FRANCORP is preparing budgets for the quarter ending March 31. Budgeted sales for the next 5 months are as follows: January 16250 units 16950 units 17200 units 18350 units 17900 units February March April May The selling price per unit is $15. Determine the total budgeted sales for the month of March. O $195.500 O $200,900 O $238,550 O $258,000
Q: Exercise 2: 1. An investment amounting to P300,000 has an annual interest of 4%. How much discount…
A: Simple interest is the interest without compounding that simple plain interest is calculated over…
Q: Calculate the expected return for Stock A.
A: Expected Return: It represents the profit or loss expected by an investor on an investment. It is…
Q: Let's say you are a credit analyst in the asset management department of a large bank or insurance…
A: We are not allowed to use excel so the excel sheet cannot be attached but I have provided the…
Q: Hans deposited $2000 into an account with a 7% annual interest rate, compounded quarterly.…
A: Since, Future value = Present value ×(1+Periodic Interest rate)^n Periodic Interest rate = Quarterly…
Q: Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 5.7%. You hold the bond…
A: Annualized Rate of Return: It represents the equivalent annual return on investment for a certain…
Q: Assume the following characteristics of à bónd: Seling at 96.000, 2.3% coupon, annual pay, 12 years…
A: Selling Price of Bond is 96.000 Coupon rate is 2.5% Time to Maturity is 12 years Face Value of Bond…
Q: answer ed is coming back incorrect please help
A:
Q: Wasim invests $220,000 in an annuity that earns 8.50% interest compounded quarterly. It makes…
A: An annuity is referred to lump-sum payment made by you in return for regular disbursements,…
Q: Wisdom Tree U.S. Total Earnings Fund (EXT) returns for the past 5 years have been: 2015 -2.30 % 2017…
A: Question 8 - Solved using excel Correct option - A ; 13.60%
Q: Given recent evidence concerning the CAPM, which of the following portfolios might be expected to…
A: An asset that plots above the SML is considered an undervalued asset as it provides a return larger…
Q: Term policies provide a O death benefit and a savings component. O death benefit only. O savings…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: OLVED QUESTIONS 1 and 2 and need help solving QUESTION 3 ONLY 1. A bank customer obtains a…
A: Number of payment can be calculated using the formula: NPER in the Excel.
Q: e Target's stock has an expected return of 22% and a volatility of 40%, Hershey's stock has an…
A: Return on portfolio and volatility of the portfolio depends on weights of different components of…
Q: U.S. form 1040 or 1040EZ is the form for an individual tax retum. O True O False
A: Answer - The IRS 1040 form of Income tax return is one of the official documents that U.S.…
Q: Expected return and standard of a risky portfolio are 11% and 21% respectively. Risk-free rate is…
A: Here, Expected Return of Risky Portfolio is 11% Standard Deviation of Risky Portfolio is 21% Risk…
Q: Consider the three small mutually exclusive investment alternatives in the table below. The feasible…
A: As the cash flow is the same for the time period we can use the present value of the annuity so that…
Q: 3
A: A discounted payback time is a corporate finance method for determining a project's profitability.
Q: Thangmo Company is a large manufacturing firm in Cherating that was created 20 years ago by the…
A: The bond interest rates are expected to go up as the bonds are now backed up by the government…
Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…
A: Given, information regarding Sugar Sweet (SS) Company that produces and sells 7,000 specialty…
Q: What is a budget contingency and what are three reasons it might be useful?
A: Budget contingency is the amount of capital that is set aside from the budget, so that in future…
Q: uppose that you purchase a bond from a company that promises to pay $52.66 in coupon payments for…
A: The total amount that a bond pays over its lifetime includes: = Maturity Amount + Coupon Payments
Q: Consider two investments A and B with the sequences of cash flows given in the table below. 12 Click…
A: Given, Two projects A and B Hi There, thanks for posting the question. But as per Q&A…
Q: e interest rate was 20% and
A: Income refers to the amount which a person should earn from selling goods and services or an amount…
Q: A bond that has a face value of $2,000 and coupon rate of 3.60% payable semi-annually was redeemable…
A: Calculation of Bond Price: Given: Future Value (FV) = $2000 Coupon Rate = 3.60% Yield = 4.10%…
Q: 1. An investment of P270, 000 can be made in a project that will produce a uniform annual revenue of…
A: In corporate finance, the payback period reflects how long it'll take you to repay your investment…
Q: Jason has participated in a 2% per year of service, career-average, defined benefit pension plan for…
A: Annual sallary for last 3 years are:- Year -1 = 25000 Year-2 = 30,000 Year-3 = 35,000 Pension per…
Q: Consider the model of Black and Scholes. Consider the cash=or-nothing put option V (T) = 1{S(T)<= K}…
A: Premiums are the result of adding the intrinsic and time value of an option. The difference between…
Q: Suppose that Chi Chili’s equity is currently selling for $40 per share, with 2.5 million shares…
A: A) Capital structure Weights Equity Value = 40$ * 2500,000 = $100,000,000 Debt value = 100,000 * 94%…
Q: The employee credit union at State University is planning the allocation of funds for the coming…
A: Given: Loan Annual return Automobile loans(A) 9% Furniture loans(F) 11% Other secured…
Q: 3. As part of your future retirement planning, you purchase an annuity that pays 3.5 % Search…
A: The retirement planning involves making regular payments or accumulation of funds that will be used…
