The following information is available for Flounder Corp. for the year ended December 31, 2017: Other revenues and gains Other expenses and losses Cost of goods sold Other comprehensive income $10,000 Sales revenue 14,900 Operating expenses 246,400 Sales returns and allowances 5,500 $641,300 231,800 40,000
Prepare a multiple-step income statement for Flounder Corp and comprehensive income statement. The company has a tax rate of 30%. This rate also applies to the other comprehensive income. Flounder Corp. Income Statement For the Year Ended December 31, 2017 Revenues Sales Revenue 641300 Less . Sales Returns and Allowances 40000 Net Sales $ 601300 Cost of Goods Sold 246400 Gross Profit 354900 Operating Expenses 231800 Income From Operations 123100 Other Revenues and Gains $ 10000 Other Expenses and Losses 14900

Answers

Answer 1

Answer:

Flounder Corp. Income Statement For the Year Ended December 31, 2017

Revenues:

Sales Revenue                               $ 641,300

Less Sales Returns and Allowances 40,000

Net Sales                                       $ 601,300

Cost of Goods Sold                         246,400

Gross Profit                                     354,900

Operating Expenses                        231,800

Income From Operations              $123,100

Income Tax on operations                36,930

Net Income after Income Tax        $86,170

Comprehensive Income Statement:

Revenues:

Sales Revenue                               $ 641,300

Less Sales Returns and Allowances 40,000

Net Sales                                       $ 601,300

Cost of Goods Sold                         246,400

Gross Profit                                     354,900

Operating Expenses                        231,800

Income From Operations             $123,100

Other Revenues and Gains           $ 10,000

Less other Expenses and Losses    14,900

Income from Operations &

other comprehensive income    $118,200

Income Tax                                    $35,460

Net Income after Tax                   $82,740

   

Explanation:

a) A multi-step income statement arranges the revenue and expenses sequentially in order to bring out some financial performance measurement elements, like the gross profit, income from operations, etc.

b) A Comprehensive income statement is a financial statement that includes both standard income and expenses and other comprehensive income and expenses.


Related Questions

Use exponential smoothing with trend adjustment to forecast deliveries for period 10. Let alpha = 0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be 200.
Period- Actual Demand
1- 200
2- 212
3- 214
4- 222
5- 236
6- 221
7- 240
8- 244
9- 250
10- 266

Answers

Answer:

254.02

Explanation:

Relevant data provided

Forecast delivers for period 10

Alpha = 0.4

Beta = 0.2

Trend value = 4

Initial forecast = 200

For period 10 please look into the spreadsheet which has been attached which contains formulas and values.

Forecast including trends

The smoothed forecast is calculated below:

[tex]F_{t}=\alpha A_{t-1}+(1-\alpha )(F_{t-1}+T_{t-1})[/tex]

Smoothed trend formula is shown below:

[tex]T_{t}=\beta (F_{t}-F_{t-1})+(1-\beta )T_{t-1}[/tex]

Forecast including trend formula is calculated with the help of below formula:-

[tex]FIT_{t}= F_{t}+T_{t}[/tex]

Holly owns a dance studio. To improve sales of dance classes, she is reviewing how her marketing team could update the company's online presence.
As part of the rebrand, the team listened to customer feedback and mapped customer journeys. They identified two things online customers generally struggled with: navigating the website and finding the business's contact information.
Which of the brand's touchpoints should Holly modify to help address her customer's feedback?

Answers

Answer:

b. website layout

c. email marketing

Explanation:

The website layout is the layout i.e created for a website. It should be attractive to the owners and users. Moreover it should be easy to navigate it so that if anyone could access to the website he or she could easily access it without any hurdle.

The email marketing is a technique in which we can send one message to large audience in the same time. It helps in saving cost and time

According to the given situation, the online customers struggled with website navigate and to find out the contact information related to the business

So to modify and help address her customer feedback the website layout and the email marketing plays a vital role and the same is to be considered

2. The Fourth of July Company agreed to ship a quantity of fireworks to Behan. After Behan pays in full, he learns that state law prohibits this type of sale. Before the fireworks are sent, Behan calls to cancel this contract and to demand his money back. May he recover his money in court

Answers

Answer:

Behan will recover his amount.

