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Shaga Adarsh Reddy

Shaga A.

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Questions asked

INSTANT ANSWER

Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Pool's customers are small, family-owned businesses. Assume that Pool borrowed $750,000,000 on January 1 of this year, and that the coupon rate is 5 percent. At the time of the borrowing, the annual market rate of interest was 4 percent. The debt matures in 10 years, and Pool makes interest payments semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, and PVA of $1)1. What was the issue price on January 1 of this year?2. What amount of interest expense should be recorded on June 30 and December 31 of this year?3. What amount of cash interest should be paid on June 30 and December 31 of this year?4. What is the book value of the bonds on June 30 and December 31 of this year?

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ANSWERED

Akash M verified

Numerade educator

Mr. Nikola Tesla launched Tesla Supermart on December 1, 20x1 with a cash investment of ?150,000. The following are additional transactions for the month: 2 Equipment valued at ?20,000 was given by Mr. Tesla to his business. 3 Purchased supplies for ?12,600 on credit. Used asset method to record the transaction. 4 Purchased a ?100,000 service truck. A cash payment of ?25,000 was provided, and the remaining was given as a promissory note, payable in six equal monthly installments. 6 Purchased goods from Einstein Enterprises ?50,000, Term, 3/15, n/30. 8 For the December 6 transaction, a delivery fee of ?1,500 was paid. 10 Sold and delivered merchandise on account ?45,000, Term, 2/10, n/30. Cost of Merchandise, ?30,000. 10 Paid ?900 freight for December 10 transaction. 13 Returned ?7,500 worth of damaged goods to Einstein Enterprises. 15 Paid salaries to employees, totaling ?15,000 16 Signed a promissory note for ?30,000 for long term loan obtained from Newton Bank. 17 Received ?4,500 worth of returned goods from customers on December 10. Cost of merchandise returned, ?3,000. 18 Paid ?7,600 of the amount owed from the purchase on December 3. 19 Purchase additional goods from Galileo Supermarket amounting to ?90,000. 20 Received full customer settlement for the sale made on December 10. 21 Account paid in full to Einstein Enterprises. 22 Goods costing ?20,500 was sold for ?30,750. 26 Cash received in the amount of ?7,500 and a promissory note in the amount of ?30,000 for goods sold to a key customer. The cost of the merchandise is ?25,000. 27 Mr. Tesla took a cash withdrawal of ?15,000 from the business. 29 Paid ?2,500 in telephone expenses. 30 Paid building rentals for the month, ?7,500. 30 Paid the first installment of the note payable on Service Truck. 31 Paid Salaries ?11,300, net of the following deductions: SSS, ?380; Pag-IBIG, ?100; Philhealth, ?220 The Merchandise Inventory at the end of the of the month is ?60,225. Additional information for year-end adjustments. ? The useful life of the equipment is 5 years with salvage value of ?2,000 ? The useful life of the service vehicle is 10 years with salvage value of ?10,000 ? Remaining unused supplies worth ?9,100.

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INSTANT ANSWER

A. Sunshine Company has budgeted total sales revenue for the second half year of 2023 as follows: \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Budgeted Sales Revenues } \\ \hline & RM \\ \hline July & 215,000 \\ \hline August & 220,000 \\ \hline September & 250,000 \\ \hline October & 260,000 \\ \hline November & 270,000 \\ \hline December & 295,000 \\ \hline \end{tabular} The other information is also provided below: 1) Beginning cash on 31 July is RM200,000. 2) Past experience has indicated that \( 30 \% \) of total sales are cash and the remaining \( 70 \% \) of sales are on credit. Collection of credit sales occurs as follows: \( 50 \% \) in the month of sale, \( 30 \% \) in the month following the sale, and \( 15 \% \) in the second month following the sale. The other \( 5 \% \) is uncollectible. 3) Total materials purchased are at an average of \( 60 \% \) of total sales. The materials purchase costs are paid in full in the same months they are purchased. 4) Monthly salaries and wages are at a cost of RM43,800. 5) The company received interest from the fixed deposit accounts amounted to RM38,000 and RM40,000 in the months of August and October. 6) Taxes to be paid are RM2,000 every month. 7) Monthly rental expenses are RM3,800. 8) The administrative expenses are RM32,000 every month which does not include depreciation of equipment amounted to RM2,000. Required: Help Sunshine Company to: i. Prepare a Schedule of Cash Collections from sales for the months of August, September, October, and November. ii. Prepare a Cash Budget for the months of August, September, October, and November. B. Happy Company has budgeted the following unit sales: \begin{tabular}{|l|r|} \hline \( \mathbf{2 0 2 2} \) & \multicolumn{1}{|c|}{ Units } \\ \hline August & 20,900 \\ \hline September & 22,700 \\ \hline \end{tabular} Matric No: \begin{tabular}{l|r|} \hline October & 23,600 \\ \hline November & 24,500 \\ \hline December & 25,900 \\ \hline \end{tabular} The finished goods units in hand on July 31, 2022, were 2,090 units. Each unit requires 5 \( \mathrm{kg} \) of raw material which is estimated to cost an average of RM8 per \( \mathrm{kg} \). It is the company's policy to maintain a finished goods inventory at the end of each month equal to \( 10 \% \) of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to \( 20 \% \) of the \( \mathrm{kg} \) needed for the following month's production. There were \( 24,250 \mathrm{~kg} \) of raw materials in hand on July 31 , 2022. Required: i. Prepare the Production Budget for the months of August, September, and October 2022. You are also required to fill in the figures in the total column (for those 3 months) of 2022. Include in your table the calculations for ending inventory. (6 marks) \begin{tabular}{|l|c|c|c|c|} \hline & August & September & October & Total \\ \hline & RM & RM & RM & RM \\ \hline Sales units & \multicolumn{3}{|c}{ Note: Copy this Table to your ANSWER Booklet } \\ \cline { 1 - 1 } Add: Ending inventory & & \\ \cline { 1 - 1 } Less: Beginning inventories & & \end{tabular} ii. Prepare the Direct Materials Budget for the months of August, September, and October of 2022. You are also required to fill in the figures in the total column (for those 3 months) of 2022. Include in the table the calculations for ending inventory. \begin{tabular}{|c|c|c|c|c|} \hline & August & September & October & Total \\ \hline & RM & RM & RM & RM \\ \hline Units to be produced & \multirow{6}{*}{\multicolumn{4}{|c|}{ Note: Copy this Table to your ANSWER Booklet }} \\ \hline x Direct materials per unit \( (\mathrm{kg}) \) & & & & \\ \hline Production needed & & & & \\ \hline Add: Ending inventory & & & & \\ \hline Less: Beginning inventory & & & & \\ \hline Direct Materials to be purchased \( (\mathrm{kg}) \) & & & & \\ \hline \end{tabular}

