Question No. 2 Contemporary Trends sells paint and paint supplies carpet and wallpaper at a single store location in suburban Baltimore Although the company has been very profitable over the year management has seen very profitable over the year management has seen a significant decline in wallpaper sales and eamings Much of this decline is attributable to the intemet and to companies that advertise deeply discounted prices in magazines and offer customer free shipping and toll free telephone number recent figures follow:

Question No. 2 Contemporary Trends sells paint and paint supplies carpet and wallpaper at a single store location in suburban Baltimore Although the company has been very profitable over the year management has seen very profitable over the year management has seen a significant decline in wallpaper sales and eamings Much of this decline is attributable to the intemet and to companies that advertise deeply discounted prices in magazines and offer customer free shipping and toll free telephone number recent figures follow:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 89.2C

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Question 2 HASF & company sells paint and paint supplies carpet and wallpaper at a single store location in suburban Baltiomore Although the company has been very profitable over the year management has seen very profitable over the year management has seen a significant decline in wallpaper sales and earnings Much of this decline is attributable to the internet and to companies that advertise deeply discounted prices in magazines and offer customer free shipping and toll free telephone number recent figures follow Paint and supplies Carpeting wallpaper Total sales 250,000 230,000 70,000 550,000 less variable cost 170,000 161,000 56,000 387,000 fixed costs 40,000 40,000 40,000 120,000 total cost 210,000 201,000 96,000 507,000 operating income 40,000 29,000 -26,000 43,000 Other information: Management is studying whether to drop wallpaper because of the changing market and accompanying loss if the line is dropped the following changes are expected to…
PLEASE ANSWER FAST!!! HASF & company sells paint and paint supplies carpet and wallpaper at a single store location in suburban Baltiomore Although the company has been very profitable over the year management has seen very profitable over the year management has seen a significant decline in wallpaper sales and earnings Much of this decline is attributable to the internet and to companies that advertise deeply discounted prices in magazines and offer customer free shipping and toll free telephone number recent figures follow : Paint Supplies Carpeting Walpaper Total Sales 250,000 230,000 70,000 550,000 Fixed cost 170,000 161,000 56,000 387,000 Less variable cost 40,000 40,000 40,000 120,000 Total cost 210,000 201,000 96,000 507,000…
Closing an Unprofitable Department Income (loss) from closure $(12,800) Tipton One-Stop Decorating sells paint and paint supplies, carpet, and wallpaper at a single-store location in suburban Des Moines. Although the company has been very profitable over the years, management has seen a significant decline in wallpaper sales and earnings. Much of this decline is attributable to the Internet and to companies that advertise deeply discounted prices in magazines and offer customers free shipping and toll-free telephone numbers. Recent figures follow: Paint and Supplies Carpeting Wallpaper Sales ............... $380,000 $460,000 $140,000 Variable cost..........$228,000 $322,000 $112,000 Fixed costs ... …........56,000 75,000 45,000 Total costs ............$284,000 $397,000 $157,000…
Closing an Unprofitable Department 1. Income (loss) from closure $(12,800) Tipton One-Stop Decorating sells paint and paint supplies, carpet, and wallpaper at a single-store location in suburban Des Moines. Although the company has been very profitable over the years, management has seen a significant decline in wallpaper sales and earnings. Much of this decline is attributable to the Internet and to companies that advertise deeply discounted prices in magazines and offer customers free shipping and toll-free telephone numbers. Recent figures follow: Paint and Supplies Carpeting Wallpaper Sales ............... $380,000 $460,000 $140,000 Variable cost..........$228,000 $322,000 $112,000 Fixed costs ... 56,000 75,000 45,000 Total costs ......$284,000 $397,000 $157,000 Operating (income…
Q1. Baker and Sons Inc. is into the wholesale business of bakery items operating with a centralized kitchen model. The current CFO of the company has just retired, and you have been given the new charge. As a CFO first thing you do is go through the financing and investment activities of Baker and Sons. In your review you noticed that as per current style of management Baker and Sons shows a lot of expiration cost in its finished good inventory. Upon further investigation you find that the company has an operating style of mass production round the clock as it is believed to have a lowering effect on cost. Upon your discussion with the MD and CEO of the company on the importance of demand forecasting they ask you to put forth your points in front of the board. As a CFO you must explain how an efficient demand forecasting can not only help Baker and Sons save on unnecessary expenses but also help finance future expansions and reduce the debt burden.
