained earnings......................................11434Total liabilities and stockholders’ equity..$494$475The net income for the year was $108. Cash dividends were $28.Required:Prepare a statement of cash flows in good form using the indirect method. Part A: Capital Budgeting DecisionsChee Company has gathered the following data on a proposed investment project:Investment required in equipment.............$240,000Annual cash inflows..................................$50,000Salvage value............................................$0Life of the investment...............................8 yearsRequired rate of return..............................10%Assets will be depreciated using straightline depreciation method Required:Using the net present value and the internal rate of return methods, is this a good investment? Part B: Master BudgetYou have just been hired as a new managementtrainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.The company sells many styles of earrings, but all are sold for the same price—$10 per pair. Actual sales of earrings for thelast three months and budgeted sales for the next six months follow (in pairs of earrings):January (actual)20,000June (budget)50,000February (actual)26,000July (budget)30,000March (actual)40,000August (budget)28,000April (budget)65,000September (budget)25,000May (budget)100,000The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.Suppliers are paid $4 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, andthe remaining 10% is collected in the second month following sale. Bad debts have been negligible.Monthly operating expenses for the company are given below:Variable:Sales commissions4% of salesFixed:Advertising$200,000Rent$18,000Salaries$106,000Utilities$7,000Insurance$3,000Depreciation$14,000Insurance is paid on an annual basis, in November of each year.The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter.The company’s balance sheet as of March 31 is given below: AssetsCash$74,000Accounts receivable ($26,000 February sales; $320,000 March sales)346,000Inventory104,000Prepaid insurance21,000Property and equipment (net)950,000Total assets$1,495,000Liabilities and Stockholders’ EquityAccounts payable$100,000Dividends payable15,000Common stock800,000Retained earnings580,000Total liabilities and stockholders’ equity$1,495,000The company maintains a minimumcash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.The company has an agreement with a 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. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $50,000 in cash.Required:Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:1.a. A sales budget, by month and in total.b. A schedule of expected cash collections, by month and in total.c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.2.A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.3.A budgeted income statement for the three-month period ending June 30. Use the contribution approach.4. A budgeted balance sheet as of June 30. Part C: Variance Analysis for Decision MakingBronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given:Standard costs per unit:Raw materials (1.5 grams at $16 per gram)............................$24.00Direct labor (0.75 hours at $8 per hour)..................................$6.00Variable overhead (0.75 hours at $3 per hour)........................$2.25Actual experience for current year:Units produced........................................................................22,400 unitsPurchases of raw materials (21,000 grams at $17 per gram)..$357,000Raw materials used..................................................................33,400 gramsDirect labor (16,750 hours at $8 per hour)..............................$134,000Variable overhead cost incurred..............................................$48,575Required:Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:a.Direct materials price variance.b.Direct materials quantity variance.c.Direct labor rate variance.d.Direct labor efficiency variance.e.Variable overhead spending variance.f.Variable overhead efficiency variance.g.As a manager, why is variance analysis important? Part D: Evaluation of Decentralized OrganizationsThe Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation requires a return on investment of 18%.Required:a.Calculate the company's return on investment (ROI) and residual income (RI).b.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. Would it be in the best interests of the company to make this investment?c.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment?d.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a residual income of $50,000 and its manager is evaluated based on the division's residual income, will the division manager be inclined to request funds to make this investment? Part E: Preparing Statement of Cash FlowsBoscia Corporation's balance sheet appears below:Comparative Balance SheetEnding BalanceBeginning BalanceAssets:Cash and cash equivalents.........................$44$38Accounts receivable..................................8269Inventory...................................................7169Plant and equipment..................................537500Accumulated depreciation.........................(240)(201)Total assets................................................$494$475Liabilities and stockholders’ equity:Accounts payable......................................$70$60Wages payable...........................................2421Taxes payable............................................1922Bonds payable...........................................226300Deferred taxes............................................1918Common stock...........................................2220Retained earnings......................................11434Total liabilities and stockholders’ equity..$494$475The net income for the year was $108. Cash dividends were $28.Required:Prepare a statement of cash flows in good form using the indirect method.
