Business, 25.11.2019 21:31 murtaghliam1

Bobcat printingmakes and other promotional productsforstudent organizations and businesses. it is beginning its first year of operations and needs to plan for its first quarter of operations. they would like to maximize their profits, and understand that accurate budgeting can achieve that goal. the budgets will be prepared based on the following information: a. sales are budgeted at $30,000 for month 1, $32,500 for month 2, and $34,000 for month 3. all sales will be done on account. company does not expect to have any cash sales. b. sales are collected 50% in the month of the sale, and 50% in the month following the sale. c. cost of goods sold is budgeted at 40% of sales. d. monthly selling, general, and administrative expenses are as follows: donations are 10% of sales; advertising is 3% of sales; miscellaneous is 1% of sales; and rent is $5,000 per month. all sg& a expenses are paid in the month they are incurred. e. since all of the orders are custom made, no inventory is kept on hand at the end of the month. f. inventory purchases are paid in full in the month following the purchase. g. bobcat printing is planning to purchase a building in month 3 for $8,000 in cash. h. they would like to maintain a minimum cash balance of $2,500 at the end of each month. the company has an agreement with a local bank that allows them to borrow, with a total line of credit of $20,000. the interest rate on these loans is 1% per month (12% annual). they would as far as able, repay the loan on the last day of the month when it has enough cash to pay the full balance and maintain an adequate ending cash balance. i. the owner makes a draw of $5,000 every month. (note: sole proprietors and partnerships take owner’s draws, while stockholders receive dividends). based upon the information provided, complete the operating budgets provided in the excel template, and answer the questions in tracs. when making calculations always round up (for example: 33 × 7% = 2.31, round up to 3.00). check figures: gross margin $57,900 total assets $27,973 ending retained earnings $14,373

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:40, Dailyn

Eileen's elegant earrings produces pairs of earrings for its mail order catalogue business. each pair is shipped in a separate box. she rents a small room for $150 a week in the downtown business district that serves as her factory. she can hire workers for $275 a week. there are no implicit costs. what is the marginal product of the second worker?

Answers: 3

continue

Business, 22.06.2019 06:20, karankhatri1946

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u. s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.

Answers: 2

continue

Business, 22.06.2019 08:20, Svetakotok

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Answers: 2

continue

Business, 22.06.2019 09:00, tiffanibell71

Asap describe three different expenses associated with restaurants. choose one of these expenses, and discuss how a manager could handle this expense.

Answers: 1

continue

You know the right answer?

Bobcat printingmakes and other promotional productsforstudent organizations and businesses. it is b...