1. Bookworm Publishers publishes books, and they have gathered the following data for the month of October:
Data |
|
Cash on 10/1 |
$7,900 |
Expected Cash Collections |
$350,000 |
Direct Materials Cash Disbursements |
$68,000 |
Direct Labor Cash Disbursements |
$45,000 |
MOH Cash Disbursements |
$41,500 |
Operating Expenses Cash Disbursements |
$93,000 |
Capital Expenditures Cash Disbursements |
$132,000 |
Bookworm Publishers requires an ending cash balance of at least $5,000 and can borrow from a line of credit in $1,000 increments. How much cash is available for October?
A. $357,900 | |
B. $350,000 | |
C. $5,000 | |
D. $277,400 |
2.Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. Dandy's has narrowed their choices down to two: the Wacky Water Race game and the Whack-A-Mole game. Financial data about the two choices follows.
Wacky Water Race |
Whack-A-Mole |
|
Investment |
$28,000 |
$15,000 |
Useful life |
8 |
8 |
Estimated annual net cash inflows for 8 years |
$10,000 |
$5,000 |
Residual value |
$4,000 |
$5,000 |
Depreciation method |
straight-line |
straight-line |
Required rate of return |
10% |
12% |
What is the net present value of the Whack-A-Mole game?
Present Value of $1
Periods |
4% |
6% |
8% |
10% |
12% |
1 |
0.962 |
0.943 |
0.926 |
0.909 |
0.893 |
2 |
0.925 |
0.890 |
0.857 |
0.826 |
0.797 |
3 |
0.889 |
0.840 |
0.794 |
0.751 |
0.712 |
4 |
0.855 |
0.792 |
0.735 |
0.683 |
0.636 |
5 |
0.822 |
0.747 |
0.681 |
0.621 |
0.567 |
6 |
0.790 |
0.705 |
0.630 |
0.564 |
0.507 |
7 |
0.760 |
0.665 |
0.583 |
0.513 |
0.452 |
8 |
0.731 |
0.627 |
0.540 |
0.467 |
0.404 |
Present Value of Annuity of $1
Periods |
4% |
6% |
8% |
10% |
12% |
1 |
0.962 |
0.943 |
0.926 |
0.909 |
0.893 |
2 |
1.886 |
1.833 |
1.783 |
1.736 |
1.690 |
3 |
2.775 |
2.673 |
2.577 |
2.487 |
2.402 |
4 |
3.630 |
3.465 |
3.312 |
3.170 |
3.037 |
5 |
4.452 |
4.212 |
3.993 |
3.791 |
3.605 |
6 |
5.242 |
4.917 |
4.623 |
4.355 |
4.111 |
7 |
6.002 |
5.582 |
5.206 |
4.868 |
4.564 |
8 |
6.733 |
6.210 |
5.747 |
5.335 |
4.968 |
A. ($11,860) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B. $25,350 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C. ($25,350) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
D. $11,860 3. Everyone Deserves to Smile mobile dentist office budgeted for 4,355 patient visits a year. Everyone Deserves to Smile actually saw 4,500 patients during the year, and they have provided the following data:
Based on the given information, what is the flexible budget variance for revenue?
4. Stockholders' expectations of company profits are affected by which of the following?
|
1. A. $ 357,900.
Cash available = Beginning balance + Expected Cash Collecions = $ 7,900 + $ 350,000 = $ 357,900.
2. D. $ 11,860.
Net present value of Whack-A-Mole game = $ 5,000 x 4.968 + $ 5,000 x 0.404 - $ 15,000 = $11,860.
3. A. $ 91,300 Favorable.
Flexible budget variance = $ 410,800 - $ 71 x 4,500 = $ 91,300 Favorable.
4. D. All of the above.
5. B. $ 14,670,000.
Profit = Total Contribution Margin - Fixed Costs = 410,000 x $ ( 102 - 15) - $ 21,000,000 = $ 14,670,000.
6. D. Investment Center.
7. D. All of these costs are relevant.
9. D. Is continuously updated....
10. C. Budgeted balance sheet.
11. D. $ 31,450 Unfavorable.
Direct labor efficiency variance = ( Standard hours allowed for actual output - Actual hours used ) x Standard labor rate per hour = ( 5,000 x 0.25 - 3,100) x $ 17 = $ 31,450 Unfavorable.
12. Budgeted balance sheet.
1. Bookworm Publishers publishes books, and they have gathered the following data for the month of...
Bookworm Publishers publishes books and they have gathered the following data for the month of October Data $7000 $358.000 562,000 Cash on 8/1 Expected Cash Collections Direct Materials Cash Disbursements Direct Labor Cash Disbursements MOH Cash Disbursements Operating Expenses Cash Disbursements Capital Expenditures Cash Disbursements 550.000 $45.000 593 000 $126.000 Bookworm Publishers requires an ending cash balance of at least 55,000 and can borrow from a line of credit in $1,000 increments. What is the excess or deficiency of cash...
Question 14 Bookworm Publishers publishes books and they have gathered the following data for the month of October: Data $12,000 $350,000 $62,000 Cash on 8/1 Expected Cash Collections Direct Materials Cash Disbursements Direct Labor Cash Disbursements MOH Cash Disbursements Operating Expenses Cash Disbursements Capital Expenditures Cash Disbursements $50,000 $45,000 $88,000 $131,000 Bookworm Publishers requires an ending cash balance of at least $5,000 and can borrow from a line of credit in $1,000 increments. What is the ending cash balance for...
Question 16 O out of 0.25 points Bookworm Publishers publishes books and they have gathered the following data for the month of October: Data $12,000 $350,000 $62,000 Cash on 8/1 Expected Cash Collections Direct Materials Cash Disbursements Direct Labor Cash Disbursements MOH Cash Disbursements Operating Expenses Cash Disbursements Capital Expenditures Cash Disbursements $50,000 $45,000 $88,000 $131,000 Bookworm Publishers requires an ending cash balance of at least $5,000 and can borrow from a line of credit in $1,000 increments. What is...
Question 6 0 out of 1 points Bookworm Publishers publishes books and they have gathered the following data for the month of October: Data Cash on 8/1 Expected Cash Collections Direct Materials Cash Disbursements Direct Labor Cash Disbursements MOH Cash Disbursements Operating Expenses Cash Disbursements Capital Expenditures Cash Disbursements $12,000 $350,000 $62,000 $50,000 $45,000 $88,000 $131,000 Bookworm Publishers requires an ending cash balance of at least $5,000 and can borrow from a line of credit in $1,000 increments. What is...
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supervision.
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Prepare a static budget report. Hint:...
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