Q#1 (15 marks, 'We really need to get this new arenal - kandling equipmenrin operation just afrer the new year begins kope we can finance in largely with cask and marketable securities but it necessary we can get a skort term loan down at Merro bank This Staremer by Berh Davies -Lovr president of Global Electronics Company concluded ameering she had called with the firm's top managemer. Global is a small rapidly growing wholesaler of consumer electronic prodwas the firm's man product lines are small kitchen appliances and power tools Maria Wilcox Global Electronics general manager at markering has recently complered a sales forecast ske believes the company's sales during the first quarter of 2021 will increase by 10% each month over the previous monik s' sales. Than Wilcox expects sales to remain constant for several months. Global's projecred balance sheet as of Dec 31 2020 is as follow: Cast TO DOO A/c receivable 540,000 Markerable securities 3D ODO Inventory 308 000 Building and equipment (ner of accumulared depreciation (252.000 Toral assers Z200 000 A/C payable 352 200 Bonds interese payable 25 000 Property tax payable 7200 Bonds Payable (10% due in 2026) 600 000 Common stock 1 000 000 Retained earnings 275 000 Toral liabilities and stockkolders' equity 2,200,000 Jack Hanson the assistant controller is the preparing a monthly budger for the first quarter of 2021. In the process the following information has been accumulared 1. Projected sales for December 2020 are 300.000. Credir sales typically are 75% of coral sales company credie experience indicates thar 10% of the credit sales are collected during the month of sales and the remainder are collected during the following month 2. Company cost of goods sold generally runs ar 70% of sales Investory is purchase On account and 40% of each month's purekase is paid during the month of purekase The remainder is paid during rke tollowing month. In order to have adequate stocks of inventory on hand the firm attempts to have inventory at the end of each month equal to all of the next mork's projecred cost of goods sold, 3. Hasson has estimated that company monthly expense will be as follow Sales salanas 12 000 Advertising and promotion 32 000 Administrative salaries 42 000 Depreciation 50 000 Interest on bonds 5 000 Property taxes 1 800 In addition sales commission run ar the rate of 1% of sales 4 Company president has indicared that the firm should invest 250 000 in an aston are inventory handling system to control the movement of inventory in the firm 'warekouse just after the new year begins. These equipment purchase will be finance primarily from the firm cask and markerable securities. However president believes that the company needs to keep minimum cash balance of 50 000 if necessary the remainder of the equipment purchase will be financed using the skort permerede from local bank The minimxm period for such a loan is three monks Hanson believes short-term interest rare will be 10% per year at the time of Retained earning! 215 000 Toral liabilities and stock olders' equity z 200,000 Jack Hanson the assistant controller is the preparing a monthly budger for the first quarter of 2021. In the process the following information has been accumulated I Projected sales for December 2020 are 200 000 Credir sais typically are 75% of toral sales company credir experience indicates thar 10% of the credit sales are collected during the month of sales and the remainder are collected during the following month 2. Company cost of goods sold generally runs ar 70% of sales. Inventory is purchase on account and 40% of each month's purchase is paid during the month of purchase The remainder is paid during the following monte. In order to have adequate stocks of inventory on hand the firm atempts to have inventory at the end of each month equal to half of the next mork's projected cost of goods sold + Hasson kas estimated that company monthly expense will be as follow Sales salaries 42 DOO Advertising and promotion 32.000 Administrative salaries 42.000 Depreciation 50 000 Interest or bonds 5.000 Property taxes I too In addition sales commission run at the rate of 1% of sales. 