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jeyben [28]
3 years ago
5

Naples Company produced 650,000 units and sold 500,000 units. Their unit selling price is $10. Cost of goods sold is $6 per unit

. Fixed selling expenses are $10,000 and variable selling and administrative expenses are $3 per unit. Compute Naple's net income under absorption costing.
Business
1 answer:
BigorU [14]3 years ago
4 0

Answer:

Net operating profit= $490,000

Explanation:

Giving the following information:

Naples Company produced 650,000 units and sold 500,000 units. Their unit selling price is $10. The cost of goods sold is $6 per unit. Fixed selling expenses are $10,000 and variable selling and administrative expenses are $3 per unit.

Income statement:

Revenue= 500,000*10= 5,000,000

COGS= 500,000*6= 3,000,000

Gross profit= 2,000,000

Fixed expenses= 10,000

Variable selling nd administrative= (500,000*3)= 1,500,000

Net operating profit= $490,000

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Sheffield Corp. has equipment with a carrying amount of $2500000. The expected future net cash flows from the equipment are $254
ololo11 [35]

Answer:

No impairment loss would be reported

Explanation:

The computation is shown below;

Impairment loss = carrying value - recoverable amount

Where,

The recoverable amount would be the higher amount of fair market value and value in use

So the recoverable amount would be $2,545,000

Now the impairment loss is

= $2,500,000 - $2,545,000

= -$45,000

Since the impairment loss comes in negative so no impairment would be recorded

7 0
2 years ago
Salvia Company recently purchased a truck. The price negotiated with the dealer was $42,500. Salvia also paid sales tax of $2,50
LenaWriter [7]

Answer:

$48,500

Explanation:

Price $42,500

Sales tax on the purchase $2,500

shipping and preparation costs $3,500

$42,500+$2,500+$3,500=$ 48,500

Therefore the truck should be recorded on the balance sheet prior to recording depreciation expense with $48,500

8 0
2 years ago
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Burka [1]

Answer:

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Explanation:

7 0
3 years ago
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Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary and their children, Mim
loris [4]

Answer:

a) $200,000 to Jack

Explanation:

Data provided in the question  

Life insurance policy amount of Marilyn Simms  = $200,000

The primary beneficiary = Jack

The contingent beneficiaries = Their children

Now, the distribution of the policy could be taken by only Jack as he is her husband plus he is also a primary benefit of her life insurance policy,

So, the whole amount i.e $200,000 is distributed to Jack

8 0
3 years ago
If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year, Find the amount in the bank after 14 y
Harlamova29_29 [7]

Answer:

1. Interest compounded annually = $18,049.74

2. Interest compounded quarterly = $18,493.77

3. Interest compounded Monthly = $18,598.16

4. Interest compounded continuously = $18,651.19

Explanation:

First let me state the formula for compound interest:

The future value of a certain amount which is compounded is the total amount (Principal + interest) on the amount of money, after compound interests have been applied, and this is shown below:

FV = PV (1+\frac{r}{n} )^{n*t}

where:

FV = Future value

PV = Present value = $7,000

r = interest rate in decimal = 0.07

n = number of compounding periods per year

t = compounding period in years = 14

For interests compounded continuously, the Future value is given as:

FV = PV × e^{r*t}

where

e is a mathematical constant which is = 2.7183

Now to calculate each on the compounding periods one after the other:

1. Interest compounded annually:

here n (number of compounding periods annually) = 1

Therefore,

FV = 7,000 × (1+\frac{0.07}{1})^{14}

FV = 7,000 × 1.07^{14} = $18,049.74

2. Interest compounded quarterly:

here, n = 3 ( there are 4 quarters in a year)

FV = 7,000 × (1+\frac{0.07}{4} )^{4*14}

FV = 7,000 × 1.0175^{56} = $18,493.77

3. Interest compounded Monthly:

here n = 12 ( 12 months in a year)

FV = 7,000 × (1+\frac{0.07}{12} )^{12*14}

FV = 7,000 × 1.005833^{168} = $18,598.16

4. Interests compounded continuously:

FV = PV × e^{0.07 * 14}

FV = 7,000 × 2.66446 = $18,651.19

3 0
2 years ago
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