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velikii [3]
3 years ago
11

Smith operates a roof repair business. This year Smith's business generated cash receipts of $32,000 and Smith made the followin

g expenditures associated with his business: Advertising $ 500 Car and truck expenses 1,360 Depreciation 3,200 Employee compensation 5,000 Education 1,000 The education expense was for a two-week, nighttime course in business management. Smith believes the expenditure should qualify as an ordinary and necessary business expense. Smith is on the cash method and calendar year. What net income should Smith report from his business
Business
1 answer:
rodikova [14]3 years ago
6 0

Answer:

Net income = $20,940

Explanation:

Answer 1.

   

Accounts                                                                                                                

Cash Receipts                             32,000  

Expenses    

Advertising                    500    

Depreciation                 3,200    

Car & Truck Expense       1,360    

Employee Compensation  5,000    

Education                    1,000                          11,060  

Net Income                                               20,940  

   

Therefore, the net income that Smith should report from his business after considering all the cash receipts and all the expenditures associated with his business is $20,940. All the expenses are to be deducted from income.

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3 years ago
Consider the following account balances (in thousands) for the Peterson Company.
Leya [2.2K]

Answer:

Peterson Company

1. A schedule for the cost of goods manufactured for 2017:

A. Peterson Company

Schedule of Cost of Goods Manufactured

For the Year Ended December 31, 2017 (in thousands)

Beginning direct materials inventory            21,000

less ending direct materials inventory        (23,000)

Beginning Work-in-process inventory         26,000

less ending work in process inventory      (25,000 )

Purchases of direct materials                       74,000

Direct manufacturing labor                          22,000

Indirect manufacturing labor                        17,000

Plant insurance                                               7,000

Depreciation - plant, building, & equipment 11,000

Repairs and maintenance - plant                  3,000

Total cost of manufactured goods         $133,000

B. Peterson Company

Schedule of Cost of Goods Manufactured

For the Year Ended December 31, 2017 (in thousands)

Direct materials

Beginning direct materials inventory            21,000

Purchases of direct materials                       74,000

Cost direct materials available                     95,000

less ending direct materials inventory         23,000

Direct materials used                                           72,000

Direct manufacturing labor                                 22,000

Indirect manufacturing costs:

Labor                                     17,000

Depreciation                         11,000

Plant Insurance                     7,000

Repairs and maintenance    3,000            

Total Indirect manufacturing costs                    38,000

Manufacturing costs incurred during 2017  $132,000

Beginning work in process inventory             26,000

Total costs to account for                             $158,000

less ending work in process inventory          25,000

Cost of goods manufactured                      $133,000

2. Peterson Company

Income Statement

For the Year Ended December 31, 2017 (in thousands)

Sales Revenue                                                      $310,000

Cost of goods sold:

Beginning Finished goods inventory      13,100

Cost of goods manufactured               133,000

Cost of goods available for sale         $146,100

less ending Finished goods inventory 20,000

Cost of goods sold                              $126,100      126,100

Gross profit                                                           $183,900

Operating costs :

Selling & Distribution costs  91,000

General & Admin. costs      24,000

Total operating costs                                            $115,000

Operating income (loss)                                       $68,900

Explanation:

The cost of manufactured goods is the sum of the costs of direct materials, direct labor, manufacturing overhead, and work in process inventory.

The cost of goods for sale is the sum of the beginning finished goods inventory plus the cost of manufactured goods less the ending finished goods inventory.

The income statement is a statement of revenue and costs in order to show the financial performance of an entity during a period of time.  It shows the gross profit and net operating profit or loss.

The Gross profit is the difference between Sales Revenue and the Cost of goods sold.

The Operating Profit (Loss) is the difference between the Gross profit and the Operating costs.

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assume you decide to start a business and you quit your job that was paying you $60,000 a year. you pay $36,000 to the landlord
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The implicit cost is  $61,000.

<h3>What is the implicit cost?</h3>

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

When you decide to start the business, you forgo the amount you earned from your job and the interest you were earning.

$60,000 + 1,000  = $61,000

Please find attached the complete question. To learn more about implicit cost please check: brainly.com/question/25776323

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4. If the demand for milk is downward sloping, then an increase in the price of milk will result in a(n) a. increase in the dema
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Answer:

d. decrease in the quantity of milk demanded.

Explanation:

The law of demand states that there is an inverse relationship between price and quantity demanded. An increase in price will result in a decrease in price and vice versa.

So in this case an increase in the price of milk will result in a decrease in quantity of milk demanded.

This is illustrated in the attached diagram.

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3 years ago
Sunland, Inc. has 1000 shares of 7%, $10 par value, cumulative preferred stock and 47000 shares of $1 par value common stock out
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Answer:

700

Explanation:

Calculation for the annual dividend on the preferred stock

Annual dividend on the preferred stock=1000 shares of 7%, $10 par value

Annual dividend on the preferred stock=(1000*$10*.07)

Annual dividend on the preferred stock=$700

Therefore the annual dividend on the preferred stock will be $700

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3 years ago
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