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3 years ago

Squirrel Tree Services reports the following amounts on December 31.

Business

1 answer:

borishaifa [10]3 years ago

6 0

Answer and Explanation:

The Preparation of balance sheet is prepared below:-

Squirrel Tree Services

Balance Sheet

For the year ended 31st December

Assets Amount Liabilities Amount

Cash $8,300 Accounts payable $11,500

Supplies $2,400 Salary payable $4,100

Prepaid insurance $4,100 Notes payable $26,000

Building $78,000

Total liabilities $41,600

Common stock $40,000

Retained earning $11,200

Total stockholder

equity $51,200

Total liabilities and

<u>Total assets $92,800 stockholder equity $92,800</u>

B. The preparation of cash flows is shown below:-

Squirrel Tree Services

Cash flow

For the year ended 31st December

Particulars Amount

Cash flow from operating activities

Cash inflow from customers $96,000

Cash outflow for salaries ($40,000)

Cash outflow for supplies ($22,000)

Net cash flow from operating activities $34,000

Cash flow from investing activities

Sale of investment $35,800

Purchase of building ($98,000)

Net cash flow from investing activities ($62,200)

Cash flow from financing activities

Borrow from bank $38,000

Dividends ($15,500)

Net cash flow financing activities $22,500

Net increase in cash ($5,700)

Beginning cash of the year $15,200

Ending cash of the year $9,500

Working note

we deduct the cash inflow from cash outflow and add cash to reach the beginning cash of the year.

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Simora [160]

Answer:

The answer is $119

Explanation:

Solution:

The firm is working in a competitive market that is seen as perfect.

Thus,

The profit the condition for maximizing profit is given below:

P = MR =MC

Now,

The market price of the product is =$290

So,

P = $290

From the given table, we noticed that the profit maximizing output level is 9 units when P = MC

The profit (π) = total revenue - cost total

= ( P * Q) - ( ATC * Q)

= 290 * 9 - 171 * 9

= 2610 - 1539

= 1071

Therefore, the per-unit economic profit at the profit-maximizing output is

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3 years ago

The management of Firebolt Industries Inc. manufactures gasolineand diesel engines through two production departments, Fabricati

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Solution:

Single factory overhead amount: the amount at which plant overheads or processing overheads are assigned to goods is referred to as single plant overhead rate.

Formula to measure a single plant-wide overhead rate:

Single plant-wide overhead rate :

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Different development team overhead rate: this distribution system describes the various divisions engaged in the manufacturing cycle. Factory overheads are assigned to goods on the basis of the overhead cost for each of the manufacturing units.

Formula for calculating various output department overhead:

Multiple production department overhead rate:

$\frac{ Budgeted department factory overhead}{ Budgeted department factory overhead}$

For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.

Using DLH as the allocation basis to measure a single plant-wide overhead limit.

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For calculate: single plant-wide overhead rate use direct working hours (DLH) as the allocation basis, and measure factory overhead.

Using DLH as the allocation basis to measure a single plant-wide overhead limit.

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Answer:

Effect of Inventory Errors

1. Kate Interiors Company:

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The cost of goods sold will be overstated by $11,600 and the net income understated by $11,600 in the income statement.

In the balance sheet, the assets are understated by $11,600 and Equity (Retained Earnings) understated by the same amount.

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This shows that Ending inventory is overvalued by $8,780 ($728,660 - 719,880).

The cost of goods sold will be understated by $8,780 and the net income overstated by $8,780 in the income statement.

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