Answer:
The contribution margin statement is found below with a contribution margin of $149,800 and operating income of $145100
Explanation:
Contribution Margin Statement
Sales revenue ($720*700) $504000
Variable costs:
Cost of generators($470*700) ($329000)
Commission(5%*$504000) <u> ($25200)</u>
Contribution margin $149,800
Fixed costs
Rent ($3000)
Additional commission <u> ($1,700)</u>
Operating income $145100
Cost of rent is fixed as it is not depended on the quantity of generators sold.
Additional commission is fixed amount,so it is a fixed cost, while costs of buying generators as well as the commission of 5% are both variable costs.
Answer:
a. True
Explanation:
Corporate governance in simple terms refers to a system by which corporate firms are governed and run.
Such a system involves taking care of the interests of all the stakeholders of a company which would include it's shareholders, suppliers, employees, investors or users of financial statements, etc.
Corporate governance is a wide term and encompasses abidance to rules and laws, adoption of fair and sound organization policies, protection to whistle blowers and ensuring compliance with true and fair view and reporting requirements of financial statements.
In the given case, when chief executive officer and chief financial officer both are required to certify financial statements accuracy, it means that such a requirement increases the accountability of those charged with governance and at the same time boosts the reliability of such statements to the end users.
Answer:
41.28 million
Explanation:
the net present value of the two alternatives needs to be determined. The appropriate alternative would be the plane with the higher NPV
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Alternative 1
Cash flow in year 0 = $-100 million
Cash flow each year from year 1 to 5 = $28 million
I = 9%
NPV = $8.91 million
Alternative 2
Cash flow in year 0 = $-132 million
Cash flow each year from year 1 to 10 = $27 million
I = 9%
NPV = $41.28 million
The second alternative has the higher NPV and it would increase the value of the company by $41.28 million if accepted
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
It’s important to check on your own emotions because then you know how you were actually feeling and you should always communicate to people about your emotions because they can help make sure you feel better about your emotions! :) make sure you add words
Answer:
$2,540
Options are inconsistent with given question
Explanation:
Allowance for uncollectible accounts is a contra asset account and it has credit nature. It needs to be debited to decrease the balance and credited to increase the balance. Balance of this account is adjusted in the account receivable to report the net receivable balance in the balance sheet.
As per given data
Beginning allowance for uncollectible accounts balance = $3,700
Write off is the adjustment mad in this account and it needs to be debited in this account, this transaction will reduce the balance.
Adjusted Balance = $3,700 - 2,700 = $1,000
Credit sales = $118,000
Estimated allowance for uncollectible accounts balance = $118,000 x 3% = $3,540
As allowance for uncollectible accounts has already have balance of $1,000, Bad debt expense for the year is $2,540 ($3,540 - $1,000).
