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krok68 [10]
3 years ago
7

Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution marg

in ratio, and net operating income are $960,000, 34%, and $19,200, respectively. The North Divisions contribution margin and contribution margin ratio are $121,600 and 38%, respectively. The South Division’s segment margin is $140,800. The company has $211,200 of common fixed expenses that cannot be traced to either division.Required:
Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions.
Business
1 answer:
Triss [41]3 years ago
4 0

Answer:

Income statement for Shannon Company that uses the contribution format and is segmented by divisions is attached with this answer please find it.

Explanation:

Contribution margin income statement is determines the contribution margin and Net income. Contribution margin is calculated after deducting variable costs from the revenue and the net income after deducting fixed expense from the contribution margin.

Overall

Sales Value is the sum of the sales of both North and South Segment.

Sales = $960,000

Contribution margin ratio = 34%

Net operating income = $19,200

North Divisions

Contribution margin $121,600

Contribution margin ratio 38%

As we know:

Contribution Margin ratio = Contribution margin / Sales

38% = $121,600 / Sales

Sales = $121,600 / 38% = $320,000

South Division

Margin $140,800.

Common fixed cost of $211,200 is deducted to calculate the net income.

Download pdf
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Ron Landscaping's income statement reports net income of $75,200, which includes deductions for interest expense of $13,200 and
kaheart [24]

Answer:

times interest earned= 9.49

Explanation:

Giving the following information:

Ron Landscaping's income statement reports net income of $75,200, which includes deductions for interest expense of $13,200 and income taxes of $36,900.

First, we need to calculate the income before taxes and interest expense:

EBIT= 75,200 + 13,200 + 36,900= $125,300

Now, to calculate the times interest earned we need to use the following formula:

times interest earned= EBIT/ interest expense= 125,300/13,200= 9.49

3 0
3 years ago
Several years ago, Nicole Company issued bonds with a face value of $1,030,000 for $960,000. As a result of declining interest r
EleoNora [17]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Bonds payable Dr,                      $1,030,000

Loss on retirement of bond Dr,       $78,800

($1,091,800 - $1,013,000)

          To discount on bond                      $17,000

          To cash                                            $1,091,800

($1,030,000 × 106%)

(Being retirement of the bonds is recorded)

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3 years ago
Adelle is a department manager at a large corporation. She has made a conscious choice to lead in ways that enrich the lives of
Misha Larkins [42]

Answer:

Adelle’s attitudes and behaviors are most consistent with the <u>post-conventional</u> stage of moral development.

Explanation:

According to Kohlberg's theory of moral development, there are three stages of moral development. They are the pre-conventional, conventional and post-conventional stages.

Adelle's behavior is consistent with the post-conventional stage. In this stage a person develops his/her own sense of morality and <em>make conscious decisions</em>, not just relying on what the society believes to be right or wrong.

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Age distribution is also important to growth rate because it describes what percentage of the population is at a child producing age. An age distribution that is weighed toward elder people can expect a lower future growth rate than a young-slanted age distribution, since a larger portion of the young population will likely have babies in the future.  
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3 years ago
Oscar has elected to have 23% of his federal income tax withheld as state income tax. If $154.00 was withheld as federal income
spin [16.1K]
Federal income tax withheld = x

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So, if $154 was held as federal income tax on the last paycheck, then the state income tax will be: 0.23 (154) = $35.42

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$189.42
4 0
3 years ago
Read 2 more answers
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