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Can someone help with #1, 2, 5, 6? OEDD DEODMUHDEVIVOR Exercises/Problems 1. Stockholders' Equity. The owners of a new venture have decided to organize as
Can someone help with #1, 2, 5, 6?
OEDD DEODMUHDEVIVOR Exercises/Problems 1. Stockholders' Equity. The owners of a new venture have decided to organize as a corporation. The ini. tial equity investment is valued at $100,000, reflecting contributions of the entrepreneur and her family and friends. One hundred thousand shares of stock were initially issued. A. What dollar amount would initially be recorded in the common stock account? B. If a par value on the common stock were set at $0.01 per share, show how the initial equity invest ment would be recorded. Now assume that 20.000 dinal sh o cked to an angel investor a months after the initial incorporation Sh 5 per share o w your awwer in Part A would change of the com mon Mock did not have a vall a nwerin Part par value of 0.01 per share would change given At the end of the first year of S h ow dollar amounts in the common the w all paid in capital account, and there fained earnings account at the end Al e the ative amount is s holders equity at the end of one year 2. Temal Operating Schedule Ame r i v ing the manufacture and sale of a new product Raw material e s Direct labor costs are expected to be $10 per product. You expect to welche s 5110 You plan to produce 100 products month and expect to sell products A Prepare cost of production costos d o s cales formed the first month B During the second month you 110 p ts d sales in the month to be 115 products. Prepare cost of productio and to schedules for the sec and month 3. Internal Operating Schedule you have de n de a prototypedectronic product and are about to start your new business. You purchase preprogrammed computer chips $70 per unit. Other component costs include plastic casines a $15 and a mbly hardware at 55 per unit. Direct labor costs are $15 per hour and three units can be produced per hour You intend to each unit at a 50 percent markup over the total cost of producing each unit. The plan is to produce 500 product units per month in lanuary February and March Sales are expected to be 300 units in January, 100 units in February, and 800 units in March A Calculate the dollar amount of sales revenue expected in each month the lanuary February, and March) and for the first quarter of the year B. Prepare a cost of production schedule for January February, and March C Prepare a cost of goods sold schedule for each of the three months and for the first quarter of the year. Using your cost of goods sold estimates and the sales revenues expected in Part A calculate the gross earnings for January, February, and March, as well as for the first quarter of the year. D. Prepare an inventories schedule for January, February, and March . Assume you ramp up pro- 4. Internal Operating Schedule) This problem is a continuation of Problem duction to 1.000 units per month in April May, and June Sales are expected to be 800 units in April and 1.100 units in both May and June. Repeat the calculations requested in Problem 3 for the second quarter of the year (April, May, and June). 5. Survival Revenue Breakeven) During its first year of operations, the SubRay Corporation produced the following income statement results: $300 Net sales Cost of goods sold Gross profit -0.00 FT General and administrative -0.000 d Maig penses Deco - 10 ore - 10.000 30 000 Earnings before tas Income Net Gaming Costs of goods sold are expected to vary with sales and be a constant percentage of sales. The general and administrative employees have been hired and are expected to remain a fixed cost. Marketing 154 Part Organizing and Operating the Venture expenses are also expected to remain fixed because the current sales staff members are expected to main on fixed salaries and no new hires are planned. The effective tax rate is expected to be 30 perce for a profitable firm. A Estimate the survival or FRDAT breakevnament in terms of survival revenues necessary for the SubRay Corporation to break even next year. B Assume that the product selling price is $50 per unit Calculate the EBDAT breakeven point in terms of the number of units that will have to be sold next year. 6. Statement of Cash Flow and Cash mar Cindy and Robert (Rob) Castillo founded the Castilla Products Company in 2015. The company manufactures components for personal decision assistant products and for other handheld destronie products Year 2015 proved to be a test of the Castillo Pro ducts Company's ability to survive. However sales increased rapidly in 2016, and the firm reported net income after taxes of $75.000 Depreciation were $10,000 in 2016. Following are the Cas. tillo Products Company's balance sheets for 2015 and 2016, CASTILLO PRODUCTS COMPANY BALANCE SHEET 2015 Cash 2016 $ 20.000 50.000 - 140.000 A ction $190 90.000 100 000 Longe det 100 Additional pada 12000 Total and equity 51 000 000 A Calculate Castillo's cash flow from operating activities for 2016 B Calculate Castillo's cash flow from investing activities for 2016. C Calculate Castillo's cash flow from financing activities for 2016, D. Prepare a formal statement of cash flows for 2016 and identify the major cash inflows and outflows that were generated by the Castillo Products Company Use your calculation results from Parts A and B to determine whether Castillo was building of burning cash during 2016 and indicate the dollar amount of the cash build or burn. F. If Castillo had a net cash burn from operating and investing activities in 2016, divide the amount of burn by 12 to calculate an average monthly burn amount of the 2017 monthly cash burn continues at the 2016 rate, indicate how long in months it will be before the firm runs out of cash if there are no changes in financing activities 7. Variable Expenses and Survival Revenues Breakeven) The Castillo Products Company described in Problem 6 had a very difficult operating year in 2015, resulting in a net loss of $65.000 on sales of $900.000. In 2016, sales jumped to $1.500.000, and a net profit after taxes was earned. The firm's income statements are shown in the following tableStep by Step Solution
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