The increase (decrease) in gross profit because of the change in sales price is
Q: Profit and loss data for Lota & Romy, Inc. for 2019 and 2019 2020 Sales P2,688,000 Р3,45 Cost of…
A: Solution: A) Sold in 2020 = 2,688,000 + 2,688,000 x 25% = 2,688,000 + 672,000…
Q: Raymond, Inc. a manufacturer of piping for the plumbing industry, had the following…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Change in gross profits = Gross profits in 2019 - Gross profits in 2018=P 330,000 -P328,000=P…
Q: Abacus Co. reported net income of P2,100,000 for 2020 . It incurred operating expenses other than…
A: The gross profit is the excess of net sales over the cost of goods sold. Operating profit can be…
Q: Mabuhay Corporation generated these gross profits during the past recent years when the sales price…
A: The growth in sales is primarily driven by the growth in quantity and the growth in sale price.…
Q: A Corporation generated these gross profits during the past recent years when the sales price was…
A: 2020 2019 Sales P1,944,000 P1,900,800 Cost of Sales P1,152,000 P1,113,600 Gross…
Q: A Corporation generated these gross profits during the past recent years when the sales price was…
A: Standard costing in simple terms can be defined as a system in which the standard costs and revenues…
Q: The change in gross profit due to change in cost price must be:
A:
Q: ABC Inc. has sales of $2,000,000 for the first quarter of 2019. In making the sales, the company…
A: Income Statement is a statement that contains the all the Revenue and Expense for a Reporting…
Q: During 2020, Bramble Co. generated revenues of $102000. The company’s expenses were as follows: cost…
A: Gross profit: It indicates to the profit earned by the business before deducting any allowable…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Calculation of Percentage Change in Sales Given , 2019 2018 Sales 810000 792000 The Sales…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Gross Profit = Sales - Cost of Sales
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: % change in total sales and cost of goods sold from 2018 to 2019 can be because of % change in…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Gross profit can be defined the profit that a company makes after deducting the direct costs in…
Q: The change in gross profit due to change in cost price must be
A: 2018 2019 Sales 792,000 810,000 Cost of sales 464,000 480,000 Gross Profit 328,000…
Q: Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The…
A: Breakeven point in terms of amounts is equal to the amount which must be sold to cover the fixed…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: The gross profit is the excess of revenue over the cost of goods sold for a period. Cost of goods…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Sales: Sales include a number of goods and services sold by the organization during their accounting…
Q: Mabuhay Corporation generated these gross profits during the past recent ears when the sales price…
A: Gross profit is the difference between the sales revenue and the cost of goods sold. Gross profit…
Q: Khobar Company started its business in February 2001 producing and selling mix of pharmaceutical…
A:
Q: The change in gross profit due to change in cost price must be
A:
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Gross profit refers to the profit earned after subtracting the cost of goods sold from the sales…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Sales in 2019 = P810,000 Sales in 2018 = P792,000 Let us assume that 1,000 units were sold in 2019.…
Q: The change in gross profit due to change in quantity sold must be: a. P42,710 U
A: Budgeted gross profit ratio Sales 792,000 Less: cost of sale 464,000 Gross…
Q: ments of Brief Company for 2021 and 2020 are presented below: 2021 2020 Sales P890,000…
A: Increase in sales at base year prices = Sales for 2021 - Sales for 2020 = P…
Q: Raymond, Inc. a manufacturer of piping for the plumbing industry, had the following…
A: Horizontal analysis: It implies to a measurement technique that is used to review and analyze the…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Gross profit is the profit earned by an organization before its direct expenses (admin and selling…
Q: A Corporation generated these gross profits during the past recent years when the sales price was…
A: Cost price is represented by Cost of Sales. Sales Volume in 2019 = P1,900,800 Sales Volume in 2020…
Q: The increase (decrease) in gross profit because of the change in units sold is:
A:
Q: Yve Company, which sells a single product, provided the following data from its income statements…
A: The company's aim will be to increase the profitability of the company. The profits can be arrived…
Q: The portion of the functional income statements of Brief Company for 2021 and 2020 are presented…
A: Cost of goods sold if unit cost not increased for 2021 = Cost of goods sold / (1 + increased%) =…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: There are two methods to calculate profit variances (1) absorption cost method and (2) marginal cost…
Q: SABM Co. reported net income of P2,100,000 for 2020 . It incurred operating expenses other than…
A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 $2,500…
A: Financial statement of any company reveals its financial position in terms of profit and loss and…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Calculation of Sales Value if There would be no reduction in sales price. Sales (2018) = P792000…
Q: Mabuhay Corporation generated these gross profits during the past recent ears when the sales price…
A: Here to find out the total increase in the quantity sold. Sales Price was reduced by 10% during in…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: 2018 2019 sales 792,000 sales 810,000 COS 464,000 COS 480,000 gross profit 328,000 gross…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Gross profit is the trading profit earned by the organization. It is calculated = Closing Inventory…
Q: Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019,…
A: Given that: Revenues = $722,000 Total clients served = 105 Operating Expenses = $302,000
Q: Smith Corporation had Sales of $2,350,000 in 2021 and $2,125,000 in 2020. Cost of Good Sold were…
A: In order to find the changes in the sales are the cost of good sold ,the period of two are…
Q: The percent of increase (decrease) in cost price must be:
A: Calculation of Percentage Change in Sales Given , 2019 2018 Sales 810000 792000 The Sales…
Q: During August, 2020, Sheffield’s Supply Store generated net sales of $60100. The company’s expenses…
A: Operating income = Net sales - Cost of goods sold - Operating expenses Rent revenue and loss on…
Q: Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2019…
