Answer key chapter 4
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Answer key chapter 4

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Answer key chapter 4 Answer key chapter 4 Document Transcript

  • kMENlMhat;emeronTI4 ³ karBüakrN_hirBaØvtßúEx1: Compute Required New Fund (RNF): A L RNF = S (ΔS) – S (ΔS) – PS2(1-D) . A (Asset) = Equity + Libility = (50% x $600,000) + $120,000 = $420,000 . L (Liabilities) = $120,000 . S (Old Sale) = $600,000 . S2 (New Sale) = $1,200,000 . ∆S (Change in Sale) = S2 – S = $1,200,000 - $600,000 = $600,000 . P (Profit Margin) = 8% or 0.08 . D (Dividend) = 0% $420,000 $120,000 => RNF = $600,000 ($600,000) – $600,000 ($600,000) – (0.08)($1,200,000)(1-0) => RNF = $420,000) – $120,000 – $96,000 = $204,000 dUecñH edIm,IbegáIncMNUlkarlk;[seRmc)ancMnYn $1,200,000 enAqñaMeRkaykBaØa lIlI RtUvbEnßmnUvmUlniFifµIeTAkñúgKeRmagvinieyaKrbs;Kat; cMnYn $204,000 EfmeTot.Ex2: Computer Total Sale Projection Total Sale Projection = (0.20 x 100 x $20) + (0.50 x 180 x $25) + (0.30 x 210 x $30) = $4,540Ex3: Compute Sale Projection . Estimated Unit to be Sale = 2,000 units + (2,000 units x 25%) = 2,500 units . Est. Cost per unit = $160 x (1 + 10%) = $160 x 1.1 = $176 => Net Sale = Sale – Sale Return & Allowance = (2,500 u x $176) – (2,500 u x $176 x 5%) = $418,000Ex4: (Homework)Compute Units to be produce: . Est. Project Sale = 4,800 units . Ending Inventory = 10% x 4,800 units = 480 units . Beginning Inventory = 300 units
  • => Unit to be Produce = Est. Project Sale + Ending Inventory – Begin. Inventory = 4,800 units + 480 units – 300 units = 4,980 unitsEx5: Compute Units to be produce . Est. Project Sale = 6,000 u + (6,000 u x 50%) = 9,000 units . Ending Inventory = 5% x 9,000 units = 450 units . Beginning Inventory = 200 units => Unit to be Produce = Est. Project Sale + Ending Inventory – Begin. Inventory = 9,000 units + 450 units – 200 units = 9,250 unitsEx6: (Homework)Compute Units to be produce: . Est. Project Sale = 60,000 units . Ending Inventory = 30% x 22,000 units = 6,600 units . Beginning Inventory = 22,000 units => Unit to be Produce = Est. Project Sale + Ending Inventory – Begin. Inventory = 60,000 units + 6,600 units – 22,000 units = 44,600 unitsEx7: (Homework)First In, First Out Method (FIFO): Beginning : 600 units @ $28 = 16,800 $ Sale1,500 units   January :900 units @ $32 = 28,800 $ => COGS = $16,800 + $28,800 = $45,600 => Ending Inventory = (1,200 units – 900 units) x $32 = $9,600Ex8: Compute Cost of Goods Sold (COGS):a. Last In, First Out Method (LIFO): February : 750units × 16 = 12,000 $ $ Sale1,050 units  Beginning :300units × 12 = 3,600 $ $ => COGS = $15,600 => Ending Inventory = (825 – 300) x $12 = $6,300b. First In, First Out Method (FIFO): Beginning : 825 units @ $12 = 9,900 $ Sale1,050 units  February : 225 units @ $16 = 3,600 $ => COGS = $9,900 + $3,600 = $13,500 => Ending Inventory = (750 – 225) x $16 = $8,400Ex9: Compute Gross Profit: Gross Profit = Sale – COGS . Sale = 17,000 units x $20 = $340,000 Compute COGS (FIFO):  Beginning : 5,000 units @ $12 = 60,000 $ Sale17,000 units  production : 12,000 units @ ($10 + 4 + 2) = 192,000 $ $ $ => COGS = $60,000 + $192,000 = $252,000 => Gross Profit = $340,000 - $252,000 = $88,000
  • Compute Cost of Ending Inventory: Cost of Ending Inventory = (15,000 units – 12,000 units) x ($10 + $4 + $2) = $48,000Ex10: (Homework) – LIFOCompute Gross Profit: Gross Profit = Net Sale – Cost of Goods Sold . Net Sale = 17,000 units x $20 = $340,000 production :15,000units × 10 + 4 + 2) =$240,000 ($ $ $ . Sale17,000 units  Beginning : 2,000units × 12 =$24,000 $  => Cost of Goods Sold = $240,000 + $24,000 = $264,000 => Gross Profit = $340,000 - $264,000 = $76,000Compute Cost of Ending Inventory: Cost of Ending Inventory = (5,000 units – 2,000 units) x ($12) = $36,000Ex11: (Homework)Compute Gross Profit: Gross Profit = Net Sale – Cost of Goods Sold . Net Sale = 31,500 units x $29.60 = $932,400 . production : 28,500units × 11.50 +$4.80 +$6.20) =$641,250 ($ Sale 17,000 units   Beginning : 3,000units × 9.00 +$5.00 +$4.10) =$54,300 ($ => Cost of Goods Sold = $641,250 + $54,300 = $695,550 => Gross Profit = $932,400 - $695,550 = $236,850Compute Cost of Ending Inventory: Cost of Ending Inventory = (4,000 units) x ($9 + $5 + $4.10) = $72,400Ex12: Prepare Schedule of Cash Receipt for 4th Quarter of the Year: 4th Quarter September October November December Sale............................................................... $70,000 $60,000 $55,000 $80,000 Cash Collection: . 