NOTE: Be sure to show all calculations for problems 1-6 to receive credit and follow the Assignment Instructions. For problem 7, you may copy EXCEL spreadsheets as a picture without showing the formulas for your answers in each cell.

1. Carl Tree is very excited because sales for his nursery and plant company are expected to double from $650,000 to $1,300,000 next year. He notes that net assets (Assets Liabilities) will remain at 50 percent of sales. His firm will enjoy a 14 percent return on total sales. He will start the year with $100,000 in the bank and is bragging about the Jaguar and luxury townhouse he will buy. Does his optimistic outlook for his cash position appear to be correct? Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup (equal to 50 percent of the sales increase) and add in profit.

2. Charlie Coats expects the sales for his clothing company to be $1,550,000 next year. He notes that net assets (Assets Liabilities) will remain unchanged. His clothing firm will enjoy a 12 percent return on total sales. He will start the year with $375,000 in the bank. What would the ending cash balance be?

3. Camper Life Tent Company had sales of 200,000 units at $65 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 15 percent price decrease. Returned merchandise will represent 3 percent of total sales. What is the net dollar sales projection for this year?

4. Cloggs Pipe Manufacturing Company has beginning inventory of 14,000 units, projects sales of 11,500 units for the month, and desires to maintain ending inventory at 25 percent of projected sales. How many units should be produced?

5. On December 31 of last year, Cyber Technology Corporation had an inventory of 4,500 units of its product, which cost $220 per unit to produce. During January, the company produced 8,500 units at a cost of $250 per unit. Assuming that the Corporation sold 10,000 units in January, what was the cost of goods sold? (Assume LIFO inventory accounting.)

6. CCC Supplies produces a product with the following costs as of July 1, 2015:

Material.......................... $ 6

Labor............................. 14

Overhead....................... 3

$ 23

Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, the company produced 15,000 units. These units had a material cost of $10 per unit. The costs for labor and overhead were the same. The company uses FIFO inventory accounting.

Assuming that the company sold 17,000 units during the last six months of the year at $30 each, what would gross profit be? What is the value of ending inventory?