a.)

b.)

Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) 23,000 $94,300 Revenue ($4.109) Expenses : Raw materials ($1.809) Wages and salaries ($6,500 + $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($600 + $0.109) Total expense Net operating income 41,400 11,100 3,050 3,700 2,500 2,900 64,650 $29,650 In July, 24,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (9) 24,000 $98, 400 Revenue ($4.109) Expenses: Raw materials ($1.809) Wages and salaries ($6,500+ $0.20g) Utilities ($1,900 + $0.059) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($600 + $0.109) Total expense Net operating income 43,200 11,300 3, 100 3,700 2,500 3,000 66,800 $31,600 Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Answer is not complete. Flight Caf Activity Variances For the Month Ended July 31 Revenue 98,400 X Expenses Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 230,000 $ 380,000 $ 260,000 $ 280,000 $ 295,000 $ 265,000 $ 255,000 $ 275,000 The company's beginning cash balance for the upcoming fiscal year will be $30,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.) Year Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Beginning cash balance Total cash receipts Total cash available 0 0 0 0 Total cash disbursements Excess (deficiency) of cash available over disbursements 0 0 0 0 Financing Borrowings Repayments Interest Total financing 0 0 0 0 Ending cash balance $ 0 $ 0 $ 0 $ 0