How much cash does the firm actually have? You are the CFO of ABC Corp. You are looking to hire a financial analyst, and you've given an assignment to two short-listed candidates. You've given the following information to the job applicants: The company reported net sales of $5, 625 million. Assume that there were no noncash sales. Operating costs (excluding depreciation and amortization) were 65% of the company's total revenues. Depreciation and amortization charges were 5% of total sales. Interest charges were 15% of earnings before interest and taxes (EBIT) with a tax rate of 40%. You've asked the candidates to give you a number that best represents the cash flow situation of the company. Jake submits a report stating that the firm has $861 million in cash. Kurt submits a report stating that the firm has $1, 142 million in cash available Based on the information given to them, which applicant has provided a better estimate of the company's current cash flows? Kurt Jake

Answers

Answer 1

Answer:

Kurt

Explanation:

The computation of the cash available is shown below;

But before that first we have to determine the net income which is shown below:

Net sale               $5,625

Less:

Operating cost     -$3,656.25 ($5,625 × 65%)

Depreciation         -$281.25  ($5,625 × 5%)

EBIT                       $1,687.5

Less

interest                   -$253.125   ($1,687.50 × 15%)

Profit before tax     $1434.375

Less:

Tax                           -$573.75   ($1,434.375 × 40%)

Net income               $860.625

Add: depreciation    $281.25

Cash                          $1,141.875

Hence, the Kurt provide a better estimation for the current cash flows


Related Questions

____________________ are a pool of assets that trade like stocks on an exchange. They track a group of stocks, such as all stocks in an index or stocks of companies in emerging markets.

Answers

Answer:

Exchanged-traded funds

Explanation:

Exchanged-traded funds are forms of investment that are usually traded on stock exchange the way other securities are traded, but they have an underlying asset.

Unlike mutual funds ETF are traded on the stock exchange at all periods of the day.

Assets held by ETF includes, shares, currencies, bonds, and commodities like gold and oil.

Value of trade is kept close to the net value of the underlying asset.

Rather than determining whether a culture has good or bad ethics, it is best to look for practical solutions to the cultural challenges of doing global business. Which of the following suggestions acknowledge different values and respect the need for moral initiative?

a. Refuse alternatives,
b. Avoid reflex judgments.
c. Don't rationalize shady decisions.
d. Embrace transparency.

Answers

Answer:

Option C

Explanation:

In simple words, Seeking options, rejecting business where it contradicts your core beliefs, and preventing the rationalisation of shady decisions can help you negotiate sometimes vague cross cultural ethics comfortably. It is often prudent to explore alternate routes.

For instance, rather than caving in to federal payments, provide non financial public sector incentives, technological knowledge or extra customer support.

Write each item listed below to the appropriate category . GOODS SERVICES Cutting Hair Doctor Computers Cleaning Business Tasks performed by people that customers will buy to satisty a want or need Jewelry Package Delivery Business Massage Therapist Groceries Material items or products that customers will buy to salisty a want or need Cars Clothing Dentist Ice Cream Waiting Tables Magazines Teaching

Answers

Answer:

Goods are actual tangible items that a person can buy in other to satisfy their needs and/ wants while Services are intangible but are provided to a person by another person in order to satisfy the needs and/or wants of the person the services are being provided for.

GOODS;

Material items or products that customers will buy to satisfy a want or needJewelryGroceriesComputersCarsClothingIce Cream Magazines

SERVICES

Tasks performed by people that customers will buy to satisfy a want or need Cutting Hair Doctor Cleaning Business Package Delivery Business Massage Therapist DentistWaiting Tables Teaching

The economist Milton Friedman argued that

Answers

Answer:

APEX: Unemployment is natural and acceptable in an economy.

Explanation:

The economist Milton Friedman made several arguments throughout his career, but some of his notable viewpoints include:

Advocacy for free marketsMonetarism and the role of the Federal ReserveCritique of government interventionNegative income tax and welfare reformSchool choice and educational reform

It is important to note that these are only some of the viewpoints associated with Milton Friedman, and they represent a simplified overview of his ideas.

Friedman's economic theories and policy recommendations have been subjects of debate, with both proponents and critics discussing their implications and effectiveness.

Learn more about monetarism here:

brainly.com/question/30154222

#SPJ6

Why is it smart to keep you cool when making claim, and how should you go about it?

