types of business writing

Flexible budget for Amazon based

Create a flexible budget for Amazon based on the 2012 actual result, being realistic based on history and economic trends. Use the absorption costing approach.

Show three different growth rates. Explain your estimates and assumptions. Specifically, explain:

What is the growth rate in sales for the past three years?

Are revenues and expenses growing at the same rate? What was the experience in the past few years?

What is the current growth rate in the economy?

How are the competitors doing?

Current interest rates and tax burdens.

Discuss the implications of the flexible budget.

How does the flexible budget differ from a static budget?

Budgets are used for planning and control. Discuss how you can use the information derived for these two purposes?

Comment on using this information for performance evaluations.

Project inventory and accounts receivable from revenue for Pfizer

Using regression, project inventory and accounts receivable from revenue for Pfizer. Calculate a projection for the next 12 months, and then show your source data and calculations to your colleagues.

This question has the following supporting file(s):

Revenues Operating income Total assets

Revenues Operating income Total assets

Entertainment 1272 223 1120

Publishing/information 705 122 1308

consumer/commercial financial 1235 244 924

1-Compute the following for each business segment

a. Return on sales

b. Capital turnover

c. ROI

2-Comment on the differences in ROI among the business segments including reasons for the differences

The balance sheet accounts and all of the income statement

The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Mulberry Street Sportswear as they appear on the 12/31/11 adjusted trial balance.

Accounts Payable 10,000

Accounts Receivable 11,000

Advertising Expense 12,000

Cost of Goods Sold 89,000

Delivery Expense 6,000

Insurance Expense 1,000

Interest Expense 2,000

Merchandise Inventory 20,000

Rent Expense 12,000

Sales 160,000

Sale Discounts 11,000

Sale R & A 19,000

Unearned Revenue 2,000


A) Prepare a multi-step income statement for 2011 for Mulberry Street Sportswear.

B) Compute the Gross Profit Percentage for 2011 for Mulberry Street Sportswear.

A customer check

You have received the bank statement for your company’s account and need to reconcile it with your cash T-account. Your records show an ending balance for the month of $12,722.40 while the bank’s records show an ending balance of $12,367.16.

The bank charged $8 in service fees and paid $26.05 in interest. All but three checks written during the month were processed by the bank without incident during the month. The three exceptions were:

1) Check #841 was correctly processed by the bank as $981.27 but was mistakenly recorded by you as $781.27.

2) Check #853 for $64.57 had not yet been processed by the bank.

3) Check #855 for $683.46 had not yet been processed by the bank.

All but two of the deposits made during the month were processed by the bank without incident.

The two exceptions were:

1) A customer check for $307.95, which had been deposited during the month, was returned NSF.

2) A deposit totaling $613.37 had not yet been processed by the bank.

Using the information provided above, prepare a bank reconciliation.

The weighted average cost method

A new textbook is published in the spring of 2011. Your campus bookstore buys 400 copies

at $70 each in June, an additional 1,000 copies in August at $72 each, and 600 copies in December at $75 each. At the end of December 2011, the bookstore has sold 1,900 copies of the text.

Find the cost of goods sold and the cost of ending inventory:

a) under the weighted average cost method.

b) under the FIFO method.

c) under the LIFO method.

Using your calculations as a guide, explain how different inventory costing methods affect the numerator and denominator of the inventory turnover ratio when unit costs are increasing.

Conclude your explanation by identifying the method that produces the highest (and lowest) inventory turnover ratio.

Find the depreciable cost

At the beginning of 2010, your company buys a $30,000 piece of equipment that it expects to use for 4 years. The company expects to produce a total of 200,000 units. The equipment has an estimated residual value of $2,000.

a. Find the depreciable cost.

b. Find the depreciation expense per year under the straight-line method.

c. Prepare a depreciation schedule under the straight-line method.

d. Find the depreciation rate per unit under the units-of-production method.

e. Compare the annual depreciation expense using both methods assuming constant annual production.

f. Prepare a depreciation schedule under the units-of-production method if, 44,000 units are produced in one year, 53,000 units in year two, 51,000 units in year three, and 52,000 units in year four.

Calculate net sales revenue

During 2011, Company X sells 500,000 units for $8 each. Sales discounts are $100,000 and sales returns and allowances are $300,000. The company reported a total of $710,000 in fixed assets on January 1, 2011 and $890,000 in fixed assets on December 31, 2011.

a. Calculate net sales revenue.

b. Calculate average fixed assets.

c. Calculate the fixed asset turnover ratio.

d. Assume the 2011 fixed asset turnover ratio was lower than the 2010 ratio. Describe one circumstance where this change would indicate bad news and one circumstance where this change would be consistent with good news.

At the end of 2011

At the end of 2011, Geisel, Inc has a $1,000 debit balance in the Allowance for Doubtful

Accounts, before adjusting entries were prepared. Credit sales for 2011 totaled $510,000. Sales returns for 2011 were $10,000. Credit Sales for 2010 were $610,000. Sales returns for 2010 were

$10,000. The following aging analysis of Accounts Receivable was prepared at 12/31/11:

Age Classification 12/31/11 $Amount Estimated % Uncollectible

Current not yet due 110,000 1%

1-30 days past due 15,000 2%

31-60 days past due 10,000 6%

61-90 days past due 5,000 12%

Over 90 days past due 8,000 30%

Total $148,000

a. Prepare the 12/31/11 adjusting entry using the aging analysis approach to estimate bad debts.

b. Calculate the accounts receivable turnover ratio and the days to collect for 2010 and 2011 (round each calculation to one decimal place).

The net receivables balance reported on the company’s 12/31/09 financial statements was $120,000. The net receivables balance reported on the 12/31/10 financial statements was $130,000.

c. Discuss the implications of the receivables turnover ratio and days to collect as calculated in part b. Discuss possible reasons for any changes in the calculations.

During Denton Company’s first two years of operations

During Denton Company’s first two years of operations, the company reported absorption costing net operating income as follows:

Year 1 Year 2

Sales (@ $63 per unit) $ 1,197,000 $ 1,827,000

Cost of goods sold (@ $39 per unit) 741,000 1,131,000

Gross margin 456,000 696,000

Selling and administrative expenses* 308,000 338,000

Net operating income $ 148,000 $ 358,000

* $3 per unit variable; $251,000 fixed each year.

The company’s $39 unit product cost is computed as follows:

Direct materials $ 7

Direct labor 11

Variable manufacturing overhead 2

Fixed manufacturing overhead ($456,000 í‡ 24,000 units) 19

Absorption costing unit product cost $ 39

Production and cost data for the two years are given below:

Year 1 Year 2

Units produced 24,000 24,000

Units sold 19,000 29,000


1. Prepare a variable costing contribution format income statement for each year.

2. Reconcile the absorption costing and variable costing net operating income figures for each year.

Halfway into their fiscal year

The Make a Way Foundation has run into a financial crisis. Halfway into their fiscal year, the financier has realized that the company has not put enough money aside to cover all of their costs for the children’s summer expense project.

For this assignment you should identify possible reasons for the misallocation of funding and give suggestions on what could be done to save the Children Summer Expense Project. You must answer the following:

Give at least three (3) possible reasons why the funding was overlooked.

Suggest at least three (3) ways that the Children’s Summer Expense Project could be saved

Bank of America

Note Printing of Baltimore has applied for a loan. Bank of America has requested a budgeted balance sheet at April 30, 2011, and a budgeted statement of cash flows for April. As Note Printing’s controller, you have assembled the following information:

a. March 31 equipment balance, $80,500; accumulated depreciation, $12,100

b. April capital expenditures of $16,500, budgeted for cash purchase of equipment

c. April depreciation expense, $600

d. Cost of goods sold, 55% of sales

e. Other April operating expenses, including income tax, total $35,000, 40% of which will be paid in cash and the remainder accrued at the end of April

f. March 31 stockholders’ equity, $138,600

g. March 31 cash balance, $50,900

h. April budgeted sales, $89,000, 60% of which is for cash; of the remaining 40%, half will be collected in April and half in May

i. April cash collections on March sales, $15,300

j. April cash payments of March 31 liabilities incurred for March purchases of inventory, $7,900

k. March 31 inventory balance, $11,900

l. April purchases of inventory, $10,700 for cash and $37,000 on credit. Half the credit purchases will be paid in April and half in May.


1. Prepare the budgeted balance sheet for Note Printing at April 30, 2011. Show separate computations for cash, inventory, and stockholders’ equity balances.

2. Prepare the budgeted statement of cash flows for April.

3. Suppose that Note Printing has become aware of more efficient (and more expensive) equipment than it budgeted for purchase in April. What is the total amount of cash available for equipment purchases in April, before financing, if the minimum desired ending cash balance is $12,000? (For this requirement, dis-

regard the $16,500 initially budgeted for equipment purchases.)

Larner Corporation is a diversified manufacturer of industrial goods

Larner Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool Activity Rates

Supporting direct labor $9 per direct labor-hour

Machine processing $3 per machine-hour

Machine setups $35 per setup

Production orders $150 per order

Shipments $120 per shipment

Product sustaining $875 per product

Activity data have been supplied for the following two products:

Total Expected Activity

J78 W52

Direct labor-hours 1,100 50

Machine-hours 2,600 40

Machine setups 9 1

Production orders 9 1

Shipments 18 1

Product sustaining 1 1


Determine the total overhead cost that would be assigned to each of the products.

Adjusted Trial Balance Worksheet

Prepare Financial Statements from the following “Adjusted Trial Balance Worksheet”. The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order.Transfer these accounts and balances to a spreadsheet worksheet and prepare an Income statement, a Classified Balance Sheet, and a Statement of Retained Earnings all in good form using proper headings for each statement. Note that Cooperstown is a service company so there is no cost of goods sold in its chart of accounts. Also, assume that all the liabilities are current liabilities. Keep in mind that you should not report any accounts without balances in your statements.

Coopertown Suppliers, Inc.

Cash 12,950

Accounts receivable 28,150

Supplies 8,400

Prepaid insurance 9,500

Land 115,000

Buildings 360,000

Equipment 260,000

Accumulated depreciation 239,900

Accounts payable 35,300

Salaries payable 7,300

Taxes payable 5,200

Common stock 31,500

Additional aid in capitial 15,400

Retained earnings 427,600

Dividneds 25,400

Service revenue 475,000

Salaries Expense 335,000

Depreciation expense 25,100

Supplies expense 12,950

Insurance expense 8,200

Miscellaneous expenses 30,850

Utilities expense 5,100

Total 1,237,200

Hint: Total assets = $554,100 (as does Total liabilities and Stockholders’ equity).

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