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erastovalidia [21]
2 years ago
5

Exercise 8-8 Budgeted Income Statement [LO8-9] Gig Harbor Boating is the wholesale distributor of a small recreational catamaran

sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales 700 Selling price per unit $ 2,070 Cost per unit $ 1,605 Variable selling and administrative expense (per unit) $ 60 Fixed selling and administrative expense (per year) $ 200,000 Interest expense for the year $ 23,000 Required: Prepare the company’s budgeted income statement for the year.
Business
1 answer:
maks197457 [2]2 years ago
5 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Budgeted unit sales 700 Selling price per unit $ 2,070 Cost per unit $ 1,605 Variable selling and administrative expense (per unit) $ 60 Fixed selling and administrative expense (per year) $ 200,000 Interest expense for the year $ 23,000

Sales= 1,449,000 (+)

COGS= 1,123,500

Gross profit= 325,500

Selling and administrative= (60*700)+200,000= 242,000

Interest expense= 23,000

Net operating profit= 60,500

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6. Type of insurance that protects a company in case an employee steals from a
Nataly_w [17]

Answer:

A fidelity bond

Explanation:

Fidelity bond or coverage is the kind of insurance which protects the company or its business owner from the theft, fraud by an employee of the company.

This bond will provide guarantee that if the business owner or company suffers any loss because of employee dishonesty, the chosen insurer will share the loss within the limitations stated in the contract.

5 0
3 years ago
Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: Septembe
Arte-miy333 [17]

Answer:

$ 896,000.00

Explanation:

September $800,000

October $920,000

November $840,000

December $760,000

Payments for November:

30percent purchase for November: = 30/100 x $ 840,000.00

        = $ 252,000.00

70 percent payment for the  previous  month

        =70/100 x $ 920,000.00

        = 644,000.00

Total payments = $ 252,000 + $ 644,000.00

   =$ 896,000.00

4 0
3 years ago
a business owner wishes to know which clients are the highest paying clients of his business what tool is he likely to use to fi
natima [27]

The answer would be Sorting

8 0
3 years ago
Read 2 more answers
The balanced scorecard approach
AnnyKZ [126]

Answer: The correct answer is "c. normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.".

Explanation: The balanced scorecard approach normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.

The balanced scorecard states that we must focus on the organization from four perspectives and that goals, measures, rules or objectives be developed for these perspectives.

The 4 perspectives are:

- Financial: which is the most important one whose objectives are established first and the objectives of the other perspectives will be established in order to meet the objective of the financial perspective.

-Client

-Internal processes

-Organizational capacity

3 0
3 years ago
Maloney's, Inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. The fi
Gwar [14]

Answer:

11.64%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate)  + (Weightage of  common stock) × (cost of common stock)

where,  

Weighted of debt = Debt ÷ total firm

The total firm includes debt, preferred stock, and the equity which equals to

= $3,000,000 + $2,000,000 = $5,000,000

So, Weighted of debt = ($2,000,000 ÷ $5,000,000) = 0.40

And, the weighted of common stock = (Common stock ÷ total firm)

                                                              = $3,000,000 ÷ $5,000,0000

                                                              = 0.60              

Now put these values to the above formula  

So, the value would equal to

= (0.40 × 6%) × ( 1 - 40%) +  (0.60 × 17%)

= 1.44% + 10.2%

= 11.64%

8 0
3 years ago
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