Answer:
1. Prepare an income statement for Allstar for the past month.
The income statement is given below.
Sales $ 410,000
Commission Cost ($ 50,000)
Technology Cost ($ 75,000)
R/D Cost* ($ 200,000)
Selling expenses ($ 10,000)
Admin expenses ($ 35,000)
Net profit $ 40,000
* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).
2. Briefly explain why Allstar's income statement has no line for cost of goods sold.
As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.
Answer:
The Total Budgeted Sales of May is $944,000
Explanation:
Budgeted sales are those sales which a business estimated in a particular period of time. While budgeting the future value company calculated the sales cost and other expenses to minimize the uncertainty and prepare for the future.
As per given data
In May
Budgeted sales Volume = 3,200 cookwares
Budgeted price per unit = $295
Budgeted Sale value = Budgeted Volume x Budgeted Sales price = 3,200 cookwares x $295 = $944,000
Cash Sales = $944,000 x 25% = $236,000
Credit Sales = $944,000 x 75% = $708,000
This assertion is accurate. A cash dividend or other cash payment to investors is approved by the board of directors.
<h3>Is the board of directors involved in the decision to distribute dividends?</h3>
Before a cash dividend is announced and later delivered to shareholders, a company's board of directors must determine whether to pay one and how much. The Board shall determine the amount of cash to be delivered to the Shareholders, both individually and collectively.
<h3>Dividends have been announced by the board of directors.</h3>
A company's interim dividend is the sum that the board of directors declares between two annual general meetings. Interim dividend is included in the definition of dividend under Section 2(35) of the Companies Act. It is at the board of directors' discretion to declare an interim dividend.
Learn more about interim dividend: brainly.com/question/28523087
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Answer:
The correct option is a.
Explanation:
In the question, it is given that there are two firms namely U and L who has same same amounts of assets, investor supplied material, and Return on investor capital.
The Firm U is unleveraged which has 100% equity
whereas, Firm L is leveraged firm which has 50% debt and 50% equity
As we have to compare these two firms based on return on equity.
So, based on ROE, Firm U has 100% equity so it have more equity
And, the Firm L have 50% equity which means the firm has low equity as 50% contribution is gone to the debt.
The rest information which is given in the question is irrelevant. So, it is ignored.
Thus, the Firm L has a lower ROE than Firm U
Hence, the correct option is a.