4. Company president has indicated that the firm should invest 250.000 in an automated inventory handing system to control the movement of inventory in the firm s' varekouse just afrer the new year begins. These equipment purchase will be finance primarily from the firm cask and markerable securities. However president believes than the company needs to keep RiiRUR cash balance of 50 000 necessary the remainder of the equipment purchase will be financed Msing the short term credit from local bankThe minimum period for such a loan is three monks Hanson believes short-term interest rare will be 10% per year at the time of equipment purchase. I a loan is necessary President has decided it should be paid off by the end of the first quarter if possible 5. Company board of directors has indicated an intention to declare and pay dividends of 100 000 on the last day of each quarter 4. The interest or any skort-term borrowing will be paid when the loan is repasd. Interest on bords is paid sem unnually on January 17 and Jul!) for the preceding SR-month 7. Property taxes are paid semiannually on February 24 and August 31 for the preceding six-month Required Prepare Global Electronics Company's master budger for the first quarter 2027 by completing the following schedules and statements I Sales budget of marks) 2. Sekedule of expected cash collection 5 marks) 3. Purchase budget (or marks) 4. Sckedule of expected cash disbursemer for inventory purchase V Sarks) 5. Skedule of expected cash disbursemer for operarions expense (15 marts) & Cask budger (03 marks) 7. Budgered income starement for the first quarter (02 marks 3. Budgered statement of rerained canings for the first quarter 1.5 marks 1 Budgered balance sheers for the first quarter (02 marks) QNOZ (04 marks, The following data were raken from the records of a company Period Period 2 38000 27000 Period 27000 30 000 30 000 300D Production (unit) Sales Opening stock Closing srock 1/ ODD 11 000 Per unit cost are as follows: Direct marerial 31.5 Direcr labor 10 Production overhead 3.0 Selling price per unit Administrative overheads are fixed a $25000 and one third of the production overkeads are fixed Required Prepare separate income statements for all three year QA3 ( D6 marks) HASF Corporation began operations at the beginning of the current year one of the year company product a compressor sells for 170 per unit's information related to the catrent year scrivities follows Variable cos per unit Direct marerial 00 Direcr labor 74 Manutacturing overhead 76 Annual fixed cost Manufacturing Cour 1.200 000 Selling and administrative 1.720 000 Sales and production Sales 20 000 Production Required Cost otrke December / finished goods inventory Wer income for the exrrent year Dec 31 It next year production decrease to 22 500 units and general cost behavior patrems do nor change wkar is the likely atted on The direct labor cost of 78 per unirs? why? 24 000 The fixed manufacturing overhead of 1,200,000? why? . The fixed selling and administrative cost of7200,000? why? Per unit cost production why? Q#1 (15 marks, 'We really need to get this new arenal - kandling equipmenrin operation just afrer the new year begins kope we can finance in largely with cask and marketable securities but it necessary we can get a skort term loan down at Merro bank This Staremer by Berh Davies -Lovr president of Global Electronics Company concluded ameering she had called with the firm's top managemer. Global is a small rapidly growing wholesaler of consumer electronic prodwas the firm's man product lines are small kitchen appliances and power tools Maria Wilcox Global Electronics general manager at markering has recently complered a sales forecast ske believes the company's sales during the first quarter of 2021 will increase by 10% each month over the previous monik s' sales. Than Wilcox expects sales to remain constant for several months. Global's projecred balance sheet as of Dec 31 2020 is as follow: Cast TO DOO A/c receivable 540,000 Markerable securities 3D ODO Inventory 308 000 Building and equipment (ner of accumulared depreciation (252.000 Toral assers Z200 000 A/C payable 352 200 Bonds interese payable 25 000 Property tax payable 7200 Bonds Payable (10% due in 2026) 600 000 Common stock 1 000 000 Retained earnings 275 000 Toral liabilities and stockkolders' equity 2,200,000 Jack Hanson the assistant controller is the preparing a monthly budger for the first quarter of 2021. In the process the following information has been accumulared 1. Projected sales for December 2020 are 300.000. Credir sales typically are 75% of coral sales company credie experience indicates thar 10% of the credit sales are collected during the month of sales and the remainder are collected during the following month 2. Company cost of goods sold generally runs ar 70% of sales Investory is purchase On account and 40% of each month's purekase is paid during the month of purekase The remainder is paid during rke tollowing month. In order to have adequate stocks of inventory on hand the firm attempts to have inventory at the end of each month equal to all of the next mork's projecred cost of goods sold, 3. Hasson has estimated that company monthly expense will be as follow Sales salanas 12 000 Advertising and promotion 32 000 Administrative salaries 42 000 Depreciation 50 000 Interest on bonds 5 000 Property taxes 1 800 In addition sales commission run ar the rate of 1% of sales 4 Company president has indicared that the firm should invest 250 000 in an aston are inventory handling system to control the movement of inventory in the firm 'warekouse just after the new year begins. These equipment purchase will be finance primarily from the firm cask and markerable securities. However president believes that the company needs to keep minimum cash balance of 50 000 if necessary the remainder of the equipment purchase will be financed using the skort permerede from local bank The minimxm period for such a loan is three monks Hanson believes short-term interest rare will be 10% per year at the time of Retained earning! 