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erastovalidia [21]
3 years ago
11

The Atlantic Division of Stark Productions Company reported the following results for 2019:

Business
1 answer:
miv72 [106K]3 years ago
3 0

Answer:

The Atlantic Division of Stark Productions Company

Return on Investment = Net Income/Average operating assets x 100

1. Reduced controllable fixed costs by 10% with no change in sales or variable costs:

Net Income = $530,000 ($500,000 + 30,000)

Return on investment = $530,000/$2,500,000 x 100

= 21.2%

2. Reduced average operating assets by 10% with no change in controllable margin:

Net Income = $500,000 and average operating assets = $2,250,000

Return on Investment = $500,000/$2,250,000 x 100

= 22.22%

3. Increased sales to $4,500,000 with no change in the contribution margin percentage:

Sales                                  $4,500,000

Variable costs                     3,600,000

Contribution                        $900,000

Controllable fixed costs        300,000

Net operating income        $600,000

Average operating assets 2,500,000

Return on Investment = $600,000/$2,500,000 x 100

= 24%

Explanation:

a) Data and Calculations:

Sales                                  $4,000,000

Variable costs                     3,200,000

Contribution                        $800,000

Controllable fixed costs        300,000

Net operating income        $500,000

Average operating assets 2,500,000

Return on investment = Net Income/Average operating assets x 100 = $500,000/$2,500,000 x 100 = 20%

Contribution margin ratio = $800,000/$4,000,000 x 100 = 20%

The Atlantic Division's Return on Investment, as a performance measure, evaluates the efficiency of the investment in Atlantic Division.  This ratio is obtained by dividing the returns or benefits of the investment by the cost of the investment, and then multiplying by 100.

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Answer and Explanation:

The journal entry is shown below:

Cash $8,730

Sales Discount ($9,000 × 3%) $270

       To Accounts receivable $9,000 ($10,000 - $1,000)

Here cash and sales discount is debited as it increased the assets and discount while on the other hand the account receivable should be credited as it reduced the assets  

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2 years ago
Lindsay​ Electronics, a small manufacturer of electronic research​ equipment, has approximately 6 comma 800 items in its invento
nignag [31]

Answer:

97.8 or 98 items

Explanation:

A items:

= Percent of items in inventory × No. of items

= 0.1 × 6,800

= 680

B items:

= Percent of items in inventory × No. of items

= 0.31 × 6,800

= 2,108

C Items:

= Percent of items in inventory × No. of items

= 0.59 × 6,800

= 4,012

Units to be counted everyday:

=\frac{A\ items}{workings\ days} + \frac{B\ items}{workings\ days} + \frac{C\ items}{workings\ days}

=\frac{680}{22} + \frac{2,108}{61} + \frac{4,012}{124}

      = 30.90 + 34.55 + 32.35

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2 years ago
Tattletale News Corp. has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to c
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A.$1.266

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2 years ago
On June 30, 2021, Singleton Computers issued 8% stated rate bonds with a face amount of $100 million. The bonds mature on June 3
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Answer:

Value of the bonds at issuance:

$131,395,438.89

As this ishigher than face value, there is a premium for 31,395,438.89 dollars

Explanation:

Effective market rate:

To determinatethe price of the bonds we should discount the future coupon payment and maturity at the market rate:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment:

100,000,000 x 4% = $4,000,000.00

time 15 years x 2 payment per year = 30 payment

market rate: 0.025

4000000 \times \frac{1-(1+0.025)^{-30} }{0.025} = PV\\

Presnet Value of the coupon payment $83,721,170.3710

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   100,000,000.00

time   30.00

rate  0.025

\frac{100000000}{(1 + 0.025)^{30} } = PV  

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Present value of the bonds today:

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2 years ago
when darla prepares her company's balance sheet, she should include in the list of current assets. a. land b. equipment c. lease
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When Darla prepares her company's balance sheet, she should include accounts receivable in the list of current assets. Option D

<h3>What are accounts receivable?</h3>

Generally, Accounts receivable, also known as AR or A/R, are claims for payment that are legally enforceable that are held by a firm for products delivered or services performed that consumers have requested but have not yet paid for. The abbreviation for accounts receivable is accounts receivable.

The money that consumers owe a firm for products or services that they have received but have not yet paid for is referred to as the company's accounts receivable.

For instance, the amount that is owed by consumers who buy things on credit is added to the accounts receivable when such customers make their purchases.

In conclusion, When Darla is putting out the balance sheet for her firm, she needs to make sure that the list of current assets includes accounts receivable. The D Option

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