company's overall net operating income
Q: What is the order of the subtotals that appear on a multi-step income statement? Gross Profit,…
A: Multi step income statement: A multiple step income statement refers to the income statement that…
Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…
A:
Q: what would be the annual impact on the company's overall net operating income?
A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…
Q: What items are included in the company's operating income?
A: The performance of the company will be evaluated using the operating income of the company.…
Q: How financial analysis is used in company? Evaluate some example analysis?
A: Financial analysis is an analysis of financial information and it helps in assessing the performance…
Q: Briefly explain the internal characteristics that influence the rate of return for a company.
A: The rate of return is the discount rate that is the minimum rate of return which should be achieved.…
Q: Describe the earning power of a company.
A: Earnings power of a firm: It could be a metric that transmits the capacity of a company to create a…
Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…
A: Financial statements are considered as the report which is prepared by a business in order to…
Q: Which ratio would a company most likely use to measure its ability to meet short-termobligations?B .…
A: The current ratio is a liquidity ratio that measures a company's ability to pay short-term…
Q: This ratio is used to reflect t profit earning performance firm's assets return on assets net profit…
A: Solution: Profit earnings performance of the company's assets means that how much of the company's…
Q: How much is the Total Service and Business Income collected
A: Total service income collected: Particulars Amount(P) Permit Fee 410000 Processing fee 8000…
Q: Compute basic and diluted earnings per share for a business combination.
A: Basic EPS refers to company's profits divided by number of outstanding shares. Diluted EPS refers to…
Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…
A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…
Q: The revenue cycle of a company generally includes which accounts?a. Inventory, accounts payable, and…
A: Revenue Cycle: Revenue cycle records all the transactions that originate from selling a product and…
Q: What is the purpose of published financial statements for companies and the ratio analysis?
A: Financial Statement-Financial statements provide information about a company's performance,…
Q: HOW DO I FIGURE OUT RETAINED EARNINGS on an income statement
A: Retained earnings is the amount retained from the profits of the company after deducting dividends…
Q: The comparison of a company's financial condition and performance to a base amount is known as
A: The financial performance identifies how successfully a firm makes revenues and manages its assets,…
Q: How much was the profit of the company
A: Profits of the company for Year 2020 = Accumulated losses of year 2020 - Accumulated losses of year…
Q: What are the two ways companies can present comprehensive income?
A: Comprehensive income: Comprehensive income represents the amount of net income plus other…
Q: If a company capitalizes costs that should be expensed, how is its income statement for the current…
A: Any capitalization cost increases the assets and there will be no impact on the income statement.…
Q: Why a company needs to publish the ratio analysis and financial statements of the companies
A: Ratio analysis and financial statements of the company provides a clear image on the financial…
Q: Subject: FINANCIAL MANAGEMENT Essay: 1. What is the effect of the Current Ratio to the company’s…
A: Explanation to Current ratio The current ratio is referred to as the liquidity ratio used to…
Q: If a company capitalizes costs that should be expensed, how is its income statement for the…
A: A capitalized cost seems to be an element that is added to the cost structure of a fixed asset on a…
Q: A company’s current fi nancial position would best be evaluated using the:B . income statement.
A: Financial position of the company is very much important especially for investors to make their…
Q: How to calculate or compute the operating income and the net income
A: Operating Income: Income generated from the business operation is called operating income. In simple…
Q: What criteria determine whether a company can recognize revenue over time?
A: Revenue is recognized over time if one of the following conditions is met: The customer…
Q: What are Financial Statements of a company and what do they tell about a company?
A: Studying a company's financial statement is an integral part of fundamental analysis. Its integral…
Q: company analysis and value based on accounting data
A: The Answer
Q: Calculated earnings per share, price earning ratio, and dividend payout ratio.
A: Formula: EPS= Net Income(PAT)- Preferred DividendNo of Outstanding Common Shares PE Ratio= Market…
Q: How to calculate earnings per share.
A: Earnings per share represent the amount of income earned per share of outstanding common stock in a…
Q: What does the current ratio inform you about a company? A. The efficient use of assets. B. The…
A: Current Ratio : The current ratio is the relation between the current assets and current liabilities…
Q: how is profit or loss calculated on an income statement?
A: Profit and loss is calculated as below-
Q: What does earnings per share report, and how is it calculated?
A:
Q: Define comprehensive income. What are the two ways companies can present comprehensive income?
A:
Q: Briefly describe the external characteristics that influence the rate of return for a company.
A: The rate of return for a company is the net gain or loss a project generates over the period of…
Q: Compute the total profit or loss for the company.
A: Total profit for the company is the profit which has been added together from all the separate…
Q: What is the significance of a pro forma income statement in the context of a company?
