Reference no: EM13952095
The results of operations for the Garret Bug Spray Manufacturing Company for the fourth quarter of 2011 were as follows:
-1.png)
Garret uses the variable costing method. Thus, only variable costs are included in the cost of goods sold. Fixed costs are charged to expense in the period incurred. The company's balance sheet as of the end of the fourth quarter of 2011 was as follows (in thousands):
-2.png)
Additional information:
1. Sales and variable costs of sales are expected to increase by 5 percent in the next quarter.
2. All sales are on credit with 50 percent collected in the quarter of sale and 50 percent collected in the following quarter.
3. Variable cost of sales consists of 40 percent materials, 40 percent direct labor, and 20 percent variable overhead. Materials are purchased on credit. Sixty percent are paid for in the quarter of purchase, and the remaining amount is paid for in the quarter after purchase.There is no inventory. Also, direct labor and variable overhead costs are paid in the quarter the expenses are incurred.
4. Fixed production costs (other than $3,000 of depreciation expense) are expected to increase by 2 percent. Fixed production costs requiring payment are paid in the quarter they are incurred.
5. Fixed selling and administrative costs (other than $4,000 of depreciation expense) are expected to increase by 2 percent. Fixed selling and administrative costs requiring payment are paid in the quarter they are incurred.
6. The tax rate is expected to be 40 percent. All taxes are paid in the quarter they are incurred.
7. No purchases of fixtures or equipment are expected in the first quarter of 2012.
Required:
a. Prepare a budgeted income statement for the first quarter of 2012.
b. Prepare a budgeted statement of cash receipts and disbursements for the first quarter of 2012.
c. Prepare a budgeted balance sheet as of the end of the first quarter of 2012.
|
Why would this have been a bad idea
: During the planning stages for the Pioneer 11 mission, when relatively little was known about Saturn's rings, it was proposed to have the spacecraft fly through the Cassini division. Why would this have been a bad idea?
|
|
What would be a reasonable assumed mass for the neutron star
: if it is not possible to calculate the masses of the stars, what would be a reasonable assumed mass for the neutron star? how did you deduce this?
|
|
Please use lowes home improvement
: Think of the last time you visited a zoo. You visit the zoo to enjoy the wealth of variety of animals in their natural habitat. Next time you visit a zoo, notice that similar types of animals are presented together whereas ones that may be natural en..
|
|
Calculate countrys bilateral trade balance
: What entries are used to calculate a country's bilateral trade balance? A. its unemployment and inflation rates B. its per capita income and imports C. its exports and per capita income D. its exports to and imports from another country
|
|
Prepare a budgeted statement of cash receipts
: Prepare a budgeted statement of cash receipts and disbursements for the first quarter of 2012.
|
|
What is the companys cost of equity capital
: The tip-top paving company has a beta of 1.11 a cost of debt of 11% and a debt to value ratio of .6. The current risk free rate is 9 % and the market rate of return is 16.18%. What is the company's cost of equity capital?
|
|
Sales are on credit-calculate operating and cash cycles
: Consider the following financial statement information for the Amaryliss Corporation: Item Beginning Ending Inventory $9,682 $10,480 Accounts receivable 4,951 5,481 Accounts payable 5,252 5,593 Net sales $138,603 Cost of goods sold 86,413. Assume all..
|
|
Change the page orientation to landscape
: Retrieve Expense Report, save it on your computer, and open it in Excel. This partially completed workbook contains the column headings and several expense items.
|
|
Relationship between elements of an environment
: The approach maps ideas to show the relationship among requirements and the difference between requirements. These diagram shown the relationship between elements of an environment
|