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3 years ago

P12-6A. The following data, presented in alphabetical order, are taken from the records of Nieto Corporation.

Business

1 answer:

vagabundo [1.1K]3 years ago

6 0

Answer and Explanation:

Nieto Corporation

Balance Sheet

December 31, 2015

Current Assets:

Cash $62,000

Account Receivable $140,000

Less: Allowance for

doubtful accounts $6,000 $134,000

Prepaid Insurance 16,000

Short-term investments 180,000

Inventory 170,000

Total Current Assets $562,000

Fixed Assets

Equipment 275,000

Less: Acc. Dep. 52,000 223,000

Building 950,000

Less: Dep. 180,000 770,000

Land 390,000

Investments

(Mara + Sasse) 658,000

Goodwill 200,000 $2,241,000

Total Assets $2,803,000

Current Liabilities

Accounts payable $260,000

Income taxes payable 120,000

Dividend payable $80,000

Notes payable 70,000

Premium on bonds payable 40,000

Total Current liabilities $570,000

Long-term liabilities

Bonds payable $500,000 500,000

Total liabilities $1,070,000

Equity

Capital stock $1,500,000

Paid-in capital in

excess of par common stock 130,000

Retained earnings $103,000 1,733,000

Total liability and stockholders' equity $2,803,000

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Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo

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Answer:

Wingate Company

1. Contribution format income statement segmented by divisions:

Company East Central West

Sales $ 1,500,000 $350,000 $620,000 $530,000

Variable expenses 655,500 154,000 241,800 259,700

Contribution margin 844,500 $196,000 $378,200 $270,300

Traceable fixed expenses 819,000 294,000 329,000 196,000

Non-traceable fixed expenses 110,000

Net operating income (loss) $ (84,500) $(98,000) $49,200 $74,300

2. Decrease in net operating loss = $45,200

Explanation:

a) Data and Calculations:

Wingate's most recent monthly contribution format income statement:

Sales $ 1,500,000

Variable expenses 655,500

Contribution margin 844,500

Fixed expenses 929,000

Net operating income (loss) $ (84,500)

Additional data:

Division East Central West

Sales $ 350,000 $ 620,000 $ 530,000

Variable expenses as

a percentage of sales 44 % 39 % 49 %

Traceable fixed expenses $ 294,000 $ 329,000 $ 196,000

Implementation of the proposal:

Sales for West = $604,200 ($530,000 * 1.14)

Traceable fixed expenses for West = $225,000 ($196,000 + 29,000)

Contribution format income statement segmented by divisions:

Company East Central West

Sales $ 1,574,200 $350,000 $620,000 $604,200

Variable expenses 655,500 154,000 241,800 259,700

Contribution margin 918,700 $196,000 $378,200 $344,500

Traceable fixed expenses 848,000 294,000 329,000 225,000

Non-traceable fixed expenses 110,000

Net operating income (loss) $ (39,300) $(98,000) $49,200 $119,500

Decrease in net operating loss = $45,200 ($84,500 - 39,300)

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3 years ago

Which of the following design tips can help make a presentation clear and effective?

Alenkasestr [34]

From this list, none are really the perfect solution to have a clear presentation but most likely it would be: C. Using a large font, since it will allow viewers from a long distance to be able to understand better.

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3 years ago

Read 2 more answers

You have accepted a job as the president and CEO of a large transportation conglomerate. Over the years, the conglomerate has ac

rjkz [21]

Answer: a. Railroad loading

Explanation:

This question relates to the BCG matrix which allows a company with multiple divisions to know how to deal with its various divisions based on their growth rate and market share.

The question specifically relates to a matrix called "Cash cows". Cash cows are divisions that have a significant market share but a low growth rate. These divisions are stable and bring more money into the company than they cost to run.

This allows us to take profits from them and invest in other. The Railroad loading controls a significant market share of 75% but has a low growth rate so is a Cash cow.

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3 years ago

Required:

olga55 [171]

Answer:

Find below the variables missing from the question:

Selected sales and operating data for three divisions of different structural engineering firms are given as follows :

Division A Division B Division C

Sales $5,800,000 $9,800,000 $8,900,000

Average operating assets $1,450,000 $4,900,000 $2,225,000

Net operating income $284,200 $872,200 $191,350

Minimum required rate of return 18.00% 17.80% 15.00%

On the basis on return on investment Division A is preferred

On the basis of residual income Division A is also preferred

Explanation:

Return on investment is the net operating income compared to the average operating assets in the year:

Division A return on investment=$284,200/$1,450,000=19.6%

Division B return on investment=$872,200/$4,900,000=17.8%

Division C return on investment=$191,350/$2,225,000 =8.60%

Residual income=net operating income-(required rate of return*average operating assets

Division A residual income=$284,200-(18%*$1,450,000)=$23200

Division B residual income=$872,200-(17.80%*$4,900,000)=$0

Division C residual income=$191,350-(15%*$2,225,000)=$=$191,350-(15%*$2,225,000)

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3 years ago

Which of the following are integral parts of the managerial process of crafting and executing strategy?

iVinArrow [24]

Answer:

The correct answer is a. Developing a strategic vision, setting objectives, and crafting a strategy .

Explanation:

Management has the responsibility of charting the strategic course, establishing a series of objectives that allow it to choose a strategy that allows achieving everything planned. Likewise, the board of directors is responsible for defining and executing such strategies.

The management process has the following stages:

1. Define strategic vision.

2. Set Goals.

3. Develop the strategy.

4. Apply and implement the strategy.

5. Evaluate performance and implement controls.

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3 years ago