Assume a company reported the following results: $ 400, 000 260,000 Sales Variable expenses Contribution margin Fixed expenses 140,e00 40,eee Net operating income S 100, eee Average operating assets $ 450, e00 The return on investment (RO) is closest to: Multiple Choice 88.9%
Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…
A: Bond Valuation Need to calculate the Issue price of the Bond No of Bond Issued = 15 Face Value of…
Q: Under accrual basis, rental income of Hamilton company for the current year is P300,000. Additional…
A: Lets understand the basics. Unearned income is a income for which cash has already been received but…
Q: pays for a major portion of the cost of the marketing campaign. Calculate the last row, and check…
A: Calculations for last row: Revenue for year +2 = Car sales x # of packs per car x Price per pack…
Q: Jake desires to invest P 200,000 for x capital and profit and loss interest in the partnership of…
A: Partnership is kind of business formation which helps two or more individuals to come together and…
Q: OST ACCOUNTING CALCULATION FOR TOTAL ANNUAL COST
A: Calculation of annual holding inventory of the component = [ Buffer inventory + ( EOQ/2 ) ] x…
Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…
A: Par value = $5,000 Coupon = 8% Yield to maturity = 7.3%
Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200,000 down…
A: The standard amount of deduction for interest expense for the year 2021 is determined to be $12,550…
Q: Using the MACRS rates from the following table, what is the book value of a $2,500 computer after 5…
A: Book Value of Asset: Book value is equivalent to the cost of holding an asset on a company's balance…
Q: Required: (a) Calculate Direct materials price and quantity variances. (b) Calculate Direct labour…
A: Introduction : The discrepancy between the standard cost of materials generated from production…
Q: Could you please explain how you get the 76,250 in the cash dividend formula? I was thinking it…
A: What is meant by Dividend? It is the distribution of net income done by the company to its…
Q: ROI, Residual IncomeThe following selected data pertain to the Argent Division for last year:Sales…
A: Calculation of Residual income Residual Income = Net Income - Minimum required amount of return…
Q: Please answer the following questions 1. _________________ is the discounted net future cash…
A: Profitability Index= PV of cash inflows/Initial cash outlay where, PV= Present Value Balanced…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company’s accounting…
A: Answer 1) Statement of Cost benefit of Special order Amount (In $) Sales (14…
Q: Solve using amortization table with steps
A: Loan amortization is the loan schedule table in which all the payments, interest charges and what…
Q: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…
A: Formula: Gain on sale of equipment = Asset sale value - Net book value of Asset
Q: Burger Chef acquired a delivery truck on March 1, 2021, for $31,600. The company estimates a…
A: Formula: Depreciation per mile = ( Asset cost - Salvage value ) / Estimated miles
Q: For February, sales revenue is $596,000, sales commissions are 7% of sales, the sales manager's…
A: The selling expenses are the operating expenses including sales commission, sales manager salary,…
Q: Multiple Choice
A: The accounting of contingent liabilities As per GAAP, contingent liabilities can be broken down into…
Q: Northwest Fur Co. started the year with S93,000 of merchandise inventory on hand. During the year,…
A: Formula: Net purchases = Purchases - Purchase returns + Freight - Purchase discount
Q: Cost BehaviorSmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has…
A: Answer 1) The diver for Overhead Activity is NUMBER OF SMOKERS. Answer 2) Calculation of Total…
Q: The following information was extracted from the records of SydMel Ltd for the year ended 30 June…
A: CONCEPT A Deferred Tax in form of asset or liability need to be recognized when there is difference…
Q: A company makes a single product with a sales price of 10 and a variable cost of 6 per unit, fixed…
A: Answer) Calculation of number of units to be sold to Breakeven Number of units to be sold to…
Q: Rosel company, which began operations on January 1, 2017, has elected to use cash basis accounting…
A: Sales to be reported for December 31, 2018 = Balance of Accounts receivable as on December 31, 2018…
