Answer:
The correct statement related to the pro forma statements is:
The addition to retained earnings is equal to net income less cash dividends.
Explanation:
When the beginning retained earnings are increased by the addition to retained earnings, it means that the cash dividends have been subtracted from the net income. This addition is the leftover net income after offsetting the dividends. It increases the retained earnings by the end of the financial period.
Answer:
d. shallower and narrower
Explanation:
Product width basically refers to how many different product lines are sold, and obviously a supermarket sells hundreds of product line, while a vending machine generally sells soft drinks or snacks, which is only 1 product line.
The product depth refers to the amount of products sold, and a supermarket is much larger than a vending machine so it can sell many more products.
Answer:
If Bread and Butter Bakers meet their sales goal, their net profit per month is $11,500
Explanation:
Bread and Butter plans to use 10,000 pounds of flour per month at a price of $2.00 per pound with an additional variable expense per loaf of $1.50. They hope to sell 10,000 loaves of bread.
Total variable expense = 10,000 x $2.00 + 10,000 x $1.50 = $35,000
Total sales = 10,000 x $6.00 = $60,000
Net profit = Total sales - Total variable expense - fixed costs = $60,000 - $35,000 - $13,500 = $11,500
Answer:
Explanation:
The preparation of the income statement is presented below using the generally accepted accounting Principles (GAAP) :
Sales $176,000
Less: Cost of goods sold ($97,200) ($54,000 + $43,200)
Gross margin $78,800
Less: Selling and administrative cost ($31,000) ($17,200 + $13,800)
Net income $47,800
Hence, we considered all the given information