30% in current month of sale.............. - 18,000 16,500 24,000 . 60% in next month of sale................... - 42,000 36,000 33,000 . 10% can not collected.......................... - - - - Total Cash Receipt...................................... - $60,000 $52,500 $57,000Ex13: Prepare Schedule of Cash Receipt from March to August: Jan. Feb. Mar. April May June July Aug. Sept. Oct.Sale forecasting............. 27,000 26,000 24,000 30,000 18,000 28,000 35,000 38,000 - -Collection: . 10% can not collect... 2,700 2,600 2,400 3,000 1,800 2,800 3,500 3,800 - - . 30% in mth of sale..... 8,100 7,800 7,200 9,000 5,400 8,400 10,500 11,400 - -
  • . 40% in next 1 mth...... - 10,800 10,400 9,600 12,000 7,200 11,200 14,000 15,200 - . 20% in next 2 mths.... - - 5,400 5,200 4,800 6,000 3,600 5,600 7,000 7,600 Total Cash Receipt..... 8,100 18,600 23,000 23,800 22,200 21,600 25,300 31,000 22,200 7,600 => Amount can not collect = $2,400 + $3,000 + $1,800 + $2,800 + $3,500 + $3,800 = $17,300 => Amount not yet collect = $22,200 + $7,600 = $29,800Ex14: Prepare Schedule of Cash Payment: Dec. Jan. Feb. Mar. April May June July Aug.Sale forecasting..................... - 12,000 16,000 18,000 24,000 12,000 20,000 22,000 -Material purchased (20% of next mth sale)..... 2,400 3,200 3,600 4,800 2,400 4,000 4,400 - -Payment: . 40% pay in mth ................ 960 1,280 1,440 1,920 960 1,600 1,760 - - . 60% pay in next 1 mth...... - 1,440 1,920 2,160 2,880 1,440 2,400 2,640 - . Direce Labor ($6,000)....... 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 . MOH ($3,000)................... 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 . Interest Expense............... - - - 4,500 - - 4,500 - - . Commission (*)................... - - - - - - 3,060 - -Total Cash Payment............. 9,960 11,720 12,360 17,580 12,840 12,040 20,720 11,640 9,000(*) Compute Commission: Commission = 3% of sale from January to June = 3% x ($12,000 + $16,000 + $18,000 + $24,000 + $12,000 + 20,000) = $3,060Ex15: Prepare Schedule of Cash Receipt: Sept. Oct. Nov. Dec. Jan. Feb. Sale forecasting..................................... 6,000 10,000 16,000 12,000 - - Sale by Cash (20%)............................... 1,200 2,000 3,200 2,400 - - Sale on Credit (80%).............................. 4,800 8,000 12,800 9,600 - - Collection: . 40% in next 1 mth.............................. - 1,920 3,200 5,120 3,840 - . 60% in next 2 mths............................ - - 2,880 4,800 7,680 5,760 Total Cash Receipt................................ 1,200 3,920 9,280 12,320 11,520 5,760Prepare Cash Budget: Nov. Dec. 1. Cash Receipt.................................................................... 9,280 12,320 2. Less: Cash Payment........................................................ (13,000) (6,000) 3. Net Cash Flow [(1)-(2)]..................................................... (3,720) 6,320 4. Beginning Cash Balance.................................................. 5,000 5,000 5. Cumulative Cash Balance [(3) + (4)]................................ 1,280 11,320 6. Monthly Loan or (Repayment).......................................... 3,720 (3,720) 7. Cumulative Loan Balance................................................ 3,720 0 8. Ending Cash Balance [(5) + (6)]....................................... 5,000 7,600
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