ABC Company had sold 500 pieces of handbags at 150 pesos each in just one month period. The company is positive to increase their sales by 10% per month. The cost of goods sold is 75 pesos. The operating and administrative expenses is 50,000 pesos per month. How much will be the total income at end of the year without EBIT?
Q: Entry for Cash Sales; Cash Over The actual cash received from cash sales was $14,953 and the amount…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Mary Maywood opened Maywood Cleaners on March 1, 2022. During March, the following transactions…
A: Since you have posted question with multiple sub-parts we will do the first three sub-parts for you.…
Q: Whirlpool Corporation's most recent income statement is shown below: Total Per Unit Sales (10,000…
A: Calculation of Net Operating Income if Sales volume increases by 100 units Amount Sales…
Q: Business Unit A, the supplying business unit, is selling to an outside market. It has excess…
A: Transfer Pricing Transfer pricing is important in the inter transfer for product transferred from…
Q: The actual information pertains to the third quarter. As part of the budgeting process, the Duck…
A: Static budget of variable cost for 19000 units = $185,000
Q: Q1 (a) Identify each of the following cash items whether it is fixed cost, variable cost, sunk cost,…
A: Based on their nature, Cost can be classified as under: Fixed Variable Semi Variable Sunk…
Q: To pay off a P100,000 loan , it is required that 20 semi -annual payments that is increased by…
A: A) P2,854 Explanation:
Q: on December 31, 2022 to be ab d of each month for the next 2 mount on deposit will earn ann d…
A: Given as, PMT=4000 RATE =2%/12 N=25 x 12=300
Q: 70,500 Salary Expense Accounts Receivable 90,000 Accumulated Depreciation-Equipment 14,800 3,600…
A: Income Statement is a part of Financial Statements. It shows the Net Income earned or net loss…
Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…
A: Income or loss from discontinued segment that should be shown in income statement = Post tax Income…
Q: 13. Which of the following would not result in the recording of an expense? a Receipt of a bill…
A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…
Q: (b) What is the break-even sales in RM for an operation that sells 615 products at RM 17.50 if each…
A: Break even sales in RM = Fixed cost/Contribution margin ratio
Q: Lucky Food Stores wishes to prepare a cash budget for the month of April, 2022. Total Sales for…
A: Cash collections in April from April sales = April sales x 80% Cash collections in April from March…
Q: What is true of budgets?
A: Budget: Budget is an estimation of revenue and expenses over a specific period of time. It's a…
Q: On January 1, 2021, Abba Company sold a piece of equipment to Bacus Company with a cost of…
A: Annual Payment = P×r×1+rn1+rn-1 where, P= principal amount= P4,000,000 r= rate of interest= 10% n=…
Q: mples where accounting is used as aid in performing the management funct
A: Basic Accounting Concept Management Information System
Q: Which of the following checks can not be encashed but instead merely deposited? . Stale check…
A: Introduction: Banks: Banks accepts deposits from the customers and gives loans to the needy people.…
Q: The DWMR Corporation was incorporated on March 1, 2021 with the followiee authorized share capital:…
A: Memorandum method is a short message type entry method of recording transactions of share capital.…
Q: 1. Provide ALL adjustments by the end of 2017 (all journal entries have to have account numbers). he…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Firsts step…
Q: the following information: Account Balance (Alphabetical Order) ($) Direct Labor Cost 400 Direct…
A: The conversion cost comprises of direct labor and manufacturing overhead cost.
Q: 12. Ernesto, Inc has projected average earnings every year of Php 100,000,000. Debt to Equity Ratio…
A: Economic value added (EVA) = NOPAT – (WACC × Capital invested) Here, NOPAT = Net operating profit…
Q: 14.When a company has performed a service, but has not yet received payment, it would a. Debit…
A: Introduction:- When a company has performed a service, but has not yet received payment, journal…
Q: Wisconsin also paid $32,600 to a broker for arranging the transaction. In addition, Wisconsin paid…
A: Introduction:- A corporation's shares are units of equity ownership. Shares serve as a financial…
Q: ls in the month of purchase, 25% of a month's purchase of direct materials is paid in the month…
A: Accounting for Budget Control, Budgeting Material Purchase Budget Accounts Payable Budget
Q: proft what sales volume (in sales revenue) must Stewart now achieve? (Round your answer up te the…
A: 1) Target Sales= (Fixed Expenses + Operating Income)/Contribution Ratio = (620000+298000)/60%…
Q: b. What i
A: Given as,
Q: FILL - UP THE MISSING AMOUNTS: Sales CGS GP 40% Expenses 421,800 Net Profit 58,200 INSTRUCTIONS: DO…
A: In this reverse calculation needs to be done Gross profit = Net profit + expenses Sales - COGS =…
Q: Bob Night opened "The General's Favorite Fishing Hole." The fishing camp is open from April through…
A: The closing entries are prepared at year end to close the temporary accounts of the business…
Q: A machine has a first cost of P97,198.62 and has an expected salvage value after 10 years…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: solve balance sheet, statement of retained earnings, income statement, and trial balance. Sandhill…
A: The financial statement reflects the financial performance and position of the company in the…
Q: Accounts Receivable of the Fakler Manufacturing Co. on December 31, 1984, had a balance of…
A: The allowance for doubtful accounts is created to record the balance for estimated bad debts…
Q: Which of the following accounts would be increased with a credit? a Supplies Expense b Supplies c…
A: ACCOUNT get credit whenever there is either the balance is equity and liability or the revenue.…
Q: n July 1, 2020 Waterway's Greenhouse purchased a new delivery truck for $100,000. Waterway estimates…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Chris purchased a new John Deere tractor for his farming business on 15 May 2018. He paid $45 000…
A: Depreciation is the value of asset, which has been used and we can find annual depreciation on fixed…
Q: The plan of reorganizing for Taylor Companies, Inc, was approved by the court, stockholders, and…
A: a. Taylor Companies, Inc. Plan of Reorganization Recovery Analysis December 31, 20X1…
Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…
A: The net income is calculated as difference between revenue and expenses of the business.
