Answer:
For 1,500 tests For 1,250 tests
a. Variable production cost per unit 465 465
b. Variable cost per unit 510 510
c. Full cost per unit 660 690
d. Full absorption cost per unit 555 573
e. Prime cost per unit 435 435
f. Conversion cost per unit 540 558
g. Contribution margin per unit 390 390
h. Gross margin per unit 345 327
Explanation:
To calculate these, the following formula will be used the calculations:
a. Variable production cost per unit = Labor + Outsourced test + Materials used + Production
b. Variable cost per unit = Variable production cost + Selling and administration
c. Full cost per unit = Variable cost per unit + (Total fixed costs / Number of tests)
d. Full absorption cost per unit = Variable production cost per unit + (Production overhead / Number of tests)
e. Prime cost per unit = Material + Labor + Outsource test analysis
f. Conversion cost per unit = Labor + Outsource test + Variable production overhead+ (Fixed production overhead / Number of tests)
g. Contribution margin per unit = Sale price - Variable cost per unit
h. Gross margin per unit = Sale price - Full absorption cost
Therefore, we can now proceed as follows:
1. Calculate the amount for each of the following (one unit = one test) if the number of tests is 1,500 per month.
a. Variable production cost per unit = Labor + Outsourced test + Materials used + Production = 360 + 60 + 15 + 30 = 465 per unit
b. Variable cost per unit = Variable production cost + Selling and administration per unit = 465 + 45 = 510 per unit
c. Full cost per unit = Variable cost per unit + (Total fixed costs / Number of tests) = 510 + ((90,000 + 135,000) / 1,500) = 510 + (225,000 / 1,500) = 510 + 150 = 660 per unit
d. Full absorption cost per unit = Variable production cost per unit + (Fixed production overhead / Number of tests) = 465 + (135,000 / 1,500) = 465 + 90 = 555 per unit
e. Prime cost per unit = Material + Labor + Outsource test analysis = 15 + 360 + 60 = 435 per unit
f. Conversion cost per unit = Labor + Outsource test + Variable production overhead + (Fixed production overhead / Number of tests) = 360 + 60 + 30 + (135,000 / 1,500) = 360 + 60 + 30 + 90 = 540 per unit
g. Contribution margin per unit = Sale price - Variable cost per unit = 900 – 510 = 390 per unit
h. Gross margin per unit = Sale price per unit - Full absorption cost per unit = 900 – 555 = 345
2. Also calculate if the number of tests decreases to 1,250 per month.
a. Variable production cost per unit = Labor + Outsourced test + Materials used + Production = 360 + 60 + 15 + 30 = 465 per unit
b. Variable cost per unit = Variable production cost + Selling and administration per unit = 465 + 45 = 510 per unit
c. Full cost per unit = Variable cost per unit + (Total fixed costs / Number of tests) = 510 + ((90,000 + 135,000) / 1,250) = 510 + (225,000 / 1,250) = 510 + 180 = 690 per unit
d. Full absorption cost per unit = Variable production cost per unit + (Fixed production overhead / Number of tests) = 465 + (135,000 / 1,250) = 465 + 108 = 573 per unit
e. Prime cost per unit = Material + Labor + Outsource test analysis = 15 + 360 + 60 = 435 per unit
f. Conversion cost per unit = Labor + Outsource test + Variable production overhead + (Fixed production overhead / Number of tests) = 360 + 60 + 30 + (135,000 / 1,250) = 360 + 60 + 30 + 108 = 558 per unit
g. Contribution margin per unit = Sale price - Variable cost per unit = 900 – 510 = 390 per unit
h. Gross margin per unit = Sale price per unit - Full absorption cost per unit = 900 – 573 = 327
Class tracking is used to categorize income and expense transactions from different sectors. What are 2 options for assigning Classes?A. Assign one class to each row in a transaction. B. Assign a class in Bill transactions only. C. Assign one class to an entire transaction. D. Assign a class in Sales Invoices only.
Answer:
A. Assign one class to each row in a transaction.
C. Assign one class to an entire transaction.
Explanation:
You can use class tracking in QuickBooks to categorize sales and expenses according to different locations, classes or even divisions. E.g. if you are a retailer, you can classify your sales by classes like men's, women's and children clothes. Or you can also track your sales by online sales or sales made on a brick and mortar location.
You can also assign one class to an entire transaction in order to determine if it resulted in a gain or a loss.