Q: Ciara company assigns patent rights for which royalties are received. During 2018, Ciara received…
A: A royalty is a fee paid to the owner of a product or patent by a third party for the use of that…
Q: Prepare journal entries for the City of Pudding's governmental funds to record the following…
A: Here amount not spent fir specific purpose is to be recorded as unearned revenue
Q: Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to…
A: Formula: Straight line method depreciation =( Asset cost - Salvage value ) / Useful life
Q: Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of…
A: A non-qualified distribution has been given to Sherry because she withdrew money from her Roth IRA…
Q: (1) $ 20,000 38,000 36,000 %24
A: Balance sheets are statements that are prepared by companies in order to know their financial…
Q: Firm A has $9,100 in assets entirely financed with equity. Firm B also has $9,100 in assets, but…
A: EBIT Means Earnings before interest and Taxes 1) FIRM A FIRM B Sales 33,000…
Q: Dividends in arrears on preference shares are reported in the financial statements as a (an) a.…
A: dividend are paid by the company to its shareholders.both the shareholder whether it is common stock…
Q: An asset is purchased at a cost of P110 000 on 1 January 2016. The asset has a useful of 10 years.…
A: Introduction: Depreciation : Decreasing value of fixed assets over its useful life period called as…
Q: Based on recent experience, a company knows that its production follows an 80% learning curve. The…
A: Learning curve implies that with each production unit, the workers working on that products get…
Q: Direct Materials and Direct Labor Variance Analysis Abbeville Fixture Company manufactures units in…
A: Lets understand the basics. Direct material price variance indicates the variance between the rate…
Q: A company reports the following amounts at the end of the year: Total sales revenue - $560,000;…
A: Net sales revenue is calculated as making adjustments for sales return and allowance, sales discount…
Q: For the year ending December 31. 2022, Sheridan inc reports net income Ss147,000 and cash dividends…
A: Formula: Ending retained earnings = Beginning retained earnings + Net income - Dividends
Q: Oriole Corporation has 74.000 shares of common stock outstanding It declares a $2 per share cash…
A: Amount of dividend = No. of shares outstanding x dividend per share Note: No journal entry is…
Q: Caribbean Kayaks (CK) Maritza (which means "star of the sea") Joseph is preparing the 2022 budget…
A:
Q: A corporation has experienced losses greater than profits in the past three years since…
A: Retained earnings is reported in the shareholder's equity section of balance sheet. If there are…
Q: Product Quantity Cost Net Realizable Value Revolvers 17 124 159 Spurs 28 25 20 Hats 11 54 44 $3,152.…
A: Formula: Inventory value to be reported = Quantity x Lower of cost Or NRV
Q: Bonita Corporation accumulates the following data relative to jobs started and finished during the…
A:
Q: ing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month,…
A: Overhead Rate = Overheads/ Direct labor cost = $4,125/$7,500 =55% Job 301 Job 302 Job 303…
Q: QS 9-13 (Algo) Recording warranty repairs LO P4 On December 1, Home Store sells a mower (that costs…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory…
A: Lets understand the basics. As per IAS 2 "Inventories", inventory at the year end needs to be valued…
Q: On January 1, 200D, Bamby and Candy invited Dandy and Ely to join them in their business. On this…
A: partnership is such form of business but two or more person join together in order to share they are…
Q: Process Costing, Service Organization A local barbershop cuts the hair of 1,200 customers per month.…
A: Process costing seems to be a costing approach commonly used in production wherein units are…
Q: Complete this question by entering your answers in the tabs below. Req la Req 1b Req 2 Req 3 Prepare…
A: Depreciation is a reduction in the value of asset or equipment over time , due to in particular wear…
Q: a. Bolivar and Collen purchase real estate as tenants in common. Of the $250,000 purchase price,…
A: Solution:- Gift :- A gift is property, money, or assets that one person gives to another while…
Q: Rand Company’s payroll on December 31 of the current year is as follows: Prepare the journal entries…