Chapter11 10. Real versus Nominal Returns. The inflation rate in the United States has averaged 3% a year since 1900. What was the average real rate of return on Treasury bills, Treasury bonds, and common stocks in that period? Use the data in Table 11.1. (LO11-2) 11. Market Indexes. The accompanying table shows annual stock prices on the Sulaco Stock Exchange in the republic of Costaguana for 2013–2018. Construct two stock market indexes, one using weights as in the Dow Jones Industrial Average and the other using weights as in the Standard & Poor’s Composite Index. (LO11-2) Annual prices in Costaguanan pegos for trading on the Sulaco Stock Exchange (only five stocks were traded at the start of 2013) San Tomé Mining (184 million*) Sulaco Markets (42 million*) National Central Railway (64 million*) Minerva Shipping (38 million*) Azuera Inc. (16 million*) 2013 55.10 80.00 21.45 82.50 135.00 2014 58.15 144.62 24.04 115.52 151.22 2015 58.45 135.93 26.53 138.90 166.99 2016 52.43 74.61 23.53 121.02 149.42 2017 52.50 75.01 32.46 174.62 177.27 2018 54.82 67.22 34.48 164.48 165.52 * Number of shares outstanding. 12. Market Indexes. In February 2009, the Dow Jones Industrial Average was at a level of about 8,000. In mid-2018, it was about 24,500. Would you expect the Dow in 2018 to be more or less likely to move up or down by more than 40 points in a day than in 2009? Does this mean the market was riskier in 2018 than it was in 2009? (LO11-2) Chapter 12 1. Diversifiable Risk. In light of what you’ve learned about market versus diversifiable (specific) risks, explain why an insurance company has no problem in selling life insurance to individuals but is reluctant to issue policies insuring against flood damage to residents of coastal areas. Why don’t the insurance companies simply charge coastal residents a premium that reflects the actuarial probability of damage from hurricanes and other storms? (LO12-1) 2. Specific versus Market Risk. Figure 12.10 plots monthly rates of return from 2014 to 2018 for the Snake Oil mutual fund. Was this fund fully diversified? (LO12-1) 3. Using Beta. A stock with a beta of .8 has an expected rate of return of 12%. If the market return this year turns out to be 5 percentage points below expectations, what is your best guess as to the rate of return on the stock? (LO12-1) 4. Specific versus Market Risk. Figure 12.11 shows plots of monthly rates of return on three stocks versus the stock market index. (The plots are similar to those in Figure 12.2.) The beta and standard deviation of each stock are given beside its plot. (LO12-1) a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would this portfolio’s beta have been? d. Consider a well-diversified portfolio made up of stocks with the same beta as Intel. What are the beta and standard deviation of this portfolio’s return? The standard deviation of the mar ket portfolio’s return is 20%. e. What is the expected rate of return on each stock? Use the capital asset pricing model with a market risk premium of 8%. The risk-free rate of interest is 4%. Chapter11 10. Real versus Nominal Returns. The inflation rate in the United States has averaged 3% a year since 1900. What was the average real rate of return on Treasury bills, Treasury bonds, and common stocks in that period? Use the data in Table 11.1. (LO11-2) 11. Market Indexes. The accompanying table shows annual stock prices on the Sulaco Stock Exchange in the republic of Costaguana for 2013–2018. Construct two stock market indexes, one using weights as in the Dow Jones Industrial Average and the other using weights as in the Standard & Poor’s Composite Index. (LO11-2) Annual prices in Costaguanan pegos for trading on the Sulaco Stock Exchange (only five stocks were traded at the start of 2013) San Tomé Mining (184 million*) Sulaco Markets (42 million*) National Central Railway (64 million*) Minerva Shipping (38 million*) Azuera Inc. (16 million*) 2013 55.10 80.00 21.45 82.50 135.00 2014 58.15 144.62 24.04 115.52 151.22 2015 58.45 135.93 26.53 138.90 166.99 2016 52.43 74.61 23.53 121.02 149.42 2017 52.50 75.01 32.46 174.62 177.27 2018 54.82 67.22 34.48 164.48 165.52 * Number of shares outstanding. 12. Market Indexes. In February 2009, the Dow Jones Industrial Average was at a level of about 8,000. In mid-2018, it was about 24,500. Would you expect the Dow in 2018 to be more or less likely to move up or down by more than 40 points in a day than in 2009? Does this mean the market was riskier in 2018 than it was in 2009? (LO11-2) Chapter 12 1. Diversifiable Risk. In light of what you’ve learned about market versus diversifiable (specific) risks, explain why an insurance company has no problem in selling life insurance to individuals but is reluctant to issue policies insuring against flood damage to residents of coastal areas. Why don’t the insurance companies simply charge coastal residents a premium that reflects the actuarial probability of damage from hurricanes and other storms? (LO12-1) 2. Specific versus Market Risk. Figure 12.10 plots monthly rates of return from 2014 to 2018 for the Snake Oil mutual fund. Was this fund fully diversified? (LO12-1) 3. Using Beta. A stock with a beta of .8 has an expected rate of return of 12%. If the market return this year turns out to be 5 percentage points below expectations, what is your best guess as to the rate of return on the stock? (LO12-1) 4. Specific versus Market Risk. Figure 12.11 shows plots of monthly rates of return on three stocks versus the stock market index. (The plots are similar to those in Figure 12.2.) The beta and standard deviation of each stock are given beside its plot. (LO12-1) a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would this portfolio’s beta have been? d. Consider a well-diversified portfolio made up of stocks with the same beta as Intel. What are the beta and standard deviation of this portfolio’s return? The standard deviation of the mar ket portfolio’s return is 20%. e. What is the expected rate of return on each stock? Use the capital asset pricing model with a market risk premium of 8%. The risk-free rate of interest is 4%.
Financial ratio analysis provides deeper insight into a company’s operations and past decisions. It also helps a leader or an investor better understand a company’s strengths and weaknesses. One of the challenges of comparing the financial statements of one company to another can be the size of each company. Fortunately, tools such as ratio analysis and common-size financial statements level the playing field and allow two companies that may be drastically different in size to be compared to one another. Upon successful completion of the course material, you will be able to: • Calculate financial ratios. • Evaluate common-size financial statements. Financial ratio analysis provides deeper insight into a company’s operations and past decisions. It also helps a leader or an investor better understand a company’s strengths and weaknesses. One of the challenges of comparing the financial statements of one company to another can be the size of each company. Fortunately, tools such as ratio analysis and common-size financial statements level the playing field and allow two companies that may be drastically different in size to be compared to one another. Upon successful completion of the course material, you will be able to: • Calculate financial ratios. • Evaluate common-size financial statements.
