Answer:
Sales revenue $ 710,000
Cost of goods sold $ 385,000
Gross Profit $ 325,000
Selling expense 71,000
Administrative expense 91,000
Operating Income 163,000
Non-Operating Income
Interest revenue 44,000
Gain on sale of investments 91,000
Interest expense (28,000)
Restructuring costs (67,000)
Income before taxes 203,000
Income tax expense (50,750)
Net Income 152,250
Shares outstanding 100,000
Earnings per share $1.52
Explanation:
We need to determinate gross profit.
then, the operating income therefore the interest and restructuring cost are not considered. Same goes for the gain on investment as aren't part of the business normal activities.
Answer:
Economic growth can be caused by random fluctuations, seasonal fluctuations, changes in the business cycle, and long-term structural causes. Policy can influence the latter two.
Business cycles refer to the regular cyclical pattern of economic boom (expansions) and bust (recessions). Recessions are characterized by falling output and employment; at the opposite end of the spectrum is an “overheating” economy, characterized by unsustainably rapid economic growth and rising inflation. Capital investment spending is the most cyclical component of economic output, whereas consumption is one of the least cyclical. Government can temper booms and busts through the use of monetary and fiscal policy. Monetary policy refers to changes in overnight interest rates by the Federal Reserve. When the Fed wishes to stimulate economic activity, it reduces interest rates; to curb economic activity, it raises rates. Fiscal policy refers to changes in the federal budget deficit. An increasing deficit stimulates economic activity, whereas a decreasing deficit curbs it. By their nature, policy changes to influence the business cycle affect the economy only temporarily because booms and busts are transient. In recent decades, expansions have become longer and recessions shallower, perhaps because of improved stabilization policy, or perhaps because of good luck.
Answer:
The manufactured overhead was under-estimated.
Explanation:
Giving the following information:
The actual manufacturing overhead costs incurred were $515,000.
Estimated Manufacturing overhead was $500,000.
Overhead allocation is the distribution of indirect costs to produced goods. When the administration has undervalued and under-funded the amount of money needed for non-production costs, they have under-allocated overhead.
<u>Over applied manufacturing overhead:</u>
<u></u>
Applied overhead>Actual overhead
<u>Under applied manufacturing overhead:</u>
Applied overhead<Actual overhead
In this exercise:
Actual manufacturing overhead - Estimated Manufacturing overhead= 515000- 500000= 15000
The manufactured overhead was under-estimated.