Explanation:

The contract has not been formed as the contract is only enforceable if the contract is legally allowed which means that the selling of fireworks in this case scenario is not allowed and hence Behan and Fourth of July Company are both equally responsible for not committing to such type of agreements. So the company must payback the money as the contract is not enforceable in the jurisdiction.

The purpose of a PERT network is: to monitor the quality of a product for compliance with ISO 9000 standards. to monitor the progress of a multi-step project during its development. to connect all firms that are ISO 9000 certified so that they can partner with each other on future projects. to be used as a decision-making tool when evaluating the best facility locations and layouts.

Answers

Answer:

The correct answer is the second option: to monitor the progress of a multi-step project during its development.

Explanation:

To begin with, a "Program Evaluation and Reviews Techniques" or PERT as it name indicates it refers to an stadistic technique by which the companies can follow the process of certain projects that they are having currently. Moreover, its main purpose is to manage and analyze the steps that a project has in order to make them less susceptible to errors. In addition to that, its main factor to observe is the time during the steps of the project. Nowadays is very common to use a tool like this in major companies.

Granny Carney Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset. During 2018, Granny Carney Associates completed the following transactions: (Click the icon to view the transactions.) Record the transactions in the journal of Granny Carney Associates. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Purchased office equipment, $119,000. Paid $84,000 cash and financed the remainder with a note payable. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Jan. 1
Jan. 1 Purchased office equipment, $119,000. Paid $84,000 cash and financed the remainder with a note payable. Apr. 1 Acquired land and communication equipment in a lump-sum purchase. Total cost was $320,000 paid in cash. An independent appraisal valued the land at $252,000 and the communication equipment at $84,000. Sep. 1 Sold a building that cost $570,000 (accumulated depreciation of $265,000 through December 31 of the preceding year). Granny Carney Associates received $430,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $45,000. Dec. 31.
Recorded depreciation as follows:
Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Office equipment is depreciated using the double-declining-balance method over five years with a $4,000 residual value.

Answers

Answer:

Jan 1

Dr Office equipment 119,000

Cr Cash 84,000

Cr Note payable 35,000

April 1

Dr Land 240,000

Dr Communication equipment 80,000

Cr Cash 320,000

Sept 1

Dr Cash 430,000

Dr Accumulated depreciation -Building 265,000

Cr Building 570,000

Cr Gain on sales of building 125,000

Dec 31

Depreciation expenses 12,000

Dr Accumulated Depreciation 12,000

Explanation:

Granny Carney Associates Journal entries

Jan 1

Dr Office equipment 119,000

Cr Cash 84,000

Cr Note payable 35,000

(119,000-84,000)

April 1

Dr Land 240,000

(320,000×252,000/252,000+84,000)

Dr Communication equipment 80,000

(320,000×84,000/252,000+84,000)

Cr Cash 320,000

(80,000+240,000)

Sept 1

Dr Cash 430,000

Dr Accumulated depreciation -Building 265,000

Cr Building 570,000

Cr Gain on sales of building 125,000

Dec 31

Depreciation expenses 12,000

(80,000-0)/5×9months/12months

Dr Accumulated Depreciation 12,000

If an individual's utility function for coffee (x) and cream (y) is given by , the demand function for coffee is given by:__________.

Answers

Incomplete question. Options provided in

Answer:

c.

Explanation:

Note that after performing necessary calculation we arrived at the conclusion where X = I/(PX + 0.2PY) where PX= demand and PY= expenditures.

The standard deviation from investing in the asset is: (Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.))

Answers

Here is the complete question.

State of the Economy            Probability of                  Percentage Returns

                                                the States

Economic recession                        25%                           5%

Moderate economic growth           55%                           10%

Strong economic growth                20%                           13%

The standard deviation from investing in the asset is: (Round to the nearest hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.))

Answer:

standard deviation from investing in the asset is: 2.76

Explanation:

From the information given above; the main task to do is to calculate for the standard deviation from investing in the asset ,but in order to do that; we must first determine the expected return value and the variance.

The expected return can either be the profit or loss the investor predict to get after investing on an instrument. It can be determined by multiplying the potential outcomes by the chances of them occurring and then totaling these results.

