Igloo corporation operates two stores A and B. the following relates to store B; Sales revenue 87,000 variable operating expenses 39,000 fixed expenses traceable to b and controllable by B 5,000 traceable to b and controllabe by others 22,000 The profit margin controllable by store B's manager os:
Q: Windsor Company exchanged equipment used in its manufacturing operations plus $3,480 in cash for…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Antonio's bank foreclosed on his retail building when he stopped making loan payments. The…
A: If the borrower borrows a loan to purchase a property then he has to secure that loan by purchased…
Q: The senior buyer at How Does Your Garden Grow Inc. needs to select a supplier for plastic patio…
A: A weighted scoring model is used by management as a project management tool to weigh the…
Q: How does the concept of uniformity relate to comparability in the accounting literature?
A: Accounting, which is frequently referred to as simply "accounting," is the process of gathering,…
Q: Purchase the software from ABC Corporation. The agreement with ABC will allow XYZ inc to operate and…
A: Accounting Standard Codification (ASC) is the proprietary set of authoritative guidelines governing…
Q: EH.6 (LO 3), AP At December 31, 2022, the trading debt securities for Gwynn, Inc. are as follows.…
A: There are three types of securities in which a firm can make investment; 1) Trading securities, 2)…
Q: RDX Corporation produces washing machines and has always manufactured all the necessary parts. An…
A: Working: Relevant production cost per unit = Direct materials + Direct labor + Variable…
Q: What does a quick ratio show?
A: The study or analysis of the line items in the company's financial statements is known as a ratio.…
Q: State and local governments are likely to follow which of the following:
A: The correct answer is: (B) GASB State and local governments are likely to follow GASB because all…
Q: on july , family company recorded merchandise inventory on account , $50,000. the sales were…
A: JOURNAL ENTRIES Journal Entry is the First stage of Process of Accounting. Journal is the…
Q: A $8,500 bond had a coupon rate of 5.75% with interest paid semi-annually. Christopher purchased…
A: The valuation of a bond is done by discounting the future cash flows from such bond at the market…
Q: Which of the following statements is/are FALSE:
A: 1.Prudence convention: It is also known as Conservatism Principle . In this anticipated revenues…
Q: Which of the following are guidelines for minimizing behavioral problems associated with…
A: When there is significant change in the information system of the organization there were many…
Q: Read through the information below for selected transactions during the month of December, 2021 and…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Problem 20-2 (Algo) Change in principle; change in method of accounting for long-term construction…
A: Answer - The statement of shareholders' equity is a financial report of a company that shows the…
Q: A cash-generating unit comprises the following assets: £000 Goodwill 220 Land 1,280 Plant…
A: Impairment loss is the difference which arise when the carrying value of the asset or cash…
Q: Discuss arguments supporting the need for improving the Statement of Cash Flows (SCF). What…
A: 1. The SCF is an important financial statement for understanding the financial health of a business.…
Q: The master budget at Monroe Manufacturing last period called for sales of 42,000 units at $42 each.…
A: Variance arises when the actual cost is different from the budgeted cost. The variance is favorable…
Q: I am struggling to find a few of the answers. Flexible Budget Application The cutting department…
A: FLEXIBLE BUDGET A Flexible Budget is a Budget that adjusts to a Company's Activity or Volume…
Q: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize…
A: Defination: A journal entry is how a business writes down every single financial transaction in its…
Q: Problem 11-4B Prepare a statement of cash flows—indirect method (LO11-2, 11-3, 11-4, 11-5) The…
A: Answer - Statement of cash flows using the indirect method - The indirect method of cash flow…
Q: Kuldip's factory manufactures toys that sell for $29.95 each. The variable cost per toy is $11, and…
A: Break Even Point :— It is the point at which total cost is equal to total revenue. At this point,…
Q: Tyson Corporation reported pretax income from operations in Year 1 of 92,000 (the first year of…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: The benefit of an IDIT over a GRAT is: 1. The full value of the remainder interest is a transfer…
A: IDIT and GRAT are wealth transfer strategies that help in successful transfer of wealth from one…
Q: Suppose you made $63,245 of income from wages and $784 of taxable interest. You also made…
A: Computation of total income: Particulars Amount (A)Income from wages $63,245 (B)Interest…
Q: The manager of Synergy Company's Stock Division projects the following for next year: Sales…
A: Introduction:- The formula for calculating the residual income is as follows. Residual Income =…
Q: Par Inc purchased 70.57% of Sub Corp's total outstanding voting shares for $275,447 on January 1,…
A: Option d is the ans
Q: Suppose your company sells goods for $300, of which $200 is received in cash and $100 is on account.…
A: The sum of money a business earns from continuous, routine business operations, such as producing…
Q: What is meant by normal balance in accounting?
