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3 years ago

The Azuza Company owns no plant assets and had the following income statement for the year:

Business

1 answer:

Nutka1998 [239]3 years ago

6 0

Answer:Please see answer below

Explanation:

Solving

Net income= $16,000

Change in asset and liabilities

Accounts receivable Increased $67,000- $59,000 =- -8000

Inventory Decreased 62,000- 86,000=24,000

Prepaid rent --Increased 9,000- 7,000 = -2000

Accounts payable ---decreased 22,000 -30,000 = -8000

Wages payable ----Increased 9,000- 7,000=2000

Net cash provided by operating activity.=24,000+ 2000-(8000+2000+8000)

= $24,000

Net income= $16,000

Change in asset and liabilities

Accounts receivable--Increase -$8,000

Inventory--Decreased-- $24,000

Prepaid rent --Increased -$2,000

Accounts payable ---decreased-$8,000

Wages payable ----Increased $2,000

Net cash provided by operating activities,= $24,000

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g The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by

postnew [5]

Answer:

The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by:

the high cost of domestic labor.

Explanation:

An entity's ability to be globally competitive in the face of foreign manufacturers with low cost of labor is not helped by the high cost of domestic labor. The cost of direct labor forms part of the computations for the cost of a product and its pricing. Cheaper imports are more affordable to consumers than local products, thus causing consumers to prefer imports to domestic products.

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3 years ago

Marcus paid $35 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Marcus

julsineya [31]

Answer:

The question is incomplete; Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.

Marcus' consumer surplus= $45-$35= $10

Starling's consumer surplus= $80-60= $20

Marcus' producer surplus = $60-35 = $25

Explanation:

5 0

4 years ago

On June 1, 2016, Skylark Enterprises, a calendar year LLC reporting as a sole proprietorship, acquired a retail store building f

fiasKO [112]

Answer:

Skylark Enterprises

The cost recovery is $___41,024___, and the adjusted basis for the building is $__358,976___

Explanation:

a) Data and Calculations:

Cost of retail store acquired = $500,000

Property acquisition date = June 1, 2016

Property disposal date = June 21, 2020

Length of use of property before disposal = 4 years and 21 days

Cost allocated to Land = $100,000

Cost allocated to Building = $400,000

Annual Depreciation expense = $10,256 ($400,000/39)

Cost recovery after 4 years = $41,024 ($10,256 * 4)

Adjusted basis for the building = $358,976 ($400,000 - $41,024)

b) The adjusted basis for the building is the cost of the building minus its accumulated depreciation for the number of years it has been in use.

4 0

3 years ago

Question 4 Ivanhoe Company reports the following information (in millions) during a recent year: net sales, $10,794.0; net earni

Inga [223]

Answer:

ROA = 0.08 or 8%

Asset turnover = 2.4

Profit Margin = 0.033 OR 3.3%

Explanation:

All of the above requirements can be calculated as follows according to their formula

Working

Average asset = (Assets at beginning + assets at end )/ 2

Average assets = (4025 + 4970 )/ 2

Average assets = $4497.5

Requirement A. Return on assets

ROA = Net Income / Average assets

ROA = $359.8 / $4497.5(w)

ROA = 0.08 or 8%

Requirement 2 Asset turnover

Asset turnover = Net Sales / Average assets

Asset turnover = $10,794 / $4497.5

Asset turnover = 2.4

Requirement 3 Profit Margin

Profit margin = Net income / Net sales

Profit margin = $359.8/$10,794

Profit Margin = 0.033 OR 3.3%

3 0

3 years ago

Large aircraft producers such as the Boeing Company normally use: Select one: a. Job order costing. b. Process costing. c. Mixed

insens350 [35]

Answer: Job order costing

Explanation:

The costing of work orders or job costing refers to the method for distributing and collecting production costs to a specific production unit. The costing method for job orders is implemented when the different items generated vary significantly from one another and each one has a substantial cost.

The job cost documents also perform as the conglomerate ledger for the expense of the job-in-process stock, the stock of finished products, and the charge of selling products to the supplier. Because there is a considerable difference in the produced goods, a separate department order cost report for each individual item is required for the job order pricing system.

8 0

3 years ago