Answer and Explanation:
The preparation of the operating activities section is presented below
Cash Flows from operating activities
Net Income $88,000
Adjustment made for non cash items:
Depreciation Expense $19,000
Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)
Less: Increase in Inventory $(5000) ($40,000 - $35,000)
Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)
Net cash flows from operating activities $109,000
Answer:
A Overhead: 180,634
B Production Cost: 214,410
C Period Cost: 71,091
Explanation:
<u>Manufacturing overhead</u>
Factory utilities 16,942
Depreciation on factory equipment 13,387
Property taxes on factory building 3,252
Indirect factory labor 49,656
Repairs to office equipment 2,179
Indirect materials 84,468
Factory repairs 2,465
Factory manager's salary 8,285
Total: 180.634
<u>Product Cost</u>
Direct labor 71, 743
Direct materials used 142,667
Total: 214,410
<u>Period Cost </u>
Sales salaries 47, 310
Depreciation on delivery trucks 4,546
Advertising 15, 712
Office supplies used 3,523
Total: 71,091
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Answer:
The margin for Alyeska Services Company: 29.48
The turnover for Alyeska Services Company: 49.01
The return on investment for Alyeska Services Company: 14.45
Explanation:
Please find the below for detailed explanation and calculations:
We have the formula for calculating the ratios as require in the question: Margin = Net operating income/ Sales ; Turnover = Sales/Average operating assets; Return on investment = Net operating income/ Average operating assets.
Thus, we have:
The margin for Alyeska Services Company is calculated as Net operating income/ Sales or 5,100,000/17,300,000 = 29.48%;
The turnover for Alyeska Services Company is calculated as Sales/Average operating assets or 17,300,000/35,300,000 = 49.01%;
The return on investment for Alyeska Services Company is calculated as Net operating income/ Average operating assets: 5,100,000/35,300,000 = 14.45%.
Hope this is helpful to you.