The Lucido Company’s 2026 Net Income is $170. Balance Sheets are given: 12/31/2 12/31/26Cash $40 $35Accounts Receivable 100 88Machine 400 540Acc Depr. 150 250 -160 380Totals Assets $390 $503Dividends Payable $2 $0Common Stock 310 348Treasury Stock (22) (30)Retained Earnings 100 185Total Liability and O/E $390 $503Lucido sold a machine for $122 in 2026. Cost was $200; book value was $120.Net Cash Used for Investing is:___________.a. $218b. $340c. $122d. $220e. $462
Answer:
a.$218
Explanation:
Net cash used for investing activities can be calculated by taking the sum of cash inflows and outflows. As Lucido company sold the asset for $200 that will be an inflow for the company and as the machine value at the end of 2026 is $540 that means the company has purchased new machinery after selling the old one.
Cash flow from investing activities
Sale of machine $122
Purchase of machine ($540 -$200) -$340
Net cash used for investing activities -$218
The two types of package labeling in common usage today are:a. government-mandated and seller-controlledb. functional and persuasivec. motivational and requiredd. informational and persuasivee. promotional and nonpromotional
Answer: Informational and persuasive
Explanation:
Package labelling is simply the display of information regarding a product.
The two types of package labeling in common usage today are informational and persuasive. It should be noted that for persuasive labeling l, the focus is on the logo or on the promotional theme, while for the information labeling, it is done to enable the consumers make selections regarding product which they're satisfied with.
McDonald's would have conducted a(n) __________ to identify the strength of the breakfast menu and the potential revenue increase by extending its offerings to all-day.
Answer:
These are the options for the question:
Competitive AdvantageMarketing MyopiaSWOT AnalysisEnviromental ScanningAnd this is the correct answer:
Enviromental ScanningExplanation:
In order to identify the selling potential of a breakfast menu, by extending that menu to all-day, McDonalds would have to conduct an enviromental scanning, in which it would analyze several enviromental variables like: market size, customer profile, hours at which the product is sold the most.
After completing these analysis, McDonalds would have been able to determine if this strategy is appropriate or not.
Simon Company's year-end balance sheets follow.
At December 31 2014 2013 2012
Assets
Cash $ 31,600 $ 35,500 $ 37,400
Accounts receivable, net 88,500 61,000 51,000
Merchandise inventory 112,000 83,600 52,500
Prepaid expenses 10,400 9,450 5,000
Plant assets, net 278,000 257,000 234,000
Total assets $ 520,500 $446,550 $ 379,900
Liabilities and Equity
Accounts payable $ 129,200 $ 73,000 $ 50,000
Long-term notes payable secured by
mortgages on plant assets 96,000 100,000 82,200
Common stock, $10 par value 162,000 162,000 162,000
Retained earnings 133,300 111,550 85,700
Total liabilities and equity $ 520,500 $446,550 $ 379,900
The company's income statements forthe y ears ended December 31, 2014 and 2013, follow.
For Year Ended December 31Sales
2014 2013
Sales $675,000 $630,000
Cost of goods sold $398,250 $390,600
Other operating expenses 202,500 144,900
Interest expense 12,300 13,000
Income taxes 9,550 8,925
Total costs and expenses 622,600 557,425
Net income $ 52.400 $ 72,575
Earnings per share $ 3.23 4.48
Evaluate the company's efficiency and profitability by computing the following for 2014 and 2013.
1. Profit margin ratio
2. Total Asset turn over.
3. Return on total asset
Answer:
1. 2014 = 11 % and 2013 = 15 %
2. 2014 = 1.30 times and 2013 = 1.41 times
3. 2014 = 14.27 % and 2013 = 21.16 %
Explanation:
1. Profit margin ratio
Profit margin ratio = Earnings Before Interest and Tax / Sales × 100
Therefore,
Profit margin ratio (2014) = ($ 52.400 + $ 9,550 + $12,300) / $675,000 × 100
= 11 %
Profit margin ratio (2013) = $ 72,575 + $ 8,925 + $13,000) / $630,000 × 100
= 15 %
2. Total Asset turnover.
Total Asset turnover = Sales ÷ Total Assets
Therefore,
Total Asset turnover (2014) = $675,000 ÷ $ 520,500
= 1.30 times
Total Asset turnover (2013) = $630,000 ÷ $446,550
= 1.41 times
3. Return on total asset
Return on total asset = Earnings Before Interest and Tax (EBIT) / Total Assets × 100
Therefore,
Return on total asset (2014) = $ 52.400 + $12,300 + $9,550 / $ 520,500 × 100
= 14.27 %
Return on total asset (2013) = $ 72,575 + $8,925 + $13,000 / $446,550 × 100
= 21.16 %
True or False: You should argue to convince your opponent, not to convince the third party. True or False
Answer:
False
Explanation:
Your opponent may always disagree it is better to convince the customers that way you can make more money. So focus on convincing the third party.