Here;

the potential outcome = Probability of the States

chances of them occurring = Percentage Returns

Expected return = (0.25 × 5%) + (0.55 ×  10%) + (0.20 × 13%)

Expected return = (1.25 + 5.5 + 2.6)%

Expected return = 9.35%

Variance = 0.25 × (5% - 9.35%)² + 0.55 × (10% - 9.35%)² + 0.20 × (13% - 9.35%)²

Variance = 0.25 ( -4.35%)² + 0.55 (0.3575%)² + 0.20 (3.65%)²

Variance = 0.0473 + 0.0023 + 0.0266

Variance = 0.0763

Finally; the standard deviation = [tex]\sqrt{variance}[/tex]

standard deviation = [tex]\sqrt {0.0763[/tex]

standard deviation = 0.276

To the nearest hundredth percent and by answering in the percent format without including the % sign ; we have

standard deviation = 2.76

g The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected, a. production is more profitable and employment rises. b. production is more profitable and employment falls. c. production is less profitable and employment rises. d. production is less profitable and employment falls.

Answers

Answer:

A. Production is more profitable and employment rises

Explanation:

Wages are sticky if market prices or wages don’t adjust quickly to changes in the economy. When prices are sticky, the Short Run Aggregate Supply curve slopes upward. It slopes upward because at least one price is fixed. The curve shows that a higher price level leads to more output

Therefore when the price level rises more than expected, production is more profitable and employment rises.

Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Fees earned $900,000 Office expense 300,000 Miscellaneous expense 15,000 Wages expense 450,000 Prepare an income statement for the year ended May 31, 2018. Paradise Travel Service Income Statement For the Year Ended May 31, 2018

Answers

Answer:

Net income is $135,00 from the income statement.

Explanation:

In the Income Statement for a particular year, all expenses all expenses for the year are deducted from the income to arrive at net income for that year. Based this, we have:

Paradise Travel Service Income Statement For the Year Ended May 31, 2018

Details                                         ($)  

Fees earned                          900,000

Office expense                    (300,000)

Miscellaneous expense         (15,000)

Wages expense                   (450,000)

Net income                            135,000

Therefore, net income is $135,00 from the income statement.

Which of the following is a macro factor underlying the trend toward greater globalization?A. increase in diversity in consumer tastes and preferencesB. increase in nationalization of private organizationsC. dramatic developments in information processing and other technologiesD. rise of communism across the globeE. increase in trade regulations across the globe

Answers

Answer:

The correct answer is Option C (dramatic developments in information processing and other technologies)

Explanation:

Globalization caused by several factors, example are improved markets, transportation, policies and cultures, improved technology, can be explained as the process by which different parts of the world are connected due to the spread of ideas, people, technology, goods. Types of globalization are: Economic globalization, political globalization, and cultural globalization.

Factors underlying the trend toward greater globalization are micro level  (individual) and macro level (society). Macro factors include, barriers to distribution of good and services among countries, and technological change, which is very important as it greatly affects globalization.

Dramatic developments in information processing and other technologies makes it easier to communicate and share information in order to conduct business internationally, and do other greater things too.

ABC Company keeps their accounting records on the cash basis. During the year, ABC received $260,000 from clients, and ABC paid $85,000 to cover operating expenses. Account balances as of the dates given are as follow:


January 1 December 31
Accounts Receivable $24,000 $52,000
Accrued Liabilities $56,000 $40,000
Unearned Service Revenue $35,000 $65,000
Prepaid Expenses $26,000 $28,000

In addition, depreciation expense for the current year is $16,000.

Accrual basis net income is:

a. $181,000
b. $145,000
c. $201,000
d. $165,000

Answers

Answer:

a. $181,000

Explanation:

The Income Statement consists of Revenue and Expenses recorded on Accrual Basis. The Accrual Basis of Accounting states that Revenue and Expenses must be recorded as and when they Occur or Incur not when cash is paid or received.