A: Given in the question that, company uses a strict percentage of sales planning model. This means,…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sa. = 2019 - P810,000; 2018 -…
A: Gross Profit Ratio= Gross Profit / Net Sales Gross Profit Margin=Gross Profit/Net sales*100…
Q: For 2021, Hamilton Company had Sales of $5,700,000 and Cost of Goods Sold of $3,600,000. For 2020,…
A: Vertical analysis is one of the form of financial statement analysis,under which each item is being…
Q: Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 $6,000…
A: Here, we have been given Sales and Balance Sheet Data. We would calculate the balancing item as…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018…
A: Gross profit is the profit earned by the company from their operating activities. It can be…
Q: he decrease in gross profit due to decrease in selling price must be:
A: Concept of Gross profit Gross profit is the residual income available after deduction of costs that…
Q: The increase ( decrease ) in net sales due to volume factor must be
A: We need to make an assumption to proceed further. Let us assume that the volume in 2019 was 1000…
Step by step
Solved in 2 steps with 2 images
- Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their net income?It is the end of 2019 and you are an accountant for Stone Company. During 2019, sales of the companys products slumped and the companys earnings are expected to be much less than those of 2018. The president comes to you with an idea. He says, Our companys property, plant, and equipment cost 300,000, and that is the amount we usually report on our balance sheet. However, I just had these assets appraised by an independent appraiser, and she says they are worth 400,000. I think that the company should report the property, plant, and equipment at this amount on its December 31, 2019, balance sheet and should report the 100,000 increase in value as a gain on the 2019 income statement. If we use this approach, it will show how much our company is really worth and increase our earnings. This will make our shareholders happy. What do you think? Required: Prepare a written response to the president.Berg Company began operations on January 1, 2019, and uses the FIFO method in costing its raw materials inventory. During 2020, management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Required: What is the effect on income before income taxes in 2020 of a change to the LIFO method?
- Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of 300,000 and 270,000 in 2019 and 2018, respectively. Fava reported expenses (excluding income tax expense) of 125,000 and 120,000 in 2019 and 2018, which included cost of goods sold of 55,000 and 45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by 8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year. Required: 1. Prepare the journal entry to reflect the change. 2. At the end of 2019, prepare the comparative income statements for 2019 and 2018. Notes to the financial statements are not necessary. 3. At the end of 2019, prepare the comparative retained earnings statements for 2019 and 2018.In 2020, Frost Company, which began operations in 2018, decided to change from LIFO to FIFO because management believed that FIFO belter represented the flow of their inventory. Management prepared the following analysis showing the effect of this change: Frost reported net income of 2,500,000, 2,400,000, and 2,100,000 in 2018, 2019, and 2020, respectively. The tax rate is 21%. Required: 1. Prepare the journal entry necessary to record the change. 2. What amount of net income would Frost report in 2018, 2019, and 2020? 3. If Frosts employees received a bonus of 10% of income before deducting the bonus and income taxes in 2018 and 2019, what would be the effect on net income for 2018, 2019, and 2020?Poleski Manufacturing, which maintains the same level of inventory at the end of each year, provided the following information about expenses anticipated for next year: The selling price of Poleskis single product is 16. In recent years, profits have fallen and Poleskis management is now considering a number of alternatives. Poleski wants to have a net income next year of 250,000, but expects to sell only 120,000 units unless some changes are made. The president of Poleski has asked you to calculate the companys projected net income (assuming 120,000 units are sold) and the sales needed to achieve the companys net income objective for next year. Also, compute Poleskis contribution margin per unit, contribution margin ratio, and break-even point for next year. The worksheet CVP has been provided to assist you. Note that the data from the problem have already been entered into the Data Section of the worksheet.
- Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31, 2019, at its unit cost of 9.50. Because of a sharp decline in demand for the product, the selling price was reduced to 10.00 per unit. Moores normal profit margin on Product A is 2.00, disposal costs are 1.00 per unit, and the replacement cost is 6.50. Under the lower of cost or market rule, Moores December 31, 2019, inventory of Product A should be valued at a unit cost of: a. 6.50 b. 9.00 c. 7.00 d. 9.50Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The percent of increase (decrease) in cost price must be: The owners would like to know what reasons caused the current performance of the company and ask your opinion. Through review of the complete records you were able to obtain this additional information: (1) The selling price for every unit is P7.20 during 2018 and; (2) The marketing department did a tremendous job and was able to increase sales units by 20% during 2019. The increase (decrease) in gross profit because of the change in sales price is: a. P900 b. P1,080 c. (P4,320) d. P15,480Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The percent of increase (decrease) in cost price must be: The owners would like to know what reasons caused the current performance of the company and ask your opinion. Through review of the complete records you were able to obtain this additional information: (1) The selling price for every unit is P7.20 during 2018 and; (2) The marketing department did a tremendous job and was able to increase sales units by 20% during 2019. The increase (decrease) in gross profit because of the change in unit cost is: a. (P19,000) b. P10,800 c. (P10,800) d. P9,000
- Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The change in gross profit due to change in cost price must be:Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The change in gross profit due to change in cost price must be A. 39,680 (Favorable) B. 47,290 (Favorable) C. 47,290 (Unfavorable) D. 63,290 (Favorable) E. 63,290 (Unfavorable)Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The change in gross profit due to change in quantity sold must be: