he management accountant for​ Giada's Book Store has prepared the following income statement for the most current​ year: Cookbook Travel Book Classics Total Sales $68,000 $126,000 $53,000 $247,000 Cost of goods sold 40,000 66,000 21,000 127,000 Contribution margin 28,000 60,000 32,000 120,000 Order and delivery processing 21,000 24,000 11,000 56,000 Rent​ (per sq. foot​ used) 2,000 5,000 4,000 11,000 Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit ​$​ (3,000​) $23,000 $9,000 $29,000 If the cookbook product line had been discontinued prior to this​ year, the company would have reported​ ________.

Answers

Answer 1

Answer:

Giada's Book Store

The company would have reported a total profit of $19,000, which is $10,000 less.

Explanation:

a) Data and Calculations:

Income statement for the most current​ year:

                                               Cookbook  Travel Book    Classics   Total

Sales                                        $68,000  $126,000  $53,000  $247,000

Cost of goods sold                    40,000     66,000     21,000     127,000

Contribution margin                  28,000     60,000    32,000     120,000

Order and delivery processing 21,000     24,000      11,000       56,000

Rent​ (per sq. foot​ used)              2,000       5,000      4,000         11,000

Allocated corporate costs          8,000        8,000      8,000       24,000 Corporate profit                     ​$​ (3,000​)  $23,000    $9,000     $29,000

Corporate profit =                     $29,000

less allocated cookbook costs   10,000

Adjusted corporate profit =      $19,000

b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.


Related Questions

Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation. In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.


Required:

a. Complete the letter to Jacob describing the tax consequences of the stock sale.

b. Prepare a memo for the tax research file describing the tax consequences of the stock sale.

c.

Answers

Answer:

Jacob purchased 10000 shares form Grebe corporation two years ago for $24000

last year Jacob received a non taxable stock dividend of 2000 shares from Grebe corporation

In the current year tax year Jacob sold all stock received as dividend that's 2000 shares for $18000

The gain of the sale of 2000 shares can be calculated by subtracting the basis in the shares from the cost price. the cost of shares = ( $24000 / 12000 ) = $2 per share

profit made from the sales of 2000 shares is calculated as follows ; selling price ( $18000 ) - cost price of 2000 shares ( $2 * 2000) , the profit is $14000 and it is in the long term because the original shares bought has been held for at least 1 year

Explanation:

Jacob purchased 10000 shares form Grebe corporation two years ago for $24000

last year Jacob received a non taxable stock dividend of 2000 shares from Grebe corporation

In the current year tax year Jacob sold all stock received as dividend that's 2000 shares for $18000

The gain of the sale of 2000 shares can be calculated by subtracting the basis in the shares from the cost price. the cost of shares = ( $24000 / 12000 ) = $2 per share

profit made from the sales of 2000 shares is calculated as follows ; selling price ( $18000 ) - cost price of 2000 shares ( $2 * 2000) , the profit is $14000 and it is in the long term because the original shares bought has been held for at least 1 year

Sherburne Snow Removal's cost formula for its vehicle operating cost is $2,510 per month plus $371 per snow-day. For the month of March, the company planned for activity of 18 snow-days, but the actual level of activity was 17 snow-days. The actual vehicle operating cost for the month was $8,460. The vehicle operating cost in the flexible budget for March would be closest to:

Answers

Answer:

Total cost= $8,817

Explanation:

Giving the following information:

Sherburne Snow Removal's cost formula for its vehicle operating cost is $2,510 per month plus $371 per snow-day.

The actual level of activity was 17 snow-days.

The flexible budget will adapt the standard cost to the actual usage.

Flexible budget:

Fixed costs= 2,510

Variable cost= 371*17= 6,307

Total cost= $8,817

For an oil and gas limited partnership (LP), allowances in the form of deductions are allowed by the IRS to be taken to compensate for a depleting resource. The allowance can be taken based on

Answers

Answer:

The allowance can be taken based on:

a reduction (production) of the oil and gas reserves.