Answers

Answer:It is important to keep calm when making a claim because it gives off the impression that you know what you're talking about. Going crazy and yelling will make you look immature and no one would want to hear your claim.

Explanation:

It is smart to keep cool while making a claim, guarantees clear-cut explanation and direct tone of the message, and go with the proper and full knowledge about it.

What is making claim?

Making claim must takes place when an individual's property has been damaged, or he/she have been hurt. He can sole claim something that is made by one of the titled dangers recited in the policy.

It is important while making a claim that an individual must have a full knowledge about the claim and he/she must be cool at the same time. It supports the insurer work peacefully.

Insurer will be bright to clear off the claims of groups who are conjunct and do not overact with the numerical quantity of the claim.

Therefore, the person making a claim must have to be cool.

Learn more about making claim, refer to:

https://brainly.com/question/22898077

Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the net income of the investor under each of the following accounting methods?
Fair Value Method Equity Method
a. No Effect Decrease
b. Increase Decrease
c. No Effect No Effect
d. Increase No Effect

Answers

Answer:

d. Increase - No Effect

Explanation:

Under the fair value method, cash dividends are considered revenue. E.g. a $10,000 dividend will increase net income by $10,000 - taxes.

Under the equity method, cash dividends are not considered revenue (have no effect on income statement) and instead they decrease the assert account. Investment revenue takes place when the company reports net income for the year.

Kendra decided to leave her job in the city and move to the country where she plans to start her own business selling homemade preserves, soaps, lotions, and candles. Kendra’s business would be:___________.A. a sole proprietorship.B. a partnership.C. a private investment.D. employee owned.E. owned by stockholders.

Answers

Answer:

A

Explanation:

A sole proprietorship is a type of business that is owned by one person

Characteristics

it is owned by one person the business has unlimited liabilitythe business has limited access to capitalthe business usually lacks continuity. this type of business usually ceases to exist when the owner diesthe business is usually not separated from the owner

If IBM manufactures a computer in the United States and sells it to a French business firm in Paris, it will cause an increase in:_________a. Net exports.b. Imports.c. Both investment and net exports.d. Government expenditures.e. Consumption.

Answers

Answer:

B

Explanation:

When goods produced in a country are sold to other countries, it is known as export.

When a country purchases a foreign produced good, it is known as import

the difference between export and import is known as net export.

Net export increases when export increases and decreases when import decreases.

As a result of the sale of the computer, US net export would increase and France's net export would decrease.

what educational background or training rose lamont need?

Answers

Answer:

needed a master's in my field to teach at a California community college, so I have an M.S. in Applied Economics.

Explanation:

exactly what the link to the article said

Trade and cash discounts; the gross method and the net method compared [LO7-3].Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2016. The units have a list price of $550 each, but Thomas was given a 25% trade discount. The terms of the sale were 2/10, n/30. Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the gross method of accounting for cash discounts is used. Transaction listA. Record the sale of 200 units with a list price of $550, a 25% trade discount (if applicable), with terms of 2/10, n/30 under the gross method. B. Record the cash collection on November 26.2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 26, 2016, assuming that the gross method of accounting for cash discounts is used.

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Within discount period  

Nov 17

Accounts receivable Dr, $82,500

       To Sales revenue $82,500 (200 × $550 × 75%)

(Being sales revenue is recorded)

Nov 26

Cash Dr, $80,850

Sales discount Dr, $1,650 ($82,500 × 2%)

       To Accounts receivable $82,500

(Being cash collection is recorded)

2. Beyond discount period

Nov 17

Accounts receivable Dr, $82,500

       To Sales revenue $82,500 (200 × $550 × 75%)

(Being sales revenue is recorded)

Dec 15

Cash Dr, $82,500

      To accounts receivable $82,500

(Being cash collection is recorded)

Suppose that you have a choice of working during the summer or taking summer classes. Summer tuition and books are $2,000. If you work, you could make $10,000. Your rent is $4,000 for the summer, regardless of your choice. The opportunity cost of going to summer school is therefore equal to:_________.
a. $14,000
b. $12,000
c. $2,000
d. $10,000

