ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

ACC 560 Managerial Accounting Case 6 Week 11

Sweats Galore Course: Managerial Accounting (ACC 560)

1. Do you think it was important for Michael to stipulate his four criteria for the business, including the goal of generating a net income of at least $25,000 annually? Why or why not?
2. If Michael has sales of $12,000 during January of his first year of business, determine the amount of variable and fixed costs associated with utilities and maintenance using the high-low method for each.
3. Using the format below, prepare a sales budget for the year ending 2008.
4. Prepare a schedule of expected collections from customers. $800,000

5. Michael learned from talking with Jayne that the supplier is so focused on making quality sweatshirts that many times the shirts are not available for several days. She encouraged Michael to maintain an ending inventory of shirts equal to 25% of the next quarter’s sales. Prepare a shirt purchases budget for shirts using the format provided.

6. Prepare a schedule of expected payments for purchases.

7. Prepare a silk-screen labor budget.

8. Prepare a selling and administrative expenses budget for Sweats Galore for the year ending December 31, 2008.

9. Prepare a silk-screen overhead expenses budget for Sweats Galore for the year ending December 31, 2008.

10. Using the information found in the case and the previous budgets, prepare a budgeted income statement for Sweats Galore for the year ended December 31, 2008.

11. Using the information found in the case and the previous budgets, prepare a cash budget for Sweats Galore for the year ended December 31, 2008.

12. Using the information contained in the case and the previous budgets, prepare a budgeted balance sheet for Sweats Galore for the year ended December 31, 2008.

13. (a) Using the information contained in the case and the previous budgets, calculate the estimated contribution margin per unit for 2008. (Hint: Silk-screened labor and the taxes are both fixed costs.)

13.(b) Calculate the total estimated fixed costs for 2008 (including interest and taxes).

13.(c) Compute the break-even point in units and dollars for 2008.

14.(a) Michael is very disappointed that he did not have an income of $25,000 for his first year of budgeted operations as he had wanted. How many shirts would Michael have had to sell in order to have had a profit of $25,000? (Ignore changes in income-tax expense.)

14.(b) Why does Michael’s net income differ from his ending cash balance?

14 (c) Do you think it was a good idea to offer Cary Sue a salary plus 10% of sales? Why or why not?

For instant digital download of the above solution, Please click on the “PURCHASE” link below to get the tutorial for ACC 560 Managerial Accounting Case 6 Week 11 Sweats Galore_Answer

For instant digital download of the above solution or tutorial, please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link. Please note that in case of technical glitch, the solutions will be emailed to you within 24 hours.

In case you find any problem in getting the download link or downloading the tutorial, please send us an email on mail@edusolutionguide.com

Case 6