The financial ratio measured as net income divided by sales is known as the firm's:

sells authentic Amish quilts on her website. Suppose Sally expects to sell 1 comma 800 quilts during the coming year. Her averag

Serjik [45]

Answer:

1) Operating Leverage Factor = Contribution margin / net income

= $360,000 / $225,000

= 1.6

2 ) % change in Net income = 1.6 *15%

=24%

PROOF

Income Statement 1,800 units 2,070 units

Sales $630,000 $724,500

Variable cost -$270,000 -$310,500

Contribution $360,000 $414,000

Fixed Cost -$135,000 -$135,000

Net Income $225,000 $279,000

change = 279,000 - 225,000 = $54,000

% Change = $54,000 / $225,000

= 0.24 *100 = 24%

Explanation:

1) Income Statement

Sales (1,800 *$350) $630,000

Variable Cost (1,800*$150) -$270,000

Contribution $360,000

Fixed Cost -$135,000

Net Income $225,000

3 0

2 years ago

Read 2 more answers

Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allow

Mice21 [21]

Answer:

a. $30,400

b. $10,394

c. $16,830

d. $8,015

e. $76,626

Explanation:

a. Amount to be paid in full settlement = Merchandise - Returns and Allowance

= ($32,000 - $1,600)

= $30,400

b. Amount to be paid in full settlement = (Merchandise - Returns and Allowance) - (Remaining balance × 2%) + Freight Paid by Seller

= ($12,800 - $2,500) - ($10,300 × 2%) + $300

= $10,300 - $206 + $300

= $10,394

c. Amount to be paid in full settlement = (Merchandise - Returns and Allowance) - (Remaining balance × 1%)

= ($21,000 - $4,000) - (17,000 × 1%)

= $17,000 - $170

= $16,830

d. Amount to be paid in full settlement = (Merchandise - Returns and Allowance) - (Remaining balance × 2%) + Freight Paid by Seller

= ($9,000 - $1,000) - ($8,000 × 2%) + $175

= $8,000 - $160 + $175

= $8,015

e. Amount to be paid in full settlement = Merchandise - (Merchandise × 1%)

= $77,400 - ($77,400 × 1%)

= $77,400 - $774

= $76,626

4 0

3 years ago

To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client Overview tab for a potential client. Y

Softa [21]

Answer: B. Opening balance for an inventory item was entered during the setup process.

D. Opening balances were included when importing customers using the Import data tool.

E. The client forced a bank reconciliation when the difference was not zero.

Explanation:

The reasons that can be attributed to the large amount in the Opening Balance Equity account will be:

• Opening balance for an inventory item was entered during the setup process.

• Opening balances were included when importing customers using the Import data tool.

• The client forced a bank reconciliation when the difference was not zero.

7 0

2 years ago

What is considered a necessary loan

aliya0001 [1]

Answer:

Car loan, Student loan, Home loan are examples of necessary loans.

Plz click thxs or mark brainliest!

Yours Truly.

6 0

3 years ago

Emma Jones Company has the following information available: Account 12/31/2019 12/31/2018 Accounts Payable $76,500 $80,000

leonid [27]

Answer:

B. No.

Explanation:

The formula to compute the quick ratio is shown below:

Quick ratio = (Quick assets) ÷ (current liabilities)

where,

For 2018

Quick assets = Accounts Receivable, net + Cash and Cash Equivalents + Short minus Term Investments

= $49,000 + $70,000 + $44,000

= $163,000

And, the current liabilities = Accounts Payable + Income Taxes Payable

= $80,000 + 5,000

= $85,000

Now put these values to the above formula

So, the ratio would equal to

= $163,000 ÷ $90,000

= 1.81 times

For 2019

Quick assets = Accounts Receivable, net + Cash and Cash Equivalents + Short minus Term Investments

= $42,300 + $43,700 + $27,000

= $113,000

And, the current liabilities = Accounts Payable + Income Taxes Payable

= $76,500 + 2,000

= $78,500

Now put these values to the above formula

So, the ratio would equal to

= $113,000 ÷ $78,500

= 1.43 times

No, as it shows declining from 2018 to 2019

3 0

2 years ago