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4 years ago

Please prepare the multi-step income statement, the statement of stockholders' equity and the classified balance sheet.

Business

1 answer:

goldenfox [79]4 years ago

7 0

Answer:

Operating Income = $53,000

Net Income = $39,000

Ending balance of common stock = $300,000

Ending balance of retained earnings = $95,000

Ending total stockholders' equity = $395,000

Total current assets = $198,000

Net long-term assets = $265,000

Total long-term assets = $285,000

Total assets = $463,000

Total liabilities = 68,000

Explanation:

a. Multi-step Income Statement

Multi-step Income Statement put each revenues and expenditures items into different categories to show gross profit and net income. This can be prepared as follows:

Multi-step Income Statement

For the year ended

Details $

Sales Revenue 545,000

Sales Discount (45,000)

Net Sales Revenue 500,000

Cost of Goods Sold (400,000)

Gross profit 100,000

Operating expenses:

Rent Expense (12,000)

Depreciation Expense (10,000)

Salaries Expenses (25,000)

Operating Income 53,000

Non-operating expenses:

Interest Expense (6,000)

Income before tax 47,000

Income Tax Expense (8,000)

Net income 39,000

Dividend paid (4,000)

Retained earning for the year 35,000

b. Changes in Retained Earnings

Details $ 

Beginning retained earnings 60,000

Retained earning for the year 35,000

Ending retained earnings 95,000

c. Movement in Common Stock

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock  300,000 

c. Statement of stockholders' equity

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock 300,000

Ending retained earnings 95,000

Ending total stockholders' equity 395,000

d. Classified Balance Sheet

Classified balance sheet shows each of the componets of assets, liabilities and equity. This can be prepared as follows:

Classified Balance Sheet

As at the year ended

Details $ $ 

Long-Term Assets

Buildings 65,000

Equipment 220,000

Total Long-Term Assets 285,000

Accumulated Depreciation 20,000

Net Long-Term Assets 265,000

Current Assets

Cash 12,000

Accounts Receivable 150,000

Supplies 36,000

Total Current Assets 198,000

Total Assets 463,000

Financed by:

Ending total stockholders' equity 395,000

Current Liability

Accounts Payable 28,000

Long-Term Liability

Notes Payable (Due in 2years) 40,000

Total Liabilities 68,000

Total Equity $ Liabilities  463,000 

Conclusion

As both the Total Assets and Total Equity and Liabilities are each equal to $463,000, it implies the financial statement is accurately prepared since both must always be equal.

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Nookie1986 [14]

Answer:

The amount of net income for January was $24,100

Explanation:

Revenues from sales $115,100 (for this analysis is not important if the sales were in cash or on credit)

Cost of goods sold $48,000

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Gross profit $67,100

Salaries, rent, supplies, advertising, other expenses and monthly utilities (it is not important for this analysis if all the exenses were paid) -$43,000

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Net income $24,100

3 0

4 years ago

Which pair of products can be regarded as substitute products?

Elis [28]

The products can be paired as substitute products is Internet radio and traditional radio

Because both the products provide the same benefit and result. Both provide audio output.

<h3>What is a Substitute?</h3>

The substitute products are the products that can be replaced for each other providing the same benefit and result.

Few examples of the substitute products are as follows

Books and E-books
Butter and margarine
Eye glasses and contact lenses
Flip flops and sandals
Salmon and Tuna

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2 years ago

Next year baldwin plans to include an additional performance bonus of 0. 5% in its compensation plan. This incentive will be pro

galben [10]

Baldwin will pay (D) $29.63 to its employees per hour.

<h3>What is a bonus?</h3>

Employees typically receive a bonus payment in addition to their base compensation as part of their wages or salary.
While the base compensation is often a predetermined amount per month, incentive payouts may change based on established factors such as annual turnover, the net number of additional customers recruited, or the current value of a public company's shares.
Thus, bonus payments can work as incentives for managers, engaging their attention and personal interest in what is perceived as beneficial to the economic performance of their companies.

Consider the following calculations to determine how much Baldwin pays its employees:

Total raise = 5% + 0.25% = 5.25%
Present wages = $28.15
Baldwin will pay = $28.15 × (1.0525) = $29.63

Therefore, Baldwin will pay (D) $29.63 to its employees per hour.

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The complete question is given below:

Next year Baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. This incentive will be provided in addition to the annual raise if productivity goals are reached. Assuming the goals are reached, how much will Baldwin pay its employees per hour?

Select: 1

(A) $28.22

(B) $31.04

(D) $29.63

8 0

2 years ago

Required:

olga55 [171]

Answer:

Find below the variables missing from the question:

Selected sales and operating data for three divisions of different structural engineering firms are given as follows :

Division A Division B Division C

Sales $5,800,000 $9,800,000 $8,900,000

Average operating assets $1,450,000 $4,900,000 $2,225,000

Net operating income $284,200 $872,200 $191,350

Minimum required rate of return 18.00% 17.80% 15.00%

On the basis on return on investment Division A is preferred

On the basis of residual income Division A is also preferred

Explanation:

Return on investment is the net operating income compared to the average operating assets in the year:

Division A return on investment=$284,200/$1,450,000=19.6%

Division B return on investment=$872,200/$4,900,000=17.8%

Division C return on investment=$191,350/$2,225,000 =8.60%

Residual income=net operating income-(required rate of return*average operating assets

Division A residual income=$284,200-(18%*$1,450,000)=$23200

Division B residual income=$872,200-(17.80%*$4,900,000)=$0

Division C residual income=$191,350-(15%*$2,225,000)=$=$191,350-(15%*$2,225,000)

4 0

3 years ago

Lucas is planning to buy a house owned by Janet. He gives her an initial amount of $10,000 to hold the offer open for a 45-day p

garri49 [273]

Answer:

The correct answer is letter "A": Option contract.

Explanation:

An option contract gives a buyer the right but not the obligation to purchase an asset at a certain price -usually fixed- and date. The term is mostly used while talking about stocks. A buyer can profit both from the upward and downward movements of the stock price. If the price goes up, the investor could bet on call options while the decreasing price could allow investors to profit from put options.

Lucas's case reflects an option contract because he is planning to purchase a house from Janet at a price and date in the future but he agreed in not having the obligation to buy the house when that date arrives.

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3 years ago