Presented below is the basic accounting equation. Determine the missing amounts. Assets = Liabilities + Owner’s Equity
(a) $80,000 $59,000
(b) $ $47,000 $65,000
(c) $88,000 $ $54,000
Answer:
a. $21,000
b. $112,000
c. $34,000
Explanation:
Based on the placements of the $, i am assuming that the missing amount in :
a. is Owner’s Equity
b. Assets
c Liabilities
a. $80,000 = $59,000 + Owner’s Equity
Owner’s Equity = $80,000 - $59,000 = $21,000
b. Assets = $47,000 $65,000
Assets = $112,000
c. $88,000 = Liabilities + $54,000
Liabilities = $88,000 - $54,000 = $34,000
In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults. It was moderately successful for five years until the local newspaper published an exposé that scanty lingerie stocked in the back of the store's showroom was selling briskly to a certain clientele. Afterward, the store lost most of its customers and nearly closed. Which segment of the environment did the store owners fail to take into account when they began selling the lingerie?
Answer:
a. the sociocultural segment
Explanation:
Since in the question it is mentioned that the retail store is opened that deals in dancewear for children and adults. Also, it became successful for five years but after that in the local newspaper it makes an expose that it was selling briskly to a specific clientele with respect to the scanty lingerie due to which it lost most of its customers and therefore it is closed
So in this given situation, it is a sociocultural segment as the company's wants to take care of the society along with its business or there should be a corporate social responsibility. Also the trust of the customers, goodwill cannot bring back, etc
Therefore the correct option is A.
Pioche Company is considering selling a "premium" version of one of its products. The following information is available. The additional processing costs are the costs needed to transform the units from "standard" to "premium."Number of units produced 100,000Selling price of "standard" units $10 per unitAdditional processing costs $500,000Selling price of "premium" units $17 per unitBefore any additional processing costs, the total production cost for the 100,000 units is $900,000. What will be the change in Pioche Company's net income if the company decides to sell a "premium" version of this product?A- Decrease of $400,000B- Increase of $200,000C- No changeD- Decrease of $200,000E- Increase of $100,000
Answer: B- Increase of $200,000
Explanation:
The extra revenue that will be gained if the company sells premium units will be;
= Premium price - normal price
= 17 - 10
= $7
There are 100,000 unit so the extra revenue is;
= 7 * 100,000
= $700,000
The increase in Net income will be;
= 700,000 - additional processing costs
= 700,000 - 500,000
= $200,000
Most people recognize Campbell's as a brand of soup, but Campbell's also manufactures Pace Picante Sauce, Pepperidge Farms products, Prego Sauce, Swanson Broth, and V8 juice. Campbell's International division offers more than 20 brands of soups, sauces, beverages, and baked snacks in the Asia Pacific region, Greater Europe and Latin America. Products such as Arnott's biscuits and crackers and Bià Band soups are well known overseas. Campbell's products are sold in more than 120 countries.Refer to Campbell's. Of the following what is probably Campbell's biggest labeling concern in its international markets?1. translating ingredient, 2. promotional, 3. instructional
Answer:
2. promotional
Explanation:
Even though the 3 options may represent a serious problem for Campbell's soup, but personally I believe that out of the 3, the most serious one is promotional. Many companies have very serious issues with translations, and not only small companies. E.g. when Pepsi ran an ad in China where it meant to say "Come alive with Pepsi", it really said "Pepsi brings your ancestors form the dead", and unless you like zombies, that is not a good idea.
For example, I really hope and assume that Goldfish baked tortillas (Pepperidge Farm) aren't made with real goldfish. But considering Asian countries that eat cats, dogs, bats and about anything that moves by itself, who knows. Maybe they expect them to be from real goldfish.
Luthan Company uses a plantwide predetermined overhead rate of $22.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $265,200 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $269,000 and 10,900 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Answer:
Allocated MOH= $240,890
Explanation:
Giving the following information:
Plantwide predetermined overhead rate of $22.10 per direct labor-hour.
The company incurred in 10,900 total direct labor-hours.
To calculate the allocated manufacturing overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.1*10,900
Allocated MOH= $240,890
Explain briefly the role, responsibilities, and required background of the production designer of a film.
