IGUANA. INC

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PA08-01

Student Name:
Class:
	Problem 08-01
IGUANA, INC.
Requirement 1: Sales budget
		April	May	June	2nd Quarter
Budgeted sales (units)
Unit sales price
Budgeted sales revenue
		0	0	0	0
Requirement 2: Production budget
		April	May	June	2nd Quarter
Budgeted sales (units)
Ending finished goods inventory
Beginning finished goods inventory
Budgeted production
		0	0	0	0
Requirement 3: Raw materials purchases budget
		April	May	June	2nd Quarter
Budgeted production
Material requirements per unit
Total material needed for production
Ending raw materials inventory
Beginning raw materials inventory
Budgeted raw materials purchases
Material cost per foot
Budgeted cost of raw materials purchases
		0	0	0	0
Requirement 4: Direct labor budget
		April	May	June	2nd Quarter
Budgeted production		-	-	-	-
Direct labor requirements per unit
Direct labor hours required
Direct labor rate
Budgeted direct labor cost
		0	0	0	0
Requirement 5: Manufacturing overhead cost budget
		April	May	June	2nd Quarter
Budgeted production
Variable manufacturing overhead rate
Budgeted variable manufacturing
Fixed manufacturing overhead
Budgeted manufacturing overhead
		0	0	0	0
Requirement 6: Budgeted cost of goods sold
Budgeted Manufacturing Costs					Per Unit
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Budgeted manufacturing cost per unit
					0
		April	May	June	2nd Quarter
Budgeted sales (units)
Budgeted manufacturing cost per unit
Budgeted cost of goods sold
		0	0	0	0
Requirement 7: Selling and administrative expense budget
		April	May	June	2nd Quarter
Budgeted sales (units)
Variable selling and administrative rate
Budgeted variable selling and administrative expenses
Budgeted fixed selling and administrative expenses
Total budgeted selling and administrative expenses
		0	0	0	0

Given PA08-01

Given Data PA08-01:
	IGUANA, INC.
	General information:
	Selling price of picture frames		$ 25.00
	Linear feet of bamboo required per frame		4
	Cost of bamboo per foot		$ 2.00
	Hours required to build		0.50
	Average hourly labor rate		$ 12.00
	Additional information:
	Ending finished goods inventory should be 40 percent of the next month's sales
	Ending raw materials inventory should be 30 percent of the next month's production
	Variable manufacturing overhead rate per unit produced			$ 0.30
	Estimated annual fixed manufacturing overhead			$ 7,200
	Expected units of production			4,000
	Estimated monthly selling and administrative expenses:
	Fixed			$ 650
	Per unit sold			$ 0.60
	Expected number of frames sold in following months:
	March	275
	April	250
	May	300
	June	400
	July	375
	August	425

PA08-02

Student Name:
Class:
	Problem 08-02
IGUANA, INC.
Requirement 1: Budgeted Income Statement
		April	May	June	2nd Quarter
Budgeted sales revenue		$ - 0	$ - 0	$ - 0	$ - 0
Less: Budgeted cost of goods sold		- 0	- 0	- 0	- 0
Budgeted gross margin		- 0	- 0	- 0	- 0
Less: Budgeted selling and administrative expenses		- 0	- 0	- 0	- 0
Budgeted net income		$ - 0	$ - 0	$ - 0	$ - 0
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Given PA08-02

Given Data PA08-02:
	IGUANA, INC.
	General information:
	Selling price of picture frames		$ 25.00
	Linear feet of bamboo required per frame		4
	Cost of bamboo per foot		$ 2.00
	Hours required to build		0.50
	Average hourly labor rate		$ 12.00
	Additional information:
	Ending finished goods inventory should be 40 percent of the next month's sales
	Ending raw materials inventory should be 30 percent of the next month's production
	Variable manufacturing overhead rate per unit produced			$ 0.30
	Estimated annual fixed manufacturing overhead			$ 7,200
	Expected units of production			4,000
	Estimated monthly selling and administrative expenses:
	Fixed			$ 650
	Per unit sold			$ 0.60
	Expected number of frames sold in following months:
	March	275
	April	250
	May	300
	June	400
	July	375
	August	425

PA08-03

Student Name:
Class:
	Problem 08-03
IGUANA, INC.
Requirement 1: Budget cash receipts
		April	May	June	2nd Quarter
Budgeted sales revenue
Cash collections
Credit collections (current month)
Credit collections (following month)
Budgeted cash receipts
		0	0	0	0
Requirement 2: Budget cash disbursements
		April	May	June	2nd Quarter
Budgeted raw materials purchases		$ - 0	$ - 0	$ - 0	$ - 0
Cash disbursements
Raw material purchases (current month)
Raw material purchases (prior month)
Direct labor
Manufacturing overhead
Less: Depreciation
Selling and administrative expenses
Purchase of equipment
Total budgeted cash payments
		0	0	0	0
Requirement 3: Cash budget for Quarter 2
		April	May	June	2nd Quarter
Beginning cash balance
Plus: Budget cash receipts
Less: Budgeted cash payments
Preliminary cash balance
Cash borrowed/Repaid
Ending cash balance
		0	0	0	0

