亨格瑞管理会计英文第15版练习答案.doc

Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 272 CHAPTER 7 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVE FUNDA MENTAL ASSIGNMENT MATERIAL CRITICAL THINKING EXERCISES AND EXERCISESPROBLEMS CASES EXCEL COLLAB therefore four fifths because 40 50 will be collected in April and 10 50 will be collected in May will be received in April MERRILL NEWS AND GIFTS Budgeted Statement of Cash Receipts and Disbursements For the Month Ending April 30 20X7 Cash balance March 31 20X7 100 000 Add receipts collections from customers From April sales 1 2 1 000 000 500 000 From March sales 4 5 450 000360 000 From February sales 80 000 940 000 Total cash available 1 040 000 Less disbursements Merchandise purchases 450 000 40 180 000 Payment on accounts payable460 000 Payrolls90 000 Insurance premium 1 500 Other expenses45 000 Repayment of loan and interest 97 200 873 700 Cash balance April 30 20X7 166 300 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 291 7 37 40 60 min BOTANICA COMPANY Statement of Estimated Cash Receipts and Disbursements For the Month Ended October 31 20X7 Cash balance September 30 20X7 4 800 Receipts collections of receivables Schedule 1 29 340 Total cash available 34 140 Less disbursements Merchandise purchases Schedule 2 17 000 Variable expenses Schedule 3 3 125 Fixed expenses Schedule 3 900 21 025 Cash balance October 31 20X7 13 115 Schedule 1 Collections of Accounts Receivable Collected in October SalesPercentAmount From August sales 12 0006 720 From September sales 36 000 30 10 800 From October sales 30 000 60 99 17 820 Total October collections 29 340 Schedule 2 Payments for Merchandise SeptemberOctober Target ending inventory 9 000 6 600 Goods sold 21 600 18 000 Total needs 30 600 24 600 Beginning inventory 10 800 9 000 Purchases 19 800 15 600 Payments 2 3 15 600 October purchases 10 400 Accounts payable end of September 1 3 19 800 purchases 6 600 Total payments in October 17 000 12 20 5 30 000 9 000 12 20 5 36 000 10 800 12 20 5 22 000 6 600 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 292 Schedule 3 Selling and General Administrative Expenses Total selling and general administrative expenses 61 500 Less fixed expenses 24 000 Total variable expenses for year vary with sales 37 500 October variable expenses 37 500 October sales Year s sales 37 500 30 000 360 000 3 125 Total fixed expenses 24 000 Less depreciation no current cash outlay 13 200 Total cash required for fixed expenses for year 10 800 October cash required for fixed expenses 10 800 12 900 7 38 30 40 min This problem would be solved most easily on a spreadsheet 1 The Ritz Carlton s monthly cash budget is shown on Exhibit 7 38 on the two following pages 2 Increase in revenues 6 mo 05 300 rooms 290 30 days 98 collected 767 340 Increase in costs 6 mo 05 300 rooms 30 30 days 81 000 Increase in profit 686 340 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 293 EXHIBIT 7 38 RITZ CARLTON Monthly Cash Budget January February March April May June Revenues 2 479 500 2 479 500 2 218 500 2 218 500 1 827 000 1 827 000 Collections Previous Mo Sales694 260 694 260 694 260 621 180 621 180 511 560 This Mo Sales1 487 7001 487 7001 331 1001 331 1001 096 2001 096 200 Next Mo Sales 247 950 221 850 221 850 182 700 182 700 182 700 Total collections2 429 9102 403 8102 247 2102 134 9801 900 080 1 790 460 Disbursements Variable costs 30 room 256 500256 500229 500229 500189 000189 000 Fixed salaries400 000400 000400 000400 000400 000400 000 Fixed operating costs120 000120 000120 000120 000120 000120 000 Interest payments 3 600 000 Total disbursements 776 500 776 500 749 500 749 500 709 000 4 309 000 Net cash inflow 1 653 410 1 627 310 1 497 710 1 385 480 1 191 080 2 518 540 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 294 EXHIBIT 7 38 Continued RITZ CARLTON Monthly Cash Budget JulyAugustSeptemberOctoberNovemberDecemberTotal 1 827 000 1 827 000 1 827 000 1 827 000 2 218 500 2 479 500 25 056 000 511 560 511 560 511 560 511 560 511 560 621 180 7 015 680 1 096 2001 096 2001 096 2001 096 2001 331 1001 487 70015 033 600 182 700 182 700 182 700 221 850 247 950 247 950 2 505 600 1 790 4601 790 4601 790 4601 829 6102 090 6102 356 83024 554 880 189 000189 