Answer:
Production designers are responsible for creating and managing the visual aspects of a film.
Explanation:
I hope its helpful for you.
Please mark as brainliest.
Answer:
The role of a production designer is essential in constructing a film. Production designers are responsible for making the director's vision come to life. They also bring multiple years of film production and design experience to the table.
THAT'S WHAT I PUT AND GOT 100%
A team of analysts at Amazon is researching the viability of producing a smart watch. How might they estimate potential demand for their smart watch?A. Consider the four-step process that many companies follow to estimate the market demand curve for their product. a. survey customersb. plot the demand curvec. scale up the quantities demanded by the survey respondentsd. add up the total quantity demanded by the customers at each price pointB. Select two factors that the analysts want to keep in mind to create the most accurate demand estimates.a. cost of inputs to productionb. information about climate changec. existing competition in the marketd. consumer demographic information
Answer:
1. Estimating demand.
Survey customersAdd up the total quantity demanded by the customers at each price pointScale up the quantities demanded by the survey respondents.Plot the demand curveIn order to estimate the market demand for the smart watch, the analysts can use a sample of the population. From the sample they can survey some customers. The results of the survey will give them an idea of the demand which they can then add up to find the total quantity demanded.
They should then scale up the quantities to enable them apply it to the wider population. Using this information they can then plot market demand.
2. Two important factors
c. existing competition in the market - The competition in the market will let them know how much potential market share they have and how much they can charge based on the amount that the competitors are charging. d. consumer demographic information - by analysing demographic information, the analysts can better ascertain the demand for their products based on important demographic data such as income status.The existing competition in the markets and the consumer demographic information. Thus the options C and D are correct.
What is the market demand curve ?The curve is the summation of the individuals demand curves and shows the quantity demand of the good for all individuals the varying prices.
For estimating the demand the four steps include, the survey customer, adding the total quantity demanded by the customers at each price point, then scale up the quantities that are demanded by the survey respondents, and; last plot the demand curve.
Find out more information about the team of analysts.
brainly.com/question/26396953.
The types of resources needed by a business are financial, physical, and labor resources.
a) true
b) false
Answer:
a. True
Explanation:
The above is true because financial resources are needed to enable a business meet up with its daily activities in terms of funding. Also, physical resources are buildings, machineries and assets in general which are required to carry a business daily operations. The labor resources, which is the most important resources are the workforce that carry out the day to day operations of a business.
A car owner found that her monthly cost of driving her car depends on the number of miles she drives. She calculates that if she drives 320 miles per month, her monthly cost is $270. If she drives 400 miles per month, her monthly cost is $297. Assume that the monthly cost, C, of driving the car is a linear function of the number of miles, d, she drives in a month.
The formula for the monthly cost, C, of driving the car as a function of the number of miles, d, she drives in a month, is
Cute Camel Woodcraft Company's income statement reports data for its 1st year of operation. The Firm's CEO would like sales to increase by 25% next year. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest & taxes (EBIT). The company's operating costs (excluding depreciation & amortization) remain at 65% of net sales, & its depreciation & amortization expenses remain constant from year to year. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). In year 2, Cute Camel expects to pay $300,000 & $1,824,525 of preferred & common stock dividends, respectively. Complete the Year 2 income statement data & then answer the questions that follow. Round each dollar value to the nearest whole dollar.Year 1 Year 2 (Forecasted)Net Sales $20,000,000 Less: operating costs, except depreciation & amortization 13,000,000 Less: depreciation & amortization expenses 800,000Operating Income (EBIT) $6,200,000 Less: interest expense 620,000Pre-Tax Income (EBT) 5,580,000 Less: taxes (40%) 2,232,000Earnings after taxes $3,348,000 Less: preferred stock dividends 300,000Earnings available to common shareholders 3,048,000 Less: common stock dividends 1,506,600Contribution to Retained Earnings $1,541,400 Given the results of the previous income statement calculations, complete the following statements:a. In year 2, if cute camel has 25,000 shares of preferred