Given PA08-03

Given Data PA08-03:
	IGUANA, INC.
	General information:
	Selling price of picture frames		$ 25.00
	Linear feet of bamboo required per frame		4
	Cost of bamboo per foot		$ 2.00
	Hours required to build		0.50
	Average hourly labor rate		$ 12.00
	Additional information:
	Ending finished goods inventory should be 40 percent of the next month's sales
	Ending raw materials inventory should be 30 percent of the next month's production
	Variable manufacturing overhead rate per unit produced			$ 0.30
	Estimated annual fixed manufacturing overhead			$ 7,200
	Expected units of production			4,000
	Estimated monthly selling and administrative expenses:
	Fixed			$ 650
	Per unit sold			$ 0.60
	Expected number of frames sold in following months:
	March	275
	April	250
	May	300
	June	400
	July	375
	August	425
	Information for Problem PA08-03:
	Cash on hand at April 1				$ 10,800
	Percentage of sales in cash				80%
	Percentage of credit sales collected during month of sale				50%
	Percentage of credit sales collected in month following sale				50%
	Percentage of direct material purchases paid in month purchased				80%
	Percentage of direct material purchases paid in following month				20%
	March 1 raw materials purchases				$ 2,000
	Depreciation included in monthly fixed manufacturing overhead				$ 150
	Amount expected to be paid for a piece of equipment				$ 3,000
	Minimum cash balance required				$ 10,000
	Borrowing increments				$ 1,000

PA11-01

Student Name:
Class:
	Problem 11-01
BALLOONS BY SUNSET
Requirement 1:
			Name of Variable #1		Operator	Name of Variable #2
Accounting Rate of Return		=	Net Income		/	Initial Invesment
			Amount of Variable #1			Amount of Variable #2
					/
			Result
			0.0%
			0
Requirement 2:
			Name of Variable #1		Operator	Name of Variable #2	Operator	Name of Variable #3
Payback Period		=	Initial Investment		/	Annual Cash flow
			Amount of Variable #1			Amount of Variable #2		Amount of Variable #3
					/		0
			Result
			0.00		years
			0
Requirement 3:
		Annual	PV Factor	Present
Year		Cash Flow	11%	Value
0
1-10
10
NPV				$ -
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Requirement 4:
		Annual	PV Factor	Present
Year		Cash Flow	15%	Value
0
1-10
10
NPV				$ -
				Try again!
Requirement 5:
If the company required rate of return is 11% then the project is acceptable as it has positive NPV and if it is 15%, then the project is not acceptable as it has negative NPV.

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Given PA11-01

Given Data PA11-01:
	BALLOONS BY SUNSET
	Investment information:
	Initial investment (for two hot air balloons)	$ 420,000
	Useful life	10
	Salvage value	$ 50,000
	Annual net income generated	$ 37,800
	HAH's cost of capital	11%
	Additional information:
	Cost of capital for Requirement 4	15%

PA11-04

Student Name:
Class:
	Problem 11-04
FALCON CREST ACES, INC.
Requirement 1:
			Name of Variable #1		Operator	Name of Variable #2
Accounting Rate of Return		=	Net Income		/	Initial Investment
			Amount of Variable #1			Amount of Variable #2
					/
			Result
			0.00%
			0
Requirement 2:
			Name of Variable #1		Operator	Name of Variable #2	Operator	Name of Variable #3
Payback Period		=	Initial Investment		/	Annual Cash flow
			Amount of Variable #1			Amount of Variable #2
					/		0
			Result
			0.00		years
			0
Requirement 3:
		Annual	PV Factor	Present
Year		Cash Flow	10%	Value
0
1-10
10
NPV				$ -
				Try again!
Requirement 4:
		Annual	PV Factor	Present
Year		Cash Flow	6%	Value
0		$ -	$ 1	$ -
1-10		14,200	7.3601	104,513
10		10,000	0.5584	5,584
NPV				$ 110,097
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Requirement 5:
The company shoule not accept the project if the cost of capital is 10%, but even at 6% it should not be accepted as the NPV is postiive but very small, any change in cashflows might put the NPV in negative.

Round to nearest whole unit using Excel's ROUND function

Select correct operator from drop-down list

Given PA11-04

Given Data PA11-04:
	FALCON CREST ACES, INC.
	Investment information:
	Initial investment	$ 110,000
	Useful life	10
	Salvage value	$ 10,000
	Annual net income generated	$ 4,200
	WWA's cost of capital	10%
	Additional information:
	Cost of capital for Requirement 4	6%