Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 14, Problem 6E
Exercise 7-6A Using judgment in making a sales
Ozark Company operates a candy store located in a large shopping mall.
Required
Write a brief memo describing the sales pattern that you would expect Ozark to experience during the year. In which months will sales likely be high? In which months will sales likely be low? Explain why.
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Regression analysis. The owner of a small hardware store has noted a sales pattern for window locks Problem 6that seems to parallel the number of break-ins reported each week in the newspaper. The data are:Sales: 46 18 20 22 27 34 14 37 30Break-ins: 9 3 3 5 4 7 2 6 4a. Plot the data to determine which type of equation, linear or nonlinear, is appropriate.b. Obtain a regression equation for the data.c. Estimate average sales when the number of break-ins is five.
YEAR SALES WEIGHTS
1 $1,079,864 0.1
2 $1,238,586 0.2
3 $1,409,078 0.3
4 $1,098,274 0.1
5 $1,578,968 0.3
6 ? ?
1. Using the sales information above, calculate both the averaging and the weighted sales forecasts using Microsoft Excel. Be sure to write the simple formulas in the spreadsheet, rather than calculating the answers by hand and entering the numbers directly into the spreadsheet. In addition, do the following with your spreadsheet. Brief instructions on how to accomplish the Excel functions are below.
a. Be sure the gridlines are showing for the print mode.
b. Create a title for the table and include it on the top line of the spreadsheet.
c. Be sure to include dollar signs where appropriate.
Instructions for Excel
1. First, you need to…
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Your accounts receivable clerk, Helen Adams, to whom you pay a salary of $1,540 per month, has just purchased a new Acura. You
decide to test the accuracy of the accounts receivable balance of $85,700 as shown in the ledger.
The following information is available for your first year in business.
Collections from customers
Merchandise purchased
(1)
(2)
(3)
Ending merchandise inventory
(4) Goods are marked to sell at 40% above cost
$196,400
321,300
98,550
Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent
shortages. Assume that all sales are made on account.
The ending balance of accounts receivable from customers $
Apparent shortage
Chapter 14 Solutions
Survey Of Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - 3.What are the three levels of planning? Explain...Ch. 14 - 4.What is the primary factor that distinguishes...Ch. 14 - 5.What is the advantage of using a perpetual...Ch. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - 8. Ken Shilov, manager of the marketing...Ch. 14 - Prob. 9QCh. 14 - 10.What is the normal starting point in developing...
Ch. 14 - 11. How does the level of inventory affect the...Ch. 14 - 12.What are the components of the cash budget?...Ch. 14 - 13.The primary reason for preparing a cash budget...Ch. 14 - 14.What information does the pro forma income...Ch. 14 - 15.How does the pro forma statement of cash flows...Ch. 14 - Exercise 7-1A Budget responsibility Teresa...Ch. 14 - Exercise 7-2A Preparing a sales budget Parliament...Ch. 14 - Prob. 3ECh. 14 - Exercise 7-4A Preparing sales budgets with...Ch. 14 - Exercise 7-5A Determining cash receipts from...Ch. 14 - Exercise 7-6A Using judgment in making a sales...Ch. 14 - Exercise 7-7A Preparing an inventory purchases...Ch. 14 - Exercise 7-8A Preparing a schedule of cash...Ch. 14 - Exercise 7-9A Determining the amount of expected...Ch. 14 - Exercise 7-10A Preparing inventory purchases...Ch. 14 - Exercise 7-11A Preparing a schedule of cash...Ch. 14 - Prob. 12ECh. 14 - Exercise 7-13A Preparing a cash budget The...Ch. 14 - Exercise 7-14A Determining amount to borrow and...Ch. 14 - Prob. 15ECh. 14 - Problem 7-16A Behavioral impact of budgeting...Ch. 14 - Prob. 17PCh. 14 - Problem 7-18A Preparing an inventory purchases...Ch. 14 - Prob. 19PCh. 14 - Problem 7-21A Preparing a cash budget Fayette...Ch. 14 - Prob. 21PCh. 14 - Problem 7-22A Preparing budgets with multiple...Ch. 14 - Problem 7-23A Preparing a master budget for retail...Ch. 14 - ATC 7-1 Business Applications Case Preparing and...Ch. 14 - ATC7-2 Group Assignment Master budget and pro...Ch. 14 - ATC 7-4 Writing Assignment Continuous budgeting...Ch. 14 - Ethical Dilemma Bad budget system or unethical...
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