Q.1 Calculate the gross profit margin for Pearson & Litt for 2020. 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R 855 500
Q: The adjusting entry to correct the entry made on trade-in of Machine 3 will include a
A: As per our protocol we provide solution to only one question but you have asked three multiple…
Q: Aye Company factored P600,000 of its accounts receivable to Sweet Company on October 1. Control was…
A: Factoring fee = 600,000 x 3% = 18,000 Factor holdback = 600,000 x 5% = 30,000 Interest charges =…
Q: Given: The Company showed Cost of Goods Sold amounting to P645,750 and its gross profit rate is 40%.…
A: Calculation of Total Sales Revenue Total Sales Revenue = Cost of goods sold/ (100% - Gross Profit…
Q: Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and…
A: The cash budget is prepared to record the cash receipts and cash disbursements made during the…
Q: Ecker Company reports $1,800,000 of net income and declares $252,000 of cash dividends on its…
A: Basic earnings per share = Net income available to common stockholders / Weighted average shares of…
Q: help me identify if this is an asset, expense, withdrawals, liability, revenues - a written promise…
A: Asset is the useful thing we have us like property, car, machines. These are valuable things that…
Q: On August 1, 20X1 ABC Corp received an interest bearing note due July 31, 20X4. Maturity value is…
A: Note receivable is one of the current asset being held by the business. On this note receivable,…
Q: Question 3 What is the difference between the way product and period costs are accounted for? O…
A:
Q: Schedule of Cash Receipts Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona.…
A: Solution:- Preparation of a schedule of cash receipts for May and June as follows under:- Cash…
Q: can you please explain this adjusting entry that occured per letter (letter A, B, C) i kind of dont…
A: Adjusting entries are those journal entries which are passed at the end of the period in order to…
Q: On February 5, 2021, an employee filed a P2,000,000 lawsuit against ABC Company for damages suffered…
A: Liabilities are the obligations or dues that needs to be paid out or settled by the business. It can…
Q: 3. Complete the table. Round all amounts to the nearest dollar. Approximate Net Pay as Percent of…
A: Weekly earnings can be calculated per week, It means your earnings from your employer determined by…
Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…
A: Cost of goods sold = Cost of goods available for sale - Ending Inventory where, Cost of goods…
Q: Perdue Company purchased equipment on April 1 for $39,600. The equipment was expected to have a…
A:
Q: On Jan 1, 20X1, ABC Corp received a P450,000 3-year note from a customer. The principal and interest…
A: Note receivable is one of the current asset of the business. It means note for which amount of cash…
Q: The bank statement issued by bank to its clients can be used as a source document for the following…
A: Source document is the primary and reliable evidence of a business transaction.
Q: TEN Company provides extended service contracts on equipment sold through major retailers. The…
A: Liabilities are the obligations and dues which needs to be settled by the business. These can be…
Q: Required: Prepare a cash budget for October. Include supporting schedules for cash collections and…
A: Cash budget is one of the important type of budget being prepared in business. It shows expected…
Q: Schedule of Cash Receipts Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's…
A: Calculation of Number of checks received in May and June MAY Number of checks received on account of…
Q: Atlas Foods produces three supplemental food products simultaneously through a refining process…
A: Joint costs are the one which are allocated to more than 1 product which are produced from same…
Q: s provided the following information: Salaries for his office (including himself at $66,850, a…
A: The answer has been mentioned below.
