Download Hilton Ch 9 Select Solutions PDF

TitleHilton Ch 9 Select Solutions
TagsExpense Retained Earnings Budget Depreciation United States Dollar
File Size132.7 KB
Total Pages18
Table of Contents
                            Exercise 9-22 (25 minutes)
Exercise 9-27 (30 minutes)
Exercise 9-28 (20 minutes)
Problem 9-42 (120 minutes)
Problem 9-42 (Continued)
Problem 9-42 (Continued)
Problem 9-42 (Continued)
Problem 9-42 (Continued)
Problem 9-42 (Continued)
problem 9-35 (25 minutes)
PROBLEM 9-35 (Continued)
Problem 9-37 (45 minutes)
Problem 9-37 (Continued)
                        
Document Text Contents
Page 2

9-18 In developing a budget to meet your college expenses, the primary steps would
be to project your cash receipts and your cash disbursements. Your cash receipts
could come from such sources as summer jobs, jobs held during the academic
year, college funds saved by relatives or friends for your benefit, scholarships,
and financial aid from your college or university. You would also need to carefully
project your college expenses. Your expenses would include tuition, room and
board, books and other academic supplies, transportation, clothing and other
personal needs, and money for entertainment and miscellaneous expenses.

9-19 Firms with international operations face a variety of additional challenges in
preparing their budgets.

 A multinational firm's budget must reflect the translation of foreign currencies
into U.S. dollars. Almost all the world's currencies fluctuate in their values
relative to the dollar, and this fluctuation makes budgeting for those
translations difficult.

 It is difficult to prepare budgets when inflation is high or unpredictable. Some
foreign countries have experienced hyperinflation, sometimes with annual
inflation rates well over 100 percent. Predicting such high inflation rates is
difficult and complicates a multinational's budgeting process.

 The economies of all countries fluctuate in terms of consumer demand,
availability of skilled labor, laws affecting commerce, and so forth. Companies
with foreign operations face the task of anticipating such changing conditions
in their budgeting processes.

9-20 The five phases in a product's life cycle are as follows:

(a) Product planning and concept design

(b) Preliminary design

(c) Detailed design and testing

(d) Production

(e) Distribution and customer service

It is important to budget these costs as early as possible in order to ensure that
the revenue a product generates over its life cycle will cover all of the costs to be
incurred. A large portion of a product's life-cycle costs will be committed well
before they are actually incurred.

EXERCISE 9-22 (25 MINUTES)

1. Cash collections in October:

Month of Sale Amount Collected in October
July............................................................... $150,000  4% $ 6,000
August......................................................... 175,000  10% 17,500

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