Solution :
Particulars 
Sales $
$
$
$
Variable expenses 588,000 208000 180000 200000
Contribution margin 912000 192000 420000 300000
Traceable fixed 770,000 240,000 330,000 200,000
expenses
Geographic market 142,000 -$48000 $90000 $100000
segment expenses
Common fixed
expenses not traceable
to geographic markets
Net operating income
Answer:
1. $33,400
2. $24,400
Explanation:
For computing the year-end balance in the allowance for uncollectible accounts first ,we have to compute the ending balance of accounts receivable which is shown below:
Ending balance of accounts receivable = Beginning balance + credit sales - customers’ accounts collected - write off amount
= $300,000 + $1,500,000 - $1,450,000 - $16,000
= $334,000
Now the year-end balance in the allowance for uncollectible accounts would be
= $334,000 × 10%
= $33,400
2. The computation of the bad debt expense is shown below:
= Year end balance of allowance for uncollectible accounts - beginning balance of allowance for uncollectible accounts + written off
= $33,400 - $25,000 + $16,000
= $24,400
Answer:
$816,000
Explanation:
Little company's income was for 864,000
We also have, amortization related to Little company for 48,000
we will decrease the income from Little company by this amount
giving a net result of 816,000
The dividends do not impact net income.
The Big Company transactions do not impact on the Little company net income unless we are provided otherwise.
We are not given any information of rtansactions intra-entity so we can conclude thats the consolidades earning for Little Company.
The implied quality weight is 6/10 = 0.6. A year lived with chpitis scars is only 60% as satisfying as living a year in full health.
Answer: $322 241
Explanation: Retained earnings is the capital that is left over after total dividends has been deducted and paid out. It is calculated as follows:
Retained earnings = retained earnings at the beginning of the year + net profits made during the current year - dividends paid out.
∴ Retained earnings = $318, 423 (opening Retained earnings)+ $11,318 (net profits / income) - $7,500 (dividends)
=$322,241
The $25,000 new stock issued generated income to the business, but this does not fall in the retained earnings line item. Rather it falls under the Ordinary Share Capital line item, which includes all the company's issued share capital.