Explanation:

A limited partnership's allowance for depletion is a special form of depreciation used to account for the gradual reduction in the value of natural resources based on their usage or consumption.  There are two methods for recognizing depletion of natural resources.  They are the cost depletion method, which is based on usage, and the percentage depletion method, which is a percentage of gross earnings.  Then, depletion is different from depreciation, in that depreciation is for tangible assets, while depletion is for natural assets.

valdes corporation had a credit balance in the allowance for doubtful accounts of $62,000 at 1/1/19 during 2019, it wrote off $21,400 of accounts and collected $7,800 on accounts previously written off, the amount of bad debt expense recoginzed in 2019 is $11,000. if valdes estimates at the year end that 6% accounts receivable will prove to be uncollectible what is the account receivable balance at 12/21/2019

Answers

Answer:

The account receivable balance at 12/31/2019 is $990,000

Explanation:

Ending balance of allowance account = Beginning  allowance + Bad debt expense - Doubtful accounts written off + Amount collected on written off doubtful account

Ending balance of allowance account = $62,000 + $11,000 - $21,400 + $7,800

Ending balance of allowance account = $59,400

Accounts receivable balance at 12/31/2019 = $59,400 / 6%

=$990,000

3. At an oral auction for a lamp, half of all bidders have a value of $50 and half have a value of $70. What is the expected winning bid if there are four bidders

Answers

Answer: $60

Explanation:

From the question, we are informed that At an oral auction for a lamp, half of all bidders have a value of $50 and half have a value of $70.

The expected winning bid if there are four bidders goes thus:

Since there are four bidders, the probability that the winning bid is $50 is 1/2 and for $70, it's 1/2 as well based on the question.

The expected winning bid will now be:

= ($50 × 1/2) + ($70 × 1/2)

= ($50 × 0.5) + ($70 × 0.5)

= $25 + $35

= $60

The central problem in product-oriented layout planning is?

Answers

Answer: The minimizing the imbalance in the workloads among workstations.

Explanation:

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects.

​Half of all your potential customers would pay $10 for your product but the other half would only pay $8. You cannot tell them apart. Your marginal costs are $4. If you set the price at $10, the expected profit is:

Answers

Answer:

The expected profit is:

$5.

Explanation:

a) Calculations:

Profit from customers paying $10 = $6 ($10 - $4)

Profit from customers paying $8 = $4 ($8 - $4)

Expected profit  from customers paying $10, = $6 x 0.5 = $3

Expected profit from customers paying $8, = $4 x 0.5 = $2

Total expected profit = $5.

The expected profit is the profit from customers paying $10 weighted with probability plus the weighted profit from customers paying $8.  Adding the expected profit from each class of customers gives the overall expected profit combined.

Answer:

Expected Profit is $4

Explanation:

Price = $8

Marginal Cost = $4

The formula to derive the expected profit is Expected Profit = Price - Marginal Cost------equ(1)

Using equation (1) and given information, expected profit is calculated as

Expected Profit = Price - Marginal Cost

Expected Profit = 8 - 4

Expected Profit = $4

Thus, the Expected Profit is $4

In an international communication process carried out by a company, the sales force of the company that conveys the encoded message to the intended receiver acts as a(n)

Answers

Answer: message channel

Explanation:

In an international communication process carried out by a company, the sales force of the company that conveys the encoded message to the intended receiver acts as a message channel.

The sales force are said to act as a.mesage channel because they are the ones that pass the message across to the intended receiver.

Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked only part-time and earned $3,000. The employer timely paid state unemployment tax equal to 5.4 percent of each employee's wages up to $7,000. How much FUTA tax is due from Willow Corporation for 2019, after the credit for state unemployment taxes?

Answers

Answer:

$102

Explanation:

FUTA tax due from Willow Corporation for 2019, after the credit for state unemployment taxes, can be calculated by deducting the Paid state unemployment tax by the FUTA tax.

DATA

Paid State Unemployment Tax = (7,000+7,000+3,000) x 5.4%

Paid State Unemployment Tax = $918

FUTA tax rate in 2019 = 6%

Solution

FUTA tax (6% x $17,000) = $1,020

FUTA tax due =  $1,020 - $918

FUTA tax due = $102

Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to

Answers

Complete Question:

Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to

Group of answer choices:

A. increase competition.

B. expand the profit pool.

C. provide better customer service.

D. satisfy regulators

Answer:

B. expand the profit pool.

Explanation:

Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to expand the profit pool.

Generally, all business entities are typically set up to generate revenues by engaging or increasing the number of services being offered to potential customers and as a result of this, make more money or profits.

