1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
In-s [12.5K]
3 years ago
14

The management of Furrow Corporation is considering dropping product L07E. Data from the company’s budget for the upcoming year

appear below: Sales $ 920,000 Variable expenses $ 386,000 Fixed manufacturing expenses $ 368,000 Fixed selling and administrative expenses $ 248,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $229,000 of the fixed manufacturing expenses and $190,000 of the fixed selling and administrative expenses are avoidable if product L07E is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be
Business
1 answer:
zzz [600]3 years ago
3 0

Answer:

The financial disadvantage is    -$ 197,000

Explanation:

Sales $ 920,000

Variable expenses $ 386,000

Fixed manufacturing expenses $ 368,000

Fixed selling and administrative expenses $ 248,000

wtih  Product L07E is eliminated

Unfavorable Fixed Manufacturing Expense = 368,000 - 229,000

= $139000

Unfavorable Fixed Selling and Administrative Expense = 248,000 - 190,000

=$58000

so the final disadvantage of eliminating product L07E = -139000-58000

-$ 197,000

You might be interested in
On January 1, 2021, Tonge Industries had outstanding 480,000 common shares ($1 par) that originally sold for $30 per share, and
ira [324]

Answer:

842,000 shares

Explanation:

Please the solution to the given problem in the file attached below

5 0
3 years ago
Read 2 more answers
Question: A banking institution offers different investment programs for young couples, families, and retired individuals. What
klemol [59]
The answer is B final answer
6 0
3 years ago
If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00
BartSMP [9]

Answer: B. The firm hires 45 workers and earns a $1,200.00 Economic Profit

Explanation:

If the Market Equilibrium rate is $105 then the company should hire 45 workers as shown in the table.

If they did that, revenue would be $7,425

Expenses would be wages and fixed costs:

= Wages + fixed costs

= (45 workers * wage rate) + 1,500

= (45 * 105) + 1,500

= $6,225

Economic profit would be:

= 7,425 - 6,225

= $1,200

6 0
3 years ago
Shamrock Company had the following information available at the end of 2014.
mars1129 [50]

Answer and Explanation:

The preparation is presented below:      

                                                Shamrock Company

                                            Statement of Cash Flows

                                 For the Year Ended December 31, 2014

                                                  (Direct Method)

Cash flows from operating activities

Cash receipts:  

Cash received from customers $1,153,660  

Dividends received                 $2,500

Total cash receipts                         $1,156,160

Cash payments:  

Cash paid to suppliers                  $762,690  

Cash paid for operating expenses $225,230  

Taxes paid                                     $39,920  

Interest paid                                       $61,776

Total cash payments                           -$1,089,616

Net cash provided by operating activities  $66,544

Cash flows from investing activities  

Sale of short-term investments $14,080  

Sale of land $55,590  

Purchase of equipment -$124,570  

Net cash used by investing activities  -$54,900

Cash flows from financing activities  

Proceeds from issuance of common stock $29,526  

Principal payment on long-term debt -$9,580  

Dividends paid -$23,890  

Net cash used by financing activities  -$3,944

Net increase in cash  $7,700

Cash, January 1, 2014  $3,060

Cash, December 31, 2014  $10,760

Working notes

Sales Revenue $1,160,450  

– Increase in Accounts Receivable $6,790  

Cash received from customers $1,153,660  

Cost of Goods Sold $748,980  

+ Increase in Inventory $5,020  

+ Decrease in Accounts Payable $8,690  

Cash paid to suppliers $762,690  

Operating Expenses $275,640  

– Depreciation/Amortization Expense -$39,330  

– Decrease in Prepaid Rent -$110,80  

+ Increase in Prepaid Insurance $1,640  

+ Increase in Office Supplies $520  

– Increase in Wages Payable -$2,160  

Cash paid for Operating Expenses $225,230  

Income tax expense $40,350  

Less:Increase in income taxes payable -$430  

Taxes paid $39,920  

Interest Expense $52,270  

+ Decrease in Bond Premium $9,506  

Interest paid $61,776  

Reconciliation of Net Income to Net Cash Provided by Operating Activities:  

Net income  $58,420

Adjustments made to reconcile net income to net cash provided by operating activities:  

Add: Depreciation expense $39,330  

Add: Decrease in prepaid rent $110,80  

Add: Increase in income taxes payable $430  

Add: Increase in wages payable $2,160  

Less: Increase in accounts receivable -$6,790  

Less: Increase in inventory -$5,020  

Less: Increase in prepaid insurance -$1,640  

Less: Increase in office supplies -$520  

Less: Decrease in accounts payable -$8,690  

Less: Gain on sale of land -$8,320  

Less: Gain on sale of short-term investments -$4,390  

Less: Amortization of bond premium -$9,506  

Total adjustments  $8,124

Net cash provided by operating activities  $66,544

8 0
3 years ago
The following information is available for Sheridan Company
Arte-miy333 [17]

Answer:

See below

Explanation:

Balance sheet as of December 31, 2022.

Current assets

Account receivable $2,000

Cash $6,280

Supplies $3,790

Total $12,070

Fixed assets

Equipment net $110,300

Inventory $2,810

Total $113,110

Total assets = $12,070 + $113,110 = $125,180

Current liabilities

Accounts payable $3,900

Interest payable $500

Salaries and wages payable $740

Notes payable $32,500

Total $37,640

Financed by;

Common Stock $52,500

Total liabilities + Common stock

= $37,640 + $52,500

= $90,140

6 0
3 years ago
Other questions:
  • Both Coca Cola and Benetton are global enterprises. Conduct online research and answer the following questions: What characteris
    5·1 answer
  • Use the compound interest formula,     . kelly opened a savings account with $500 she received at eighth grade graduation 4 year
    6·2 answers
  • PLEASE HELP ASAP!!! What was the former name of the TSA? When was the TSA founded and why? What is the motto of the TSA? What is
    7·1 answer
  • _____ syndication involves original shows, like inside edition and judge judy, which are produced specifically for the syndicati
    8·1 answer
  • Suppose a monopolist has a demand curve that can be expressed as P = 90 - Q. The monopolist's marginal revenue curve can be expr
    11·2 answers
  • Emma owns a flower shop in Tampa. She pays $3,091 per month to lease her building, $2,208 in wages, $1,887 for flowers and other
    15·1 answer
  • A random sample of 81 automobiles traveling on a section of an interstate showed an average speed of 60 mph. The distribution of
    7·1 answer
  • A manufacturing company has a beginning finished goods inventory of $27,300, cost of goods manufactured of $57,500, and an endin
    15·1 answer
  • Safefen, a safety assurance and standards association in the country of Eilenst, made it mandatory for all the toy manufacturers
    15·1 answer
  • A project has several teams. Team C has repeatedly missed deadlines in the past. This has caused team D to have to crash the cri
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!