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3 years ago

The balance of an account is determined by

Business

1 answer:

AlladinOne [14]3 years ago

4 0

Answer:

(B) adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum

Explanation:

While calculating the closing balance of any account,

There includes two possibilities that the account might have debit balance or the account might have credit balance. And for computing this:

All the debits shall be accumulated and then their total shall be computed.

Similarly, all the credits shall be accumulated and their total shall be done.

Which ever is more then the account will have that nature of balance, accordingly the smaller shall be deducted from the larger one and the larger one will decide the nature of balance whether debit or credit.

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Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 Contribution margin 175,500 Fixed expenses 180,000 Net o

vichka [17]

Answer:

Automated

Sales (19,500 units at $30 per unit) $585,000 $585,000

Variable expenses 409,500 351,000

Contribution margin 175,500 234,000

Fixed expenses 180,000 252,000

Net operating loss $(4,500) $( 18,000)

New Cm ratio= Contribution Margin/ Sales Revenue

= $ 234,000 $ 585,000 = 0.4

Break-even point in dollars= Fixed Costs/ 1- (variable Cost/ Sales)

= 252,000/ 1- (351,000/ 585,000)

= 252,000/ 1-0.6

= 252,000/0.4= $ 630,000

The resulting $ 630,000 is the break even point at which neither a loss nor a profit is incurred.This can be checked as follows.

Sales $ 630,000

Variable Costs ( 60 % $ 630,000) $ 378,000

Contribution Margin $ 252,000

Less Fixed Expense <u>$ 252,000</u>

Profit <u> 0 </u>

Break even point in units = Fixed Costs/ Contribution Margin in units

= $ 252,000/ (30-18)

=$ 252,000/ $ 12= 21,000 units

Two Contribution format Income Statements:

Automated

Sales (26,000 units at $30 per unit) $780,000 $780,000

Variable expenses 546,000 468,000

Contribution margin 234,000 312,000

Fixed expenses 180,000 252,000

Net operating Profit $ 54,000 $ 60,000

Working:

Variable Costs per unit = $ 409500/19500= $ 21

After reduction variable costs = $ 21- $3= $ 18

4 0

3 years ago

A plant asset acquired on October 1, 2018, at a cost of $400,000 has an estimated useful life of 10 years. The salvage value is

melamori03 [73]

Answer:

The depreciation expense for the first two years is $72,000.

Explanation:

Under straight-line method, depreciation expense is (Cost - Residual value) / No of years = ($400,000 - $40,000) / 10 years = $36,000 yearly depreciation expense.

Using this method, the depreciation expense for the first two years is $36,000 x 2 years = $72,000. This amount is regarded as the accumulated depreciation at the end of Year 2 while the net book value would be $400,000 - $72,000 = $328,000.

3 0

3 years ago

sharp screen films, inc., is developing its annual financial statements at december 31, current year. the statements are complet

gavmur [86]

Financial statements are written records that outline a company's operations as well as its financial success. Government organizations, accounting firms, and other entities frequently audit financial statements to assure their accuracy and for reasons related to taxes, financing, or investment. The balance sheet, income statement, cash flow statement, and statement of changes in equity are the four basic financial statements used by for-profit organizations. Nonprofit organizations employ a comparable but distinct set of financial statements.

SHARP SCREEN FILMS, INC.

Statement of Cash Flows

For the Year Ended December 31, Current year

Cash flows from operating activities:

Net income 46050

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation expense 13650

Decrease in accounts receivable 7200

Increase in merchandise inventory -4850

Decrease in accounts payable -10200

Decrease in wages payable -400 5400

51450

Net cash provided by operating activities

Cash flows from investing activities:

Cash payments to purchase fixed assets -58950

Net cash used in investing activities -58950

Cash flows from financing activities:

Cash payments on long-term note -10900

Cash payments for dividends -13950

Cash receipts from issuing stock 33400

Net cash provided by financing activities 8550

Net increase in cash during the year 1050

Cash balance, January 1, current year 63900

Cash balance, December 31, 2015 current year 64950

Financial information is used by analysts and investors to assess a company's performance and forecast the course of its stock price in the future. The company's annual report, which includes its financial statements, is among the most significant sources of trustworthy and audited financial data.

Investors, market analysts, and creditors analyze the financial statements to assess the strength of a company's finances and future profits potential. The statement of cash flows, income statement, and balance sheet are the three main financial statement reports.

Learn more about financial statements here

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2 years ago

Students interested in working as a chef might participate in what?

kolezko [41]

From my research, Skills USA is the most hands on when it comes to that kind of stuff.

I personally think the answer is C

7 0

3 years ago

Read 2 more answers

A high coupon bond is likely to be called by the issuing firm if (a) required yields rise. (b) it has a high call premium. (c) i