Q: total return will you have earned over the year? What was your dividend yield? Your capital gain…
A: Given Information: Purchase Price (Po) = $101 Expected Dividend (D1) = $7 Expected Price after 1…
Q: 2. A Machine costs $30,000 to purchase . Salvage value of the machine after 5 years = $7000.…
A: Capital recovery cost refers to those equivalent annual cost of the company which is used to recover…
Q: ou expect that the index will experience a gnificant drop in the next 4 months. What would e the…
A: The option are used for hedging the current position in the market and used quite extensively to…
Q: LO1 Show the reasons why the net present value criterion is the best way to evaluate proposed…
A: Since you have posted a question with multiple questions, we will solve the first one for you. If…
Q: How much more will you have in your RRSP 30 years from now if you start to contribute $1000 per year…
A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…
Q: What quarterly compounded nominal interest rate is earned on payments of $215 paid at the beginning…
A: An annuity is a payment plan where a fixed recurring amount is paid in return for a lump sum amount.…
Q: Consider the following information: Rate of return State of Economy Probability Stock A Stock B…
A: Thanks for posting this question but as per the guidelines in the case of multiple questions we have…
Q: Determine the amount of cash paid to bondholders for bond interest for each of the six independent…
A: Cash paid for interest = Interest expense - interest payable + unamortized discount
Q: An 8 percent coupon bond has a maturity of 6 years. The Bond has a face value of 2,000 and it is…
A: Concept. On the basis of types of coupons, Bonds are of following types :- 1. Fixed rate bond 2.…
Q: Q#7. different common stocks. The portfolio's beta is 1.20. Suppose you sell one of the stocks with…
A: The systematic risk of a portfolio is the weighted average of the systematic risks of all its…
Q: P4-10 Cash budget: Basic Farmers Delight Corporation reported sales of $350,000 in June, $380,000 in…
A: From the given information we have to prepare the cash budget for the month of September , October…
Q: Find the compound amount for the deposit and the amount of interest earned. $8800 at 4% compounded…
A: The compound amount can be calculated with the help of future value function
Q: 2. The company is considering a project involving the purchase of new equipment. Change the data…
A: Here,
Q: You have S10,000 to invest for 90 days. Current spot rate: $1.32/£. The 90-day forward rate is…
A: Forward rate = [Spot rate * (1 + domestic interest rate) ]/ (1 + foreign interest rate).
Q: You are expecting twins and want to have $500,000 by the time your two kids go to college. You…
A: Interest rate per year is 7% Future Value is $500,000 Yearly Contribution is $8,000 To Find: Time…
Q: Suppose a 15- year corporate bond has a 10% coupon rate and a $1,000 par value. Coupons are paid…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: Tony's Pizzaria, owned by my cousin Tony (True!), is looking for a new pizza oven (Not really). Two…
A: Model 1: Payback period is the period within which initial investment is recovered. Payback period…
Q: The table presents 2019 data from the national income and product accounts of the U.S. A. Which…
A: The Expenditure method: GDP = Personal Consumption + Gross Private Investment + Government's…
Q: "Vicky has a comprehensive auto insurance policy with a $4,400 deductible, with a 100/0 copay and a…
A: Insurance companies provide the insurance to cover the auto damage and other damages due to the…
Q: Explain briefly any 5 of the 6 factors that differ financial services and physical goods.
A: Any tangible item purchased to fulfil needs and desires. Physical goods are more expensive than…
Step by step
Solved in 2 steps
- A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a flexible selling and administrative expenses budget for October for sales volumes of 500,000, 750,000, and 1,000,000.The following data were obtained from the financial records of Sonicbrush, Inc., for March: Sales are expected to increase each month by 15%. Prepare a budgeted income statement.
- Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the budgeted production (in units) for January?Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
- Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year: Estimated sales at 125 per unit: Estimated finished goods inventories: Work in process inventories are estimated to be insignificant (zero). Estimated direct materials inventories: Manufacturing costs: Selling expenses: Instructions Prepare the following budgets using one column for each month and a total column for the first quarter, as shown for the sales budget: Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Prepare a factory overhead cost budget for March. Prepare a cost of goods sold budget for March. Prepare a selling and administrative expenses budget for March. Prepare a budgeted income statement with budgeted operating income for March.The most common budget is prepared for a __________. A. week B. month C. quarter D. year
- Forecast sales volume and sales budget Sentinel Systems Inc. prepared the following sales budget for 20Y8: At the end of December 20Y8, the following unit sales data were reported for the year: For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the Home Alert System is expected to increase to 250, and the unit selling price for the Business Alert System is expected to be increased to 820, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 3. Prepare a sales budget for the year ending December 31, 20Y9.The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Materials used in production: Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?