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3 years ago

The following information is available for Mergenthaler Corporation for the year ended December 31, 2022:

Business

1 answer:

sdas [7]3 years ago

3 0

Answer:

Cash Flow from Operating Activities Amount$

Net Income 30000

Add Depreciation Expense 25000

Increase in Accounts Payable 11000

Increase in Accounts Receivables -10000

Increase in Prepaid Insurance -6000

Decrease in Salaries and Wages Payable -1000

Net Cash Flow from Operating Activities A 49000

Cash Flow from Investing Activities

Acquisition of Equipment for Cash -10000

Proceeds from Sale of Long-Term Investment 22000

Net Cash Flow from Investing Activities B 12000

Cash Flow from Financing Activities

Redemption of Bonds Payable -34000

Proceeds from Issuance of Common Stock 20000

Payment of Cash Dividends -6000

Collection of Principal on Long-Term Loan 16000

Net Cash Used in Financing Activities C -4000

Opening Cash Balance 91000

Add Increase in Cash (A+B+C) 57000

Closing Cash Balance 148000

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Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %

Explanation:

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Fixed costs allocated 35,600 28,480 7120 Decrease

Operating profit (loss) 13,200 14,920 (1720) Increase

Working

Total Fixed Costs Reduced will be = 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Contribution margin 51,800 43,400 8,400 Decrease

Fixed costs allocated 35,600 23,600 12000 Decrease

Operating profit (loss) 13,200 16,800 (3,600) Increase

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

Working

We find the totals with and without the strawberry product line and then subtract to find the differential costs

Cotrone Beverages

Product Original Strawberry Orange Total

Sales $65,200 $85,600 $102,400 253,200

Variable costs 44,000 77,200 80,200 201,400

Contribution margin $21,200 $8,400 $22,200 51,800

Fixed costs allocated 9,400 12,000 14,200 35,600

Operating profit (loss) $11,800 $(3,600) $8,000 13,200

If we drop the strawberry line then the new totals would be

Product Original Orange Total

Sales $65,200 $102,400 167,600

Variable costs 44,000 80,200 124,200

Contribution margin $21,200 $22,200 43,400

Fixed costs allocated 9,400 14,200 23,600

Operating profit (loss) $11,800 $8,000 16,800

6 0

3 years ago

Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 5.50 percent. Use the formula present

Debora [2.8K]

Answer:

8.46%

Explanation:

Calculation for the the taxable equivalent yield for this investment

Using this formula

Taxable equivalent yield

=Tax-exempt yield / (1 − Your tax rate)

Let plug in the formula

Taxable equivalent yield=0.055 / (1 - 0.35)

Taxable equivalent yield=0.055/0.65

Taxable equivalent yield=0.0846*100

Taxable equivalent yield= 8.46%

Therefore the taxable equivalent yield for this investment is 8.46%

4 0

3 years ago

Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,800,000 shares issued; Additional Paid-i

Fittoniya [83]

Answer:

Total Stockholder's Equity is $26,276,000.

Explanation:

Stockholders’ equity section of the balance sheet

Common Stock @ $1 $1,800,000

Additional Paid-in Capital, $1,6200,000

Retained Earnings, $9200,000

Less: Treasury Stock $924,000

Total Shareholders Equity $26,276,000

As treasury stock is the contra equity account so its value will be deducted from equity. So total Stockholder's Equity is $26,276,000.

6 0

4 years ago

Noah's family has been out of control with their spending lately. They have decided to come up with a spending plan to help them

alukav5142 [94]

Answer:

its either 'a net worth statement' or 'a budget'

Explanation:

8 0

3 years ago

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Rockefeller consolidated what appeared to be a dying petroleum industry that was given new life by the internal-combustion engin

leva [86]

Used to feed the machine where there is a transformation of chemical energy into mechanical energy. Rockefeller implanted the internal combustion engine that was a type of engine that runs on fuel, it is produced inside an internal combustion chamber inside the machine. This type of engine opened a world of possibilities within the transport industry and raised the oil industry.

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3 years ago