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4 years ago

8

What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Adm

inistrative Budget 4. Budgeted Income Statement

1 answer:

sergij07 [2.7K]4 years ago

5 0

Answer:

1. Sales Budget

2. Selling and Administrative Budget

3. Budgeted Income Statement

4. Budgeted Balance Sheet

Explanation:

First of all the sales budget is prepared in which expected sales are shown and then the selling and administrative budget is prepared which shows expenses related to sale.

The income statement budget is prepared which shows the expected income.

Then at last Budgeted Balance Sheet is prepared in which the expected income is transferred.

The order in which they appear is as follows.

1. Sales Budget

2. Selling and Administrative Budget

3. Budgeted Income Statement

4. Budgeted Balance Sheet

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ABC Company's preferred stock pays a constant dividend of $2 per share in perpetuity (Zero Growth). If the required return is 8%

mezya [45]

Answer:

Price per share of preference share = $25

Explanation:

Preference dividend is generally fixed, and does not change as there is a standard rate prescribed at the time of issue of preference shares.

Provided here is, dividend for preference shares = $2

Expected return each year = 8%

Expected growth = 0%

Thus, cost or price per share of preference stock = Dividend/Expected Return = $2/8% = $25 each share.

6 0

3 years ago

The Waking Dead Co provides services for both cash and on account The accounts are adjusted monthly, For September, the folowing

ivanzaharov [21]

Answer:

$25,000

Explanation:

Given that,

Accounts receivable:

Beginning balance 1 September = $22,400

Services on account = $45,000

Cash collected = $34,400

Written off accounts = $2,000

Allowance For Doubtful accounts:

Beginning balance 1 September = $4,400

Adjusted balance for Accounts receivables on 30 Sept ember:

= Beginning balance 1 September + Services on account - Cash collected - Written off accounts

= $22,400 + $45,000 - $34,400 - $2,000

= $31,000

Adjusted balance for Allowance For Doubtful accounts on 30 Sept ember:

= Beginning balance 1 September - Written off accounts + Bad Debt Expense

= $4,400 - $2,000 + ($45,000 × 8%)

= $4,400 - $2,000 + $3,600

= $6,000

Therefore, the September 30th net realizable value of Accounts Receivable is calculated as follows:

= Accounts receivables – Allowance for Doubtful accounts

= $31,000 - $6,000

= $25,000

3 0

3 years ago

The Cork Company has been sent a special order of 6,000 dongles to be shipped at the end of the month at a selling price of $7 e

Lubov Fominskaja [6]

Answer:

Indifferent special order price=$5.60

Explanation:

To determine whether or not Cork Company should accept the order, we will compare the variable cost of the order to the sales value . If the special order generates a positive contribution margin, then it should be accepted.'

The relevant cash flows to be considered here includes

1. Variable cost of the special order

2. Sales revenue from the special order.

Note that the fixed cost are general unavoidable costs which would be incurred either way. And therefore should not be considered .

variable cos per unit = 4.60 +1.00= 5.60

$

Sales revenue from special order

(7×6,000) 42,000

Variable cost (5.60× 6,000) <u> (33,600)</u>

Net income from special order <u> 8,400 </u>

A special order price that will produce a net income of zero is that which will make the Cork Company indifferent. And such price is that which equals to the variable cost of selling

Indifferent special order price = variable cost per unit = $5.60

Indifferent special order price=$5.60

3 0

3 years ago

Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building.

Bingel [31]

Answer: See explanation

Explanation:

a. What is Kareem's realized gain or loss?

Amount realized from sale = $330,000

Less: adjusted basis for house and land = $269000

Less: tennis court adjusted basis = $6200

Realized gain = $54700

b. What is the adjusted basis of the rental house and land at the time of the sale?

Original land basis = $50000

Add: Original house basis = $25000

Less: Depreciation = $30900

Adjusted basis = $269100

c. What is the adjusted basis of the tennis court at the time of the sale?

Tennis court original basis = $7500

Less: Depreciation = $1300

Adjusted basis of the tennis court = $6200

d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?

Amount realized = $330000 + $80000 = $410,000

Less: Adjusted basis for house and land = $269100

Less: Adjusted basis of tennis court = $6200

Realized gain = $134700

3 0

3 years ago

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm

loris [4]

Answer:

Explanation:

1a

Break-even point in dollar sales 406957 =(109200+78000)/46%

1b

Break even point

Chicago office 72429 =50700/70%

Minneapolis office 146250 =58500/40%

1c

Greater than

2

Increase in sales 48750

X CM ratio 40%

Net operating income increase 19500

3

Total company Chicago Minneapolis

Amount % Amount % Amount %

Sales 520000 100.0% 130000 100.0% 390000 100.0%

Variable expenses 273000 52.5% 39000 30.0% 234000 60.0%

Contribution margin 247000 47.5% 91000 70.0% 156000 40.0%

Traceable fixed expenses 109200 21.0% 50700 39.0% 58500 15.0%

Office segment margin 137800 26.5% 40300 31.0% 97500 25.0%

Common fixed expenses not traceable 78000 15.0%

Net operating income 59800

5 0

3 years ago