The Fairway Restaurant chain had a 12% return on a $69,000 investment in new ovens. The investment resulted in increased sales and an increase in income that was 6% of the increase in sales. The increase in sales was: Multiple Choice $575,000. $8,280 $69,000. $138,000.
Q: Which of the followings concepts relates to using the allowances method in accounting for accounts r...
A: Allowance method is a method for accounting bad debt expense, where uncollectible accounts receivabl...
Q: Give differences between Revaluation account and Realisation account.
A: Revaluation account: The revaluation account is a nominal account opened to assess the values of the...
Q: What is meant by contingent Liability? How is it shown in final accounts?
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as liab...
Q: Use ulate the cash flow from operating activities using the indirect method. AA. Statement of Cash F...
A: (a) Statement of cash flows is prepared as follows:
Q: This is all the given information for the problem. Any guidance is greatly appreciated!
A: Common stock: Common stock is the stock that is directly to the investors at a very minimal cost i.e...
Q: Exercise 12-9 During 2013, Bridgeport Corporation spent $148,320 in research and development costs....
A: As you have posted multiple questions, the solution to the first question is provided. Kindly repost...
Q: January 15th Received $15,000 from Bob for 6 month's of consulting revenue to start next month. I ne...
A: Unearned revenue: It refers to the amount that is received in advance for a goods or service which i...
Q: Give two difference between net profit and cash from operations.
A: Difference between net income and cash from operations:Net income is the profit generated by the com...
Q: Question 5 Catherine’s Cookies has a beginning balance in the Accounts Receivable control total acc...
A: Accounts receivable: It refers to the amounts to be received within a short period from customer upo...
Q: I need to know how to record this transaction in a general journal. Paid semi-monthly payroll, which...
A: Payroll expenses are the amount of expenses that an employer pays to the employees for the work that...
Q: What is a recurring journal entry? How it affects the whole entry system?
A: REcurring journal entries are the entries which get repeated in every accounting period for example ...
Q: At the beginning of the current period, Teal Mountain Corp. had balances in Accounts Receivable of $...
A: Journal entries includes the recording of each monetary transaction in the books of accounts of a bu...
Q: Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing $216...
A: A physical check of stock is a real tally of the considerable number of items that a business stock....
Q: Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 80,000 shares of...
A:
Q: Explain Deferred Revenue? How it is different from Deferred Expenditures? Give an example?
A: Explain the meaning of deferred revenue and provide example:Deferred revenues:Collection of cash in ...
Q: How is the cost of goods sold calculated?
A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to sel...
Q: When a company uses LIFO for external reporting purposes FIFO for internal reporting pusposes, an Al...
A: LIFO reserve: LIFO reserve refers to the difference in the value of inventory, between the goods val...
Q: What are Quoted Investments ?
A: Quoted investment: It is an accounting term for investment in share or debenture, which is quoted on...
Q: Pass the journal entries for the following : Jan 27 - purchased goods on credit, $4000 less trade ...
A: Journal: It is a method of recording monetary business transactions in chronological order. It recor...
Q: AN Jensen Company's general ledger included the following selected accounts (in thousands) at Decemb...
A:
Q: Keep-Or-Drop Decision, Alternatives, Relevant Costs Reshier Company makes three types of rug shampoo...
A: 1.The activity costs can be allocated between different models based on activity usage as follows
Q: The noncontrolling interest share that appears in the consolidated income statement is computed as f...
A: 1.Formula to calculate noncontrolling interest share that appears in the consolidated income stateme...
Q: Parrish Ch. 3 Pg. 57 Please fill out the GL based on the questions from the workbook and explain rea...
A: Record the journal entries as shown below:
Q: Sage Corporation purchased an asset at a cost of $54,000 on March 1, 2017. The asset has a useful li...
A: Tax depreciation for each year 2017–2022 is computed as below:
Q: Trey has two dependents, his daughters, ages 14 and 17, at year-end. Trey files a joint return with ...