000189 000189 000229 500256 5002 592 000 400 000400 000400 000400 000400 000400 0004 800 000 120 000120 000120 000120 000120 000120 0001 440 000 3 600 000 7 200 000 709 000 709 000 709 000 709 000 749 500 4 376 50016 032 000 1 081 460 1 081 460 1 081 460 1 120 610 1 341 110 2 019 670 8 522 880 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 295 7 39 15 min 1 Cost saving actions would probably focus on one or more of the activities of the Shipping and Receiving Department Steele might start with the non value added activities handling and record keeping For example the activity based budget data suggest that the cost per move is 10 112 000 11 200 moves Assuming that handling costs are variable with respect to the number of moves reducing the number of moves by 4 334 moves about 40 would provide the required savings Reorganizing the warehouse is one way to try to achieve such savings Steele might also focus on activities that cost the most and have the most potential for cost savings For example the activity based budget shows that the highest cost activity is shipping so that might be the best place to look for potential cost savings from changing processes 2 Regardless of what methods are selected to achieve cost savings the activity based budget seems to be a better starting point The traditional budget does not show how changes in activities might affect costs whereas the activity based budget does 7 40 25 30 min 1 An optimistic preliminary budget might be as follows assuming level sales volume a 94 per pound price and a 2 decrease in variable costs Sales 1 6 million pounds 94 pound 1 504 000 Variable costs 862 400 Fixed costs primarily depreciation 450 000 Pretax profit 191 600 This budget does not meet the 209 000 profit goal Stark has a dilemma of submitting a realistic budget that does not meet Philp s goal or preparing an unrealistic budget The following budget which assumes that prices will not fall sales levels will be maintained and some fixed costs will be saved would meet the profit target Although Stark does not believe the assumptions she might feel pressure to submit it or something similar to headquarters Sales 1 6 million pounds 95 pound 1 520 000 Variable costs 98 880 000 862 400 Fixed costs primarily depreciation 448 600 Pretax profit 209 000 1 520 000 862 400 209 000 2 Two major problems are the arbitrary setting of budget targets by top management without regard to whether the targets can be achieved and the draconian measures used when a budget is not met even if the shortfall is small or reasonable explanations for the shortfall are given Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 296 3 Apparently the preliminary financial results are as follows Sales 1 6 million pounds 945 pound 1 512 000 Variable costs 98 880 000 862 400 Fixed costs primarily depreciation 450 000 Pretax profit 199 600 Extending the depreciable lives of fixed assets by 2 years could increase this profit by 15 000 to 214 600 well above the target But doing so would be manipulating the accounting system to achieve desirable results When the estimates of depreciable lives were first made there may have been much uncertainty in the estimates However changing the accounting method to make the financial results look better is an ethical violation Managers should not change accounting methods just to make their performance look better or in this case to save their job Although changing the depreciation schedule is not ethical it is easy to see how the budgeting process creates an incentive for such unethical behavior If the budget and reporting process makes excellent performance appear deficient there may be great temptation for managers to cheat the system 7 41 50 90 min Amounts are in dollars 1 and 2 See Exhibit 7 41A of the following two pages This spreadsheet is constructed so that only formulas are entered in the disbursements and operating income schedules You can compare the total operating income figures at the bottom of each spreadsheet to assess the effects of each scenario 3 See Exhibit 7 41 B on the following pages Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 297 EXHIBIT 7 41A SPEEDY MART STORE NORTHCENTER MALL Spreadsheet for Profit Planning Parts 1 3 375 000 04 135 000 9 The 32 000 payment is the interest that was payable at the end of 20X4 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 309 The result of 20X5 operations will be an increase in the working capital loan from 1 588 000 without the accrued interest to 3 308 000 an increase of 1 720 000 Qtr 1Qtr 2Qtr 3Qtr 4 Beginning loan 1 588 3 736 4 406 2 502 Accrued interest rounded 91 108 110 80 Additional borrowing 2 057 562 2 014 726 Ending loan 3 736 4 406 2 502 3 308 The unrounded amounts of quarterly interest expense 8 are Qtr 1Qtr 2Qtr 3Qtr 4Total 91 125 107 453 110 139 80 693 389 410 2 Salt Lake Light Opera s projected income statement and balance sheet for 20X5 are in thousands SALT LAKE LIGHT OPERA Income Statement For the Year Ended December 31 20X5 Revenues 11 059 Expenses Salary 105 1 800 1 890 b25 3 528 88 200 20 1 890 37 800 c88 200 30 2 940 37 800 24 1 575 d24 30 720 18 20 360 e88 200 720 122 5 37 800 360 105 2 MINNESOTA STATE UNIVERSITY Faculty Salaries Budget Academic Year 20X7 20X8 Total FacultyAverageFaculty NeededSalarySalaries Undergraduate122 5 61 480 7 531 300 Graduate105 061 480 6 455 400 Total 227 5 13 986 700 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 313 3 MINNESOTA STATE UNIVERSITY Tuition and Legislative Revenue Budget Academic Year 20X7 20X8 UndergradGraduate DivisionDivisionTotal Total credit hours88 20037 800126 000 Less Scholarship credit hours 900 1 200 2 100 Tuition paying credit hours87 30036 600123 900 Tuition per credit hour 92 92 92 Total tuition budget 8 031 600 3 367 200 11 398 800 Full time equivalent students2 9401 5754 515 Legislative apportionment per full time equivalent student 780 780 780 Total legislative apportionment 2 293 200 1 228 500 3 521 700 30 30 900 50 24 1 200 4 MINNESOTA STATE UNIVERSITY Annual Budget Shortfall Academic Year 20X7 20X8 Budgeted operating expenditures Faculty salaries 13 986 700 Operation and maintenance of facilities Salaries and wages 1 06 240 000 254 400 Other 260 000 12 000 272 000 General Administrative525 000 Library Acquisitions155 000 Operations200 000 Health Services 50 000 Intramural athletics 60 000 Intercollegiate athletics245 000 Insurance and retirement560 000 Interest 75 000 Total budgeted operating expenditures 16 383 100 Budgeted revenues Tuition 11 398 800 Legislative apportionment 3 521 700 Endowment income 210 000 Auxiliary services335 000 Intercollegiate athletics 300 000 Total budgeted operating revenues 15 765 500 Deficit from operations 617 600 Budgeted capital expenditures 575 000 Total cash needed from fund raising 1 192 600 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 314 7 46 30 min Amounts are in thousands 1 a b 10 revenue increase10 revenue decrease Revenue 20 490 16 764 Cost of Sales 11 270 9 220 Gross Margin 9 220 7 544 S P AIDA in Germany Costa Cruises in southern Europe Iberocruceros in Spain and P O Cruises in Australia Each brand has a slightly different focus Each of the lines focuses on a different part of the world or offers a different class of cruise Different names allow for the association or branding of a particular line with a particular type of cruise For instance Cunard focuses on the traditional ocean liner experience while Carnival focuses on more of a festive atmosphere on board ship that is fun times The corporation also operates several tour companies 2 Total revenues in fiscal 2008 were 14 646 million The occupancy percentage was 105 7 Notice that occupancy is greater than 100 How can one explain this For Carnival it means that capacity is defined as two persons per room so when more than two persons occupy a room capacity utilization is greater than 100 Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 316 3 According to the list of ships under contract for construction passenger capacity will increase from 169 040 by 38 056 or 22 5 per year by mid 2012 Assuming that revenue increases in proportion to capacity budgeted revenue at that time would be 2012 1 225 14 646 million 17 941 million Of course with added revenue from additional cruise days there would be added costs If added cruise days were achieved by making better use of existing capacity costs would probably not increas