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INSTANT ANSWER

A. Sunshine Company has budgeted total sales revenue for the second half year of 2023 as follows: \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Budgeted Sales Revenues } \\ \hline & RM \\ \hline July & 215,000 \\ \hline August & 220,000 \\ \hline September & 250,000 \\ \hline October & 260,000 \\ \hline November & 270,000 \\ \hline December & 295,000 \\ \hline \end{tabular} The other information is also provided below: 1) Beginning cash on 31 July is RM200,000. 2) Past experience has indicated that \( 30 \% \) of total sales are cash and the remaining \( 70 \% \) of sales are on credit. Collection of credit sales occurs as follows: \( 50 \% \) in the month of sale, \( 30 \% \) in the month following the sale, and \( 15 \% \) in the second month following the sale. The other \( 5 \% \) is uncollectible. 3) Total materials purchased are at an average of \( 60 \% \) of total sales. The materials purchase costs are paid in full in the same months they are purchased. 4) Monthly salaries and wages are at a cost of RM43,800. 5) The company received interest from the fixed deposit accounts amounted to RM38,000 and RM40,000 in the months of August and October. 6) Taxes to be paid are RM2,000 every month. 7) Monthly rental expenses are RM3,800. 8) The administrative expenses are RM32,000 every month which does not include depreciation of equipment amounted to RM2,000. Required: Help Sunshine Company to: i. Prepare a Schedule of Cash Collections from sales for the months of August, September, October, and November. ii. Prepare a Cash Budget for the months of August, September, October, and November. B. Happy Company has budgeted the following unit sales: \begin{tabular}{|l|r|} \hline \( \mathbf{2 0 2 2} \) & \multicolumn{1}{|c|}{ Units } \\ \hline August & 20,900 \\ \hline September & 22,700 \\ \hline \end{tabular} Matric No: \begin{tabular}{l|r|} \hline October & 23,600 \\ \hline November & 24,500 \\ \hline December & 25,900 \\ \hline \end{tabular} The finished goods units in hand on July 31, 2022, were 2,090 units. Each unit requires 5 \( \mathrm{kg} \) of raw material which is estimated to cost an average of RM8 per \( \mathrm{kg} \). It is the company's policy to maintain a finished goods inventory at the end of each month equal to \( 10 \% \) of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to \( 20 \% \) of the \( \mathrm{kg} \) needed for the following month's production. There were \( 24,250 \mathrm{~kg} \) of raw materials in hand on July 31 , 2022. Required: i. Prepare the Production Budget for the months of August, September, and October 2022. You are also required to fill in the figures in the total column (for those 3 months) of 2022. Include in your table the calculations for ending inventory. (6 marks) \begin{tabular}{|l|c|c|c|c|} \hline & August & September & October & Total \\ \hline & RM & RM & RM & RM \\ \hline Sales units & \multicolumn{3}{|c}{ Note: Copy this Table to your ANSWER Booklet } \\ \cline { 1 - 1 } Add: Ending inventory & & \\ \cline { 1 - 1 } Less: Beginning inventories & & \end{tabular} ii. Prepare the Direct Materials Budget for the months of August, September, and October of 2022. You are also required to fill in the figures in the total column (for those 3 months) of 2022. Include in the table the calculations for ending inventory. \begin{tabular}{|c|c|c|c|c|} \hline & August & September & October & Total \\ \hline & RM & RM & RM & RM \\ \hline Units to be produced & \multirow{6}{*}{\multicolumn{4}{|c|}{ Note: Copy this Table to your ANSWER Booklet }} \\ \hline x Direct materials per unit \( (\mathrm{kg}) \) & & & & \\ \hline Production needed & & & & \\ \hline Add: Ending inventory & & & & \\ \hline Less: Beginning inventory & & & & \\ \hline Direct Materials to be purchased \( (\mathrm{kg}) \) & & & & \\ \hline \end{tabular}

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