Answers

A.14,000 this is your answer

The income statement for the Kingbird, Inc. for the month ended July 31 shows Service Revenue $19,520, Salaries and Wages Expense $8,620, Maintenance and Repairs Expense $2,920, and Income Tax Expense $1,240. The statement of retained earnings shows an opening balance for Retained Earnings of $24,290 and Dividends $1,600.
The income statement for the Kingbird, Inc. for th
(a) Prepare closing journal entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit Credit
July 31
Entry field with correct answerService Revenue
Entry field with correct answer19520
Entry field with correct answer
Entry field with correct answerIncome Summary
Entry field with correct answer
Entry field with correct answer19520
(To close revenue account)
July 31
Entry field with correct answerIncome Summary
Entry field with correct answer12780
Entry field with correct answer
Entry field with correct answerMaintenance and Repairs Expense
Entry field with correct answer
Entry field with correct answer2920
Entry field with correct answerIncome Tax Expense
Entry field with correct answer
Entry field with correct answer1240
Entry field with correct answerSalaries and Wages Expense
Entry field with correct answer
Entry field with correct answer8620
(To close expense accounts)
July 31
Entry field with correct answerIncome Summary
Entry field with correct answer6740
Entry field with correct answer
Entry field with correct answerRetained Earnings
Entry field with correct answer
Entry field with correct answer6740
(To close net income/(loss) to retained earnings)
July 31
Entry field with correct answerRetained Earnings
Entry field with correct answer1600
Entry field with correct answer
Entry field with correct answerDividends
Entry field with correct answer
Entry field with correct answer1600
(To close dividends to retained earnings)
(b) What is the ending balance in Retained Earnings?
Ending balance in Retained Earnings $

Answers

Answer:

The  solution to the question is shown on the first, second, third , fourth uploaded image

Explanation:

Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer construction debris from building sites. The entire rig is estimated to have an initial cost of $125,000, a life of 8 years, a $5000 salvage value, an operating cost of $40 per day, and an annual maintenance cost of $2000. Alternatively, Alfred can obtain the same services from the city as needed at each construction site for an initial delivery cost of $125 per dumpster per site and a daily charge of $20 per day per dumpster. An estimated 45 construction sites will need debris storage throughout the average year. If the minimum attractive rate of return is 12% per year, how many days per year must the equipment be required to justify its purchase?

Answers

Answer:

If the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.

Explanation:

alternative 1:

initial outlay = $125,000

useful life 8 years

depreciation per year = ($125,000 - $5,000) / 8 = $15,000

costs:

$40 per day

maintenance $2,000 per year

total annual costs = $40x + $2,000

alternative 2:

$125 x 45 sites = $5,625

$20x

total annual costs = $5,625 + $20x

how large does x need to be in order for alternative 1 to be better using a 12% discount rate

cash flows

year 0 = ($125,000)

year 1 = $40x + $2,000 - $5,625 - $20x = $20x - $3,625  

year 2 = $20x - $3,625

year 3 = $20x - $3,625

year 4 = $20x - $3,625

year 5 = $20x - $3,625

year 6 = $20x - $3,625

year 7 = $20x - $3,625

year 8 = $20x - $3,625 + $5,000 = $20x + $1,375

I used the present value of an annuity formula, to determine the value of cash flow:

the PV annuity factor for 12% and 7 periods is 4.5638, so:

24,756.20 x 4.5638 = $112,982

$29,756.20 / (1.12⁸) = $12,018

total = $125,000

$20x - $3,625 = 24,756.20

$20x = $28,381.20

x = $28,381.20 / $20 = 1,419.06 days (including all 45 sites)

That means that if the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.

Including the change control system within the ________ is a key to a successful project.A. Work Breakdown Structure.B. Project Baseline.C. Risk Management Plan.D. Work Breakdown Structure and Proect Baseline.

Answers

Answer:

The correct answer is C) Risk Management Plan

Explanation:

Change Control System is a key component of the Risk Management Framework/Strategy.

Many times, a project will change midway thus altering significantly the expected results, costs and even purpose of the project. This usually poses a lot of challenges to Project Managers.

Factors or sources of changes to a project include but are not limited to:

Project Owner;Extraneous risks;Customer to Project Owner etc.

Cheers!

When the changes are implemented in a process or a system they are ensured by a change control system.

It follows, surveys and accepts the changes before the product or the process are influenced by the change.

The correct answer is:

Option C) Risk Management Plan

This can be explained as:

Risk management is mainly controlled by the change control system.