A: To qualify for child tax credit (CTC) child’s age must be below 17 years (e.g. 16 or younger).2019, ...
Q: What is the chart of the account? Explain?
A: A chart of accounts is a listing of the names of the accounts that a company has identified and made...
Q: What is the future value of $8,590 at the end of 7 periods at 8% compounded interest?
A: Future value is referred to the amount of money that will be received in future if an investment is ...
Q: Reporting Stockholder’s EquityBooner Company began business this year and immediately sold 600.000 c...
A: a. Compute average sales price of common shares.
Q: On December 31, it was estimated that goodwill of $3,813,300 was impaired. In addition, a patent wit...
A: Impairment loss of assets: Impairment loss of assets arises when the carrying value of the assets re...
Q: Divisional Income Statements with Support Department Allocations Horton Technology has two divisions...
A: Step 1:
Q: Parrish Pg. 38 2-9 #1 Asked 11/23/19 Please solve following t-accounts and calculate the missing amo...
A: T-accounts are presented in t-shape with debit on the left and credit on the right side. All assets...
Q: Brief Exercise 11-6 Your answer is partially correct. Try again. Bramble Inc. ow...
A: Calculate the depreciation expense for A:
Q: What are the revenue credits? Give an example?
A: Meaning of Revenue Credit:Revenue Credit refers to the payments received in advance for services whi...
Q: P 3-6 Consolidated balance sheet workpapers with goodwill and dividends Pam Corporation paid $1,800,...
A: Consolidated balance sheet is referred to a financial statement which is prepared by taking the bala...
Q: Parrish 2-8 Pg. 38 Please put the following transactions in a T-Account format and find the missing...
A: Account receivable: The amount of money to be received by a company for the sale of goods and servic...
Q: Assume that Sunland Company uses a periodic inventory system and has these account balances: Purchas...
A: Calculate cost of goods sold and gross profit:
Q: What is accumulated depreciation? Give three examples?
A: Accumulated depreciation: Accumulated depreciation means total amount that has depreciated on asset ...
Q: Problem 1 Laughton Corporation makes two styles of cases for compact disks, the standard case and th...
A: Computation of Cost Allocation based on Activity:As every first and last products of each production...
Q: E 3-7 Prepare consolidated income statements with and without fair value/book value differentials Su...
A: An income statement is a financial statement which is prepared by the company to calculate the net l...
Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported t...
A: The concept under which the assets' acquisition is recorded at the amount paid for it can be referre...
Q: On January 1, 2019, Ballieu Company leases specialty equipment with an economic life of 8 years to A...
A: It will be classified as sale type finance lease transaction: a. The Lease term is for major part ...
Q: What is the future value of 24 periodic payments of $4,890 each made at the beginning of each period...
A: Future value: A nominal value of an asset or investment at a specific period with an assumed interes...
Q: What is a three-way match? Give an example?
A: Three-way Match: The verification of the purchase transaction by the accounts payable department is ...
Q: What is meant by Forfeiture of shares?
A: Common stock: Common stock is the instrument used by the company for raising funds from the general ...
Q: What are the different branches of accounting?
A: Accounting:Accounting is the process of recording, summarizing and examining the business events an...
Q: Can you please just do the income statement and balance sheet.
A: Income statement: The financial statement which reports revenues and expenses from business operatio...
Q: Partial-Year Depreciation Equipment acquired at a cost of $100,000 has an estimated residual value o...
A: a. Compute depreciation for current fiscal year and for following fiscal year using straight line me...
Q: TB MC Qu. 08-117 An asset's book value... An asset's book value is $18,000 on December 31, Year 5. T...
A: If the assets are sold at a higher price than its book value, the difference amount is considered as...
Q: Parrish Ch. 4 Pg. 99 4-3 (11/25/19) Pleae enter the correct adjusting entries in the journal provide...
A: Adjusting entries are the journal entries passed at the end of the financial year to close all the t...
Q: What is a cross foot? Give examples?
A: Cross foot Accounting is a form of accounting where he mathematical accuracy of totals are verified....
