Answer:
<u>Income statement of Parsons Company for the period ended December 31, 2014</u>
Amount in $ Amount in $
Service Revenue 37,000
Operating expense;
Salaries and Wages Expense 16,000
Insurance Expense 2,000
Rent Expense 4,000
Supplies Expense 1,500
Depreciation Expense <u> 1,300</u>
Total expense <u> (24,800)</u>
Net income/(loss) <u> 12,800 </u>
Explanation:
The income statement shows the income and expenses of a business. Owner's capital and drawings are elements of the business balance sheet. Other items given are elements of revenue and cost.
Answer:
The total cost of producing 3,000 axles is $255,000
Explanation:
The computation of the total cost is shown below:
= Total per unit manufacturing costs × total number of axles produced
= $85 × 3,000 axles
= $255,000
The total manufacturing includes all costs such as Direct materials, direct manufacturing labor, Variable manufacturing overhead and, Fixed manufacturing overhead.
Answer:
The amount reported in the Cash flows from operating activities is - $7,000.
Explanation:
Cash flow from Operating Activities under indirect method reconciles the <em>Operating Profit</em> to the <em>Operating cash flows</em> by making adjustments on Operating Profit for non-cash items previously added or deducted from it as well as changes in working capital.
The gain was previously added to reach Operating Profit there, this is deducted to arrive at Operating Cash flow figure since the gain on sale is a non-cash item.
The amount reported in the Cash flows from operating activities is - $7,000.
Answer:
a) $66.24
b) $77.28
Explanation:
The price to earnings ratio (PE ratio) is a valuation used by investors to determine if a stock is overvalued or undervalued.
Payment for stock is the product of Benchmark PR ratio and earnings per share.
Given that the earnings per share is $3.68 per share
a) If the benchmark PE for the company is 18
Payment for stock = Benchmark PR ratio × earnings per share = 18 × $3.68 per share = $66.24
a) If the benchmark PE for the company is 21
Payment for stock = Benchmark PR ratio × earnings per share = 21 × $3.68 per share = $77.28