A: Accounting is the process of recording, classifying, posting, analysing and measuring the results…
Q: 15. Boise Company's investments in available-for-sale secu- rities at December 31 show total cost of…
A: An adjusting entry is a modification you make to the books to better reconcile your income and…
Q: ABC Company began operations on January 1, 2023 by issuing 5,000 shares of 8%, $20 par value…
A: The dividend is paid to the shareholders from the retained earnings of the business. The dividend in…
Q: Sell or Process Further Pharmaco Corporation buys three chemicals that are processed to produce…
A: The question is based on the concept of Cost Accounting.
Q: PROBLEM 3: 1. Big Publisher Co. has a publishing contract with Mr. Juan Lapis. An intangible asset…
A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Part B RDX uses flexible budgets to control its selling expenses. Variable costs as a percentage of…
A: A budget that can be adapted to the activity or volume levels of a corporation is referred to as a…
Q: 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par for $20,000. 3. Recorded…
A: Journal entries are posting of transactions in a form where two or more accounts are simultaneously…
Q: Andit sampling involves applying an audit procedure to less than 100 percent of the population for…
A: (a) Audit sampling is an audit technique which is used to provide supporting evidence to form an…
Q: You are given the following data in relation to two items held in inventory.
A: Inventory is the current asset of the company that is involved in the production process. It is…
Q: Long-Term Performance Report Nabors Company had actual quality costs for the year ended June 30,…
A: Actual cost refers to the amount that an industry incurs when it produces a product. This cost…
Q: What is the gross profit Major Motors earned last month?
A: Gross profit is the profit that earned by the company after deducted the expenses relating to the…
Q: Ma 1. Amanda is in her 70s, is in good health, and lives in a large house in a rural area. Amanda…
A: Please see the answer below: Gift tax rules and tax consequences in the case of Amanda Gift tax…
Q: Brief Exercise 7-11 (Static) Record depreciation using straight-line method (LO7-4) On January 1,…
A: Depreciation is the reduction in the value of an asset over time. Depreciation as per Straight line…
Q: etermining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new…
A: Answer : Calculation of cost of land : Particular Amount Initial cost $27,000 Short term note…
Q: Which of the following statements is/are FALSE: I. US GAAP allows less accounting choice than IFRS.…
A: Answer:- Financial reporting:- Typically done on a quarterly or annual basis, financial reporting…
Q: Based on the following information, compute cash flows from investing activities under GAAP.…
A: Cash flow from investing activities: It is a section of the cash flow statement that shows the cash…
Q: Carol Components operates a Production Division and a Packaging Division. Both divisions are…
A: The Question is based on the concept of Cost Accounting. Transfer price is the price at which the…
Q: ABC Company and XYZ Company reported the following condensed Statements of Financial Position on…
A: A consolidated financial statement is a collection of financial statements of all the subsidiary…
Q: For a project with an initial investment of $30,000 and cash inflows of $12,000 a year for three…
A: Net Present Value : The net present value (NPV) approach is used to calculate the present value of…
Q: XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating…
A: Answer - Cashflow Using Indirect Method - Cashflow using Indirect Method starts with net income…
Q: OA Company recently hired a payroll service provider to process its payroll—that service provider…
A: It is the responsibility of the auditors at OA to ensure that the payroll service provider's most…
Q: Blue Corp. has outstanding accounts receivable totaling $3.37 million as of December 31 and sales on…
A: When a collectable is no longer collectable due to a patient's inability to pay a debt a result of a…
Igloo corporation operates two stores A and B. the following relates to store B;
Sales revenue 87,000
variable operating expenses 39,000
fixed expenses
traceable to b and controllable by B 5,000
traceable to b and controllabe by others 22,000
The profit margin controllable by store B's manager os:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- GROSS PROFIT SECTION OF DE PART MENT AL INCO ME ST ATE MENT Bill Walters and Alice Jennings are partners in a business called Walters and Jennings Sportswear that sells athletic footwear. They have organized the business on a departmental basis as follows: running shoes, walking shoes, and specialty shoes. At the end of the first year of operation, the sales and cost of goods sold for the three departments are as follows: Prepare the gross profit section of a departmental income statement for the year ended December 31, 20--. Show the gross profit for each department and for the business in total.The following information is from Good Read Books. Good Read is a regional book store with three regional stores. The May income statement for all stores is shown. A. Comment on the operating income results for each store. B. Now assume the costs allocated from corporate is an uncontrollable cost for each store. How does this change your assessment of each store?Pink Company operates a store with two departments: Videos and Music. Information about those departments follows: Videos Music Sales $370,500 $279,500 Cost of Goods Sold 320,000 175,000 Operating Expenses: Salaries 35,000 25,000 Maintenance 12,000 10,000 Utilities 5,000 4,500 Insurance 4,200 3,700 The company also incurred the following service department charges: Advertising $15,000 Salaries 27,000 Office Expenses 3,200 Service department charges are allocated to the departments as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of Employees Videos 5,000 3 Music 3,000 2 Directions: Use the above information to prepare a Divisional Income Statement for Pink Company for the year ended December 31, 2019.
