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3 years ago

On May 1, Soriano Co. reported the following account balances along with their estimated fair values:

Business

1 answer:

s2008m [1.1K]3 years ago

6 0

Answer:

Receivables (Dr.) $143,600

Inventory (Dr.) $76,400

Copyrights (Dr.) $577,000

Patented Technology (Dr.) $913,000

Goodwill (Dr.) $32,800

Current Liability (Cr.) $197,000

Long term liability (Cr.) $658,300

Cash (Cr.) $845,000

Contingent Consideration (Cr.) $42,500

Professional Fee Expense (Dr.) $141,000

Cash (Cr.) $141,000

Paid of Investment banking firm

Explanation:

Total of Assets 1,710,000

Total of Liabilities 855,300

Net Assets 854,700

Total Fair value of identifiable Assets 854,700

Fair value of contingent Liability 42,500

Consideration Paid as Cash 845,000

Good will $32,800

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The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and

Cloud [144]

Answer: (1) From the income statement it is clear that the racing bike cannot meet its fixed cost because it cannot provide a contribution towards meeting the fixed cost (2) it should be discontinued since it cannot provide a contribution towards meeting its fixed cost (3)A Dirk bike has a profit of $26,700, A mountain bike has a profit of $39,600, A racing bike has a loss of ($25,000) Total profit for the product line is $41,300

Explanation:

Income statement

Dirk bike mountain bike. Racing bike. Total

$ $ $ $

Sales. 264,000. 407,000 256,000 927,000

Less :Variablecost 114,000. 200,000 157,000. 471,000

----------- -------------- ------------- ------------

Contribution margin 150,000 207,000 99,000 456,000

Less: Fixed cost

Fixed Advertising. 8,900. 40,300. 20,400 69,600

Depreciation of equipment 20,700 7,300 15,900 43,900

Salary of product line manager 40,900. 38,400 36,500 115,800

Allocated common fixed expenses 52,800 81,400 51,200. 185,400

----------- ------------- ---------- -------------

Total Fixed Expenses 123,300 167,400. 124,000 414,700

Net operating income(loss) 26,700 39,600 (25,000) 41,300

(1) From the income statement it is clear that racing bike cannot meet its fixed cost because it cannot provide contribution towards meeting its fixed cost

(2) it should be discontinued since it cannot provide a contribution towards meeting its fixed cost

(3) A Dirk bike has a profit of $26,700, A mountain bike has a profit of $39,600, A racing bike has a loss of ($25,000) Total profit for the product line is $41,300

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4 years ago

Cash to Monthly Cash Expenses Ratio Capstone Turbine Corporation produces and sells turbine generators for such applications as

Andrej [43]

Answer:

a) $1,918.17

b) 16.8 months

C) Yes, Capstone Turbine will remain in business.

Explanation:

a) To find the monthly cash expenses, we have:

Monthly cash expenses = negative cash flow from operations / 12

= 23018 / 12

= $1,918.17

b) To find the ratio of cash to monthly cash expenses, we have:

Ratio of cash to monthly cash expenses = Year end cash / monthly cash expenses

= $32,221 / $1,918.17

= 16.797

≈ 16.8 months

c) Yes, Capstone Turbine will remain in business because the calculated ratio above shows that they have cash to continue operations for approximately 16.8 months.

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3 years ago

When iTunes sells a song or movie, it must record the transaction in accounts. Which accounts might iTunes use when it sells a s

Kay [80]

Since the actual process of the transaction is instantaneous, and its takes the money directly out of your account, the account they're dealing with is most likely Revenue.

Accounts Receivable is also another option that may come to mind, but remember that in this account, the seller is waiting for payment. Once the responsible party pays the seller, A/R is credited (decreased) and Revenue is debited (increased).

With iTunes (as stated previously), the transaction happens right then and there. We pay cash and iTunes gives us the song/movie/album/etc. Therefore, the only logical answer would be <u>Revenue</u>. In this case, <em>Sales Revenue</em> since we're dealing with a type of retailer and not a service.

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3 years ago

Productivity is defined as the quantity of a. labor required to produce one unit of goods and services. b. goods and services pr

Bumek [7]

Answer:

Option (C) is correct.

Explanation:

Productivity of labor refers to the term which is used by the firms for knowing the efficiency of the labor employed into the production of the output.

Productivity is determined by dividing the output of the firm by the inputs used in the production of the goods and services.

Productivity = (Output ÷ Input)

If the productivity of the labor is not achieved as per the company requirement then there is a fall in the labor employment.

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If you intend to purchase Tata Nano, describe the stages in the purchase decision process.

fiasKO [112]

The basic five stages are problem recognition, information search, alternatives evaluation, purchase decision, and post-purchase evaluation.

<h3>What is a purchase?</h3>

A purchase refers to the action of buying something. Purchasing is considered an important course of action.

There are five main stages that a customer needs to undergo before making any decision either to buy a product or not.

The five stages are

Problem recognition- It is the most basic step that ensures if there is a need for purchase.
Information search- The next step is to search the information related to the Tata Nano
Alternatives evaluation- It helps in evaluating the choices available for the product. Other options for cars are taken into consideration.
Purchase decision- After evaluation, a consumer may decide between buying Tata Nano. This decision depends upon the feedback of other people.
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Learn more about the Purchase decision process here

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3 years ago