Where should you look to find your current expenses

Hart Company has the following activities in 2012. The company had total cash sales of $2,000. During the year they incurred and

Irina18 [472]

Answer:

$500

Explanation:

2012 Income Statement

Revenue $2,000

Expenses

Wages incurred and paid $500

Salaries $400

Interest on bank loans $600 $1,500

Net Income $500 

So, the amount of $500 will be shown as Net Income on the 2012 Income Statement.

6 0

3 years ago

MECCS Inc. stock paid its annual dividends of $4.90 per share yesterday. The dividend is expected to decrease at a constant rate

emmainna [20.7K]

Answer: $43

Explanation:

The current stock price will be calculated as:

= Do(1 - g) / (Ke + g)

where,

Do = $ 4.90

g = 2.50%

Ke = 8.60%

Po = [4.90 - (1 - 0.025)] / [0.086 + 0.025]

Po = 4.7775 / 0.111

Po = $43

The price of one share of the stock today will be $43

7 0

3 years ago

Carey Company buys land for $50,000 on 12/31/14. As of 3/31/15, the land has appreciated in value to $50,700. On 12/31/15, the l

sweet-ann [11.9K]

Answer:

$0

Explanation:

There is no reason why Carey Company should increase their land account in 2015. As long as the company owns the land they should not modify the land account, since land doesn't depreciate. Even if they build something new on the land site, that will increase the land improvements account or buildings account, not the land account.

If they decide to sell the land then the original purchase value will serve as the basis for calculating capital gains taxes.

3 0

3 years ago

For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25, and the unit selling price

NeTakaya

Answer:

1. Break even point in units = 2,400 units

2. Sales required = 6,400 units

3. Operating income = $140,000

Explanation:

Given:

Fixed costs = $60,000

Variable cost =$25 per unit

Selling price = $50 per unit

Computation:

1. Break-even point in units of sales.

Contribution per unit = sales - VC

Contribution per unit = $50 - $25

Contribution per unit = $25

Break even point in units = Fixed costs / Contribution per unit

Break even point in units = $60,000 / $25

Break even point in units = 2400 units

2. Unit sales required to realize operating income = $100,000

Sales required = (Fixed costs + Operating income) / Contribution per unit

Sales required = ($60,000 + $100,000) / $25

Sales required = 6400 units

3. Operating income if sales total = $400,000

Contribution margin = [$25/ $50]100 = 50%

Operating income = Contribution margin - Fixed costs

Operating income = ($400,000 × 50%) - $60,000

Operating income = $140,000

5 0

4 years ago

The assembly department had beginning work in process of 18,000 units, ending work in process of 22,000 units, and units transfe

salantis [7]

Hi there

beginning work in process+units started or transferred in=ending work in process+units transferred out

So we need to find units started or transferred in=58,000+22,000−18,000
=62,000...answer

Hope it helps

3 0

4 years ago