Many times, a project get altered thus concerning the anticipated results, expenses and even direction of the project. This usually feigns a lot of difficulties to managers.

A change in the project affects the owner, risks, and the customers.

Therefore, risk management is a key to changing the control system.

To learn more about change control system follow the link:

https://brainly.com/question/25278765

Maria Gomez owns and manages a consulting firm called Accel, which began operations on December 1. She asks us to assist her with some financial reporting questions

Answers

Question Completion:

Financial data:

Unearned revenue 3,600

Notes payable 2,800

Accounts payable 4,800

Advertising expense 2,800

Rent expense 4,000

Salaries expense 6,000

Utility expense 2,400

Consulting revenue 34,000

Rental revenue 7,000

Accounts receivable 10,000

Cash 12,000

Equipment 10,200

Notes receivable 5,000

Prepaid insurance 2,000

Supplies 3,000

Common Stock 9,200

Dividends 4,000

Prepare Income Statement, Statement of Retained Earnings, and Balance Sheet as of December 31.

Answer:

Accel Consulting Firm (owned and managed by Maria Gomez)

a. Income Statement for the month ended December 31:

Consulting revenue            $34,000

Rental revenue                        7,000

Total Revenue                     $41,000

Less expenses:

Advertising expense 2,800

Rent expense            4,000

Salaries expense      6,000

Utility expense          2,400   15,200

Net Income                        $25,800

b. Statement of Retained Earnings for the month ended December 31:

Net Income                             $25,800

Dividends                                    4,000

Retained earnings, Dec. 31    $21,800

c. Balance Sheet as of December 31:

Assets:

Cash                                  $12,000

Accounts receivable           10,000

Notes receivable                  5,000

Prepaid insurance                2,000

Supplies                                3,000

Equipment                           10,200

Total Assets                     $42,200

Liabilities:

Unearned revenue           $3,600

Notes payable                     2,800

Accounts payable               4,800

Total Liabilities                 $11,200

Common Stock                  9,200

Retained earnings            21,800

Total liabilities + Equity $42,200

Explanation:

Accel's income statement is a summary of the temporary accounts, which are not carried forward in the next accounting period.  They are used to calculate the profit performance of the consulting firm.  They include the revenues and the expenses incurred for generating the revenue.

Accel's statement of retained earnings shows the difference between the net income generated over the years for a business that has been in operation for years and the payouts from the net income in form of dividends to stockholders.  For Maria Gomez's consulting business, the retained earnings statement shows what is remaining after paying dividend for the month of December to Gomez.

Accel's balance sheet is the final financial statement that is needed to be prepared to show the financial position of the firm.  It shows what the firm owns as assets and the value that the firm owes other creditors for services not paid for or not yet rendered and the equity value for the stockholder, Maria.

A lot of designer clothing companies will send free clothes to celebrities with hopes that the celebrities will wear their clothing in public and attract more customers to the brand. what mode of end?

Answers

Answer:

Celebrity endorsement.

Explanation:

The complete question is...

A lot of designer clothing companies will send free clothes to celebrities with hopes that the celebrities will wear their clothing in public and attract more customers to the brand. what mode of end? What mode of endorsement are these clothing companies trying to achieve?

Celebrity endorsement uses a celebrity's fame or social status to promote a product, brand or service. It is mostly associated with the fashion and beauty brands, and the goal is that the positive image of the celebrity be reflected onto the product or the brand. Celebrity endorsement has been used by some brands to promote their businesses into a multi-billion dollar company, and is also very lucrative for the celebrity, whose contract deals can run into hundreds of millions of dollars.

Normally, an adult at rest should have respirations that:___________.

Answers

Answer:

12 to 20 breaths per minute

Explanation:

According to most medical practitioners, an adult (someone from the ages of 18 upwards) at rest should normally have between 12 to 20 breaths per minute.

Note, the respirations refer to the number of breaths (in and out) a person takes per minute (60 seconds). Hence, if the respirations are lower than 12 or over 25 breaths per minute, it is considered abnormal.

Woodwick Company issues 9%, five-year bonds, on December 31, 2014, with a par value of $96,000 and semi-annual interest payments.Semi-annual Period-End Unmortized Premium Carrying value 0) 12/31/2816 $8,031 $104,0311) 6/3e/2817 7,228 183,2282) 12/31/2817 6,425 182,425 Use the above straight-line bond amortization table and prepare journal entries for the following A) The issuance of bonds on December 31, 2016.B) The first interest payment on June 30, 2017.C) The second interest payment on December 31, 2017.