stock issued & outstanding, then each preferred share should expect to receive ($12, $30, $18 or $24) in annual dividends.b. If cute camel has 200,000 shares of common stock issued & outstanding, then the firm's earnings per share (EPS) is expected to change from ($31, $16.74, $27.90 or $15.24) in year 1 to ($33.79, $39.75, $18.77 or $20.27) in year 2.c. Cute camel's before interest, taxes, depreciation & amortization (EBITDA) value changed from ($9.5M, $7M, $19.2M or $8.4M) in year 1 to ($8.7M, $20M, $12M or $26M) in year 2.d. It is (CORRECT or INCORRECT) to say that cute camel's net inflows & outflows of cash at the end of years 1 & 2 are equal to the company's annual contribution to retained earnings, $1,541,400 & $1,929,975 respectively. This is because (ALL or ALL BUT ONE) of the item reported in the income statement involve payments & receipts of cash
Answer:
Cute Camel Woodcraft Company
1. Cute Camel Woodcraft Company
Forecasted Income Statement for Year 2:
Year 1 Year 2 (Forecasted)
Net Sales $20,000,000 $25,000,000
Less: operating costs, except
depreciation & amortization 13,000,000 16,250,000
Less: depreciation &
amortization expenses 800,000 800,000
Operating Income (EBIT) $6,200,000 $7,950,000
Less: interest expense 620,000 1,192,500
Pre-Tax Income (EBT) 5,580,000 6,757,500
Less: taxes (40%) 2,232,000 2,703,000
Earnings after taxes $3,348,000 $4,054,500
Less: preferred stock dividends 300,000 300,000
Earnings available to
common shareholders 3,048,000 3,754,500
Less: common stock dividends 1,506,600 1,824,525
Retained Earnings $1,541,400 $1,929,975
2a. With 25,000 shares of preferred stock issue and outstanding, then each preferred share should expect to receive $12 in annual dividends.
2b. With 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from $15.24 in year 1 to $18.77 in year 2.
2c. Cute camel's before interest, taxes, depreciation & amortization (EBITDA) value changed from $7M in year 1 to $8.7M in year 2.
2d. It is INCORRECT to say that cute camel's net inflows & outflows of cash at the end of years 1 & 2 are equal to the company's annual contribution to retained earnings, $1,541,400 & $1,929,975 respectively. This is because ALL BUT ONE of the item reported in the income statement involve payments & receipts of cash
Explanation:
a) Data and Calculations:
Year 1 Year 2 (Forecasted)
Net Sales $20,000,000 $25,000,000
Less: operating costs, except
depreciation & amortization 13,000,000 16,250,000
Less: depreciation &
amortization expenses 800,000 800,000
Operating Income (EBIT) $6,200,000 $7,950,000
Less: interest expense 620,000 1,192,500
Pre-Tax Income (EBT) 5,580,000 6,757,500
Less: taxes (40%) 2,232,000 2,703,000
Earnings after taxes $3,348,000 $4,054,500
Less: preferred stock dividends 300,000 300,000
Earnings available to
common shareholders 3,048,000 3,754,500
Less: common stock dividends 1,506,600 1,824,525
Retained Earnings $1,541,400 $1,929,975
Preferred Stockholders' Dividends per share
= $300,000/25,000 = $12
EPS (Earnings per share):
= Earnings available to common shareholders = $15.24 ($3,048,000/200,000) in year 1 and $18.77 ($3,754,500/200,000) in year 2.
Cute Camel's Earnings before interest, taxes, depreciation & amortization (EBITDA) for year 1 is $7M ($20M - $13M) while the year 2's is $8.75M ($25M - $16.25M).
8. Cracked Mirror, a local rock group, contracts to play for your high school prom. A week before the
dance, the group cancels its appearance. A teacher finds out that the band has instead booked a
concert elsewhere at the same time as the prom that will pay them $800 more. If you sue the band
for damages, what would be an appropriate amount and why?
Answer: The amount of money that they were paid for the high school prom. This is because that's the amount that has been sent on the band.
Explanation:
From the question, we are informed that Cracked Mirror, a local rock group, contracts to play for your high school prom and that a week before the
dance, the group cancels its appearance.
We are further told that a teacher finds out that the band has instead booked a
concert elsewhere at the same time as the prom that will pay them $800 more.
Based on the above information, if the band for damages, the appropriate amount would be the amount that they were paid for the high school prom. This is because that's the amount that has been sent on the band.
Better writing helps make your efforts more ___________.A. effectiveB. analyticalC. complexD. None of the above
Answer:
A. effective
Explanation:
As more and more one writes better, there will be communication of right message and ideas that will be passed across to the audience. As with other disciplines, continuous practice would make one to be better in terms of writing .There should also be search for knowledge which will assist to develop writing skills.
Through continuous writing, one's writing will be more effective having come across different hurdles. The hurdles here means challenges one would encounter at the beginning but which have now become Surmountable due to continuous practise.
Some people argue that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself” Do you agree? Why or why not?
Answer: I don't agree.