- Solomon Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 107,280 Cost of goods sold 58,875 Gross margin 48,405 Operating expenses Selling expenses (2,680 ) Depreciation expense (4,135 ) Operating income 41,590 Nonoperating item Loss on sale of land (4,000 ) Net income $ 37,590 BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Assets Cash $ 12,532 Accounts receivable 40,316 Merchandise inventory 36,900 Equipment less accumulated depreciation 90,288 Nonoperating assets 9,600 Total assets $ 189,636 Liabilities Accounts payable $ 9,447 Notes payable 67,000 Stockholders’ equity Common stock 70,000 Retained earnings 43,189 Total liabilities and stockholder's…Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A B C Sales $ 330,000 $ 480,000 $ 500,000 Cost of goods sold (242,000 ) (184,000 ) (190,000 ) Sales commissions (30,000 ) (44,000 ) (44,000 ) Contribution margin 58,000 252,000 266,000 General fixed operating expenses (allocation of president’s salary) (92,000 ) (92,000 ) (92,000 ) Advertising expense (specific to individual divisions) (6,000 ) (20,000 ) 0 Net income (loss) $ (40,000 ) $ 140,000 $ 174,000 Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Options for required A table are: Advertising…Adams Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ADAMS COMPANY Income Statements for Year 2 Segment A B C Sales $ 166,000 $ 250,000 $ 265,000 Cost of goods sold (126,000 ) (79,000 ) (77,000 ) Sales commissions (22,000 ) (23,000 ) (32,000 ) Contribution margin 18,000 148,000 156,000 General fixed operating expenses (allocation of president’s salary) (39,000 ) (50,000 ) (25,000 ) Advertising expense (specific to individual divisions) (5,000 ) (15,000 ) 0 Net income (loss) $ (26,000 ) $ 83,000 $ 131,000 Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.
- Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company’s organization chart appears below. Operating data for 20x1 follow. BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x1 (in thousands) Columbus Division Olentangy Store Scioto Store Downtown Store Cleveland Division (total for all stores) Sales revenue $ 5,000 $ 2,400 $ 11,000 $ 21,000 Variable expenses: Cost of merchandise sold 3,000 2,000 6,000 12,000 Sales personnel—salaries 400 300 750 1,600 Sales commissions 50 40 90 200 Utilities 80 60 150 300 Other 60 35 120 250 Fixed expenses: Depreciation—buildings 120 90 250 470 Depreciation—furnishings 80 50 140 290 Computing and billing 40 30 75 160 Warehouse 70 60 200 450…A condensed income statement for the Commercial Division of Maxell Manufacturing Inc. for the year ended December 31, 20Y9, is as follows: 1 Sales $3,850,000.00 2 Cost of goods sold 2,420,000.00 3 Gross profit $1,430,000.00 4 Operating expenses 1,045,000.00 5 Income from operations $385,000.00 6 Invested assets $2,750,000.00 Assume that the Commercial Division received no charges from service departments. The president of Maxell Manufacturing has indicated that the division’s return on a $2,750,000 investment must be increased to at least 18.00% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $313,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would exceed the amount of depreciation expense on the old equipment by $108,000. This increase in…Carriveau Corporation has two divisions: Consumer Division and Business Division. The following data are for the most recent operating period: Consumer Division Business Division Sales $ 331,000 $ 245,000 Variable expenses $ 102,610 $ 58,800 Traceable fixed expenses $ 149,000 $ 139,000 The company's common fixed expenses total $63,360. The Business Division's break-even sales is closest to: a $488,153 b $266,263 c $218,355 d $182,895
- Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $162,000. The following are the operating results for the two stores for the year: Downtown Docklands Sales revenue $ 720,000 $ 900,000 Number of employees 45 30 Required: Allocate the cost of the corporate activities to the two stores based on: Number of employees. store revenue.Richmond's is a retail store with eight departments, including a garden department that has been operating at a loss. The following condensed income statement gives the latest year's operating results: Garden Department All Other DepartmentsSales. $168,000 $1,200,000. Cost of sales. 100,800 780,0.00. Gross profit. 67,200. 420,000. Direct expenses. 54,000. 136,500 Common expenses. 24,000. 156,000. Total expenses. 78,000. 292,500. Net income (Loss) $(10,800) $127,500 . Calculate the gross profit percentage for the garden department and for the other departments as a group. Garden department _____________ Other departments ____________ Suppose that if the garden department were discontinued, the space occupied could be rented to an outside…Richmond's is a retail store with eight departments, including a garden department that has been operating at a loss. The following condensed income statement gives the latest year's operating results: Garden Department All Other Departments Sales $504,000 $3,600,000 Cost of sales 302,400 2,340,000 Gross profit 201,600 1,260,000 Direct expenses 162,000 409,500 Common expenses 72,000 468,000 Total expenses 234,000 877,500 Net income (Loss) $(32,400) $382,500 a. Calculate the gross profit percentage for the garden department and for the other departments as a group. Garden department _______% All other departments _______% b. Suppose that if the garden department were discontinued, the space occupied could be rented to an outside firm for $27,000 per year, and the common expenses of the firm would be reduced by $6,700. What effect would this action have on Richmond's net income? (Ignore income tax in your calculations.) Richmond's net income…