Answers

Answer:

A) The issuance of bonds on December 31, 2016.

Dr Cash 104,031

    Cr Bonds payable 96,000

    Cr Premium on bonds payable 8,031

B) The first interest payment on June 30, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

C) The second interest payment on December 31, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

Which of the following statements is true of personnel management during the 1930s and 1940s?a. It was concerned almost exclusively with hiring first-line employees. b. It was concerned solely with structuring individual jobs to maximize efficiency and productivity. c. It was considered a function of line managers. d. It was seen as a critical function in most business organizations.

Answers

Answer: It was concerned almost exclusively with hiring first-line employees.

Explanation:

Personnel management has to do with the planning, integration, compensation, and maintainance of employees to achieve Individual or organizational goals.

Recently, personnel management is now called human resources management. Before then, personnel management during the 1930s and 1940s was concerned almost exclusively with hiring first-line employees who worked on issues relating to the company's future and achieving the company's goals

Classify each resource used in production as land, labor, capital, or entrepeneurs.
1. Aunt Sandy's Jammin' Jellies (the business)
2. Anika, a server at Sonic Drive-In
3. Your favorite bartender
A. Land
B. Labor
C. Capital
D. Entrepreneurs

Answers

Answer:

1. Aunt Sandy's Jammin' Jellies (the business) - Entrepreneurs

Entrepreneurship refers to the process of bringing together the various other factors of production to be able to produce goods and services. Aunt Sandy's as a business is an entrepreneur as it brought together factors of production to make Jellies.

2. Anika, a server at Sonic Drive-In - Labor

Labor refers to the actual people who contribute to the business. Anika is a server at the Drive- In and so works there contributing to the success of the business so she is Labor.

3. Your favorite bartender - Labor

Like Anika above, your favorite bartender is also a person contributing to the success of the bar so is considered labor.

Aunty Sandy's Jammin Jellies is an Entrepreneurs

The entrepreneurship is the factor that brings the other factors of production (land, labor and capital)  together.

Anika, who is server at Sonic Drive-in is an example of Labor.

The Labor is the factor that helps tp produce the goods and services.

The favorite bartender is an example of Labor

The Labor is the factor that helps or contribues to the production of goods and services.

Read more about factor of production

brainly.com/question/16755022

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $358,700; materials of 401,000 and direct labor of $211,000. During the year Adams incurred $409,000 in materials costs, $412,300 in overhead costs and $215,000 in direct labor costs. Compute the amount of overhead applied to jobs during the year.

Answers

Answer:

Allocated MOH= $365,500

Explanation:

Giving the following information:

Estimated total overhead= $358,700

Estimated direct labor cost= $211,000

Actual direct labor cost= $215,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 358,700/211,000

Predetermined manufacturing overhead rate= $1.7 per direct labor dollar

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.7*215,000

Allocated MOH= $365,500

Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pays $175 a month for utilities. Mr. Morgan owns a rental property for which he receives $680 per month.

Which is a liability?
the yearly salary
the commission
the mortgage
the rental property

Answers

Answer:

the mortgage.

Explanation:

If he has mortgage of $910 a month Mr. Morgan liability is mortgage.

What is mortgage?

Mortgage can be defined as a loan which a person receive to buy a house with an agreement to pay within a stipulated period of time.

The mortgage  of the amount of $910 per month is a liability for Mr. Morgan  because it is debt and the property or home he purchase is a collateral for the amount borrowed in a situation where he fail to payback the mortgage.

Inconclusion if he has mortgage of $910 a month Mr. Morgan liability is mortgage.

Learn more about mortgage here:

Below are the account balances for Cowboy Law Firm at the end of December.Accounts BalancesCash $4,300Salaries expense 1,650Accounts payable 2,300Retained earnings 4,250Utilities expense 1,000Supplies 12,700Service revenue 8,200Common stock 4,900Required:Use only the appropriate accounts to prepare an income statement.COWBOY LAW FIRMIncome StatementExpenses: Total expenses Net income

Answers

Answer:

$5,550

Explanation:

Preparation of an Income statement

REVENUE :

Service revenue $8,200

Less EXPENSES:

Salaries expense $1,650

Utilities expense $1,000

Total Expenses($2,650)

($1,650+$1,000)

Net income $5,550

($8,200-$2,650)

Therefore the Net income amount for the income statement will be $5,550

Acme Storage has a market capitalization of $100 million and debt outstanding of $40 million. Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest rate of 7.5% on its debt and has a corporate tax rate of 35%. show calculations
a. If Acme's free cash flow is expected to be $7 million next year and is expected to grow at a rate of 3% per year, what is Acme's WACC?
b. What is the value of Acme's interest tax shield?

