Alpha Industries manufactures and sells two models of watches, Prime and Delox. It expects to sell 5,200 units of Prime and 1230 units of Delox in 2023. The X following estimates are given for 2023: Selling price Direct materials Direct labour Prime Delox $180 $550 35 65 150 Manufacturing overhead 82 122 Alpha had an inventory of 330 units of Prime and 131 units of Delox at the end of 2022. It has decided that as a measure to counter stock outages it will maintain ending inventory of 380 units of Prime and 214 units of Delox in the current year. Selected Answer: 60 Each Delox watch requires one unit of Crimpson and has to be imported at a cost of $16. There were 121 units of Crimpson in stock at the end of 2022. The management does not want to have any stock of Crimpson at the end of 2023. Compute the dollar amount budgeted for purchase of Crimpson in 2023. 82,592

Alpha Industries manufactures and sells two models of watches, Prime and Delox. It expects to sell 5,200 units of Prime and 1230 units of Delox in 2023. The X following estimates are given for 2023: Selling price Direct materials Direct labour Prime Delox $180 $550 35 65 150 Manufacturing overhead 82 122 Alpha had an inventory of 330 units of Prime and 131 units of Delox at the end of 2022. It has decided that as a measure to counter stock outages it will maintain ending inventory of 380 units of Prime and 214 units of Delox in the current year. Selected Answer: 60 Each Delox watch requires one unit of Crimpson and has to be imported at a cost of $16. There were 121 units of Crimpson in stock at the end of 2022. The management does not want to have any stock of Crimpson at the end of 2023. Compute the dollar amount budgeted for purchase of Crimpson in 2023. 82,592

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Newton Cellular ltd. Manufactures and sells the TopLine Cell phone. For its 2021 business plan, Newton Cellular estimated the following: Selling price $750 Variable cost per cell phone $450 Annual fixed costs $180,000 Net (after-tax) income $360,000 Tax rate 25% The March financial statements reported that sales were not meeting expectations. For the first three months of the year, only 400 units had been sold at the established price. With variable costs and fixed costs staying as planned, it was clear that the 2021 after-tax profit projection would not be reached unless some action was taken. A management committee presented the following mutually exclusive alternatives to the president: Reduce the selling price by $80. The sales team forecasts that, with the significantly reduced selling price, 5,000 units can be sold during the remainder of the year. Total fixed…
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Security Technology Incorporated (STI) is a manufacturer of an electronic control system used in the manufacture of certain special- duty auto transmissions used primarily for police and military applications. The part sells for $45 per unit and STI had sales of 24,800 units in the current year, 2021. STI had no inventory on hand at the beginning of 2021 and is projecting sales of 28,400 units in 2022 STI is planning the same production level for 2022 as in 2021, 26,600 units. The variable manufacturing costs for STI are $16, and the variable selling costs are only $0.70 per unit. The fixed manufacturing costs are $133,000 per year, and the fixed selling costs are $660 per year. Required: 1. Prepare an income statement for each year using full costing. 2 Prepare an income statement for each year using variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from the full and variable costing methods.
Apple is planning on launching a new iPhone in 2019. To support the launch, Apple plans to increase its stock of raw materials by $50mil. Following the increased demand for raw materials, Apple’s suppliers asked for a change in contract terms that would lead to a 25% decrease in Apple’s accounts payable, relative to the 2018 value of $67mil. By how much will Apple’s net working capital change between 2018 and 2019? Will this change correspond to an increase or a decrease in Apple’s cash flows from financing activities? Suppose that Apple forecasts revenues of $120mil, SGA expenditures of $30mil, depreciation expenditures of $20mil, and net income of $33mil. What is the expected cash flow from operating activities of Apple for 2019?
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