215 000 Toral liabilities and stock olders' equity z 200,000 Jack Hanson the assistant controller is the preparing a monthly budger for the first quarter of 2021. In the process the following information has been accumulated I Projected sales for December 2020 are 200 000 Credir sais typically are 75% of toral sales company credir experience indicates thar 10% of the credit sales are collected during the month of sales and the remainder are collected during the following month 2. Company cost of goods sold generally runs ar 70% of sales. Inventory is purchase on account and 40% of each month's purchase is paid during the month of purchase The remainder is paid during the following monte. In order to have adequate stocks of inventory on hand the firm atempts to have inventory at the end of each month equal to half of the next mork's projected cost of goods sold + Hasson kas estimated that company monthly expense will be as follow Sales salaries 42 DOO Advertising and promotion 32.000 Administrative salaries 42.000 Depreciation 50 000 Interest or bonds 5.000 Property taxes I too In addition sales commission run at the rate of 1% of sales. 4. Company president has indicated that the firm should invest 250.000 in an automated inventory handing system to control the movement of inventory in the firm s' varekouse just afrer the new year begins. These equipment purchase will be finance primarily from the firm cask and markerable securities. However president believes than the company needs to keep RiiRUR cash balance of 50 000 necessary the remainder of the equipment purchase will be financed Msing the short term credit from local bankThe minimum period for such a loan is three monks Hanson believes short-term interest rare will be 10% per year at the time of equipment purchase. I a loan is necessary President has decided it should be paid off by the end of the first quarter if possible 5. Company board of directors has indicated an intention to declare and pay dividends of 100 000 on the last day of each quarter 4. The interest or any skort-term borrowing will be paid when the loan is repasd. Interest on bords is paid sem unnually on January 17 and Jul!) for the preceding SR-month 7. Property taxes are paid semiannually on February 24 and August 31 for the preceding six-month Required Prepare Global Electronics Company's master budger for the first quarter 2027 by completing the following schedules and statements I Sales budget of marks) 2. Sekedule of expected cash collection 5 marks) 3. Purchase budget (or marks) 4. Sckedule of expected cash disbursemer for inventory purchase V Sarks) 5. Skedule of expected cash disbursemer for operarions expense (15 marts) & Cask budger (03 marks) 7. Budgered income starement for the first quarter (02 marks 3. Budgered statement of rerained canings for the first quarter 1.5 marks 1 Budgered balance sheers for the first quarter (02 marks) QNOZ (04 marks, The following data were raken from the records of a company Period Period 2 38000 27000 Period 27000 30 000 30 000 300D Production (unit) Sales Opening stock Closing srock 1/ ODD 11 000 Per unit cost are as follows: Direct marerial 31.5 Direcr labor 10 Production overhead 3.0 Selling price per unit Administrative overheads are fixed a $25000 and one third of the production overkeads are fixed Required Prepare separate income statements for all three year QA3 ( D6 marks) HASF Corporation began operations at the beginning of the current year one of the year company product a compressor sells for 170 per unit's information related to the catrent year scrivities follows Variable cos per unit Direct marerial 00 Direcr labor 74 Manutacturing overhead 76 Annual fixed cost Manufacturing Cour 1.200 000 Selling and administrative 1.720 000 Sales and production Sales 20 000 Production Required Cost otrke December / finished goods inventory Wer income for the exrrent year Dec 31 It next year production decrease to 22 500 units and general cost behavior patrems do nor change wkar is the likely atted on The direct labor cost of 78 per unirs? why? 24 000 The fixed manufacturing overhead of 1,200,000? why? . The fixed selling and administrative cost of7200,000? why? Per unit cost production why