A: Define the term: The phrase "for the sake of form" refers to the pursuit of formality. It is used to…
Q: The ownership ratio measures financial leverage or the ratio of owner's equity to total assets total…
A:
Q: How does comprehensive income differ from net income? Where do companiesreport it in a balance…
A: Definition: Comprehensive income: Comprehensive income represents the amount of net income plus…
Q: What is “comprehensive income”? Its composition varies from company to company but may include which…
A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…
Q: Explain the difference between NOPAT and net income. Which is a better measure of the performance of…
A: The net operating profits after taxes (NOPAT) is the operating profits after taxes. It includes all…
Q: earnings per share
A: Earnings per share is an accounting metric used to evaluate the earnings available to equity…
How much is the company's overall net operating income?
Step by step
Solved in 3 steps
- Product costing and decision analysis for a service company Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its products. The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow: Total patient days are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a four-day stay in the hospital.) During a portion of the year, Pleasant Stay collected patient information for three selected procedures, as follows: Private insurance reimburses the hospital for these activities at a fixed daily rate of 406 per patient day for all three procedures. Instructions Determine the activity rates. Determine the activity cost for each procedure. Determine the excess or deficiency of reimbursements to activity cost. Interpret your results.Big Mikes, a large hardware store, has gathered data on its overhead activities and associated costs for the past 10 months. Nizam Sanjay, a member of the controllers department, believes that overhead activities and costs should be classified into groups that have the same driver. He has decided that unloading incoming goods, counting goods, and inspecting goods can be grouped together as a more general receiving activity, since these three activities are all driven by the number of receiving orders. The 10 months of data shown below have been gathered for the receiving activity. Required: 1. Prepare a scattergraph, plotting the receiving costs against the number of purchase orders. Use the vertical axis for costs and the horizontal axis for orders. 2. Select two points that make the best fit, and compute a cost formula for receiving costs. 3. Using the high-low method, prepare a cost formula for the receiving activity. 4. Using the method of least squares, prepare a cost formula for the receiving activity. What is the coefficient of determination?Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $57,540 and the total conversion cost is $36,036. Using the weighted-average method, what are the unit costs if the company transferred out 17,000 units? What is the value of the inventory transferred out and the value of the ending WIP inventory?
- Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?Mott Company recently implemented a JIT manufacturing system. After one year of operation, Heidi Burrows, president of the company, wanted to compare product cost under the JIT system with product cost under the old system. Motts two products are weed eaters and lawn edgers. The unit prime costs under the old system are as follows: Under the old manufacturing system, the company operated three service centers and two production departments. Overhead was applied using departmental overhead rates. The direct overhead costs associated with each department for the year preceding the installation of JIT are as follows: Under the old system, the overhead costs of the service departments were allocated directly to the producing departments and then to the products passing through them. (Both products passed through each producing department.) The overhead rate for the Machining Department was based on machine hours, and the overhead rate for assembly was based on direct labor hours. During the last year of operations for the old system, the Machining Department used 80,000 machine hours, and the Assembly Department used 20,000 direct labor hours. Each weed eater required 1.0 machine hour in Machining and 0.25 direct labor hour in Assembly. Each lawn edger required 2.0 machine hours in Machining and 0.5 hour in Assembly. Bases for allocation of the service costs are as follows: Upon implementing JIT, a manufacturing cell for each product was created to replace the departmental structure. Each cell occupied 40,000 square feet. Maintenance and materials handling were both decentralized to the cell level. Essentially, cell workers were trained to operate the machines in each cell, assemble the components, maintain the machines, and move the partially completed units from one point to the next within the cell. During the first year of the JIT system, the company produced and sold 20,000 weed eaters and 30,000 lawn edgers. This output was identical to that for the last year of operations under the old system. The following costs have been assigned to the manufacturing cells: Required: 1. Compute the unit cost for each product under the old manufacturing system. 2. Compute the unit cost for each product under the JIT system. 3. Which of the unit costs is more accurate? Explain. Include in your explanation a discussion of how the computational approaches differ. 4. Calculate the decrease in overhead costs under JIT, and provide some possible reasons that explain the decrease.
- Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Last year, Brody completed 100,000 units. Sales revenue equaled 1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: 1. Calculate the direct materials used in production for last year. 2. Calculate total prime cost. 3. Calculate total conversion cost. 4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost. 5. Prepare a cost of goods sold statement for last year. 6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following overhead costs and related cost drivers for the coming year. The following were incurred in manufacturing two of their cell phones, Bubble and Burst, during the first quarter. REQUIREMENT Review the worksheet called ABC that follows these requirements. You have been asked to determine the cost of each product using an activity-based cost system. Note that the problem information is already entered into the Data Section of the ABC worksheet.Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
- Ventana Window and Wall Treatments Company provides draperies, shades, and various window treatments. Ventana works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Ventanas income statement for last year is as follows: Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information: Required: 1. Calculate the cost per treatment for April. 2. Calculate the cost of services sold for April. 3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment?The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?