Explanation:
I do not agree that the only beneficiary of the entrepreneurial wealth is the entrepreneur himself/herself. Firstly, an entrepreneur is someone who has a business and takes all risks in order to make profit.
When an entrepreneur creates a business, he or she employs people who work for the entrepreneur and they get paid for the work done. In this way, the entrepreneur is contributing to the society.
Some entrepreneurs also give back to the society in form of scholarships, creating awareness on important issues etc. Furthermore, by setting up a business, the government taxes them and the tax can be utilized for the betterment of the country.
With the above explanation, the only beneficiary of the entrepreneurial wealth is not the entrepreneur him/herself. The whole society benefits.
Quantitative Reasoning: Use the compound interest formula to determine the accumulated balance after the stated period. $6000 invested at an APR of 8% for 9 years. If interest is compounded annually, what is the amount of money after 9 years?
Answer:
the amount of money after 9 years is $11,994.02
Explanation:
The computation of the accumulated balance after the stated period by using the compound interest formula is shown below:
Amount = Principal × (1 + interest rate ÷ n)^{nt}
= $6,000 × (1 + 8 ÷ 1 × 100)^{1 × 9}
= $6,000 × (1.08)^9
= $11,994.02
Hence, the amount of money after 9 years is $11,994.02 which is to be find out by using the above formula
On December 1, 2017, Derrick, Inc., pays $800 to lease a copier for use in its corporate offices during the month of December.
Note: Enter debits before credits.
Date General Journal Debit Credit
Dec. 1
Record entry Clear entry View general journal
Answer:
Dr Rent Expense ($800)
Cr Cash ($800)
Explanation:
Based on the information given we were told that the company pays the amount of $800 on
which was use to lease a copier for their corporate offices this means that we are going to record the Journal entry by Debiting Rent Expense with the amount of ($800) and Crediting Cash with the same amount of ($800).
Dr Rent Expense ($800)
Cr Cash ($800)
Forten Company, a merchandiser, recently completed its calendar-year 2015 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.
FORTEN COMPANY
Comparative Balance Sheets
December 31, 2015 and 2014
2015 2014
Assets
Cash $ 49,800 $73,500
Accounts receivable 65,810 50,625
Inventory 275,656 251,800
Prepaid expenses 1,250 1,875
Total current assets 392,516 377,800
Equipment 157,500 108,000
Accum. depreciation—Equipment (36,625) (46,000)
Total assets $ 513,391 $439,800
Liabilities and Equity
Accounts payable $ 53,141 $114,675
Short-term notes payable 10,000 6,000
Total current liabilities 63,141 120,675
Long-term notes payable 65,000 48,750
Total liabilities 128,141 169,425
Equity
Common stock, $5 par value 162,750 150,250
Paid-in capital in excess of 37,500 0
par, common stock
Retained earnings 185,000 120,125
Total liabilities and equity $ 513,391 $439,800
FORTEN COMPANY
Income Statement
For Year Ended December 31, 2015
Sales $ 582,500
Cost of goods sold 285,000
Gross profit 297,500
Operating expenses
Depreciation expense $ 20,750
Other expenses 132,400 153,150
Other gains (losses)
Loss on sale of equipment (5,125)
Income before taxes 139,225
Income taxes expense 24,250
Net income $ 114,975
Additional Information on Year 2015 Transactions
a. The loss on the cash sale of equipment was $5,125 (details in b).
b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.
c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.
d. Borrowed $4,000 cash by signing a short-term note payable.
e. Paid $50,125 cash to reduce the long-term notes payable.
f. Issued 2,500 shares of common stock for $20 cash per share.
g. Declared and paid cash dividends of $50,100.
Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method.
Answer:
Cash flow Statement for the year ended 31 December 2015
Cash Flow from Operating Activities
Net income before Interest and tax $ 139,225
Non -Cash items :
Loss on Sale of Equipment ($46,875 - $30,125 - $11,625) $5,125
Depreciation expense $ 20,750
Changes In Working Capital :
Increase in Short term note payable $4,000
Increase in Accounts receivable ($15,185)
Increase in Inventory ($23,856)
Decrease in Prepaid expenses $625
Decrease in Accounts payable ($61,534)
Income taxes expense ($24,250)
Net Cash Flow from Operating Activities $44,900
Cash Flow from Investing Activities
Purchase of Equipment ($30,000)
Proceeds from Sale of Equipment $11,625
Net Cash Flow from Investing Activities ($18,375)
Cash Flow from Financing Activities
Dividend Paid ($50,100)
Issued Shares ( 2,500 × $20) $50,000
Repayment of Notes Payable ($50,125)
Net Cash Flow from Investing Activities ($50225)
Movement in Cash and Cash Equivalents during the year ($23,700)
Cash and Cash Equivalents at Beginning of the Year $73,500
Cash and Cash Equivalents at the End of the Year $ 49,800
Explanation:
The Indirect method reconciles the Operating Profit during the year to Cash flows from Operating Activity by adjusting for the following items, (1) Non-cash items previously added or deducted from Operating Profit and (2) Changes in Working Capital items
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2016 and 2017.
