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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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Metro Inc. has two production departments (Lamination and Molding) and three service departments (Human Resources, Technology Su

eimsori [14]

Answer:

Lamination= $50,000

Explanation:

Giving the following information:

Metro Inc. has two production departments:

Lamination and Molding

Three service departments:

Human Resources, Technology Support, and Purchasing.

The $200,000 costs of Human Resources are allocated based on the number of employees in each production department.

The Lamination department has 40 employees.

The Molding department has 120 employees.

Proportion of employees:

Lamination= 40/160= 25%

Molding= 120/160= 75%

Allocation:

Lamination= 200,000*0.25= $50,000

Molding= 200,000*0-75= $150,000

7 0

3 years ago

Increasing your 401k deduction will ________ your take-home pay and __________ your federal taxes in the current year.

Nat2105 [25]

Increase and increase

5 0

3 years ago

Wen Co. purchased a building for $200,000. Wen paid $20,000 in lawyer and title fees. Wen also paid an additional $15,000 to mod

Alexeev081 [22]

Answer:

$235,000

Explanation:

A company can capitalize the cost of assets, delivery cost, legal & documentation charge and any other directly attributable cost that is incurred to bring the asset in the condition as intended by management.

Therefore, cost of asset, title fee and building modification fee shall be added in the cost of asset as follows:

Cost of Asset 200,000

Lawyer and title fee 20,000

Building Accommodation 15,000

Total 235,000

4 0

3 years ago

Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, an

Genrish500 [490]

Answer:

Option E Price Escalation

Explanation:

Price Escalation is when the government imposes additional taxes on the product which is exported to their country, this makes the product expensive and the customer as a result don't buys that product. Such type of increases in prices are known as price escalation.

7 0

3 years ago

arris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S

Komok [63]

Answer:

$12,500

Explanation:

Absorption costing consider all the cost incurred in production either variable or fixed as production cost and all the operating costs as the period costs. It calculates the gross profit after deducting the cost of goods sold from the net sales and net income after deduction the operating costs from the gross profit.

First of all we need to calculate the product cost.

Manufacturing cost

Direct materials $19

Direct labor $61

Variable manufacturing overhead $7

Fixed manufacturing overhead $15

($135,000/9,000)

Total Product cost $102

Now We will calculate the Net Income

Sales (8,600 x $116) $997,600

Less: Cost of goods sold (8,600 x $102) $877,200

Gross Profit $120,400

Less:

Variable selling & admin expense $99,000

($11 x 9,000)

Fixed selling and admin expense $8,900

Net Income $12,500

6 0

3 years ago