What is equilibrium?

Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blower

Citrus2011 [14]

Answer: Option (a) $146,500 is correct.

Explanation:

Company produced = 10,000 leaf blowers

Company produced sold = 8,500 leaf blowers

Income statement of year-end:

Sales = $ 382,500

Cost of goods sold = 170,000

Gross margin = $ 212,500

Selling and administrative expenses = 60000

Net income = $ 152,500

Production costs per leaf blower total = $20

Variable cost of goods sold = 8500 × $16 = $136000

Variable selling and administrative expenses = 15% of 60000 = $9000

Fixed production Cost = 10000 × $4 = 40000

Fixed Selling & Administrative expenses = (100% - 15%) of 60000 = $51000

∴ Net income under variable costing = sales - Variable cost of goods sold - Variable selling and administrative expenses - Fixed production Cost - Fixed Selling & Administrative expenses

= 382,500 - 136000 - 9000 - 40000 - 51000

= 146500

4 0

3 years ago

The purpose of an analysis of an account is to illustrate - in the account for the period under audit

Archy [21]

Answer:

all changes

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP).

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

The purpose of an analysis of an account is to illustrate all changes in the account for the period under audit. Thus, an audit of historical financial statements most commonly includes the balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.

There are two (2) main types of financial analysis;

I. Vertical analysis.

II. Horizontal analysis.

In Financial accounting, Horizontal analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially. Hence, it is also referred to as the trend analysis.

Under the horizontal analysis of financial statement, we use the financial statements of two or more periods; earliest and latter periods.

Generally, the earliest is chosen as the base period while all other items on the statement for a latter period will be compared with the items on the statement of the base period.

3 0

3 years ago

Matt Shaw buys 100 shares of common stock for $8,000 in January. The value of the stock fluctuates in a narrow range (averaging

jekas [21]

Answer:

a. $8,200

Explanation:

The same accounting principles would be applied to non-profit entities while recording their assets as applied to other entities.

Non-profit entity would record its assets at fair value same as assets are recorded by other entities.

3 0

3 years ago

Cameron has a small graphics design business that specializes in customizing social websites. The business is growing; however,

Veronika [31]

Answer: Introducing mass production methods into his business.

Explanation:

As the given information suggests that Cameron has a small graphic design business. He is responsible for customizing social websites which is a creative and time consuming task. This also require a lot of thinking and innovation skills. At the verge of expanding his business he should avoid mass production as this will likely to reduce his quality of production and limit his creativity.

4 0

3 years ago

Only one commercial bank in the banking system has an excess reserve, and its excess reserve is $400,000. This bank makes a new

Zarrin [17]

Answer:

money supply will increase by 2,400,000

Explanation:

the expansion f the money supply will be:

the money multiplier will be:

1/reserve ratio = 1/0.125 = 8

300,000 x 8 = 2,400,000

The reasoning for the multiplier effect is the following:

once the money is received, it will be used, and the person who receive the cash will deposit their proceeds.

This amount, can generate a new loan for, the remainder after subtracting the required reserve.

300,000 - 12.5% = 262,500

And this, once used will also end in a deposit. This opens the posibility for another loan, after reducing the reserve

262,500 - 12.5% = 229,687.5‬

This can be reapeat again and again and the limit for this is the formula state above:

multiplier effect = 1/reserve ratio

5 0

3 years ago