Answers

Answer:

1. The Value of a levered firm can be calculated using WACC which means that if you have the Value, you can compute WACC.

The formula is;

Value of leveraged firm = Free cash-flow/ (WACC - Growth rate)

Value of leveraged firm = Value of Equity + Value of Debt

= 100 + 40

= $140 million

Value of leveraged firm = Free cash-flow/ (WACC - Growth rate)

140 = 7 ( WACC - 3%)

140 * WACC - 4.2 = 7

WACC = 0.08

= 8%

2. Interest tax shield = Value of leveraged firm - Value of unleveraged firm

Value of unleveraged Firm = Free Cash Flow/ WACC before tax - Growth rate

WACC before tax = WACC + (Debt/(Debt + Equity))*Cost of Debt*(Tax Rate)

= 8% + (40/ 140) * 7.5%(35%)

= 8.75%

Value of unleveraged  Firm = Free Cash Flow/ WACC before tax - Growth rate

= 7 /( 8.75% - 3%)

= $121.74 million

= $122 million

Interest tax shield = Value of leveraged firm - Value of unleveraged firm

= 140 - 122

= $18 million

The Mugger sells three types of mugs, flowers, dogs, and sports. The following information is available:________.
Total Sales Volume Selling Price Variable cost per unit Total fixed costs Flowers 25,000 $20 10 Dogs 100,000 $25 20 Sports 50,000 $10 6 $500,000
REQUIRED (show all supporting calculations):________.
1. What is the breakeven point for The Mugger?
2. Would you recommend promoting the change in product mix to 4 to 2 to 1 of flower mugs, dog mugs, and sports mugs? Why?
3. An executive summary is required.

Answers

Answer:

                                     Flowers           Dogs           Sports           Total

sales volume                25,000           100,000      50,000

selling price                   $20                  $25             $10

variable cost                   $10                  $20             $6

total fixed costs                                                                          $500,000

contribution margin       $10                   $5               $4

weighted contribution margin = [(25,000 x $10) + (100,000 x $5) + (50,000 x $4)] / 175,000 = ($250,000 + $500,000 + $200,000) / 175,000 = $5.428571

break even point in units = $500,000 / $5.428571 = 92,105.26 ≈ 92,106 units

flowers: (25/175) x 92,106 = 13,158 units

dogs: (100/175) x 92,106 = 52,632 units

sports: (50/175) x 92,106 = 26,316 units

total = 92,106 units

break even point in $

flowers: 13,158 units x $20 = $263,160

dogs: 52,632 units x $25 = $1,315,800

sports: 26,316 units x $10 = $263,160

total = $1,842,120

currently total contribution margin is:

flowers: 25,000 units x $10 = $250,000

dogs: 100,000 units x $5 = $500,000

sports: 50,000 units x $4 = $200,000

total = $950,000

operating profit = $950,000 - $500,000 = $450,000

if the change is successful, then total contribution margin would be:

flowers: 100,000 units x $10 = $1,000,000

dogs: 50,000 units x $5 = $250,000

sports: 25,000 units x $4 = $100,000

total = $1,350,000

new operating profit = $1,350,000 - $500,000 = $850,000

So yes, I would recommend promoting the change in product mix to increase the sales of flower mugs in order to increase operating profit.