Calculation of Net Income will thus be as follows :

Revenue Received                                  $260,000

Unearned Revenue($65,000-$35,000) $30,000

Total Revenue                                          $290,000

Less Expenses :

Expenses ($85,000+$26,000-$28,000) $83,000

Depreciation                                              $16,000

Net Income                                                $181,000

g (Ignore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of a machine that would cost $305,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $105,000 per year. The company requires a minimum pretax return of 7% on all investment projects. Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. The net present value of the proposed project is closest to:

Answers

Answer:

= $195,486.67

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-305,000

Cash flow each year from year 1 to 6 = $105,000

I = 7%

NPV = $195,486.67

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

Every organization needs some degree of flexibility and standardization. True False Being overly committed to following rules can harm an organization and keep it from growing. True False Every organization needs either a degree of ________ to adapt to new situations or some degree of ________ to make routine tasks and decisions as efficient and effective as possible. standardization; flexibility culture; vision flexibility; standardization structure; design

Answers

Answer:

1. True: Every organization needs some degree of flexibility and standardization.

2. True: Being overly committed to following rules can harm an organization and keep it from growing.

3. flexibility; standardization.

Explanation:

It is really important and necessary that all organization have some degree of flexibility and standardization. Every organization is expected to be flexible, in order to be able to effectively manage potential changes or challenges that arises in business. They should also be standardized, by having proper policies, strategies and structure for the purpose of running the business smoothly and efficiently.

However, if an organization is overly committed to following rules, this can cause harm to it's business operations and thereby hindering its growth and development.

Hence, some degree of flexibility is needed in every organization in order to adapt to new situations or some degree of standardization to make routine tasks and decisions as efficient and effective as possible.

Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 108,000 shares of Silva Company directly from one of the founders for a price of $48 per share. Silva has 300,000 shares outstanding including the Daniels shares. On July 2, Year 1, Silva paid $292,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $971,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva
a. Provide the Ferguson Company journal entries for the transactions Involving its Investment In Sllva Company durlng Year 1 Year 1 Jan. 4 Year 1 July 2 Year 1 Dec. 31
b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock

Answers

Answer:

a)

January 4, year 1, investment in Silva Company (36% of outstanding stocks)

Dr Investment in Silva Company 5,184,000

    Cr Cash 5,184,000

July 2, year 1, distributed dividends ( $292,000 x 36%)

Dr Cash 104,400

    Cr Investment in Silva Company 104,400

December 31, year 1, net income reported by Silva Company ($971,000 x 36%)

Dr Investment in Silva Company 349,560

    Cr Revenue from investment in Silva Company 349,560

b)

Balance of Investment in Silva Company = $5,184,000 - $104,400 + $349,560 = $5,429,160

Explanation:

Since Ferguson exercises significant influence over Silva Company, they must record the investment using the equity method.

How will you use PowerPoint to enhance the presentation of information and engage your audience in your professional or academic life? What are the benefits of using a PowerPoint presentation?

Answers

Answer:

Using power point to enhance the presentation of information certainly come with many different benefits which are discussed as under:

1. Visual impact can help retain the interest of audience.

2. highly flexible and persoanlization is allowed according to the needs.

3. easily embed many different tools directly into the PPT like videos, spreadsheets etc.

4. color schemes can be used and data can be presented in a compact form.

5. easy to convert into any formats like .docs or .pdf.

6. easy to share

7. user friendly

8. tons of automated templates to use on the go.

An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 has been earned. What is the correct adjusting entry that should be include?

Answers

Answer:

The answer is "$400"

Explanation:

Given:

advance payment = $ 1,000

by the end of year he earned= $ 400

So, the total eared value is $ 400 because it is the Debit unearned income.

Answer:

Debit unearned revenues for $400

Explanation:

Adjusting entries are journal entries made to record revenues and expenses accounts. These entries are made at the end of an accounting cycle.

Payment received for services on December 1 that was recorded as a liability = $1,000

Amount earned by the end of the year = $400

Therefore,

adjusting entry: Debit unearned revenues for $400 so that expenses matched to the accounting period in which the revenue paying for them is earned.