In this scenario, the airline company has diversified its portfolios through the provision of services centered around the transport or logistics business such as use of credit cards as a means of payment by the customers, use of airport lounges as relaxation spot, waiting area and use of frequent-flyer programs as a form of advert in the airport or on board.

Coffer Co. is analyzing two potential investments.

Project X Project Y
Cost of machine $77,000 $55,000
Net cash flow:
Year 1 28,000 2,000
Year 2 28,000 25,000
Year 3 28,000 25,000
Year 4 0 20,000

If the company is using the payback period method and it requires a payback of three years or less, which project(s) should be selected?

a. Project Y
b. Both X and Y are acceptable projects.
c. Project Y because it has a lower initial investment
d. Project X
e. Neither X nor Y is an acceptable project

Answers

Answer:

d. Project X

Explanation:

For Project X

Year       Net cash outflow             Net cash inflow Balance

0              -$77,000                        -$77,000

1               $28,000                        -$49,000

2               $28,000                       -$21,000

3                $28,000                        $7,000

4                    0                               $7,000

Payback period = 2 + $21,000 ÷ $28,000

= 2 + 0.75

= 2.75 years

For Project Y

Year       Net cash outflow          Net cash inflow Balance

0              -$55,000                       -$55,000

1                $2,000                         -$53,000

2               $25,000                       -$28000

3                $25,000                       -$3,000

4                $20,000                       $17,000

Payback period = 3 +3,000 ÷ 20,000

= 3 + 0.15

= 3.15 years

Project X has a lesser than 3 year payback period. So, the correct option is D

Answer following question with true or false and explain.A firm's profit margin is 5%, its debt/assets ratio is 56%, and its dividend payout ratio is 40%. If the firm is operating at less than full capacity, then sales could increase to some extent without the need for external funds, but if it is operating at full capacity with respect to all assets, including fixed assets, then any positive growth in sales will require some external financing.

Answers

Answer:

False

Explanation:

As a company's sales level increases, its current assets will increase, e.g. cash, inventories, accounts receivables increase. generally, also the fixed assets increase, specially if the firm was previous producing at full capacity even before total sales increased. But as sales increase, not only do the company's assets increase, its current liabilities generally increase also, and its profits should increase. In this case, 60% of the company's profits are reinvested in the company, and the liabilities represent more than half of the total assets. Therefore, it is possible that the company needs external financing, but it is also possible that it doesn't. You cannot assume that the company will necessarily need external financing, because retained earnings  and the increase in current liabilities might be enough to finance the company's growth in sales.

On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 120 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $35 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split

Answers

Answer:

Siewert Inc.

Journal Entry:

Memo:  This is note that the stock has been split 2-for-1 and the number of common shares increased to 240 (120 x 2) million.

No journal entry is required for a split of 2-for-1 shares.  What is required is a memo that indicates that the shares have been split.

The par value is now $0.50 ($1/2)

Explanation:

When the directors of Siewert Inc. declare a stock split, it does not require  any journal entry.  Instead, a memo is required to describe the declaration and the new number of shares that are now authorized if this has increased, and outstanding.  The 2-for-1 split means that stockholders who held 1 share before will now be entitled to 2 shares.  This doubling of the number of shares will affect the par value of the shares, causing it to divide by 2.  For example, Siewert Inc.'s par value of common shares was $1 before the declaration of the split.  After the split, the par value will change to $0.50 or half.  This split will also affect the market price of the shares as investors are likely to reduce the current market price to about half of its prevailing price.

Which of the following is one of the two fundamental issues that the recommendations of the 1947 Hutchins Commission on social responsibility in journalism were based on?a. Society's welfare is paramount. b. Morality should be a business practice. c. Corporate responsibility is essential. d. The golden rule should be written in stone.

Answers

Answer:

a. Society's welfare is paramount.

Explanation:

A commission on the freedom of press also known as "The Hutchins Commission" was formed in the United States of America (USA) during the World War II (WWII) by Robert Maynard Hutchins.

In 1947 after deliberating on the issues of press for four (4) years, the Hutchins Commission concluded that society's welfare is paramount, this is one of the two fundamental issues that the recommendations of the 1947 Hutchins Commission on social responsibility in journalism is based on. The commission stated that the development and stability of a society is influenced by the operations of the press and as such it is very important that the mass media (press) is socially responsible.

