Answer:
(a) Income Statement
Belyk Paving Co.
Income statement for the year xxxx
Sales $2,384,000
Cost of goods sold $1,441,000
Gross Profit $943,000
Administrative and selling expenses $436,600
Depreciation expense $491,600
Operating Income 14,800
Interest expense $216,600
Income before Tax ($201,8000)
Tax rate 35% <u> $0 </u>
Net Loss <u>($201,800)</u>
(b) operating Cash flow
Net Loss ($201,800)
Add: Non cash Expenses (Depreciation) <u> $491,600</u>
Cash flow from operating activities <u> $289,800 </u>
Answer:
C. Debit Work in Process—Dept. B; credit Finished Goods—Dept. A
Explanation:
It is known that during continuous production, businesses find it difficult to isolate each individual unit and calculate a cost. Process costing systems accumulate the materials, labor and overhead costs for the period along with the total number of units produced. The total number of units produced includes both completed units and partially completed units. The company determines the percentage of completion for each partially completed unit and adds these amounts to the total number of completed units to determine the equivalent units.
Answer:
The store manager must decide to buy 3
Explanation:
Given that:
- The first: $200 a year
- The second $150
- The third $75,
- The fourth $50
- Interest rate is 12 percent
- Investment: $500
As we know that the rate of return will be: Income / Investment
So the rate of return of:
- The first: $200 / $500 = 0.4 = 40%
- The second $150 / $500 = 0,3 = 30%
- The third $75 / $500 = 0.15 = 15%
- The fourth $50 / $500 = 0.1 = 10%
Only three rug cleaners have the rate of return greater than the interest rate so the store manager must decide to buy 3
Answer:
Futures contracts are derivatives. Their price is derived from one or more underlying assets. Due to their nature as commodities, a buyer can agree to purchase at a predetermined price; and a seller can agree to sell that quantity at the agreed-upon price.
Answer:
Present value= $62,722.875≈ $62,723
Explanation:
To calculate present value use this formula
Present value= Yearly payment*{[1-(1+rate)^-period]/rate}
Present value= 8,500*{[1-(1+0.11)^-16]/0.11}
Present value= 8,500* {0.8117/0.11}
Present value= 8500*7.379= $62,722.875
