80.2K

Verified Solution

Link Copied!

Please answer the following questions. thank you

CVP analysis can be used to study the effect of: 2 points Multiple Choice Book O changes in selling prices on a company's profitability. Print References O changes in variable costs on a company's profitability. O changes in fixed costs on a company's profitability. O changes in product sales mix on a company's profitability. all answers are correct.10 A budget serves as a benchmark against which: 2 points Multiple Choice Skipped O actual results can be compared. Book Print O allocated results can be compared. References O actual results become inconsequential. O allocated results become inconsequential. O cash balances can be compared to expense totals.11 The comprehensive set of budgets that serves as a company's overall financial plan is commonly known as: 2 points Multiple Choice Skipped O an integrated budget. eBook Print O a pro-forma budget. References O a master budget. O a financial budget. O a rolling budget.12 A company's plan for the acquisition oflonglived assets, such as buildings and equipment, is commonly called a: 2 points. Multiple Choice skipped E O pro-forma budget. master budget. References financial budget. profit plan. 0000 capital budget. 13 A company's expected receipts from sales and planned disbursements to pay bills is commonly called a: 2 points Multiple Choice Skipped O pro-forma budget. eBook Print O master budget. References O financial budget. O profit plan. O cash budget.14 An organization's budgets will often be prepared to cover: 2 points Multiple Choice Skipped O one month. eBook Print O one quarter. References O one year. O periods longer than one year. O All of these choices are correct.15 A manufacturing firm would begin preparation of its master budget by constructing a: 2 points Multiple Choice Skipped O sales budget. eBook Print O production budget. n References O cash budget. O capital budget. O set of pro-forma financial statements.16 palms skipped References A static budget Multiple Choice O 0000 is based totallyr on prior year's costs. is based on one anticipated activity level. is based on a range of activity. is preferred over a flexible budget in the evaluation of performance. presents a clear measure of performance when planned activity differs from actual activity. 17 Flexible budgets reflect a company's anticipated costs based on variations in: 2 points Multiple Choice Skipped O activity levels. eBook Print O inflation rates. References O managers. O anticipated capital acquisitions. O standards.18 Barrington Industries anticipated selling 31,000 units of a major product and paying sales commissions of $7 per unit. Actual sales and sales commissions totaled 32,000 units and $222,500, respectively. If the company used a static budget for performance evaluations, Barrington would report a cost variance of: 2 points Skipped Multiple Choice Book O $1,500U. Print O $1,50OF. References O $5,500U. O $5,500F. O None of the answers is correct.19 A manufacturer's raw material purchasing department would likely be classified as a: 2 points Multiple Choice Skipped O cost center. eBook Print O revenue center. References O profit center. O investment center. O contribution center.2 The break-even point is that level of activity where: 2 points Multiple Choice eBook total revenue equals total cost. Print References O variable cost equals fixed cost. O total contribution margin equals the sum of variable cost plus fixed cost. O sales revenue equals total variable cost. O profit is greater than zero.20 The Telemarketing Department of a residential remodeling company would most likely be evaluated as a: 2 points Multiple Choice Skipped cost center. eBook Print O revenue center. References O profit center. O investment center. O contribution center.21 Disk City, Incorporated, is a retailer for digital video disks. The projected net income for the current year is $2,300,000 based on a sales volume of 270,000 video disks. Disk City has been selling the disks for $18 each. The variable costs consist of the $6 unit purchase price of the disks and a handling cost of $2 per disk. Disk City's annual fixed costs are $400,000. 30 points Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.) Skipped Required: a. Calculate Disk City's break-even point for the current year in number of video disks. eBook Note: Round your final answer up to nearest whole number. b. What will be the company's net income for the current year if there is a 10 percent increase in projected unit sales volume? c. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $18? Print Note: Do not round intermediate calculations. Round your final answer to the nearest whole number. d. In order to cover a 20 percent increase in the disk's purchase price for the coming year and still maintain the current contribution- margin ratio, what selling price per disk must Disk City establish for the coming year? References Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. 