A: Payroll is the salary that a company is required to pay to its workers for a set period of time or…
Q: Caring Shop is a gift shop located in The Natural History Museum. Caring shop has annual sales…
A: Endowment income reinvested in the endowment fund us exempt from tax
Q: prepare the T-accounts for Retained Earnigs and income Summary adjust the trial balance for moxie…
A: Net income is the excess of revenues over expenses after tax and interest expense.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%Given the following information:SalesFixed ExpensesVariable Expensess5,0002,0001,750What would expected operating profit be if the company experienced a 10% increase in fixedcosts and a 100/0 increase m sales volume? a) $1,375. b) $1,550. c) $1,250. d) $1,750.V. A company’s contribution format income statement for the previous follows: AmountSales P300,000Variable expenses 120,000Contribution margin 180,000Fixed expenses 108,000Net operating income P72,000 Required:a. Compute the company’s degree of operating leverage. b. Using the computed degree of operating leverage, estimate the effect on net operating income of a 5% increase in sales. c. Prepare an income statement using contribution format to verify your answer in (b)
- Provide the missing data in the following tabulation: Division Alpha Bravo Charlie Revenue 11500000 Operating profit 920000 210000 Average operating assets 800000 Margin 4,00% 7,00% Turnover 5 Return on investment (ROI) 20% 14%INCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?Q23 Selected data from Box Division's accounting records revealed the following: Sales $ 345,060 Average investment $ 200,100 Net operating income $ 24,300 Minimum rate of return (divisional cost of capital) 11% Box Division's return on sales (ROS) is: (Round your percentages to one decimal place.) Multiple Choice 11.1%. 4.1%. 7.0%. 19.2%. 12.1%.
- a. D supplied following data are for the latest year of operations: Sales ₱24,480,000; Operating income ₱1,738,080; Average operating assets ₱6,000,000. Required rate of return 16% 1. What is D's ROI? 1. What is D's residual income?Accounting Gosnell Company produces two products: squares and circles. The projected income for thecoming year, segmented by product line, follows:Squares Circles TotalSales P300,000 P2,500,000 P2,800,000Less: Variable expenses 100,000 500,000 600,000Contribution margin P200,000 P2,000,000 P2,200,000Less: Direct fixed expenses 28,000 1,500,000 1,528,000Product margin P172,000 P 500,000 P 672,000Less: Common fixedexpenses100,000Operating expenses P 572,000The selling prices are P30 for squares and P50 for circles.1. Compute the number of units of each product that must be sold for Gosnell Companyto break even.2. Assume that the marketing manager changes the sales mix of the two products sothat the ratio is three squares to five circles. Repeat Requirement 13. Refer to the original data. Suppose that Gosnell can increase the sales of squares withincreased advertising. The extra advertising would cost an additional P45,000, andsome of the potential purchasers of circles would switch to…Given the following data: Average operating assets $ 1,116,000 Total liabilities $ 167,400 Sales $ 837,000 Contribution margin $ 502,200 Net operating income $ 167,400 Return on investment (ROI) is: Multiple Choice 20.0% 15.0% 60.0% 45.0%
- Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest tenth of a percent.) Company Net Sales Cost ofGoods Sold GrossProfit OperatingExpenses a countertop installer $759,500 $486,560 $272,940 $176,410 Net Profit Gross ProfitMargin (%) Net ProfitMargin (%) Owner's Equity Return onInvestment (%) $96,530 35.9% 12.7% $425,210 %Statement of Comprehensive Income for Brooklyn Company for the current year isSales P750,000Variable cost 600,000Contribution margin 150,000Fixed cost 100,000Operating income P50,000Required:d. Degree of operating leveragee. Suppose the company experiences a 30% increase in revenues, compute for thepercentage change in profits.The following selected data for BC Company for 2022: Sales P 2,000,000Variable Costs 1,200,000Traceable Fixed Costs 200,000Average Invested Capital 400,000Capital Charge 15% 1. The residual income amounted to? 2. Assuming the same information in the previous item, the return on investment percentage is?
