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3 years ago

Use the following data to determine the total dollar amount of assets to be classified as current assets

Business

1 answer:

borishaifa [10]3 years ago

6 0

Answer:

the total dollar amount of assets to be classified as current assets is $220,000.

Note that the correct option is $220,000 based on the information provided in the question. However, this is not included in the option. Kindly confirm the correct options from your teacher.

Explanation:

Current assets can be described as a group of assets that are can be easily converted to cash within a year. Current assets are therefore assets which are expected to be used, sold or consumed in a normal business operations within a financial year.

Current assets is one of th component of a balance sheet and its components include cash, inventories, account receivables, advance payment (prepayments), and others.

For this question, the total dollar amount of assets to be classified as current assets can be determined as follows:

Carne Auto Supplies

Current Assets Amount Determination

December 31, 2012

Particulars Amount ($)

Cash 60,000

Prepaid Insurance 40,000

Accounts Receivable 50,000

Inventory 70,000

Total current assets 220,000

Therefore, the total dollar amount of assets to be classified as current assets is $220,000.

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Which country uses a franc as its basic monetary unit?

VMariaS [17]

Answer:

Franc, originally a French coin but now the monetary unit of a number of countries, notably Switzerland, most French and former Belgian overseas territories, and some African states; at one time it was also the currency of France, Belgium, and Luxembourg.

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3 years ago

It costs Sunland Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit.

Triss [41]

Answer:

Effect on income= $4,400 increase

Explanation:

Because it is a special order and there is unused capacity, we will not take into account the fixed costs.

To calculate the effect on income, we need to use the following formula:

Effect on income= number of units*unitary contribution margin

Effect on income= 4,400 (21 - 18 - 2)

Effect on income= $4,400 increase

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3 years ago

Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows:

Ulleksa [173]

Answer:

A. Option (d) is correct.

B. Option (a) is correct.

Explanation:

Given that,

Ending inventory(2018) = $9,000

Ending inventory(2017) = $24,000

Depreciation expense(2018) = $6,000

Depreciation expense(2017) = $18,000

A. 2018 income before taxes be overstated or understated:

= Ending inventory + Depreciation expense(2018)

= $9,000 + $6,000

= $15,000 overstated

B. Retained earnings at December 31, 2018 be overstated or understated:

= Depreciation Expense for 2017 - Depreciation Expense for 2018 - Ending inventory

= $18,000 - $6,000 - $9,000

= $3,000 understated

4 0

3 years ago

Resented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information for the le

WITCHER [35]

Answer:

(a)average assets lager1,250,000

(b) minimun RoR lager=0.08 = 8%

(d) 28% RoI lie lager

Explanation:

Lager

CM 500,000

Controllable Margin 200,000

Average Operating assets: 1,250,000(a)

(a)ROI = 16% = 200,000/assets = 0.16 = 1,250,000

Minimun RoR (b) 8%

Residual Income : Operating Income - operating Income at minimun return

Residual Income: Operating income - Assets x minimun return

100,000 = 200,000 - 1,250,000 x rate

rate = 100,000/1,250,000 = 0.08

Lite Lager

CM 300,000

Average operating Assets 1,200,000 = the amount invested by Samber Brewing in this divisio. This is the amount we use to determinate the ROI

Minimun rate of return 11%

Retun on Investment .28%

Residual Income 204,000

Residual Income : Operating Income - operating Income at minimun return

Residual Income: Operating income - Assets x minimun return

204,000 = Operating Income - 1,200,000 x 0.11

204,000 + 132,000 = Operating Income

336,000 = Operating Income = controllable margin

Return on Investment = operating income/investment of Samberg Brewing

336,000/1,200,000 = 0.28

4 0

4 years ago

In its first year of business, Talula, Inc. produced and sold 600 units. If Talula uses variable costing, ________. A. its val

klasskru [66]

Answer:

C. its operating income will be the same under absorption costing.

Explanation:

VARIABLE COSTING is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced. This addresses the issue of absorption costing that allows income to rise as production rises. Under an absorption cost method, management can push forward costs to the next period when products are sold.

Variable costing is a costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

4 0

4 years ago