Answer:
Multiple-step income statement for the year ending December 31, year 1
Sales $275,200
Cost of Goods Sold <u>($185,000)</u>
Gross Profit $90,200
Operating Expenses:
Administrative Expense ($35,000)
Selling expenses <u>($55,000)</u>
General Expense <u>($45,000)</u>
Operating Income ($44,800)
Non-Operating Revenue <u>$105,000</u>
Operating Income before tax $60,200
Income taxes <u>($25,000)</u>
Operating Income after Tax <u>$35,200</u>
Explanation:
Multi-step Income statement segregate the Operating Income and Expenses from non operating Income and Expense. It shows the gross profit and net operating income separately.
Answer:
The only person liable for the goods purchased is Alex because he was the person that made the purchases.
Explanation:
Alex is to be held liable because he was authorized to make the purchase. A single member of an unincorporated association is liable for the debts of the organization if they are given authorization to execute a specific act which is seen in this case here.
Answer:
It is C.
Explanation:
When food is delivered to the table, the server does not have to ask the guests to identify who ordered what because they eat whatever is being ordered by people at their table. Hope this helps :)
C. Provide objective evidence that a transaction has taken place.
Answer:
1. $132,800
2. $531,200
3. $1,071,200
Explanation:
The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.
Break-even point = Fixed cost / Contribution margin ratio
$487,200 = Fixed cost / 25%
Fixed Cost = $487,200 x 25% = $121,800
1.
Revised Fixed cost = $121,800 + $11,000 = $132,800
2.
New Break-even point = $132,800 / 25% = $531,200
3.
Desired profit = $135,000
Desired revenue = ( Desired profit + Fixed cost ) /Contribution margin ratio = ( $135,000 + 132,800 ) / 25% = 267,800 / 25% = $1,071,200