please quickly i just need answer thanks! 13 Company A sold supplies to Company B. After receiving the supplies, Company B found that some supplies were polluted. After negotiating with Company A, Company B returned 30% of the total supplies back to Company A? Which of the following accounts should be credited for Company B? A, Inventory B, Purchase return and allowances C, A/P D. Sales return and allowances
Prepare a schedule showing the change in revenues and expenses and the impact on the company’s overall net operating income that would result if the North Store were closed. Assuming that the store space can’t be subleased, what recommendation would you make to the management of Superior Markets, Inc.? Disregard requirement 2. Assume that if the North Store were closed, at least one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. The East Store has enough capacity to handle the increased sales. You may assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in that store. What effect would these factors have on your recommendation concerning the North Store? Show all computations to support your answer.
Ethics and Revenue Recognition Alan Spalding is CEO of a large appliance wholesaler. Alan is under pressure from Wall Street Analysts to meet his aggressive sales revenue growth projections. Unfortunately, near the end of the year he realizes that sales must dramatically improve if his projections are going to be met. To accomplish this objective, he orders his sales force to contact their largest customers and offer them price discounts if they buy by the end of the year. Alan also offered to deliver the merchandise to a third-party warehouse with whom the customers could arrange delivery when the merchandise was needed. Required: Do you believe that revenue from these sales should be recognized in the current year? Why or why not?
Codification Situation You are conducting an accounting research project for your boss. Your boss has asked you to determine the appropriate U.S. GAAP that specifies how your company should recognize revenues from the sales of products in a retail store. Your boss is confused because most customers pay cash, but some customers purchase on credit terms, and pay in cash 30 days later. Your manager also wants you to determine the GAAP guidance for how revenue should be recognized in income. Your manager has a lot of knowledge and experience in accounting and has heard about, but has never used, the FASB Accounting Standards Codification system. Directions Use the FASB Accounting Standards Codification system to conduct the research your manager has assigned to you. Use the Codification to determine how to recognize revenue from retail sales, including the right to return. Be prepared to show your manager the specific FASB ASC references that provide the appropriate guidance. Also prepare a brief memo explaining to your manager the different levels of the Codification and how to use the Codification system.
Activity 1: TRUE OR FALSE. Write True if the statement is correct and False if it is not. ____ 1. The SCI is a picture of the result of operations of the company as of the cut-off date.____ 2. The major elements of the SCI are income and expenses.____ 3. Cost of sales is computed as cost of goods available for sale less ending inventory.____ 4. Expenses recognition strictly requires the matching expenses against revenue.____ 5. Goods returned by customers are immediately deducted to the Sales Revenue account.____ 6. In periodic inventory accounting, inventory is determined by conducting a physical count of merchandise owned.____ 7. Expenses decrease assets and therefore have credit normal balances.____ 8. Depreciation expense is a line account found in an SCI prepared following the multi-step format. ____ 9. Revenue result in increase in equity and therefore has a credit normal balance____ 10.All accounts in SCI is also called nominal accounts. Activity 2: Problem 1: The Happy…
HASF & company sells paint and paint supplies carpet and wallpaper at a single store location in suburban Baltiomore Although the company has been very profitable over the year management has seen very profitable over the year management has seen a significant decline in wallpaper sales and earnings Much of this decline is attributable to the internet and to companies that advertise deeply discounted prices in magazines and offer customer free shipping and toll free telephone number recent figures follow : Paint Supplies Carpeting Walpaper Total Sales 250,000 230,000 70,000 550,000 Fixed cost 170,000 161,000 56,000 387,000 Less variable cost 40,000 40,000 40,000 120,000 Total cost 210,000 201,000 96,000 507,000 Operating…
HASF & company sells paint and paint supplies carpet and wallpaper at a single store location in suburban Baltiomore Although the company has been very profitable over the year management has seen very profitable over the year management has seen a significant decline in wallpaper sales and earnings Much of this decline is attributable to the internet and to companies that advertise deeply discounted prices in magazines and offer customer free shipping and toll free telephone number recent figures follow Paint and supplies Carpeting wallpaper Total sales 250,000 230,000 70,000 550,000 less variable cost 170,000 161,000 56,000 387,000 fixed costs 40,000 40,000 40,000 120,000 total cost 210,000 201,000 96,000 507,000 operating income 40,000 29,000 -26,000 43,000 Other information: Management is studying whether to drop wallpaper because of the changing market and accompanying loss if the line is dropped the following changes are expected to occur…