December 31 2016 2017
Cash $51,935 $9,612
Accounts receivable 28,191 22,102
Office supplies 4,447 3,257
Office equipment 136,500 145,400
Trucks 53,418 62,418
Building 0 178, 072
Land 0 44,436
Accounts payable 74, 115 36,759
Note payable 0 122,508
Compute the 2017 year-end debt ratio for the business.
Answer:
34.22%
Explanation:
Debt ratio can be calculated by dividing the total liabilities with the total assets.
Calculation
Debt Ratio = Total liabilities / Total Assets
Debt Ratio = 159,267 / 465,297
Debt Ratio = 34.22%
Working
Cash 9,612
Accounts receivable 22,102
office supplies 3,257
office equipment 145,400
Trucks 62,418
Building 178,072
Land 44,436
total assets 465,297
Total liabilities
Accounts payable 36,759
Note payable 122,508
Total liabilities 159,267
All other things being equal, what is the best type of investment income?
A. Tax-deferred income fee-offset.
B. Tax-exempt income fee-only fee-based commission-only.
C. Tax-sheltered income.
D. Taxable income.
When seeking professional financial advice, _____financial planner is the most likely to offer unbiased advice.
Answer and Explanation:
The best type of investment income that is earned is tax-exempt that depend upon the commission only also the income that is spent should be bigger for the recipient
And at the time of seeking advice, the fee only should be likely to offer an unbiased advice because no other extra financial gains should be advised for an investment made except this professional fee
While the other options are ignored as they contain some interest regarding a commission for advising to their clients
The correct option is B.
The information is considered as follows:
The best type of investment income should be earned is tax-exempt that based upon the commission only.Moreover, the income that is spent should be more or the recipient And at the time of taking the advice, the fee only should be likely to offer for an unbiased advice since no other additional financial gains should be advised for an investment made except this professional feeLearn more: https://brainly.com/question/24908711?referrer=searchResults
Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $740 with his state income tax return for the previous year. During the year, Tim had $4,200 of state income tax and $15,300 of federal income tax withheld from his salary. In addition, Tim made estimated payments of $1,020 and $1,540 for state and federal income taxes, respectively. Finally, Tim expects to receive a refund of $380 for state income taxes when he files his state tax return for this year in April next year. What is the amount of taxes that Tim can deduct as an itemized deduction
Answer: $5960
Explanation:
Based on the analysis and the information provided in the question, the amount of taxes that Tim can deduct as an itemized deduction will be the addition of the Tim's state income tax return for the previous year, the state tax that was held during the year and the estimated state tax payment. This will be:
= $740 + $4200 + $1020
= $5960
Therefore, the amount of taxes that Tim can deduct as an itemized deduction will be $5960.
The MEC Company has two divisions: the Computer division and the Printer division. Cost and revenue information for the two divisions for the year is as follows: Computer Printer Division DivisionRevenue...................................................................... $1,100,000 $750,000Fixed costs:Costs unique to each division........................................ 450,000 375,000Costs allocated by corporate headquarters.................... 50,000 70,000Variable cost per unit.................................................... 7 6Unit sales of each division’s product.............................. 75,000 52,000Prepare a segment margin income statement showing each division’s contribution and segment margins and the overall company profit.Segment Income StatementTotal Company Computer Division Printer DivisionRevenue $1,850,000 $1,100,000 $750,000Variable Costs - 837,000 - 525,000 - 312,000Contribution Margin 1,013,000 575,000 438,000Traceable Fixed Costs - 825,000 - 450,000 -375,000Division (Segment) Margin 188,000 125,000 63,000Common Fixed Costs - 120,000Net Income $ 68,000How did they get common fixed costs?
Answer:
Segment Income statement
Explanation:
In segment reporting, common costs were not allocated. Both the segments have a positive margin which is covering all its variable cost and contributing towards the common fixed cost but excluding common fixed cost which is non-traceable and are allocated to the segment.