Q: For the current year ending October 31, Papadakis Company expects fixed costs of $636,800, a unit…
A: Introduction: Break even sales units: The level of sales units where there is no profit nor loss to…
Q: At the beginning of 2021, the Harding Construction Company received a contract to build an office…
A: Long period contract costing deals with the accounting treatment of income and expenses of a…
Q: Define the position of a net creditor
A: After reconciling all of the financial transactions conducted between it and the rest of the world,…
Q: Prokp Co.'s records for April disclosed the following data relating to direct labor: Actual labor…
A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual direct labor hours…
Q: The tax rate on income on Philippine Bonds (PH Bonds) 0% 10% 20%
A: A bond is a form of collecting money from the general public or banks. The bond is a type of…
Q: Complete the FLASH TRUCKING SERVICES WORKSHEET FOR THE MONTH ENDED DECEMBER 31, 2014
A: Worksheet is a 10 column sheet which is being prepared by the business to first show unadjusted…
Q: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse…
A: Differential analysis is made by the company when the company is having two or more than two…
Q: 5. Assume that a partnership had assets with a book value of P240,000 and a market value of…
A: Liquidation of Partnership Firm: Liquidation of the Partnership firm means dissolution of the the…
Q: Given: Below are some data of the Income Statement accounts of Wishing Well Company for the year…
A: Solution: Net purchases = 611,340 Merchandise available for sale = 798,400 Merchandise available for…
Q: 7. Question Content Area Schedule of Cash Receipts Del Spencer is the owner and founder of Del…
A: Cash budget: It implies to a financial plan that gives an estimated figure of all the cash outflows…
Q: Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and…
A: Cash Budget is a summary of Cash Receipts and disbursements made during the period. In cash budget…
Q: econstruction campaign at an amount of (800) hillion Iraqi dinars, and the period of its use is…
A: Concept of Depreciation accounting of assets Value of Equipment ( Million) 800 Salvage…
Q: omplete the FLASH TRUCKING SERVICES STATEMENT OF CHANGES TO OWNER'S EQUITY DECEMBER 31, 2014 FLASH…
A: Statement of changes in owner equity shows all changes made in owners equity during the particular…
Q: Name the error which was made under the following circumstances: the business sold goods on credit…
A: The accounting is a process to record the transactions on the regular basis in the four column…
Q: Swifty Corporation’s comparative balance sheets are presented below. SWIFTY CORPORATION Balance…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Create a general journal for each transaction December 17: Byte was informed that Mr. Madoff who has…
A: Journal entry is the primary step to record the transaction in the books of account. The journal…
Q: Fred is considering three job offers in advertising. • A full-time position as a coordinator that…
A: For the calculation of net monthly income, let's calculate the monthly gross income as below:-…
Q: Sales P1.000.000 Cost of Sales - PS00,000 Rental Expenses - P50,000 Salaries Expenses - P40,000…
A: Introduction: Income statement: All the revenue and expenses items are to be shown in income…
Q: To arrive at the accumulated taxable income, which of the following items does not represent a…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: You are considering two job offers: Job 1 is a full-time position that pays $58,000 annually and Job…
A: Pretax earnings are a corporation's earnings after deducting all operational expenditures, including…
Q: Henredon purchased a high precision programmable router for shaping furniture components for $85000.…
A: Income Tax Payment: An income tax payable account is a kind of account that appears on a company's…
Q: Alec bought a home for $202,000. He had a $48,000 down payment and got a 30-year fixed r mortgage at…
A: Amount of loan = purchase price of the home - down payment made Hence loan amount = 202,000 - 48,000…
Q: Assignment: Present entries to record the following for a business that uses the Allowance Method:…
A: Adjusting entries are the one which are prepared at the year-end to rectify the errors and omissions…
Q: Enviro Company issues 8%, 10-year bonds with a par value of $340,000 and semiannual interest…
A: Formula: Cash received from the issue of the bonds = Face value of the bonds x issue price / 100…
Q: A home office ships inventory to its branch at 125% of cost. The required balance of the Deferred…
A: Head office means from where the company mainly operate and all branches are controlled from that…
Q: What is the amount of inventory on March 31 using the moving average cost flow technique? During…
A: Moving Average Cost method of Inventory Valuation is a method of Perpetual System i.e. the unit cost…
Q: Bond Info: Coupon Rate 11.875% Quoted Yield 3.000% Maturity Date May 29, 2023 Frequency 2 Tax Rate…
A: On each bond there is periodic coupon payment and these are to be paid each period to the person…
Q: Anne LLC purchased computer equipment (five-year property) on August 29, 2018 for S36,000 Anne LLC…
A: Introduction:- Depreciation expense is a non-cash expense. which is charges on fixed assets. Fixed…
Q: Follow Accrual method Cost of Goods Sold $164,000 Income Tax Expense 17,470 Merchandise Sales (gross…
A: Introduction: Gross profit: Deduction of cost of goods sold from net sales revenue derives the Gross…
Step by step
Solved in 2 steps
- Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)EXCESS CAPACITY Krogh Lumbers 2019 financial statements are shown here. Krogh Lumber: Balance Sheet as of December 31, 2019 (thousands of dollars) Krogh Lumber: Income Statement for December 31, 2019 (thousands of dollars) a. Assume that the company was operating at full capacity in 2019 with regard to all items except fixed assets; fixed assets in 2019 were being utilized to only 75% of capacity. By what percentage could 2020 sales increase over 2019 sales without the need for an increase in fixed assets? b. Now suppose 2020 sales increase by 25% over 2019 sales. Assume that Krogh cannot sell any fixed assets. All assets other than fixed assets will grow at the same rate as sales; however, after reviewing industry averages, the firm would like to reduce its operating costs/sales ratio to 82% and increase its total liabilities-to-assets ratio to 42%. The firm will maintain its 60% dividend payout ratio, and it currently has 1 million shares outstanding. The firm plans to raise 35% of its 2020 forecasted interest-bearing debt as notes payable, and it will issue bonds for the remainder. The firm forecasts that its before-tax cost of debt (which includes both short- and long-term debt) is 11%. Any stock issuances or repurchases will be made at the firms current stock price of 40. Develop Kroghs projected financial statements like those shown in Table 16.2. What are the balances of notes payable, bonds, common stock, and retained earnings?
- Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.2019 2020Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500Fixed cost per unit R3 R4 Current assets R450 600 R560 700Current liabilities R510 000 R780 000Retained profit R21 809 R17 600Net Sales R2 900 320 R 3 100 100Cost of sales R390 000 R475 000 Q.5.1 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020.b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference. Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019.b. Explain the results of the current-test ratio.Q.5.3 a. Calculate the gross profit margin for Pearson & Litt for 2020 b. Explain the results of the gross profit margin calculation. Q.5.4 a. Differentiate between traditional budgeting and zero-base budgeting.b. Recommend one of these budgeting methods to Pearson & Litt and provide reasons for your recommendation2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 100 Cost of sales R390 000 R475 000 The current ratio reflects the relationship between the value of the current assetsand the extent of the current liabilities of a business. Q.5.2.1 Calculate the current ratio for Pearson & Litt for 2019
- Prepare a gross profit variation analysis for two products. 2021. 2020 A. B. A. B Sales volume. 7,000 5,000. 9,000. 2,500Unit selling price. P 6.00. P. 4.00. P 7.00. P 5.00Unit cost. P. 4.00. 2.00 6.00 3.00Determine the following: a) Volume factor b) Price factor c) cost factor d) sales mix factorThe sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000 Calculate Margin of safety at a profit of OMR 22000: Select one: a. OMR 44000 b. OMR 62000 c. OMR 64000 d. OMR 72000tion 8Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd2018 2019ȼ ‘000 ȼ ‘000Turnover 420,000 523,600Cost of sales (330,000) (417,200)Gross profit 89,000 106,400Expenses:Administration 44,600 50,200Selling and distribution 15,400 (60,000) 19,600 (69,800)Profit before interest 29,000 36,600Debenture interest - (2,800)Net profit before tax 29,000 33,800Taxation (8,000) (10,000)Net Profit after tax 21,000 23,800Ordinary dividend paid 8,400 9,250Ordinary shares issued 12 million and trading at ȼ3 each as at yesterday onGSE.You are required to compute the following investment ratios:a). Earnings per shareb). Dividend per sharec). Payout ratiod). Price earnings ratioe). Earnings yield
- 1-What will be the total operating expense? a.41200 b.53200 c. 19700 d. 21500 2-What will be the net income? a. 56000 b. 338000 c. 16000 d. 72000 3-What will be the total Selling and distribution expense? a. 41200 b. 17200 c. 19700 d. 14800 4-What will be the Gross Profit at the end of the year December 2019 a. OMR 338,000 b. OMR 16000 c. OMR 336,000 d. OMR 56000 5-What is the Gross Margin in terms of Percentage? a. Cannot be determined b. 20.66 c. 16.66 d. 16.56Computron's Income Statement 2019 2020 INCOME STATEMENT Net sales $ 2,059,200 $ 3,500,640 Cost of Goods Sold (Except depr. and amort.) $ 1,718,400 $ 2,988,000 Other Expenses $ 204,000 $ 432,000 Depreciation and amortization $ 11,340 $ 70,176 Total Operating Costs $ 1,933,740 $ 3,490,176 Earnings before interest and taxes (EBIT) $ 125,460 $ 10,464 Less interest $ 37,500 $ 105,600 Pre-tax earnings $ 87,960 $ (95,136) Taxes (40%) $ 35,184 $ (38,054) Net Income $ 52,776 $ (57,082)…Computed the corrected profit for the following year 2021 A.740,000 B. 650,000 c. 630,000 D. 560,000 2022 A. 670,000 B. 650,000 C. 470,000 D. 450,000
