Answer:
Date Description Dr. Cr.
Dec 31 Sales discounts $200
Allowance for sales discounts $200
Explanation:
Expected sales discounts. $10,000 × 2% = $200
As the discount is expected and according to the accrual accounting concept the expenses accrued or expected to incurred should be recorded in the period in which revenue of that expense is recorded. Discount of 2% is expected to be availed by the customer amounting sales of $10,000. and it will be availed after year end as discount period will end after year end.
Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a
OlgaM077 [116]
Answer:
$86,050
Explanation:
Data provided in the question:
Sales = $634,000
Costs = $328,000
Depreciation expense = $73,000
Interest expense = $38,000
Tax rate = 21 percent
Dividends paid = $68,000
Now,
EBIT = Sales - Cost - Depreciation
= $634,000 - $328,000 - $73,000
= $233,000
EBT = EBIT - Interest
= $233,000 - $38,000
= $195,000
Net income = EBT - Tax
= $195,000 - (0.21 × $195,000)
= $195,000 - $40,950
= $154,050
Addition to retained earnings = Net income - Dividends
= $154,050 - $68,000
= $86,050
Answer:
The overall Sales revenue at break even is $515995.872
Explanation:
The overall break even in dollars or the composite break even point is the Total revenue that a business must earn from all its products that should be equal to the total costs from all its products and there is no profit or no loss.
The formula for composite or overall break even in dollars is,
Break even in dollars = Fixed costs / Weighted average contribution margin ratio
Where the weighted average contribution margin ratio is the weghtage of each product in the overall sales mix multiplied by the contribution margin of each product.
The total sales mix is = 8 + 4 + 1 = 13
Weighted average contribution margin ratio = ((360 - 210) / 360) * 8/13 +
((500 - 300) / 500) * 4/13 + ((1600 - 600) / 1600) * 1/13 = 0.5814 or 58.14%
Break even in dollars = 300000 / 0.5814
Break even in dollars = $515995.872
If there is some discrepancy in the final answer, it will be due to the rounding off of the weighted average contribution margin ratio
Answer:
The correct option is Increase and Decrease respectively
Explanation:
Answer:
Market Attribute – Introduction stage - Low sales
Market Attribute – Growth stage - Opportunities increase
Market Attribute – Maturity stage - Intense competition
Market Attribute – Decline stage - Niche segment
Consumer Types – Introduction stage - Sylvie
Consumer Types – Maturity stage - Winnie
Consumer Types – Decline stage - Francine