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:Ben's Tasty Rigatoni is looking to improve its market share in the pasta industry. The company reported sales revenue of $2,560,000 last year in an industry of $16,000,000 across all brands. The costs of the goods sold over the past year was $800,000. Also, Ben's Tasty Rigatoni spent $200,000 in administrative expenses while the industry as a whole (including Ben's) spent $1,500,000. Suppose they would like to achieve a market share of 20% in the upcoming year. Use share point analysis to determine how much Ben's should increase their administrative expenditures this year in order to reach their goal. A.$102,000 B. $60,000 C. $90,000 D. $48,000 E. $12,000Last year Minden Company introduced a new product and sold 25,500 units of it at a price of $99 per unit. The product's variable expenses are $69 per unit and its fixed expenses are $836,400 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3? subpart number 4
- Last year Minden Company introduced a new product and sold 25,500 units of it at a price of $99 per unit. The product's variable expenses are $69 per unit and its fixed expenses are $836,400 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3?Scott Healthcare provides a walk-in clinic for its patients and a pharmacy for any medication prescribed by the doctor. Last year, Scott generated total sales of $500,000 and $100,000 in profits.Scott also had average assets of $250,000 for the year. What are Scott Healthcare’s return on sales(ROS), asset turnover (AT), and return on investment (ROI) for the year?Alliance, Inc. sells gas lamps to consumers through retail outlets. Total industry sales for Alliance’s relevant market last year were $100 million, with Alliance’s sales representing 5% of that total. Contribution margin is 25%. Alliance’s sales force calls on retail outlets and each sales rep earns $50,000 per year plus 1% commission on all sales. Retailers receive a 40% margin on selling price and generate average revenue of $10,000 per outlet for Alliance.a. The marketing manager has suggested increasing consumer advertising by $200,000. By how much would dollar sales need to increase to break even on this expenditure? What increase in overall market share does this represent?b. Another suggestion is to hire two more sales representatives to gain new consumer retail accounts. How many new retail outlets would be necessary to break even on the increased cost of adding two sales reps?c. A final suggestion is to make a 10% across-the-board price reduction. By how much would dollar…
- Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 2,240,000 Variable expenses 1,120,000 Contribution margin 1,120,000 Fixed expenses 160,000 Net operating income $ 960,000 Required: Answer each question independently based on the original data: 5. The sales manager is convinced that a 11% reduction in the selling price, combined with a $69,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.60 per…The Break Division of Zoe motors Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Break Division’s segment income? B. If the manager of the Break Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?The Magazine Division of XYZ publication Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Magazine Division’s segment income? B. If the manager of the Magazine Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?
- King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $50,000 formattress sets and $25,000 for bed frames. Return on investment (ROI) was 10% for both divisions,while asset turnover (AT) was 5 for mattress sets and 2 for bed frames. What was the amount ofoperating profit for each division?Given the above information in Q1, Shannon’s wants to increase its sales to retailers by 20% in the next year. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will be: Personal Selling Costs $ 60,000 (exclusive of commission) Consumer Advertising $ 58,296 Trade Promotion $ 41,369 Sales Promotion $ 25,000 Shannon’s will need to hire an additional sales person (paid a salary and commission) and provide some added administrative support. The sales person’s salary plus administrative support will cost about $60,000 per year. The sales person’s commission will be the equivalent of $0.05 per six pack sold. The incremental costs of consumer advertising, trade promotion, and sales promotion necessary to support sales in the new market will be substantial as indicated in the table above. How many six packs must be sold to break-even on the incremental costs that…Smirnoff Corp. invested P31,250,000 in a cabinet-making business. It expects to earn a 25% return on its investment in equipment used in the manufacturing the cabinets. Its consultants estimate that 10,000 units of cabinets next year. Estimated costs per unit of cabinet at this level follows: Variable manufacturing costs = P1,562.50; Fixed selling and administrative costs = P625.00; Fixed manufacturing costs = P312.50. To accomplish the company objective, one cabinet should be priced at: