Accounts ($000,000)

Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

Tatiana [17]

Answer:

See explanation

Explanation:

Armstrong Co.

Multi-step Income Statement

For the year ended, December 31, 20YY

Sales $755,000

Less: Cost of merchandise sold (330,000)

Gross Profit $425,000

Less: Operating expenses

Administrative expenses $35,000

Selling expenses $50,000

Total operating expenses $85,000

Income from operation $340,000

Other revenue and expenses:

Rent Revenue $25,000

interest expense ($30,000)

Total other revenues (expenses) $(5,000)

Income before taxes $335,000

Less: Income Tax 0

Net Income (loss) $335,000

That is the appropriate way to prepare a multi-step income statement

3 0

3 years ago

Valerie bought 200 shares of Able stock today. Able stock has been trading for some time on the NYSE. Valerie's purchase occurre

8_murik_8 [283]

Answer:

The correct answer is letter "C": Secondary market.

Explanation:

A secondary market relates to all equity transactions that occur after the initial offer. It can also refer to the exchanges where these transactions occur. The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation (NASDAQ) are examples of secondary market exchanges.

5 0

3 years ago

Read 2 more answers

How should sbs classify the spare parts that it expects to use within one year — as inventory or as a prepaid/other current asse

ahrayia [7]

Sbs could do it by starting to find out each functions of the spare parts.
If the spare parts is resided to be a part of the product, it should be classified as inventory.
IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.
If the spare parts is part of research and development it should be classified as other assets.

8 0

3 years ago

) There is a hotel which has 50 rooms. When the rate is $180/night, all rooms will be booked up. There will be one more room ava

Rzqust [24]

Answer:

The best rate for the hotel for profit maximization is = 340 $/room

Explanation:

Given that

A hotel room has = 50 rooms

The rate per night = $180

More room are available when the rate is increased by = $10

A maintenance fee of =$20

Now

We find the best rate for the hotel in order to have for profit

Thus,

When no rate increase is found we have the following,

Cost = ( 180 $/room * 50) = $ 9000

Thus,

When there is a rate increase for a room, we have the following

10x $/ room

The new cost becomes = (180 + 10x) $/room * (50 - x)

which is = 9000 = 500x - 180 x - 10x²

= 9000 + 320 x - 10x²

To get the new profit, we have the following :

Thus,

Profit = (New cost) - (cost)

Profit = (9000 + 320 x - 10x²) - (9000)

= 320x - 10x²

By applying maximization

dp/dx = 0 = 320 -10 * 2x = 0

So,

x = 16

Therefore,the best rate for the hotel for profit maximization is = (180 + 10 * 16)

=340 $/room

5 0

3 years ago

Depreciation for a tax-paying firm:_________.

r-ruslan [8.4K]

Answer: a) increases expenses and lowers taxes.

Explanation:

Depreciation accounts for the wear and tear in fixed assets over their period of use. It is accounted for every period in the Income Statement as an expense which means that its addition increases the business's expenses.

It does that the advantage of being tax deductible however. This then means that it can be subtracted from Net Income for tax purposes. When that is done, it will reduce the Net Income thereby reducing the amount of taxes that can be charged on the company.

5 0

3 years ago