Some of the guidelines or recommendations made by the Hutchins Commission for the press are;

1. Present meaningful, reliable and accurate news to the general public; not opinions.

2. Present an overall view of what was known about society.

3. Avail the citizens an opportunity for constructive criticism and exchange of comment about the government.

The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 5.2 hours Standard variable overhead rate $11.60 per hour The following data pertain to operations for the last month: Actual hours 2,500 hours Actual total variable manufacturing overhead cost $29,590 Actual output 150 units What is the variable overhead efficiency variance for the month?

Answers

Answer:

Variable overhead efficiency variance= $19,952 unfavorable

Explanation:

Giving the following information:

Standard hours per unit of output 5.2 hours

Standard variable overhead rate $11.60 per hour

Actual hours 2,500 hours

Actual output of 150 units

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Standard quantity= 5.2*150= 780

Variable overhead efficiency variance= (780 - 2,500)*11.6

Variable overhead efficiency variance= $19,952 unfavorable

A buyer properly revokes the offer after receiving the property condition disclosure and requests the return of the buyer's earnest money the principal broker is holding in a ____________ trust account. The PREB (1) may require the buyer to sign a release before returning the money; (2) must obtain the seller's permission before returning the money.

Answers

Answer:

1. Clients'

2. The principal real estate broker (PREB) may require the buyer to sign a release before returning the money.

Explanation:

In this scenario, a buyer properly revokes the offer after receiving the property condition disclosure and requests the return of the buyer's earnest money the principal broker is holding in a clients' trust account. The principal real estate broker (PREB) may require the buyer to sign a release before returning the money.

Additionally, a principal real estate broker (PREB) can be defined as an individual who is licensed to individually provide a professional real estate service or work with other licensed brokers.

The amount of money being paid to a broker by a buyer as an initial payment to sign a purchase agreement letter is referred to as the earnest money. A principal real estate broker collects the earnest money from a buyer on behalf of the seller of a property such as land, buildings etc.

According to the two-factor theory, ________. A) there exists a hierarchy of needs within every human being, and as each need is satisfied, the next one becomes dominant B) most employees inherently dislike work and must therefore be directed or even coerced into performing it C) employees view work as being as natural as rest or play, and therefore learn to accept, and even seek, responsibility D) the aspects that lead to job satisfaction are separate and distinct from those that lead to job dissatisfaction E) achievement, power, and affiliation are three important needs that help explain motivatio

Answers

Answer: D. ) the aspects that lead to job satisfaction are separate and distinct from those that lead to job dissatisfaction

Explanation:

According to the two-factor theory, it is stated that some factors in an organization or company results in job satisfaction while another group of factors results in dissatisfaction of the workers and that both of these factors doesn't depend on one another.

Therefore, the two factor theory the aspects that lead to job satisfaction are separate and distinct from those that lead to job dissatisfaction.

Option d is the right answer.

At an output level of 415,400 units, you have calculated that the degree of operating leverage is 2.00. The operating cash flow is $58,000 in this case. Ignore the essect of taxes. What will be the new degree of operating leverage for output levels of 16,400 units and 14,400 units

Answers

Answer:

the new degree of operating leverage for output levels of 16,400 units and 14,400 units will be -0.0858  and - 0.0745 respectively.

Explanation:

From the given information:

the degree of operating the leverage at 415,400 units = [tex]\mathtt{\dfrac{contribution \ \ margin}{operating \ \ income}}[/tex]

where contribution margin = 2 × 58000 =116000

If we assume that the sales price should be p and the variable cost  be q per unit .

Then, 415,400p - 415,400q = 116000

p - q = [tex]\mathtt{\dfrac{116000}{415400}}[/tex]

p - q = 0.279  at 415400 unit

Contribution margin = 415400 × 0.279

Contribution margin = 115896.6

The operating income = contribution margin - fixed expense

58000 = 115896.6 - fixed expense

fixed expense = 115896.6 - 58000

fixed expense = 57896.6

However, when the output level is 16400 unit,

the contribution margin = 16400(p-q)

the contribution margin =  16400(0.279)

the contribution margin = 4575.6

The operating leverage = [tex]\mathtt{\dfrac{contribution \ \ margin}{contribution \ \ margin - fixed \ \ costs}}[/tex]

The operating leverage = [tex]\mathtt{\dfrac{4575.6}{4575.6 - 57896.6}}[/tex]

The operating leverage = [tex]\mathtt{\dfrac{4575.6}{-53321}}[/tex]

The operating leverage = -0.0858

when the output level is 14400 unit,

the contribution margin = 14400(p-q)

the contribution margin =  14400(0.279)

the contribution margin = 4017.6

The operating leverage = [tex]\mathtt{\dfrac{contribution \ \ margin}{contribution \ \ margin - fixed \ \ costs}}[/tex]

The operating leverage = [tex]\mathtt{\dfrac{4017.6}{4017.6 - 57896.6}}[/tex]

The operating leverage = [tex]\mathtt{\dfrac{4017.6}{-53879}}[/tex]

The operating leverage = - 0.0745

has a target debt−equity ratio of 1.35. Its WACC is 8.3 percent, and the tax rate is 35 percent. If the company’s cost of equity is 14 percent, what is its pretax cost of debt? (Do not round intermediate calculations. Enter yo

Answers

Answer:

5.74%

Explanation:

WACC = weight of equity x cost of equity +  weight of debt x cost of debt x (1 - tax rate)

weight of debt =  D / (D + E) = 1.35/ (1.35 + 1) = 0.574468 = 57.4468%

weight of equity = 100% - 57.4468% = 42.5532%

let x represent pretax cost of debt

8.1% = 0.425532 x 14% +( 0.574468x) x 0.65

8.1% = 0.373404x + 5.957448%

solve for x

x = 5.74%

At the end of a particular operating​ period, suppose Brenda​ (the manager) sits down with Ethan​ (the employee) and they meet to determine how well​ Ethan's performance has met the objectives set by Brenda. Which step in the MBO process would this​ be?

Answers

Answer:

Evaluate performance

Explanation:

The mbo process is a time where an employee and manager work together and sets record for a particular period of time.

This step in the mbo process is evaluation of performance. Under this step, the manager reviews the work of the employee from the question, this is what Brenda is doing with Ethan. She is evaluating his performance.

Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent’s cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay (reservation value): adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent’s demand is:

Answers

Answer:

There is some information missing, and when I looked for it I found similar questions but the demand was already given and the question was about Vincent's total daily income.

Passenger                  Price                  Daily demand

Adults                          $18                        70

Children                      $10                        25

Senior citizens            $12                        55

total                                                           150

total revenue per day = ($18 x 70) + ($10 x 25) + ($12 x 55) = $1,260 + $250 + $660 = $2,170

total operating costs per day = (150 / 50) x $450 = $1,350

operating income per day = $2,170 - $1,350 = $820

If a municipality is expecting to receive federal funding for mass-transit programs, it could borrow against the expected funds to be received by issuing:_____.
A. BANs.
B. TANs.
C. GANs.
D. CLNs.

Answers

Answer:

Option C (GANs) is the correct answer.

Explanation:

GAN refers to "Grant Anticipation Notice". This can indeed be distributed by a municipality or community to "move forward" as well as make the proper use of another government grant extra funds expected future economic in the years ahead. Those other state grant monies are being used for investments in mass transportation, energy efficiency, including environmental regulations.

The other three alternatives are not related to the given instance. So that the above would be the appropriate one.

You are the manager of a firm that produces goods X and Y. Your rm receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The price elasticity of demand for product X is |-0.75| and the cross price elasticity of demand between product Y and X is -1.7.

Required:
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?

Answers

Answer:

price elasticity of demand = % change in quantity / % change in price

-0.75 = % change in quantity / 2%

-1.5 = % change in quantity

lets assume that 1,000 units of X were sold at $40 each, total revenue = $40,000

new total revenue = 985 x $40.80 = $40,188

revenue generated by good X will increase by 0.47%, from $40,000 to $40,188

price elasticity of demand = % change in quantity of Y / % change in price of X

-1.7 = % change quantity of Y / 2%

-3.4% = % change quantity of Y

lets assume that 1,000 units of Y were sold at $90 each, total revenue = $90,000

new total revenue = 966 x $91.80 = $88,678.80

revenue generated by good Y will decrease by -1.47%, from $90,000 to $88,678.80

As an American investor, you are trying to calculate the present value of a £25 million cash flow that will occur one year in the future. You know that the spot exchange rate is S= $1.9397/ £ and one-year forward rate is F= $1.9581/ £. You also know that the appropriate dollar cost of capital for this cash flow is 6.25% and that the appropriate pound cost of capital for this cash flow is 5.25%. a) What is the present value of the £25 million cash flow from the standpoint of a British investor, and what is the dollar equivalent of this amount? b) What is the present value of the £25 million cash flow from the standpoint of a U.S. investor who first converts the £25 million into dollars and then applies the dollar discount rate?

Answers

Answer:

1. Present value in pound=$23,752,969

Dollar equivalent=$46,073,634

2.Dollar equivalent for U.S investors=$48,952,500

Present value in pound=$46,072,918

Explanation:

1a.Calculation for present value of the £25 million cash flow

Using this formula

Present value in pound =cash flow*(1/1+Cash flow cost of capital)^ One year in the future

Let plug in the formula

Present value in pound=$25,000,000*(1/1+0.0525)^1

Present value in pound=$25,000,000*(1/1.0525)^1

Present value in pound=$25,000,000*0.950119

Present value in pound=$23,752,969

1b.Calculation for the dollar equivalent of this amount

Using this formula

Dollar equivalent=Present value in pound*Spot exchange rate

Let plug in the formula

Dollar equivalent=$23,752,969*$1.9397

Dollar equivalent=$46,073,634

2a. Calculation for the Dollar equivalent for U.S investors

Using this formula

Dollar equivalent for U.S investors=Cash flow*one-year forward rate

Let plug in the formula

Dollar equivalent for U.S investors=$25,000,000*$1.9581

Dollar equivalent for U.S investors=$48,952,500

2b. Calculation for the present value of the £25 million cash flow from the standpoint of a U.S. investor .

Using this formula

Present value in pound =Cash flow*(1/1+Cash flow cost of capital)^ One year in the future

Let plug in the formula

Present value in pound=$48,952,500*(1/1.0625)^1

Present value in pound=$48,952,500*0.941176

Present value in pound=$46,072,918

Therefore the Present value in pound for question 1 is $23,752,969 while the Dollar equivalent is $46,073,634.

The Dollar equivalent for U.S investors in question 2 is $48,952,500 while the Present value in pound is $46,072,918

During the year, Wright Company sells 500 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Date Transaction
Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 60 $66 $3,960
May. 5 Purchase 280 69 19,320
Nov. 3 Purchase 230 74 17,020
570 $40,300
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.

Answers

Answer:

$5,180 and $35,120

Explanation:

The computation of the cost of goods sold and the ending inventory is shown below:

There are 500 unit sold so according to that the cost of goods sold is

Jan 1        60 units         $66         $3,960

May 5      280 units       $69         $19,320

Nov 3       160 units      $74           $11,840

Cost of goods sold                        $35,120

Now the ending inventory is

Since there is a 70 ending inventory units i.e comes from

= 570 units - 500 units

= 70 units

So this should be at $74

i.e $5,180

In a partnership liquidation, the final cash distribution to the partners should be made in accordance with the

Answers

Answer: B) balances of the partners' capital accounts.

Explanation:

Final cash distributions should be made proportionally to partners based on what they have in their Capital Accounts.

The balance in the Capital accounts of Partners shows the level of contribution that each partner has made to the business as well as their ownership proportion. When cash is to be distributed finally, it should therefore be based on the proportion of these Capital account balances to reflect the contribution and ownership.

A one-year insurance policy was purchased on June 1 for $2,400. The adjusting entry on December 31 would be:

Answers

Answer:

Adjusting Journal Entry:

Debit Insurance Expense $1,400

Credit Prepaid Insurance $1,400

To record the insurance expense for the year (7 months).

Explanation:

This adjustment will cause the Prepaid Insurance account to remain $1,000.  This balance represents the insurance cost for 5 months having deducted the insurance cost for 7 months from June 1 to December 31.  So, in line with the accrual concept and the matching principle of generally accepted accounting principles, only $1,400 Insurance was incurred for the current year.  The balance will be charged to the account when the service is consumed.

A perpetuity provides for continuous payments. The annual rate of payment at time t is { 1, 0 <= t <10 (1.03)^t-10, t >=10 Using an annual effective interest rate of 6%, the present value at time t = 0 of this perpetuity is x. Calculate X. a. 27.03 b. 30.29 c. 34.83 d. 38.64 e. 42.41

Answers

Answer:

b. 30.29

Explanation:

Perpetuity is the state that lasts forever. In statistics the benefit that last for an indefinite period of time is calculated through perpetuity method.  

1/1.06 + 1/1.06^2 +1/1.06^3 + 1/1.06^4 + 1/1.06^5 + 1/1.06^6 + 1/1.06^7 + 1/1.06^8 + 1/1.06^9 =

0.942 + 0.893 + 0.87 + 0.821 + 0.791 + 0.752 + 0.691 + 0.652 + 0.604

=  7.017

7.017 / 0.23 = 30.29

Firm A has set an MSRP of MXN 25 for its product, and the average discount to distributors is 30%. What is revenue on 40 million units

Answers

Answer: 700 million

Explanation:

From the question, we are informed that Firm A has set an MSRP of MXN 25 for its product, and the average discount to distributors is 30%.

The revenue on 40 million units will be calculated as:

= (40,000,000 × 25) × (100% - 30%)

= 1,000,000,000 × 70%

= 1,000,000,000 × 0.7

= 700,000,000

The answer is 700 million.

The revenue on 40 million units is 700,000,000.

The calculation is as follows:

= (40,000,000 × 25) × (100% - 30%)

= 1,000,000,000 × 70%

= 1,000,000,000 × 0.7

= 700,000,000

Therefore we can conclude that The revenue on 40 million units is 700,000,000.

Learn more; brainly.com/question/6201432

Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. Use the same format as shown above. What is Crossfire’s net operating income (loss) in your new segmented income statement? 5. Do you think that Crossfire should allocate its common fixed expenses to the East and West regions when computing the break-even points for each region?

Answers

Complete Question:

Crossfire Company segments its business into two regions - East and West.  The company prepared a contribution format segmented income statement as shown below:

                                                Total Company         East              West

Sales                                            $900,000        $600,000       $300,000

Variable Expenses                        675,000           480,000          195,000

Contribution margin                     225,000            120,000          105,000

Traceable Fixed Expenses            141,000              50,000            91,000

Segment Margin                          $84,000            $70,000          $14,000

Common Fixed Expenses            59,000

Net Operating Income               $25,000

Instructions: (As given).

Answer:

Crossfire Company

1. Computation of the companywide break-even point in dollar sales:

Break-even point in dollar sales

= Sales = Total costs

Sales = $816,000

Total costs = Variable costs + Traceable fixed costs

= $675,000 + $141,000

= $816,000

2. Computation of the break-even point in dollar sales for the East region:

Break-even point in dollar sales

= Sales = Total costs

= $530,000

Total costs = $530,000 ($480,000 + 50,000)

3. Computation of the break-even point in dollar sales for the West region:

Break-even point in dollar sales

= Sales = Total costs

= $286,000

Total costs = $286,000 ($195,000 + 91,000)

4. A new segmented income statement based on the break-even dollar sales that are computed in requirements 2 and 3:

                                                Total Company         East              West

Sales                                             $816,000        $530,000       $286,000

Variable Expenses                        675,000           480,000          195,000

Contribution margin                       141,000             50,000          105,000

Traceable Fixed Expenses            141,000             50,000            91,000

Segment Margin                                $0                     $0                   $0

Common Fixed Expenses            59,000

Net Operating Income/(loss)    ($59,000)

Crossfire's net operating income (loss) in the new segmented income statement is: $59,000

5. I think that Crossfire should allocate the common fixed expenses to the East and West regions when computing the break-even points for each region.

This ensures that Crossfire does not run into net operating loss, company-wide.  The segmented sales revenues for the regions can be used to allocate the common fixed expenses.  Other suitable bases are traceable fixed expense, number of sales and administrative staff, or activity cost pools, using activity-based costing technique.

Explanation:

a) Break-even point in sales dollars is the sales point at which Crossfire's sales revenue will be equal to the total costs.  At this point, Crossfire will not make any profit or incur any loss.

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