Honey Corporation, a merchandising company, reported the following results for January:
Number of units sold 5,800
Selling price per unit $892
Unit cost of goods sold $517
Variable selling expense per unit $31
Total fixed selling expense $152,600
Variable administrative expense
per unit $48
Total fixed administrative expense $390,200
Cost of goods sold is a variable cost in this company.
a. Prepare a traditional format income statement for January.
b. Prepare a contribution format income statement for January.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Number of units sold 5,800

Selling price per unit $892

The unit cost of goods sold $517

Variable selling expense per unit $31

Total fixed selling expense $152,600

Variable administrative expense per unit $48

Total fixed administrative expense $390,200

1) Traditional income statement:

Sales= 5,800*892= 5,173,600

GOGS= 5,800*517= (2,998,600)

Gross profit= 2,175,000

Selling expense= (31*5,800) + 152,600= (332,400)

Administrative expense= (48*5,800) + 390,200= (668,600)

Net operating income= 1,174,000

2) Contribution margin income statement:

Sales= 5,800*892= 5,173,600

Total variable cost= 5,800*(517 + 31 + 48)= (3,456,800)

Contribution margin= 1,716,800

Total fixed selling expense= (152,600)

Total fixed administrative expense= (390,200)

Net operating income= 1,174,000

Identify the financial statement​ (or statements) that each account would appear on. Use I for Income​ Statement, RE for Statement of Retained​ Earnings, B for Balance​ Sheet, and C for Statement of Cash Flows.

1. Accounts Payable
2. Cash
3. Common Stock
4. Accounts Receivable
5. Rent Expense
6. Service Revenue
7. Office Supplies
8. Dividends
9. Land
10. Salaries Expense

Answers

Answer: Please refer to Explanation

Explanation:

1. Accounts Payable - Balance Sheet

This is a balance sheet item under Current Liabilities. It shows the firm's or people that the company owes for buying goods on account.

2. Cash - Balance Sheet Item.

It shows the amount of cash that the company has. It is a Current Asset.

3. Common Stock - Balance Sheet Item

This is a balance sheet item that shows the amount of common stock in the company. It is reporters in the Stockholders' Equity section along with Retained Earnings, Treasury Stock and Preferred stock.

4. Accounts Receivable - Balance Sheet item

Reported in the balance sheet under the Current Assets section. It is used to denote those customers who bought goods on account from the company.

5. Rent Expense - Income Statement

This is an expense and as such is treated in the Income statement and subtracted from the revenue.

6. Service Revenue - Income statement

The company gets this when they provide a service and as such it is revenue which will be added to the company's total revenue.

7. Office Supplies - Income Statement

They should be recorded in the income statement if they are used in the period in question as they will be expenses used in the upkeep of the office.

8. Dividends - Statement for Retained Earnings

These will be reflected in the statement for retained earnings as they are subtracted from the Retained Earnings. The Retained Earnings balance reported will then be Net of Dividends.

9. Land - Balance Sheet

Land is a fixed asset and as such will appear on the balance sheet of a company.

10. Salaries Expense - Income Statement item.

As an expense, this goes to the Income statement and will be deducted fro the revenue for the period. Bear in mind that this and all other expenses should only be deducted if they are from the period in question.

The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $22.2 million, but the market value of the bonds is $28.3 million. The entry to record the retirement will include: Multiple Choice A credit to cash for $22.2 million. A credit of $6.1 million to a gain account. A debit of $6.1 million to a loss account. No gain or loss on retirement.

Answers

Answer:

A debit of $6.1 million to a loss account

Explanation:

The answer is A debit of $6.1 million to a loss account.

To calculate this:

the carrying value of the bonds $22.2 million is subtracted from the market value of the bonds $28.3 million.

Carrying value, $22.2 million, less cash paid to retire the bonds of $28.3 million

= $28.3 - $22.2

= $6.1 million to a loss account.

T/F: Risk management, a formalized way of dealing with hazards, is the logical process of weighing the potential costs of risks against the possible benefits of allowing those risks to stand uncontrolled.

Answers

Answer:

True

Explanation:

Remember, risk can be weighted using certain parameters to see whether the potential costs of those risks is lower or higher than the possible benefits of allowing those risks to stand uncontrolled.

What makes this a "logical process of thinking" is the fact that it involves a careful mental evaluation of the risk, by asking the what ifs questions about the risk.