Evaluate the internal controls in each situation as strong or​ weak.Cash receipts: Samson Auto Parts has______internal controls. There is______.a. a good separation of duties.b. a good system of documenting transactions.c. not a good separation of duties.d. not a good system of documenting transactions.The following situations describe two cash payment situations and two cash receipt situations. In each pair, one set of internal controls is better than the other. Requirement: Evaluate the internal controls in each situation as strong or weak.Cash receipts: Samson Auto Parts has_____internal controls. There is:____.A. Different people receive cash, record the cash, and deposit the cash.B. The accountant should maintain detailed records of the accounts receivable that are collected C. The cash collected is properly summarized and recorded by the accountant. D. The same person receives cash, records the cash, and deposits the cash.A) At Samson Carpet Mill, cash received by mail goes straight to the bookkeeper, who debits Cash and credits Accounts Receivable to record the collections from customers. The bookkeeper then deposits the cash in the bank. B) Cash received by mail at Liberty Dermatology Clinic goes to the mailroom, where a mail clerk opens envelopes and totals the cash receipts for the day. The mail clerk forwards customer checks to the cashier for deposit in the bank and forwards the remittance advices to the accounting department for posting credits to customer accounts. Cash payments: A) Scott Construction policy calls for construction supervisors to request the equipment needed for their jobs. The home office then purchases the equipment and has it shipped to the construction site. B) Remington Home Construction's policy calls for project supervisors to purchilse the equipment needed for jobs. The supervisors then submit the paid receipts to the home office for reimbursement. This policy enables supervisors to get the equipment quickly and keep

Answers

Answer:

1.  Samson Auto Parts has weak internal controls.  - c. not a good separation of duties.

Samson Auto has weak internal controls because the same person being the bookkeeper, receives cash, records it and deposits it. This gives the bookkeeper the opportunity to commit fraud.

2. Liberty Dermatology Clinic has strong internal controls. - There is a good separation of duties.

There are various people handling the cash so Liberty has stronger controls. The mail clerk receives the money, the cashier deposits it and the accounting department records it. There is therefore less chance of fraud.

3. Scott Construction has strong internal controls. - Good separation of duties.

Construction supervisors first request equipment they need, and the home office does the purchasing and shipping. This separation of duties will help reduce fraud as the supervisors will not make fraudulent claims that will be untraceable.

4. Remington Home Construction has weak internal controls. Poor separation of duties.

At Remington, the supervisors may be able to commit fraud due to the lack of separation of their duties. They can purchase equipment needed and then get reimbursed when they do. This opens the door for fraudulent claims on the part of the supervisors so Remington does indeed have weak controls.

G. Gram invested $43,000 cash in the company in exchange for its common stock.

May:

1 The company rented a furnished office and paid $2,200 cash for May’s rent.
3 The company purchased $1,910 of office equipment on credit.
5 The company paid $740 cash for this month’s cleaning services.
8 The company provided consulting services for a client and immediately collected $5,900 cash.
12 The company provided $2,600 of consulting services for a client on credit.
15 The company paid $770 cash for an assistant’s salary for the first half of this month.
20 The company received $2,600 cash payment for the services provided on May 12.
22 The company provided $3,900 of consulting services on credit.
25 The company received $3,900 cash payment for the services provided on May 22.
26 The company paid $1,910 cash for the office equipment purchased on May 3.
27 The company purchased $75 of office equipment on credit.
28 The company paid $770 cash for an assistant’s salary for the second half of this month.
30 The company paid $300 cash for this month’s telephone bill.
30 The company paid $250 cash for this month’s utilities.
31 The company paid $2,000 cash in dividends to the owner (sole shareholder).

Required:
Prepare income statement for May.

Answers

Answer:

Explanation:

Income statement for the month ended May 31

Revenue    

Consulting services      

(5,900+2,600+3,900)                                 12,400    

Expenses                                          

Rent                                      2,200

Cleaning                                     740

Salary                                         770

Salary                                          770

Telephone                                  300

 Utilities                                       250

Total expenses                                                    5,030

Net Income                                                          7,370        

The office equipment are assets which are meant to be recorded in the statement of financial position. However , a proportionate depreciation are supposed to be charged to the income statement as expenses , but the detailed information concerning that was not given.    

The dividends payout shout be recorded in the statement of retained earning for the month.        

                                                                   

The following information is for S&P Enterprises for the month of September: Direct materials $82,000 Direct labor $51,000 Variable manufacturing overhead $32,000 Fixed manufacturing overhead $30,000 Variable selling expense $16,000 Fixed selling expense $15,000 Variable administrative expense $9,000 Fixed administrative expense $18,000 . (Enter your answer as a Total period cost for the month of September was $ whole number) The following information is for S&P Enterprises for the month of September: ___________.

