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3 years ago

LO 2.1Which of the following represents the components of the income statement for a manufacturing business?

Business

1 answer:

Gennadij [26K]3 years ago

6 0

Answer:

Sales Revenue â€“ Cost of Goods Sold = gross profit

Explanation:

In order to determine the income statement components, the following component is shown

Gross profit = Sales revenue - the cost of goods sold

where,

Sales revenue represents the sales of the business organization

And, the cost of goods sold would be

= Opening inventory + Purchase - ending inventory

By deducting the cost of goods sold from the sales revenue the gross profit can arrive

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Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled

inn [45]

Answer:

26.4%.

Explanation:

Net Profit:

= Saving of Labor & other Costs - Maintenance Cost of Machine - Depreciation On Machine (100,000/ 16 years)

= $40,000 - $10,000 - $6,250

= $23,750

Initial Investment:

= Cost of new Machine - Salvage value of old machine

= $100,000 - $10,000

= $90,000

Simple Rate of Return = Net Profit ÷ Initial Investments

= $23,750 ÷ $90,000

= 0.264 × 100

= 26.4%

5 0

3 years ago

Bledsoe Corporation has provided the following data for the month of November: Beginning Ending Raw materials $ 25,100 $ 21,100

tamaranim1 [39]

Answer:

Bledsoe Corporation

Schedule of Cost of goods manufactured

Particulars Amount

Direct materials:

Beginning material inventory $25,100.00

Add: Purchases $72,100.00

Raw material available for use $97,200.00

Less: Ending material inventory $21,100.00

Raw material used in production $76,100.00

Less: Indirect material $4,010.00 $72,090.00

Direct labor $92,100.00

Manufacturing overhead applied $41,100.00

Total manufacturing costs $205,290.00

Add: Beginning WIP $17,100.00

Total cost of work in process $222,390.00

Less: Ending WIP $10,100.00

Cost of goods manufactured $212,290.00

Bledsoe Corporation

Schedule of COGS

Particulars Amount

Cost of goods sold:

Beginning finished goods inventory $48,100.00

Add: Cost of goods manufactured $212,290.00

Cost of goods available for sale $260,390.00

Less: Ending finished goods inventory $56,100.00

Unadjusted cost of goods sold $204,290.00

Add: Underapplied overhead $1,010.00 ($42,110 - $41,100)

Adjusted cost of goods sold $205,300.00

3 0

2 years ago

Airborne Airlines Inc. has a $1,000 par value bond outstanding with 10 years to maturity. The bond carries an annual interest pa

yanalaym [24]

Answer:Yield to maturity is 9.59%; After tax cost of debt =7.672%

Explanation:

A) Yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}

Where C – Interest payment = $90

FV – Face value of the security

= $1000

PV – Present value/curent market value = $960

t – years it takes the security to reach maturity= 10 years

imputing the values and calculating,

yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}

= $90 + (1000-960)/10} / 1000 + 960 /2

$90 + 4= $94 /980= 0.0959

therefore Yield to maturity is 9.59%

B) After tax cost of debt = Yield To Maturity x (1 - tax rate)

=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =

9.59 % x 80%=7.672%

4 0

3 years ago

Strategic groups typically follow different business strategies. In the pharmaceutical example in this case, the high-risk, high

Bumek [7]

The pharmaceutical example whereby the high-risk, high-return strategy is employed would be characterized by: d. related diversification.

<h3>What is Related Diversification?</h3>

Related diversification can be described as a scenario whereby a firm ventures into a new industry in which there are similarities in the business lines of the new and old industry.

In most cases, related diversification, is a strategy where the existing products and services have much similarity with the new ones that are being developed.

Therefore, the pharmaceutical example whereby the high-risk, high-return strategy is employed would be characterized by: d. related diversification.

Learn more about related diversification on:

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4 0

2 years ago

The expectation of a fair exchange of employment obligations between an employee and employer is called?

Nesterboy [21]

The expectation of a fair exchange of employment obligations between an employee and employer is called the psychological contract.

<h3>What is the psychological contract?</h3>

A psychological contract, a concept developed in contemporary research by organizational scholar Denise Rousseau, represents an employer's and an employee's mutual beliefs, perceptions, and informal obligations.
It establishes the dynamics of the relationship and defines the specifics of the work to be done.
It differs from the formal written employment contract, which, for the most part, only identifies mutual duties and responsibilities in broad strokes.
The psychological contract refers to the expectation of a fair exchange of employment obligations between an employee and an employer.
A psychological contract is defined as a philosophy rather than a formula or predetermined plan.
Characteristics of a psychological contract include respect, compassion, objectivity, and trust.

Therefore, the expectation of a fair exchange of employment obligations between an employee and employer is called the psychological contract.

Know more about the psychological contract here:

brainly.com/question/14937468

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8 0

2 years ago