The Red, Book Inc. sold 1,300 finance textbooks for P650 each to Brilliant University in 20X5. These books cost Red Book Inc. P450 to produce. Red Book Inc. spent P20,000 (selling expense) to convince the university to buy its books. In addition, Red Book Inc. borrowed P350,000 on January 1, 20X5, on which the company paid 10 percent interest. Both interest and principal were paid on December 31, 20X5. Red Book Inc. tax rate is 20 percent. Depreciation expense for the year was P6,000. Required: Did Red Book Inc. make a profit in 20X5? Verify your answer with an inçome statement.
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- Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses Selling Expenses 105,000 Administrative Expenses 105,000 210,000 Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. The contribution margin for the U Store for the first quarter of 2020 is?Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses Selling Expenses 105,000 Administrative Expenses 105,000 210,000 Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. 4. If 25,000 books are sold during the second quarter of 2020, the company’s contribution margin would equal:Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses Selling Expenses 105,000 Administrative Expenses 105,000 210,000 Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. 3. The cost formula for operating expenses with “x” equal the number of books sold is:
- Problem IV. The U Store, Inc. is the major supplier of books for the four area colleges. An income statement for the first quarter of 2020 is presented below: Sales 800,000 Cost of Goods Sold 560,000 Gross Margin 240,000 Less: Operating Expenses Selling Expenses 105,000 Administrative Expenses 105,000 210,000 Net Income 30,000 On average, a book sells for P40. Variable selling expenses are P3 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder is fixed. 2. The net income computed using the contribution approach for the first quarter of 2020 is:Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively * A.4,125,000 and 3,000,000 B.7,500,000 and 4,500,000 C.4,500,000 and 1,500,000 D.1,500,000 and 1,500,000 E.4,500,000 and 4,125,000Lyman Nurseries purchased seeds costing $25,000 with terms of 3/15 net 30 EOM on January 12. 1. How much will the firm pay if it takes the cash discount? Format: 11,111 2. What is the approximate cost of giving up the cash discount, using the simplified formula? Format: 11%
- Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the state-ment below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loanfor some new equipment. Kamal would like to improve the profitline to $25,000 so he can obtain the bank’s approval for the loan.% OF SALESSales $250,000 100%Cost of supply chain purchases 175,000 70%Other production costs 30,000 12%Fixed costs 30,000 12%Profi t 15,000 6%a) What percentage improvement is needed in a supply chainstrategy for profit to improve to $25,000? What is the cost ofmaterial with a $25,000 profit?b) What percentage improvement is needed in a sales strategy forprofit to improve to $25,000? What must sales be for profit toimprove to $25,000?Financial update as of June 15 • Your existing business generates $135,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $25,714. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash. • You also need to purchase $10,800 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $6,750. Based on your evaluation you have______in free cash flow.Thorne Co. values, advertises and sells residential property on behalf of its customers. Thecompany has been in business for only a short time and is preparing a cash budget for the first four months of 2013. Expected sales of residential properties are as follows.2012 2013 2013 2013 2013Month December January February March AprilUnits sold 10 10 15 25 30The average price of each property is £180 000 and Thorne Co. charges a fee of 3 per cent of the value of each property sold. Thorne Co. receives 1 per cent in the month of sale and the remaining 2 per cent in the month after sale. The company has nine employees who are paid on a monthly basis. The average salary per employee is£35 000 per year. If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of £140 foreach additional property sold.Variable expenses are incurred at the rate of 0.5 per cent of the value of each property sold and these expenses are paid in the month of sale. Fixed…
- I need help with this problem. I need to get the answers to the four questions at the bottom under the statement table. Oakdale Fashions, Inc.’s, 2021 income statement is reported below. Oakdale Fashions, Inc., Income Statement for 2021 Net sales (all credit) $ 565,000 Less: Cost of goods sold 215,000 Gross profits $ 350,000 Less: Other operating expenses 90,000 EBITDA $ 260,000 Less: Depreciation and amortization 15,000 EBIT $ 245,000 Less: Interest 80,000 EBT $ 165,000 what is the answer to these two questions to answer the bottom 4 Less: Taxes Net income $ Determine what the firm's 2021 tax liability is. (Round your answer to the nearest dollar amount.) Determine what the firm's 2021 net income is. (Round your answer to the nearest dollar amount.)Please assist by providing the correct answer for 1.1,1.2 and 1.3 1.1 Which one of the following would reduce the cash balances of a business and not reduce the profit for the year? Select one: a. Interest paid b. Distribution costs c. Remuneration to directors d. Dividends paid 1.2 Goods costing R180 000 sent out to consignee to show a profit of 20% on Invoice Price. Invoice price of the goods will be______. Select one: a. R216 000 b. R225 000 c. R210 000 d. R281 250 1.3 Goods sent on consignment Invoice value R200 000, at cost + 331/3 %. 1/5th of the goods were lost in transit. Insurance claim received R10 000. The amount of abnormal loss to be transferred to General P/L is___. Select one: a. R30 000 b. R20 000 c. R35 000 d. R25 000Horner Company buys a delivery van with a list price of $3,000,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days. Irrevocable taxes amount to $40,000 and the company paid an extra $30,000 to have a special horn installed. What should be the recorded cost of the van? a. 2,539,000 b. 2,564,500 c. 2,499,000 d. 2,569,000