Product A4B has been considered a drag on profits at XYZ Corporation for some time and management is considering discontinuing the product altogether. Data from the company's budget for the upcoming year appear below: Sales $730,000 Variable expenses $350,000 Fixed manufacturing expenses $234,000 Fixed selling and administrative expenses $161,000 In the company's accounting system, all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product A4B is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:

Answers

Answer 1

Answer:

the  financial advantage (disadvantage) for the company of eliminating this product is -$143,000

Explanation:

The computation is shown below:

Loss in contribution margin -$380,000  ($350,000 - $730,000)

Avoidable fixed costs $237,000  ($144,000 + $93000)

Financial advantage (disadvantage) -$143,000

Hence, the  financial advantage (disadvantage) for the company of eliminating this product is -$143,000


Related Questions

The vice president of operations of Free Ride Bike Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Road Bike Division Mountain Bike Division Sales $1,728,000 $1,760,000 Cost of goods sold 1,380,000 1,400,000 Operating expenses 175,200 236,800 Invested assets 1,440,000 800,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations.

Answers

Answer:

Road Bike Division Mountain Bike Division

Net Income $172,800 $123,200

Explanation:

Preparation condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations.

Road Bike Division Mountain Bike Division

Sales $1,728,000 $1,760,000

Less Cost of goods sold 1,380,000 1,400,000

Gross profit $348,000 $360,000

Less Operating expenses 175,200 236,800

Net Income $172,800 $123,200

Therefore condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations will be:

Road Bike Division Mountain Bike Division

Net Income $172,800 $123,200

Toàn cầu hóa có ảnh hưởng gì đến thế giới

Answers

Answer:

1. Globalization encourages economic growth within a country.

2. Globalization encourages the specialization of goods (product specialization) and as such facilitating the production of quality goods.

3. Globalization increases the types of goods and services that are made available in different countries around the world.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace.

Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Some of the ways in which globalization affects the world include the following;

1. Globalization encourages economic growth within a country.

2. Globalization encourages the specialization of goods (product specialization) and as such facilitating the production of quality goods.

3. Globalization increases the types of goods and services that are made available in different countries around the world.

Many people have strong negative reactions to pop-up, pop-behind, interstitial, and rich media ads. Assume you are the director of an advertising agency that specializes in creating and placing these ads. You see an opinion article in your local online newspaper that harshly criticizes these ads as intrusive and unnecessary. Write a details rejoinder to post in the comments section of this article in which you explain, from the advertiser’s viewpoint, why these ads can be more effective advertising media than text ads.

Answers

Answer:

Im on a private jet eating popeyes chicken, i be flexing like im eating popeyes spinach

Explanation:

plato users

Why should you think of your résumé as a marketing document?

Answers

Explanation:

A résumé is a marketing document that represents you when you are not there. A résumé quantifies your accomplishments and proves your worth to your future employer by proving your worth to your previous employer.

Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows:
Amount Per Unit
Direct materials $8.00
Direct labor $5.00
Variable manufacturing overhead $1.00
Fixed manufacturing overhead $6.00
Fixed selling expense $3.50
Fixed administrative expense $2.50
Sales commissions $4.00
Variable administrative expense $1.0
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount of period costs incurred to sell 25,000 units?
2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced?
3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced?
4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units?
6. What is Hixson’s contribution margin per unit? What is its contribution margin ratio?
7. What is Hixson’s break-even point in unit sales? What is its break-even point in dollar sales?
8. How much will Hixson’s net operating income increase if it can grow production and sales from 25,000 units to 26,500 units?
9. What is Hixson’s margin of safety at a sales volume of 25,000 units?
10. What is Hixson degree of operating leverage at a sales volume of 25,000 units?

Answers

Answer:

Hixson Company

1. Total amount of product costs incurred to make 25,000 units is:

= $500,000

Total amount of period costs incurred to sell 25,000 units is:

= $187,500

2. Variable manufacturing cost per unit of 24,000 units is:

= $14.00

The fixed manufacturing cost per unit is:

= $6.25

3. The variable manufacturing cost per unit is:

= $14.00

The fixed manufacturing cost per unit produced is:

= $5.77

4. If 27,000 are produced, the total amounts of direct and indirect manufacturing costs incurred to support this level of production are:

Direct manufacturing costs = $378,000

Indirect manufacturing costs = $150,000

5. The total incremental manufacturing cost that Hixson will incur if it increases production from 25,000 to 25,001 units is:

= $14.

6. Contribution margin per unit is:

= $15

Contribution margin ratio is:

= 44%

7. Break-even point in unit sales is:

= 20,000 units

Break-even point in dollars sales = $300,000/44.1176%

= $680,000

8. The net operating income will increase to $97,500 ($15 * 6,500)if it can grow production and sales from 25,000 to 26,500.

9. Hixson's margin of safety at sales volume of 25,000 units is:

= $170,000

10. Degree of operating leverage at a sales volume of 25,000 units is:

= 3.85

Explanation:

a) Data and Calculations:

Selling price per unit = $34

Production and sales unit = 25,000 units

Unit costs at 25,000 units

                                                      Per Unit

Direct materials                                $8.00

Direct labor                                       $5.00

Variable manufacturing overhead   $1.00

Fixed manufacturing overhead      $6.00

Fixed selling expense                     $3.50

Fixed administrative expense        $2.50

Sales commissions                         $4.00

Variable administrative expense    $1.00

Total cost per unit                         $31.00

Product costs (financial accounting):

                                                       Per Unit

Direct materials                                $8.00

Direct labor                                       $5.00

Variable manufacturing overhead   $1.00

Fixed manufacturing overhead       $6.00

Total product costs per unit          $20.00

Period costs:

Fixed selling expense                     $3.50  

Sales commissions                         $4.00

Total selling period costs per unit $7.50

1. Total amount of product costs incurred to make 25,000 units is:

= $500,000 ($20 * 25,000)

Total amount of period costs incurred to sell 25,000 units is:

= $187,500 ($7.50 * 25,000)

2. Variable manufacturing cost per unit of 24,000 units is:

= $14.00

The fixed manufacturing cost per unit is:

= $6.25 ($6 * 25,000/24,000)

3. The variable manufacturing cost per unit is:

= $14.00

The fixed manufacturing cost per unit produced is:

= $5.77 ($6 * 25,000/26,000)

4. If 27,000 are produced, the total amounts of direct and indirect manufacturing costs incurred to support this level of production are:

Direct manufacturing costs = $378,000 ($14 * 27,000)

Indirect manufacturing costs = $150,000 ($6 * 25,000)

5. The total incremental manufacturing cost that Hixson will incur if it increases production from 25,000 to 25,001 units is $14.

Contribution margin per unit:

Selling price = $34

Variable costs = 19

Contribution  = $15

6. Contribution margin per unit is $15 ($34 - $19).

Contribution margin ratio is 44% ($15/$34 * 100)

7. Break-even point in unit sales = FC/CM per unit

= $300,000/$15

= 20,000 units

Break-even point in dollars sales = $300,000/44.1176%

= $680,000 (20,000 * $34)

8. The net operating income will increase to $97,500 ($15 * 6,500)if it can grow production and sales from 25,000 to 26,500.

9. Hixson's margin of safety at sales volume of 25,000 units is:

= $170,000 ($850,000 - $680,000)

10. Degree of operating leverage at a sales volume of 25,000 units is:

= Contribution margin/net operating income

= $375,000/$97,500

= 3.85

Ngân hàng thương mại có tỷ lệ an toàn vốn tối thiểu là 8% và tỷ suất sinh lời trên tài sản có hằng năm như sau : năm 1998 có ROA là 14.3% , năm 1999 có ROA là 17.0% , năm 2000 có ROA là 15.1% , năm 2001 có ROA là 12.2% , năm 2002 có ROA 9.8%, năm 2003 có ROA là 7.5% , năm 2004 có ROA là 13.8% , năm 2005 có ROA là 13.5% , năm 2006 có ROA là 16.3% , năm 2007 có ROA là 15.7% , năm 2008 có ROA là 15.8% , năm 2009 có ROA là 16.0% , năm 2010 có ROA là 14.9% , năm 2011 có ROA là 14.6% , năm 2012 có ROA là 12.4% . yêu cầu : ước lượng chỉ số Z đánh giá nguy cơ phá sản ?

Answers

Answer:

???????

Explanation:

Tin Roof's net cash flows for the next three years are projected at $72,000, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. What is the value of the firm if the WACC is 9.32%

Answers

Answer:

$1,279,622.65

Explanation:

The value of the company is the present value of its future cash flows for the three-year planning horizon plus the present value of its continuing value beyond year 3, all discounted using the WACC as the appropriate discount rate.

continuing value=year 3 cash flow*(1+terminal growth rate)/(WACC-terminal growth rate)

continuing value= $84,000*(1+3.2%)/(9.32%-3.2%)=$1,416,470.59

present value of continuing value=$1,416,470.59/(1+9.32%)^3=$1,084,198.23

present value of 3-year cash flows=$72000/(1+9.32%)^1+$78,000/(1+9.32%)^2+$84,000/(1+9.32%)^3

present value of 3-year cash flows=$195,424.42

value of the company=$1,084,198.23+$195,424.42

value of the company=$1,279,622.65  

The Director of Taco Bell’s in-house creative agency described the workplace as an "ego-free zone," suggesting openness to his team members’ ideas, also called Multiple Choice staff validity. task validity. boundary spanning. decision informity. hierarchical sensitivity.

Answers

Answer:

staff validity

Explanation:

Staff validity is the degree by which the members form good presentations to the leader. As they can have all the information needed to make a good decision.

A major distinction between a conventional bank and an Islamic bank is that Islamic banks __ are allowed to charge higher interest on loans. cannot accept private deposits. cannot pay or charge interest. are not subject to any form of law,

Answers

Answer:

cannot pay or charge interest.

Explanation:

Islamic banks are banks that are based on Islamic laws or Sharia laws which is found in the Qur'an.

In Islamic banking, all banking transactions must be compliant with the Sharia laws.

Islamic banks differ from conventional banks in that :

1. they prohibit usury : Usury is charging interest on loans

2. they prohibit all forms of speculation : Islamic laws prohibit all forms of gambling

3. Investments in items that are not allowed in the Qur'an e.g. alcohol

Islamic bank use equity participation to make money. When an  Islamic bank lends money to a business, instead of charging interest on the loan, the receive equity in that business and are entitled to a part of the company's shares

Larned Corporation recorded the following transactions for the just completed month.

$79,000 in raw materials were purchased on account.
$77,000 in raw materials were used in production. Of this amount, $65,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $109,500 were paid in cash. Of this amount, $100,900 was for direct labor and the remainder was for indirect labor.
Depreciation of $195,000 was incurred on factory equipment.

Required:
Record the above transactions in journal entries.

Answers

Answer:good question. Wait for the answer

Explanation:

A downward-sloping yield curve generally indicates which of the following
(I) higher current short-term interest rates
(II) higher inflation expectations in future years
(III) a strong possibly of a recession within the next year
a) (I) and (III).
b) (II).
c) (III) only.
d) all are correct.

Answers

Answer:

a

Explanation:

A yield curve is a graph that plots the interest rate of bonds at a set point in time.

When the yield curve is downward sloping, it is expected that short term interest rate would be higher than the long term interest rate.

A downward sloping yield curve can be an indictor of coming recession.

A recession is when the GDP of a country for two consecutive quarters is negative. In a period of recession, interest rate is usually lower.

A downward sloping yield curve can also be an indicator that there is an expectation of lower inflation rate in coming years.

If the yield curve is upward sloping, the short term interest rate would be lower than the long term interest rate

A flat yield curve is an indicator that interest rate would be constant

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is

Answers

Answer:

1,500

Explanation:

The fixed assets cost is $41,000

The accumulated depreciationn is $36,500

Similar assets was priced at $36,000

Trade in allowance is $3000

Therefore the recognised law on trade can be calculated as follows

41,000-36,500-3,000

= 1,500

The summarized balance sheets of Blossom Company and Nash Company as of December 31, 2021 are as follows:

Blossom Company Balance Sheet December 31, 2021
Assets $1750000
Liabilities $170000
Capital stock 875000
Retained earnings 705000
Total equities $1750000

Nash Company Balance Sheet December 31, 2021

Assets $1280000
Liabilities $280000
Capital stock 890000
Retained earnings 110000
Total equities $1280000

If Blossom Company acquired a 20% interest in Nash Company on December 31, 2021 for $300000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (Nash) would have been:__________

a. $300000.
b. $200000.
c. $256000.
d. $178000.

Answers

Answer:

The amount of the debit to Equity Investments (Nash) would have been:__________

 

b. $200,000.

Explanation:

a) Data and Calculations:

Blossom Company Balance Sheet December 31, 2021

Assets $1750000

Liabilities $170000

Capital stock 875000

Retained earnings 705000

Total equities $1750000

Nash Company Balance Sheet December 31, 2021

Assets $1280000

Liabilities $280000

Capital stock 890000

Retained earnings 110000

Total equities $1280000

Nash's net assets = $1,000,000 ($1,280,000 - $280,000)

Equity investment = 20% of $1,000,000 = $200,000

Goodwill on acquisition = $100,000 ($300,000 - $200,000)

Kevin promises to pay Macarena, his daughter, $5,000 if she obtains her degree at Brookdale community College, where she is currently in her first year. Macarena graduates. If a Court refuses to enforce the agreement it would most likely be because:

Answers

Question Completion with Options:

A. Macarena finished college.

B. Obtaining a college degree benefits Macarena.

C. A job can be hard to find after college.

D. Macarena was already in college.

Answer:

If a Court refuses to enforce the agreement it would most likely be because:

D. Macarena was already in college.

Explanation:

Macarena was currently in her first year when the promise was made by her father.  This means that Macarena is not giving any consideration for the father's promise.  But, if she enters the college based on the promise and eventually graduates in the college, then the court will not likely refuse to enforce the agreement. Kevin's promise to pay Macarena $5,000 is not enforceable because of past consideration.

Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of the kits next quarter at a price of $11, and the other 50 kits in the third quarter at a price of $12. It takes a full quarter for Ponzi to collect its bills from its customers. (Ignore possible sales in earlier or later quarters.)

a. What is the net income for Ponzi next quarter?
b. What are the cash flows for the company this quarter?
c. What are the cash flows for the company in the third quarter?
d. What is Ponzi’s net working capital in the next quarter?

Answers

Answer:

Ponzi Products

a) Net income for the next quarter:

= $50

b) Cash outflow for this quarter = $1,000

c) Cash inflow in the third quarter = $550

d) Net working capital in the next quarter = $550

Explanation:

a) Production of chain-letter kits for the quarter = 100 units

Total production cost (outlay) = $1,000 (100 * $10)

Sales in the second quarter = $550 (50 * $11)

Sales in the third quarter = $600 (50 * $12)

Cash collections:

Third quarter = $550

Fourth quarter = $600

a) Net income for the next quarter:

Sales revenue = $550

Production cost   500 ($1,100 * 50/100)

Net income =       $50 ($550 - $500)

b) Cash outflow for this quarter = $1,000

c) Cash inflow in the third quarter = $550

d) Net working capital in the next quarter = $550

Rachelle transfers property with a tax basis of $740 and a fair market value of $935 to a corporation in exchange for stock with a fair market value of $620 and $93 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $222 on the property transferred. What is the corporation's tax basis in the property received in the exchange

Answers

Answer:

$927

Explanation:

Calculation to determine the corporation's tax basis in the property received in the exchange

The corporation's TAX BASIS in the property received in the exchange will be TAX BASIS of $740 plus gain recognized of $187 Calculated as ($935-$740) and Assuming the corporation sells the property for the amount of $935, the gain recognized will be $187.

Therefore the corporation's tax basis in the property received in the exchange will be :

Corporation's tax basis=Tax Basis +Gain recognized

Corporation's tax basis=$740+($935-$740)

Corporation's tax basis=$740+$187

Corporation's tax basis=$927

three (3) State taxes and briefly describe each

Answers

The three state taxes are what you earn, taxes on what you buy, and taxes on what you own.

Earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes;

Buy: sales taxes, gross receipts taxes, value-added taxes, and excise taxes;

Own: property taxes, tangible personal property taxes, estate, and inheritance taxes, and wealth taxes.

Which one of the following statements is correct? Both partnerships and corporations incur double taxation. Sole proprietorships and partnerships are taxed in a similar fashion. Partnerships are the most complicated type of business to form. Both partnerships and corporations have limited liability for general partners and shareholders. All types of business formations have limited lives.

Answers

Answer:

sole proprietorships and partnerships are taxed in a similar fashion

Explanation:

A tax can be regarded as compulsory financial charge, it can also be regarded as other type of levy that is been imposed on a taxpayer by a governmental organization so that funds needed to fund government spending as well as various public expenditures can be generated. This applies to sole proprietorship which is regarded as , is a type of enterprise that is been owned as well as run by one person. Also applies to partnership which can be regarded as formal arrangement set up between two or more parties so they can manage and operate a particular business as well as sharing of its profits. It should be noted that sole proprietorships and partnerships are taxed in a similar fashion

5-5 TIME TO REACH A FINANCIAL GOAL You have $33,556.25 in a brokerage account, and you
plan to deposit an additional $5,000 at the end of every future year until your account totals
$220,000. You expect to earn 12% annually on the account. How many years will it take to
reach your goal?

Answers

Answer:

22 is the right answer bro fgjjfycugyvyygyghu

HOW CAN I CREATE A PERFECT SALES STRATEGY?

Answers

Answer:

B2B marketers and businesses are using LinkedIn automation to strengthen their sales and marketing strategy.

Here is how;

Engage With The Right AudienceTake Advantage of LinkedIn GroupsSend Personlized Outreach Messages

Most of the lead generation and sales tactics on LinkedIn require a lot of time if you choose to do them manually.

1. The difference between contribution margin and income from operations is___.
a. net income.
b. variable costs.
c. fixed costs.
d. one of these choices are correct.
2. A company's operating leverage is computed as:____.
a. contribution margin divided by income from operations.
b. profit margin divided by net income.
c. revenue divided by expenses.
d. none of these choices are correct.
3. The __________ is the relative distribution of sales among the products sold by a company.
a. sales mix.
b. mixed cost.
c. product mix.
d. none of these choices are correct.
4. The unit selling price of the overall enterprise product equals the____.
a. average selling price of the products.
b. price of the highest-selling product in the mix.
c. sum of the unit selling prices of each product multiplied by its sales mix percentage.
d. price of the product with the lowest selling price.

Answers

Answer:

1. The difference between contribution margin and income from operations is fixed costs.  income from operations = Contribution margin - Fixed expenses. So therefore, the difference between contribution margin and income from operations is known as fixed costs.

2. A company's operating leverage is computed as contribution margin divided by income from operations. Degree of Operating Leverage = Contribution Margin / Net Operating Income

3. The sales mix is the relative distribution of sales among the products sold by a company.

4. The unit selling price of the overall enterprise product equals the sum of the unit selling prices of each product multiplied by its sales mix percentage.

Pasha works for a manufacturing company in a small town. He reports to his manager that the company is not fulfilling its commitment to the community to reduce pollutants. His manager tells him to ignore the issue and not tell anyone. This is an example of a(n)___________. approach to social responsibility.
a. defensive
b. accommodative
c. reactive
d. obstructionist
e. proactive

Answers

Answer:

d. obstructionist

Explanation:

Since in the question it is given that pasha reported his manager that company is not able to fulfill the commitment in order to decrease pollution but the manager said that ignore this issue also dont tell anyone so this represent an obstructionist approach as the firm or the company avoids the social environmental problems so indirectly it breaks the law and their conduct is to be considered as an unethical

Therefore, the option d is correct

Corporation sold 210000 watches and produced 217000 watches that it sold for $19 each. The company determined that fixed manufacturing cost per unit was $8 per watch. The company reported a $1,302,000 gross margin on its financial statements. Determine the total contribution margin.

Answers

Answer:

The total contribution margin is:

= $2,982,000.

Explanation:

a) Data and Calculations:

Production units = 217,000 watches

Sales units = 210,000 watches

Sales price per watch = $19

Sales revenue =   $3,990,000 (210,000 * $19)

Cost of goods sold 2,688,000 ($3,990,000 - $1,302,000)  ($12.80 each)

Gross profit =        $1,302,000

Cost of goods sold per unit = $12.80 ($2,688,000/210,000)

Fixed cost per unit = $8

Variable cost per unit = $4.80 ($12.80 - $8.00)

Contribution margin  per unit = $14.20

Total contribution margin = $2,982,000 ($14.20 * 210,000)

When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices

Answers

Answer:

1. Responsive

2. Elastic

Explanation:

When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.

This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.

Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.

If the economy is in an expansionary period, appropriate policies to pursue may include: Group of answer choices an income tax cut that shifts the AD curve to the right. consumer investment incentives that shift the AD curve to the right business investment incentives that shift the AD curve to the left. a reduction in government spending that shifts the AD curve to the left.

Answers

Answer:

curve to the right business investment incentives

The double-declining-balance rate for calculating depreciation expense is determined by doubling the straight-line rate. Assuming that an asset has a useful life of 25 years, determine the rate to be used if using the double-declining-balance method

Answers

Answer:

the  depreciation rate in cash when the double-declining method should be used is 8%

Explanation:

The computation of the depreciation rate in cash when the double-declining method should be used is given below:

= 1 ÷ useful life × 2

= 1 ÷ 25 × 2

= 0.08

= 8%

Hence, the  depreciation rate in cash when the double-declining method should be used is 8%

The same should be relevant and considered too

If the price level is above the equilibrium price level, how does the aggregate quantity of goods and services demanded compare to the aggregate quantity of goods and services supplied at the price level?

Answers

Answer:

When price is  above the equilibrium price level, quantity demanded would be less than the quantity supplied. This would lead to a surplus

Explanation:

Equilibrium price is the price at which quantity demand equal quantity supplied.

Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded. As a result of the surplus, price would fall until equilibrium is reached.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied. As a result of the shortage, price would rise until equilibrium is reached.

A-Rod Fishing Supplies had sales of $2,500,000 and cost of goods sold of $1,710,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,680,000.
What was the firm's operating profit?

Answers

Answer:

$259,200

Explanation:

A-Rod Fishing Supplies

Income Statement

Sales Revenue                                                                 $2,500,000

Less Cost of Sales                                                            ($1,710,000)

Gross Profit                                                                          $790,000

Less Operating Expenses

Selling and administrative expenses        $250,000

Depreciation expense                                $280,800     ($530,800)

Operating Profit                                                                  $259,200

thus,

the firm's operating profit is $259,200

A bond issue with a face amount of $1,100,000 bears interest at the rate of 7%. The current market rate of interest is 8%. These bonds will sell at a price that is:

Answers

Answer:

d. Less than $1,100,000

Explanation:

Here are the options

Equal to $100,000 O

O More than $100,000 o

O The answer cannot be determined from the information provide

d. Less than $1,100,000

If the current interest market rate is greater than the bonds coupon rate the bond is selling at a discount

If the current interest market rate is less than the bonds coupon rate the bond is selling at a premium

If a bond’s coupon rate is equal to its current interest market rate, then the bond is selling at par.

he following transactions are for Alonzo Company.

1. On December 3, Alonzo Company sold $500,000 of merchandise to Artis Co. on account. The cost of the merchandise sold was $330,000.
2. On December 8, Artis Co. returned $25,000 of merchandise purchased on December 3. The cost of the goods was $16,000.
3. On December 13, Alonzo Company received the balance due from Artis Co.


Prepare a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Assets
=
Liabilities
+
Stockholders' Equity
Retained Earnings
Date
Cash
+
Accts.
Rec.
+
Inventory
=
Accts.
Pay.
+
Common Stock
+
Rev.
-
Exp.

Answers

Answer:

1. Dec. 3

Dr Account Receivable $500,000

Cr Sales Revenue $500,000

Dr Cost of goods sold $330,000

Cr Inventory $330,000

2. Dec. 8

Dr Sales Returns and Allowances $25,000

Cr Accounts Receivable $25,000

3. Dec. 13

Dr Cash $470,250

Cr Sales Discounts $4,750

Cr Accounts Receivable $475,000

Explanation:

Preparation of a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system

1. Dec. 3

Dr Account Receivable $500,000

Cr Sales Revenue $500,000

(To record the sales on account)

Dr Cost of goods sold $330,000

Cr Inventory $330,000

(To record the cost of goods sold)

2. Dec. 8

Dr Sales Returns and Allowances $25,000

Cr Accounts Receivable $25,000

(To record the Sales return and allowance)

3. Dec. 13

Dr Cash $470,250

($475,000 - $4,750)

Cr Sales Discounts $4,750

[($500,000 - $25,000) * 1%]

Cr Accounts Receivable $475,000

($500,000 - $25,000)

(To record the balance due from Arte Co.)

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