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3 years ago

In its first year of operations, Roma Company reports the following:

Business

1 answer:

Vlad [161]3 years ago

7 0

Answer:

Net Income - Cash basis = $10000

Net Income - Accrual basis = $19500

Explanation:

The cash basis of accounting accounts for transactions that occured in cash in the period when cash changes hand. This means that transactions are recorded when the cash is paid or received rather than to the period to which they actually relate to.

Cash basis net income will be,

Net Income = 37000 - 20250 - 6750

Net Income - Cash basis = $10000

The accrual basis of accounting follows that the transactions should be recorded in the period to which they relate to rather then when the cash is paid out or received.

Accrual basis Net income will be,

Net Income - Accrual basis = 45000 - 25500

Net Income - Accrual basis = $19500

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3 years ago

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a

Elodia [21]

Answer:

Letter c is correct. Macro, or overarching, strategy.

Explanation:

Gerald's Tire Store created a macro or overarching strategy because the company's focus is mainly on the customer.

The focus on the excellence of the services offered to the customer, translate an effective strategy for the positioning of a company in the market, offering a differentiated and quality service provides increased brand value, strengthens the relationship with customers, increases their perception and customer satisfaction. products and services offered.

Creating customer relationships means creating value is a challenge for organizations and requires extra effort from marketers. It is necessary to segment the market to find where your target audience is, what your needs and desires are, then develop and implement a strategic marketing plan to create value, strengthen the brand and ensure a competitive advantage in the market.

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3 years ago

Which of the following is a true statement about a request for a change in accounting method?A. Some requests are automatically

fiasKO [112]

Answer: (E) All of these options are true

Explanation:

The change in the accounting method is the process of changing the overall plan of the accounting in terms of gross income and the cash deduction. It is also change the material item in terms of treatment.

The form 3115 is one of the application that required in the accounting method. This application is filed with the proper request to the IRS to change the accounting method. The IRS basically provide the automatic procedure for obtain the automatic consent for changing the method.

Therefore, Option (E) is correct.

6 0

3 years ago

Calculate the IRR of a machine that is purchased for $5,500, sold at the end of year 4 for $2,500, and produces the following ca

prohojiy [21]

Answer:

2.21%

Explanation:

The internal rate of return is the rate of return on the project where the present value of future cash flows equals the initial investment outlay. It is known as the break-even discount rate since, at IRR, the net present value is zero.

The IRR can be determined using the excel IRR function as shown thus:

=IRR(values)

values are the cash flows from years 0-4

Find attached excel file for IRR computation

Download xlsx

5 0

3 years ago

Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing o

Tatiana [17]

Answer:

$5,370

Explanation:

Missing word: "A customer has requested that Lewelling Corporation fill a special order for 2,100 units of product S47 for $26 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $19.20:

Direct materials $5.70, Direct labor 3.00, Variable manufacturing overhead 2.80, Fixed manufacturing overhead 7.70, Unit product cost $19.20"

Incremental analysis

Incremental revenue (2100*26) $54,600

Incremental cost

Direct material (2100*$5.7) $11,970

Direct labor (2,100*$3) $6,300

Variable manuf. overhead (2,100*$80) $5,880

Additional cost (2100*$2.00) $4,200

Special molds $15,000

Total incremental cost $49,230

Incremental profit (loss) $5,370 

The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be $5,370.

5 0

3 years ago