Q: 1. Cash balance according to the company's records at August 31, $25,520. 2. Cash balance according…
A: Introduction: Bank reconciliation statement: To reconcile the difference between pass book and cash…
Q: Required information (The following information applies to the questions displayed below.) Donnie…
A: Stockholders' equity section is a part of Company's balance sheet which consists of Contributed…
Q: and worked on three job orders during Year 1 for which data follow. (Assume that all transactions…
A: The answer is stated below:
Q: A strategic systems plan is a major output of the steering committee and 2. professional's in-charge…
A: The Strategic Systems Planning methodology or SSP is applicable to any type of organizations. It…
Q: You have calculated, using the high-low method, a variable cost per machine hour of $0.80 for your…
A:
Q: Question 4 A corporation sold 16,000 shares of its $11 par value common stock at a cash price of $10…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: ements for tax exemption C. Type of for-profit business that also has a social mission D. Type of…
A: The definition of S corporation as,
Q: Mr. A and Mrs. B are maried and have two dependent children. X & Y, They also fully support Mrs. B's…
A: The taxable income is the amount on which taxpayers’ tax liability is determined. The taxable income…
Q: Given the building layout for Store A, Store B, Store C, and Store D, what portion of the shared…
A: Cost refers to the amount expended by an entity as a consideration for acquisition of goods or…
Q: Amber Wison owner ot Canyon Canoe Company decides to start a new company that wil be operated as a…
A: When cash dividend is declared to the shareholders then it becomes current liability of the company…
Q: 8. Choose the best scenario when the price level falls: * When the money supply falls, the interest…
A: Inflation occurs due to various factors related to supply of money in the economy and the costs of…
Q: 27.The links between the financial statements are a. Ending capital from the statement of owner’s…
A: The financial statements comprises of income statement, statement of owners equity and Balance…
Q: NSTRUCTION 1. Compute the amount to be capitalized as an asset for the lease of the milling machine…
A: Concept of Lease accounting
Q: Once the age and service requirements are met, an employee must begin participating no later than…
A: As per our protocol we provide solution to the one question only and you have asked two questions in…
Step by step
Solved in 2 steps with 3 images
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
- Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.
- Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Poleski Manufacturing, which maintains the same level of inventory at the end of each year, provided the following information about expenses anticipated for next year: The selling price of Poleskis single product is 16. In recent years, profits have fallen and Poleskis management is now considering a number of alternatives. Poleski wants to have a net income next year of 250,000, but expects to sell only 120,000 units unless some changes are made. The president of Poleski has asked you to calculate the companys projected net income (assuming 120,000 units are sold) and the sales needed to achieve the companys net income objective for next year. Also, compute Poleskis contribution margin per unit, contribution margin ratio, and break-even point for next year. The worksheet CVP has been provided to assist you. Note that the data from the problem have already been entered into the Data Section of the worksheet.Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
- The Raattama Corporation had sales of $3.5 million last year, and it earned a 5% return (after taxes) on sales. Recently, the company has fallen behind in its accounts payable. Although its terms of purchase are net 30 days, its accounts payable represents 60 days’ purchases. The company’s treasurer is seeking to increase bank borrowing in order to become current in meeting its trade obligations (that is, to have 30 days’ payables outstanding). The company’s balance sheet is as follows (in thousands of dollars): How much bank financing is needed to eliminate the past-due accounts payable? Assume that the bank will lend the firm the amount calculated in part a. The terms of the loan offered are 8%, simple interest, and the bank uses a 360-day year for the interest calculation. What is the interest charge for 1 month? (Assume there are 30 days in a month.) Now ignore part b and assume that the bank will lend the firm the amount calculated in part a. The terms of the loan are 7.5%, add-on interest, to be repaid in 12 monthly installments. What is the total loan amount? What are the monthly installments? What is the APR of the loan? What is the effective rate of the loan? Would you, as a bank loan officer, make this loan? Why or why not?A company produces 400 units per month and the unit is sold at 1,800 pesos each. The dividends are 0.08 on 8,000 shares with per value of 25 pesos each. 25,000 pesos is the monthly operation cost, and the other costs of 1,000 pesos per unit. Determine the break even point in pesosBerry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35 days and has an Average Collection Period of 60 days. The firm’s annual sales are $3.5 million. Assume there is no difference in the investment per dollar of sales in inventory, receivable, and payables and that there is a 365-day year. A. Calculate the Firm’s Operating Cycle. B. Calculate the Firm’s Cash Conversion Cycle. C. Calculate the Firm’s Daily Cash Operating Expenditure.