Answer:
Instructions are listed below
Explanation:
We don't have enough information to answer the question numerically. But, I can provide a few formulas of how to answer it.
A)
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=Net operating income
B)Break-even point (dollars) fixed costs/ contribution margin ratio
Contribution margin ratio= (Price - unitary variable cost)/Price
1) Increase in Unitary variable cost:
Contribution margin= price - new unitary variable cost
2) Variance in income= new sales* contribution margin - increase in fixed costs
3) Prepare the income statement again
C) Break-even point= fixed costs/ contribution margin
Answer:
Surry Co.
Income Statement for the year ended December 31, 2016
Sales $915000
Less Cost of Merchandise Sold $670000
Gross Profit $245000
<u>LESS OPERATING INCOME</u>
<u><em>Selling Expenses</em></u>
Customer Refunds and allowances $ 55000
Selling expenses $ 120000 $175000
<u><em>Administrative Expenses</em></u>
Administrative expenses $ 30000 $30000
Total Operating expenses $205000
Operating Income $ 40000
<u>NON-OPERATING INCOME</u>
Interest Expense ($12000)
Rent Revenue $19000
Total Non-operating Income $ 7000
Net Income $47000
Explanation:
A multiple-step Income Statement separate Operating Revenues and Operating Expenses from Non-Operating Revenues and Non-Operating Expense.
Answer:
C. $11,498.73.
Explanation:
Solving this question, we will have to make use of this formula:
The Adjusted Bank Balance = Unadjusted Balance as per Bank Statement as at Oct 31, 2015 - Checks Outstanding
= $12,956.73 - $2,112.19 = $10,844.54
Now,
Before the adjustment on the 31st of October, 2015,
The Cash account Balance = Adjusted Bank Balance + insufficient funds checks
= $10,844.54 - $654.19 = $11,498.73
Hence third option in the question is the correct answer.
Answer:
C. LIFO liquidation
Explanation:
Benson Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. In its footnotes, Benson Company is required to report the amount at which inventories would have been reported under FIFO method.
The difference between these two numbers is commonly referred to as LIFO Reserve.
LIFO reserve represents the difference in ending inventory using LIFO and ending inventory if FIFO were employed instead.
Third option is the correct option.
LIFO reserve = FIFO inventory cost - LIFO inventory cost
FIFO inventory cost = LIFO inventory cost + LIFO reserve
