Productivity (output per worker hour of a bicycle manufacturing plant with 600 employees

The following information has been provided by Hale Company: • Advertising expense $8,800; • Interest expense $3,800; • Rent exp

klemol [59]

Answer:

Hale’s total expenses in calculating operating income is $57000

Explanation:

Operating income represents profit realized in carrying out Hale Company primary activities

Only expenses incurred in are considered in calculation of Hale`s Operating Income

Cost of Sales

Cost of goods sold 22200

Administration

Rent expenses for store 18000

Depreciation 8000

Selling and distribution expenses

Advertising 8800

Total Expenses 57000

6 0

4 years ago

The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2

puteri [66]

Answer:

a. Net profit margin for 2019 = 35.93%

b. Asset turnover for 2019 = 0.29 times

c. Return on assets = 10.24%

Explanation:

Note: This question is not complete. The complete question is thereore provided before answering the question as follows:

The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2019:

2019 2018

Sales revenues $590,000 $574,000

Net income 212,000 184,000

Total assets 2,142,000 1,998,000

Total stockholders’ equity 712,000 690,000

Compute the following ratios for 2019:

Net profit margin

Asset turnover

Return on assets

The answers are now explained as follows:

a. Net profit margin for 2019

This can be calculated as follows:

Net profit margin for 2019 = Net income in 2019 / Sales revenues in 2019 = $212,000 / $590,000 = 0.3593, or 35.93%

b. Asset turnover for 2019

This can be calculated as follows:

Asset turnover for 2019 = Sales revenues / Average total assets = Sales revenues in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $590,000 / (($2,142,000 + $1,998,000) / 2) = 0.29 times

c. Return on assets for 2019

This can be calculated as follows:

Return on assets = Net income / Average total assets = Net income in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $212,000 / (($2,142,000 + $1,998,000) / 2) = 0.1024, or 10.24%

4 0

3 years ago

On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,0

Andru [333]

Answer and Explanation:

The Journal entry is shown below:-

a. Bad Debt Expense Dr, $36,800 ($40,000 – $3,200)

To Allowance for Doubtful Accounts $36,800

(Being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

b. Bad Debt Expense Dr, $40,730 ($40,000 + $730)

To Allowance for Doubtful Accounts $40,730

For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited

7 0

3 years ago

Explain the differences between active and passive income. Which do you think is easier from an owner's standpoint, and why?

stellarik [79]

Answer:

Passive income is money earned on an investment, or work completed in the past that continues to make money without any additional effort. Active income, on the other hand, is money earned in exchange for performing a service. I would think active income is easier because it allows you to earn an income quickly and consistently. Passive income can take years to build.

Explanation:

6 0

3 years ago

Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportati

kifflom [539]

Answer:

9.6 times ; 37.9 days

Explanation:

The computation of the accounts receivable turnover and the average collection period is shown below:

Accounts receivable turnover ratio = Credit sales ÷ average accounts receivable

where,

Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2

= ($4,350 + $3,150) ÷ 2

= $3,750 million

And, the net credit sale is $36,100 million

Now put these values to the above formula

So, the answer would be equal to

= $36,100 million ÷ $3,750 million

= 9.6 times

And, the Average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio

= 365 days ÷ 9.63 times

= 37.9 days

5 0

3 years ago