Segment Income Statement
Computer Division Printer Division Total
Revenue $1,100,000 $750,000 1850,000
Variable cost (525,000) (312,000) 837,000
Contribution margin 575000 438000 1,013,000
Costs unique to each division (450,000) (375,000) 825,000
Segment Margin 125,000 63,000 188,000
Fixed Cost (60,000) (60,000) 120,000
Net Income 65,000 3,000 68,000
If common fixed cost is fixed by 50,000 and 70,000 for computer and printer division respectively then
Segment Margin 125,000 63,000 188,000
Common fixed cost 70,000 50,000 120,000
Net Income 55,000 13,000 68,000
Primo Industries collected $105,000 from customers in 2022. Of the amount collected, $25,000 was for services performed in 2021. In addition, Primo performed services worth $40,000 in 2022, which will not be collected until 2023. Primo Industries also paid $72,000 for expenses in 2022. Of the amount paid, $30,000 was for expenses incurred on account in 2021. In addition, Primo incurred $42,000 of expenses in 2022, which will not be paid until 2023.
Required:
a. Compute 2022 cash-basis net income.
b. Compute 2022 accrual-basis net income.
Answer:
a.
Net Income for 2022 = $33000
b.
Net Income for 2022 = $36000
Explanation:
a.
The cash basis accounting follows that all the transactions should be recorded in the period in which cash is either received or paid out as a result of that transaction rather than in the period to which they relate to.
Thus, the Net Income for 2022 under cash basis will be,
Cash Receipts in 2022
Collections from customer 105000
Less: Cash Payments in 2020
Expenses paid (72000)
Net Income 33000
b.
Under accrual basis, the transactions should be recorded in the period to which they relate to rather than in the period when cash is received or paid out.
Thus, net income for 2022 under accrual basis will be,
Revenue 2022 = 105000 - 25000 + 40000 = $120000
Expenses 2022 = 72000 - 30000 + 42000 = $84000
Net Income = 120000 - 84000 = $36000
a. Net Income for 2022 cash-basis net income. = $33000
b. Net Income for 2022 accrual-basis net income. = $36000
a. The Net Income for 2022 under cash basis is:
Cash Receipts in 2022
Collections from customer 105000
Less: Cash Payments in 2020
Expenses paid (72000)
Net Income 33000
b. The net income for 2022 under accrual basis is:
Revenue 2022 = 105000 - 25000 + 40000 = $120000
Expenses 2022 = 72000 - 30000 + 42000 = $84000
So,
Net Income = 120000 - 84000
= $36000
Find out more information about the net income here: https://brainly.com/question/25247632?referrer=searchResults
A corporation reports the following year-end balance sheet data. The company's equity ratio equals: Cash $ 58,000 Current liabilities $ 93,000 Accounts receivable 73,000 Long-term liabilities 44,000 Inventory 78,000 Common stock 118,000 Equipment 163,000 Retained earnings 117,000 Total assets $ 372,000 Total liabilities and equity $ 372,000a. 0.37 b. 2.25 c. 0.58 d. 0.63 e. 1.41
Answer:
Option D. 0.63
Explanation:
Equity ratio can be calculated by dividing Total equity and total
assets as given in the question
DATA
Total assets = $372,000
Total Equity and liabilities = $372,000
Solution
Total equity = total assets - total liabilities
Total equity = $372,000 - $93,000 - $44,000
Total equity = $ 235,000.
Equity Ratio = Total Equity / Total Asset.
Equity Ratio = $ 235,000 / $ 372,000
Equity Ratio = 0.63.
A group of students organizing a protest march would be an instance of ________ speech.
A) limited protected
B) prohibited
C) unprotected
D) fully protected
Answer:
C) unprotected
Explanation:
Unprotected explains that when an individual is not feeling safe and want to be stay from the harm or injury by another person.
Therefore according to the given situation, a group of students conduct a march for protest for the purpose of unprotected speech so that everyone should aware about their safety.
So, as per the above explanation the correct answer is c.
Byron Books Inc. recently reported $14 million of net income. Its EBIT was $22.4 million, and its tax rate was 30%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $14 million of net income by (1 - T) = 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Answer:
interest expense = $2,400,000
Explanation:
net income = (EBIT - interest expense) x (1 - 30)
$14,000,000 = ($22,400,000 - interest expense) x 0.7
$14,000,000 / 0.7 = $22,400,000 - interest expense
$20,000,000 = $22,400,000 - interest expense
interest expense = $22,400,000 - $20,000,000 = $2,400,000