1. Break-even point units 2. Net income 3. Volume of sales 4. Selling price per disk22 EyeLight, Incorporated, a distributor of cosmetics, is in the process of assembling a cash budget for the first quarter of 20x1. The following information has been extracted from the company's accounting records: 30 . All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 35 percent are collected in the points following month. Uncollectibles amounting to 5 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1. Skipped Sixty percent of the merchandise purchases are paid for in the month of purchase; the remaining 40 percent are paid for in the month after acquisition. The December 31, 20x0, balance sheet disclosed the following selected figures: cash, $85,000; accounts receivable, $265,000; and accounts payable, $86,000. Book EyeLight, Incorporated, maintains a $85,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 9 percent interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time. Additional data: Print January February March Sales revenue $ 650,000 740, 000 $ 755, 000 Merchandise purchases 470, 000 500, 000 620,600 References Cash operating costs 113, 000 92, 000 155, 000 Proceeds from sale of equipment 35, 000 Required: 1. Prepare a schedule that discloses the firm's total cash collections for January through March. 2. Prepare a schedule that discloses the firm's total cash disbursements for January through March. 3. Prepare a schedule that summarizes the firm's financing cash flows for January through March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule that discloses the firm's total cash collections for January through March. January February March Collection of accounts receivable Collection of January sales Collection of February sales Collection of March sales Sale of equipment Total cash collections $ 0 $ 0 $ 22 30 polnts skipped References EyeLight, Incorporated, a distributor of cosmetics, is in the process ofassembling a cash budget for the first quarter of 20x1. The following Information has been extracted from the company's accounting records: - All sales are on account. Sixty percent of customer accounts are collected in the month of sale: 35 percent are collected in the following month. Uncollectibles amounting to 5 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, Will be recovered and that the recovery will be in January 20x1. - Sixty percent ofthe merchandise purchases are paid for in the month of purchase, the remaining 40 percent are paid for in the month after acquisition. - The December 31, 20x0. balance sheet disclosed the followmg selected figures: cash, $85,000: accounts receivable, $265,000: and accounts payable. $86,000 - EyeLight, incorporated, maintains a $85,000 minimum cash balance at all times. Financing is available (and retired) in $000 multiples at an 9 percent interest rate, with borrowings taking place atthe beginning ofthe month and repayments occurring at the end ofthe month. lnterest is paid at the time of repaying principal and computed on the portion of principal repaid at that time. - Additional data: January February March Sales revenue $ 656,660 $ 346,666 $ 755,660 Merchandise purchases 476,660 566,666 626,660 Cash operating costs 113,660 92,606 155,660 Proceeds from sale of equipment 0 6 35,660 Required: 1. Prepare a schedule that discloses the rm's total cash collections for January through March. 2. Prepare a schedule that discloses the rm's total cash disbursements for January through March. 3. Prepare a schedule that summarizes the firm's financing cash flows for January through March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule that discloses the rm's total cash disbursements for January through March. Payment of accounts payable Payment of January purchases Payment of February purchases Payment of March purchases Cash operating costs Total cash disbursements ( Required1 Required ) 22 EyeLight, Incorporated, a distributor of cosmetics, is in the process of assembling a cash budget for the first quarter of 20x1. The following information has been extracted from the company's accounting records: 30 . All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 35 percent are collected in the points following month. Uncollectibles amounting to 5 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1. Skipped Sixty percent of the merchandise purchases are paid for in the month of purchase; the remaining 40 percent are paid for in the month after acquisition. The December 31, 20x0, balance sheet disclosed the following selected figures: cash, $85,000; accounts receivable, $265,000; and accounts payable, $86,000. Book EyeLight, Incorporated, maintains a $85,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 9 percent interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time Additional data: Print January February March Sales revenue $ 650,000 6 740,006 $ 755,000 References Merchandise purchases 470, 000 500, 000 620,000 Cash operating costs 113, 000 92, 000 155, 000 Proceeds from sale of equipment 35,000 Required: 1. Prepare a schedule that discloses the firm's total cash collections for January through March. 2. Prepare a schedule that discloses the firm's total cash disbursements for January through March. 3. Prepare a schedule that summarizes the firm's financing cash flows for January through March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule that summarizes the firm's financing cash flows for January through March. January February March Beginning cash balance Total receipts Subtotal $ 0 $ Less: Total disbursements Cash excess (deficiency) before financing 0 $ 0 $ Financing Borrowing to maintain $85,000 balance Loan principal repaid Loan interest paid Ending cash balance $ 0 $ 0 $

Answer & Explanation Solved by verified expert

See Answer