Answers

Answer and Explanation:

The computation of the total period cost is shown below:

Variable selling expense $16,000

Fixed selling expense    $15,000

Variable administrative expense $6,000

Fixed administrative expense  $18,000

Total period Cost            $51,000

ANd, the total fixed cost is

Fixed Manufacturing overheads $30,000  

Fixed selling expenses         $15,000  

fixed admin expenses          $18,000

Total fixed cost                     $63,000

We simply added all the above items

The brothers who created The GFB early on began shopping the product to independent coffee shops and then expanded into grocery and natural food stores. These choices represent which core aspect of marketing?

Answers

Answer:

Marketing channels.

Explanation:

Marketing Channels is one of the core aspects of marketing which enables a company to marketize its products, services, and brand identity to it's customers.

The Gluten Free Bars (GFB) are the vegan bars created by Marshall and Elliot Rader (brothers). The brothers created the GFB in 2010, and heralded the gluten-free industry.

To marketize their products, they used the element of marketing channels. They first reached to their possible customers by shopping their products to independent coffee shops, then to grocery and natural food stores. They used the channels of independent coffee shops, grocery and natural food stores to marketize their products and services to their possible customers.

Thus the correct answer is that they used marketing channels aspect of marketing.

Determine the following:_______.a. The stockholders' equity of a corporation that has assets of $435,000 and liabilities of $326,000.b. The assets of a corporation that has liabilities of $250,000, common stock of $100,000, and retained earnings of $85,000.

Answers

Answer:

a. $109,000

b. $435,000

Explanation:

a. The calculation of Stockholder equity is shown below:-

Stockholder equity = Assets - Liabilities

= $435,000 - $326,000

= $109,000

b. The calculation of assets is shown below:-

Assets = Liabilities + Common stock + Retained earnings

= $250,000 + $100,000 + $85,000

= $435,000

Therefore for computing thr stockholder equity and assets we simply applied the above formula.

Other Questions
What is an example of convection? A. A heater in a fish tank warming the water at the bottom of the tank B. Batteries in a flashlight converting chemical energy into light C. Touching a stove and burning your hand D. Touching a stove and burning your hand Natalie has 1/2 gallon of milk. She pours an equal amount of milk each of 8 glasses. Why is horizontal integration important? What is the a simple heart central conflict? Chelsi has talked to her artist friends about how much money they earn each year from working in the arts. Shegathers these values from seven people: [$1,500; $6,700; $2,200; $8,100; $50,500; $12,000; $2,200).What is the median of this data set?$2,200$6,700$7,400$11,900 Can anyone Help please. what oversimplified assumption does the graph make about number of types of products the society produces? The product of two whole numbers is 650 and their sum is 51. What are the two numbers? 224 fl oz equals how many gallons A traditional, anonymous story, ostensibly having a historical basis, usually explaining some phenomenon of nature or aspect of creation, defines a/an1 pointA. proverb.B. idyll.C. myth.D. epic. Complete the explanation for why 23 is the same as 1 23 . Look at the pattern below. As the exponent goes down by , the value is of what it was before. 23 = 8, 22 = 4, 21 = 2, 20 = 1, xx = 1 2 , xx = 1 4 , xx = 1 8 = 1 23 The Southern colonies rich soil and warm climate made them good for growing crops. As a result, the Southern economy was almost completely based on farming. An economy is a system for producing, buying and selling goods and services. In the Southern colonies, farmers could produce many more crops than they needed for their families. They could sell these crops to make a lot of money. These cash crops were grown on large farms called plantations. They included cotton, tobacco, rice, sugar cane and indigo.Based on the passage, what is true about the Southern colonies? What did Egypts political system consist of Can someone please tell me how to simplify [tex](2r^2t/4t^2)^2[/tex], please? The ____ is a powerful politician who represents the majority party in the House, makes appointments, and refers legislation to committees. This map shows economic activity for a fictional region. What aspects of the map could indicate a bias against manufacturing HELP ASAP!!!!! The expression 300n gives the number of 2.) calories in n cups of dry oatmeal. What is the number in 2 cups of dry oatmeal? (hint: just multiply) social problems and evils are the obstacles for the development justify this statement Sample Question:The different properties and functions of carbohydrates, and other biological molecules, is due towhat?A.Their structures.B.Where they are found.C.They are inorganic molecules.D.Their bonds. Why did the Democratic Party endorse Horace Greeley, the editor of the New York Tribune, for the presidential election of 1872