The common stock and debt of Northern Sludge are valued at $62 million and $38 million, respectively. Investors currently require a 16.8% return on the common stock and a/an 7.2% return on the debt. If Northern Sludge issues an additional $21 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? Assume that the change in capital structure does not affect the interest rate on Northern’s debt and that there are no taxes.

Answers

Answer:

the expected return on the stock will decrease

Explanation:

total firm's value $100 million

equity $68 milliondebt $32 million

required rate of return:

cost of equity 16.8%cost of debt 7.2%

if the firm issues new stock and retires debt:

equity $89 milliondebt $11 million

The return on equity (ROE) measures how much money a company earns per dollar invested, ROE formula = net income / total equity

now let's suppose that the firm's net income is $10 million:

under the old capital structure ROE = $10 / $68 = 14.7%

now under the new capital structure net income will increase by the amount of interests saved = $21 x 7.2% = 1.512

new net income = $11.512

new ROE = $11.512 / $89 = 12.9%

following this example, the new ROE will be 12.2% lower than before because the cost of debt was much lower than the cost of equity.

as the weight of equity increases, the company's WACC will increase also:

old WACC = (68/100 x 16.8%) + (32/100 x 7.2%) = 11.424 + 2.304 = 13.728%old WACC = (89/100 x 16.8%) + (11/100 x 7.2%) = 14.952 + 0.792 = 15.744%

You are trying to get a group of students interested in forming an organization to help fight fee increases at your college. Unfortunately, things don’t seem to be going very well—nobody in your group volunteered to go to a meeting with your college president next week. You want to create a culture that is active and involved. What should you do? A. Make sure that you do what you want your team to do. If you want them to volunteer, you need to volunteer, too. B. Don't talk about taking action. Instead, get to know your team members better. C. Paint a verbal picture for your team of what life would be like if fees were reduced. D. Make sure that anyone on your team who volunteers to take action gets a reward - publicly recognize their efforts.

Answers

Answer:

The correct action is the option B: Don't talk about taking action. Instead, get to know your team members better.

Explanation:

To begin with, if the person is trying to create a group that is involved in the situation and works together then the best option to take at the beginning would be to get to know them better, so in that way the person would understand them and know what motivates each one the members in order to make them understand as well why would be benefitial for everybody to fight the fee increases and he can do that by explaining to everyone how those increases would impact in what motivates them the most. So that is why, is better to understand them and explain them later how to take action.

Answer:

The correct action is the option B: Don't talk about taking action. Instead, get to know your team members better.

Explanation:

To begin with, if the person is trying to create a group that is involved in the situation and works together then the best option to take at the beginning would be to get to know them better, so in that way the person would understand them and know what motivates each one the members in order to make them understand as well why would be benefitial for everybody to fight the fee increases and he can do that by explaining to everyone how those increases would impact in what motivates them the most. So that is why, is better to understand them and explain them later how to take action.

The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2018 2019 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses $920,000 620,000 300,000 290,000 $1,840,000 1,240,000 600,000 340,000 Net income 10,000 260,000 Additional Information a. Sales and production data for these first two years follow. 2019 30,000 40,000 2018 Units produced Units sold 30,000 20,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) S 5 10 Total product cost per unit $31 . Selling and administrative expenses consist of the following 2018 2019 Variable selling and aeministrative expenses ($2.50 per unit) Fixed selling and administrative expenses 50,000 $100,000 240,000 240,000 Total selling and administrative expenses $290,000 $340,000 neck my Work Required:Prepare income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2018 2019 Sales 920,000 1,840,000 Less: Variable costs Variable overhead Variable selling and administrative expenses 50,000 100,000 Direct labor Direct materials 50,000 100,000 Total variable costs 900,000 Contribution margin 450,000 Less: Fixed expenses 300,000 240,000 300,000 Fixed overhead 240,000 Fixed selling and administrative costs 540,000 540,000 Total foxed expenses (90,000) 360,000 Net income (loss)

Answers

Answer:

DOWELL Company Variable Costing Income Statements for 2018 and 2019:

                                              2018              2019

Sales                                     920,000     1,840,000

Less: Variable costs

Total variable costs             470,000       940,000

Contribution margin           450,000       900,000

Less: Fixed expenses:

Fixed selling costs              300,000      300,000

Fixed administrative costs 240,000      240,000

Total fixed expenses          540,000      540,000

Net income (loss)                 (90,000)     360,000

Explanation:

a) Dowell Company Income Statements under absorption costing:

                                                 2018                        2019

Sales                                     $920,000              $1,840,000

Cost of goods sold                 620,000                1,240,000

Gross margin                          300,000                  600,000

Selling & Admin. Expenses    290,000                  340,000

Net Income                                10,000                  260,000

b) Production & Sales Data:

                 Units Sold          Units Produced

2018           20,000                30,000

2019           30,000                40,000

c) Variable costing and absorption costing produce different net income results.  Variable costing takes into consideration the variable costs of production to produce a contribution while absorption costing considers the cost of goods sold to produce the gross profit.  Variable costing is more of a management accounting technique for decision making while absorption costing follows the financial accounting procedures.

If the market price of an orange increases from $0.80 to $1.05, then consumer surplus. Name First orange Second orange Third orange Allison $2 $1.5 $0.75 Bob $1.5 $1 $0.6 Charisse $0.75 $0.25 $0 Group of answer choices increases by $0.75 decreases by $0.95. decreases by $0.75 decreases by $1.00

Answers

Answer:

decreases by $0.95.

Explanation:

Here is the full question :

For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day.

First OrangeSecond OrangeThird OrangeAllison$2.00$1.50$0.75Bob$1.50$1.00$0.60Charisse$0.75$0.25$0

Refer to Table above. If the market price of an orange increases from $0.80 to $1.05, then consumer surplus

Group of answer choices increases by $0.75 decreases by $0.95. decreases by $0.75 decreases by $1.00

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Change in consumer surplus = $1.85 - $2.8 = $-0.95

Please check the attached images for an explanation on how the answer was derived.

I hope my answer helps you

Answer: decreases by $0.95.

Explanation:

Allison     $2 $1.5 $0.75

Bob         $1.5 $1 $0.6

Charisse $0.75 $0.25 $0

so consumer surplus = willingness to pay - market price

market price before = $0.80

consumer surplus before = Allison + Bob + Charisse

consumer surplus before = (1.2 + 0.7 + 0) + ( 0.7 + 0.2 + 0) + ( 0 + 0 + 0)

consumer surplus before = 2.8

market price after = $1.05

consumer surplus after = Allison + Bob + Charisse

consumer surplus after = (0.95 + 0.45 + 0) + ( 0.45 + 0 + 0) + ( 0 + 0 + 0)

consumer surplus after = 1.85

NOW

consumer surplus before - consumer surplus after

2.8 - 1.85 = 0.95

therefore consumer surplus decreases by $0.95

Mr. Grove's argument is to provide additional incentives to U.S. firms for domestic investment in more mass production. If implemented, this would have the largest impact on firms using which of the four integration-responsiveness strategies?A) Transnational strategy because such incentives help differentiation.B) Multi-domestic strategy because incentives would increase global responsiveness.C) Global-standardization strategy because incentives would lower domestic costs.D) International strategy because these incentives would reduce pressure for responsiveness globally.E) Global-standardization strategy because incentives align with the death-of-distance.

Answers

Answer:

The correct answer is the option C: Global-standarization strategy because incentives would lower domestic costs.

Explanation:

To begin with, the term of ''global-standarization strategy'' in the field of business is known because of being part of the group of the four integration-responsiveness strategies and is the one that focus in the standarization of the product in a globally way. Therefore that this type of strategy is the one that would be used in the case of looking for an investment in the mass production locally due to the fact that the firms will be producing goods in a standard way and therefore that they would use universal supplies in every production in order to increase the amount of the production to achieve a mass number.

The Old World Café’s cash register receipts showed total sales of $884. The cash equaled $534, and the credit card slips equaled $237. How much of the sales are not accounted for? What might explain the difference?

Answers

Answer:the answer is $307

Explanation: some one didn't pay

Holly would like to plan for her daughter’s college education. She would like for her daughter, who was born today, to attend college for 4 years, beginning at age 18. Tuition is currently $10,000 per year and tuition inflation is 7%. Holly can earn an after-tax rate of return of 10%. How much must Holly save at the end of each year, if she wants to make the last payment at the beginning of her daughter's first year of college?

Answers

Answer:

Holly must save $2845.81 at the end of each year

Explanation:

first calculate the value of tuition fees at n = 18

Cash flow formula = Tuition × [tex](1+0.07)^{n}[/tex]

Discounted CF formula = Cash flow ÷ [tex](1+0.10)^{year}[/tex]

               10.00%              0

Year   Cash flows   Discounted CF

0           33,799.32  33799.32

1          36,165.28  32877.52

2          38,696.84  31980.86

3          41,405.62  31108.66

FV = $129,766.37

PV = 0

N = 18

rate = 10%

using PMT function in Excel

Annual contribution = $2845.81

Jamal just inherited some money from a distant cousin overseas. He would like to put some of it in a bond and is looking at two choices. Bond A has five years to maturity, a semiannual coupon of 6% and a face value of $1,000. Bond B has ten years to maturity, an annual coupon of 4% and a face value of $1,000. Jamal knows that the rate expected in the marketplace for investments similar to these is 5%.
1. What is the present value of the coupon stream on each bond?
2. What is the present value of the face value on each bond?
3. What is the total value of each bond?
4. If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, which bond should he buy?

Answers

Answer:

i. = $262.56 , = $308.87

ii. = $781.198 , = $613.91

iii. Bond A = $1,043.76 ,  Bond B = $922.78

Explanation:

(i) Present Value of Coupon Payment

Bond A :- Semiannual Coupon Amount = $1,000 * 6% * 6 / 12 = $30

Total Semiannual Period = 5 * 2 = 10

Semiannual Interest = 5% / 2 = 2.5%

Present Value of Coupon Payment = $30 * PVAF (2.5% , 10)

= $30 * 8.752

= $262.56

Bond B :- Annual Coupon Amount = $1,000 * 4% = $40

Annual Periods = 10

Annual Interest = 5%

Present Value of Coupon Payment = $40 * PVAF ( 5% , 10)

= $40 * 7.72

= $308.87

(ii) Present Value of Face Value of Bond

Bond A = $1,000 * PVF (2.5% , 10 periods)

= $1,000 * 0.7812

= $781.198

Bond B = $1,000 * PVF (5% , 10)

= $1,000 * 0.6139

= $613.91

(iii) Total Value of Each Bond

Bond A = $262.56 + $781.198 = $1,043.76

Bond B = $308.87 + $613.91 = $922.78

(iv)If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, he should consider:

If the Bond Current Price is lower than Bond Fair Price then he should Buy the Bond

If the Bond Current Price is higher than Bond Fair Price then he should not buy  the bond

Market Price of Bond = $99

He should buy Bond A  But not Bond B

On the grant date, January 1st, 2015, the stock was quoted on the stock exchange at $63 per share. The fair value of the options on the grant date was estimated at $15 per option. The amounts of compensation expense ABC should recognize with respect to the options during 2015, 2016, and 2017 are:

Answers

Answer:

2015 $31,500

2016 $31,500

2017 $31,500

Explanation:

Number of Options in total × Fair Value of the Stock per option

Where

Number of Options in total = 63

Fair Value of the Stock per option =15

Hence:

(63*100) ×$15

=$6,300 ×$15

= $ 94,500

Compensation expense will be:

2015, 2016, and 2017 will give us 3 years

= $94,500/3

= $31,500 for 2015, 2016, and 2017

Fair value of the options is said to be evaluated on grant date and expenditure is been recognised in 3 years because the employee will be working for 3 years which is from year 2015 to 2017

Peterson Company estimates that overhead costs for the next year will be $3,500,000 for indirect labor and $870,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 92,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (Round your answer to two decimal places.)

Answers

Answer:

The company's plantwide overhead rate is $47.5

Explanation:

The total planned overhead costs for next year=$3,500,000+$870,000=$ 4,370,000.00  

machine hours as overhead allocation base is 92,000 hours

company's plantwide overhead rate =total planned overhead/overhead allocation base(machine hours)

company's plantwide overhead rate=4,370,000.00/92000=$47.5

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