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3 years ago

Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income

Business

1 answer:

Lera25 [3.4K]3 years ago

8 0

Answer:

OPGENORTH COMPANY

Income Statement

For Year Ended December 31, 2016

Sales $160,000

Cost of goods sold $95,000

Gross profit $65,000

Operating expenses

Selling expense $14,000

General and administrative $17,000

expense

Total operating expense $31,000

Operating income $34,000

Other items

Interest revenue $2,500

Loss on sale of equipment (pretax) -$2,000

Loss from fire -$8,000 -$7,500

Income before tax $26,500

Income tax $7,950

Net income $18,550

Components of Income EPS

EPS = $18550 / $7000

= $2.65

OPGENORTH COMPANY

Statement of Comprehensive Income

For Year Ended December 31, 2016

Net income $18,550

Other comprehensive loss

Unrealized decrease in fair value -$1,800

of available for sale securities

Comprehensive income $16,750

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Acme Home Lending offers home equity loans up to 80% of the home value for its customers. If Sally Johnson has a home valued at

Ivenika [448]

Answer:

c) $110,000

Explanation:

The computation of the borrowing amount is shown below:

= Value of home × given percentage - current mortgage amount

= $200,000 × 80% - $50,000

= $160,000 - $50,000

= $110,000

For computing the accurate value, we have to deduct the current mortgage amount from the net value of home.

Since only 80% is related to the home value so we take only 80% and rest 20% would be ignored.

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3 years ago

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result

bearhunter [10]

Answer:

b. inelastic

c. Yes - it decreased

Explanation:

Elasticitiy of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded/ percentage change in price

= -2/4 = -0.5

The absolute value is 0.5

If the absolute value of the coffiecnet of elasticity of demand is less than one, demand is inelastic.

Demand is inelastic if a change in price has no effect on quantity demanded .

We can tell that the quantity demanded fell because of the negative sign in front of the percentage change in quantity demanded.

I hope my answer helps you

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3 years ago

Which of the following currencies is not/are not a hard currency?* Euro O CHF RMB O CDS GBP Both b and c Both c and d

cestrela7 [59]

Examples of some of the most prominent hard currencies are listed below: The U.S. dollar (USD) The euro (EUR) ... The Australian dollar (AUD)

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3 years ago

Sunland Company reported the following information for the current year: Sales (64000 units) $1280000, direct materials and dire

tatuchka [14]

Answer:

45%

Explanation:

Given the following :

Sales unit = 64000

Sales revenue = $1,280,000

Direct materials and directly labor = $640,000

Other variable cost = $64,000

Fixed cost = $360,000

Contribution margin ratio:

(Sales revenue - variable expenses) / sales revenue

Total variable expenses = (Direct materials and directly labor + other variable expenses)

Total variable expenses = (640000 + 64000) = $704,000

Contribution margin ratio :

$(1,280,000 - 704,000) / $1,280,000

$576,000 / $1,280,000

= 0.45

0.45 * 100 = 45%

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3 years ago

What can the publishing industry learn from the music industry?

damaskus [11]

Answer:

Simply and shortly, the only thing that the Publishing Industry can learn from the Music Industry is that you either Adapt or you Perish.

Explanation:

The music labels and record labels were reluctant to turn towards online platform based music stores and eventually when apple and the android released their iTunes and play store platforms just for the music, the whole industry business model changed and went online and the traditional music stores went to decline.

the online business model was not embraced by the traditional music stores and they paid the price for it.

Today, we see an increasing growth of E books and online publishing of books, journals, news papers, tabloids and magazines. The publishing industry will have adapt for this.

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3 years ago