1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
12345 [234]
3 years ago
13

The following transactions apply to Ozark Sales for 2016:

Business
1 answer:
-Dominant- [34]3 years ago
5 0

Answer and Explanation:

The preparation of the income statement for 2016 is shown below:-

                                 OZARK SALES

                               Income Statement

             For the Year Ended December 31, 2016

Sales revenue                             $510,000

Cost of goods sold                      $330,000

Gross margin                               $180,000

Expenses  

Operating expenses    $78,000  

Warranty expenses     $10,200  

Total operating expenses          $88,200

Operating income                       $91800

Interest expense                         $667

Net income                                  $91133

b. The preparation of balance sheet for 2016 is shown below:-

                           OZARK SALES

                           Balance Sheet

                       As of December 31, 2016

Assets  

Cash                                              $284,600

Merchandise inventory                $50,000

Total assets                                   $334,600

Liabilities  

Accounts payable $130,000  

Sales tax payable  $8,800  

Notes payable        $50,000  

Warranties payable $4,000  

Interest payable      $667  

Total liabilities                      $193,467

Here, we added all liabilities to reach the total liabilities

Stockholders' equity  

Common stock      $50,000  

Retained earnings $91,133  

Total stockholders' equity               $14,1133

Total liabilities and stockholders'

equity                                                  $334,600

c. The Preparation of statement of cash flow is shown below:-

                                   OZARK SALES

                                Statement of Cash Flows

                       For the Year Ended December 31, 2016

Cash flows from operating activities:  

Inflow from customers               $510,000  

Inflow from sales tax                  $40,800  

Outflow for expenses                 -$84,200  

Outflow for sales tax                -$32,000  

Outflow to purchase inventory -$250000  

Net cash flow from operating activities      $184,600

Cash flows from investing activities

Cash flows from financing activities:  

Inflow from loan                           $50,000  

Inflow from stock issue                $50,000

Net cash flows from financing activities    $100,000

Net change in cash                                      $284,600

Plus: Beginning cash balance                      0

Ending cash balance                                    $284,600

You might be interested in
David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,700. They have made prepayments
Snowcat [4.5K]

Answer:

-$1,800

Explanation:

Given that

Tax liability = $1,700

Prepayment made = $1,500

Child tax credit = $2,000

The computation of tax refund is given below:-

= Tax liability - (Prepayment made + Child tax credit)

= $1,700 - ($1,500 + $2,000)

= $1700 - $3500

= -$1,800

Therefore, from the above calculation simply we subtract tax liability from prepayment and child tax credit.

3 0
3 years ago
When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The cross-price elastici
Inga [223]

Answer:

d. 0; unrelated.

Explanation:

Cross elasticity of demand is the degree of responsiveness of demand for a particular product to a change in the price of another product.

A change in price of a product will lead to a change in demand for another product if the two goods are either goods of close substitutes or if they are complements. If two goods are not related, the change in price of one will not have any impact on the demand for the other good.

In this question, the cross elasticity is zero because biro and pencil are not related.

3 0
3 years ago
In July 2012, a small chocolate factory receives a large order for chocolate bars to be delivered in November. The spot price fo
Anettt [7]

Answer:

$24,530, $23,530

Explanation:

Incomplete word <em>"and if the spot price in September proves to be $2,300."</em>

<em />

Note that Call options will be exercised only if the price on expiry is greater than strike price

Strike price = $2400

Premium paid = $53 for each contract, so the total premium paid = $530 for 10 contracts

<u>CASE 1</u>

Price = $2600

As price on expiry=2600 > Strike price=2400

Call option will be exercised.

Company will pay = $2400 * 10+530 = $24,530

<u>CASE 2</u>

Price = $2300

As price on expiry=2300 < Strike price=2400

Call option will not be exercised and will purchase from open market

Company will pay = $2300 * 10+530 = $23,530

4 0
2 years ago
Explain in detail how Boulders Mall's management may have used media relations as a public relations tool to try to resolve cont
Arada [10]

Explanation:

The management of Boulders Mall made use of the media to offer an apology for what happened in the shopping center, making it clear that there was not actually an act of discrimination due to the way the man dressed in traditional Ndebele clothes dressed and clarifying that in no case At the time, man was discriminated against because of his culture or his traditions.

This was a public way of "calming" the controversies and upsets that could have been generated in many people, because we must remember that this type of action can generate rejection by the community towards the shopping center and generate great economic losses.

4 0
2 years ago
Making a Decision as Chief Financial Officer: Contingent Liabilities
Verizon [17]

Answer:

sry need points

Explanation:

3 0
2 years ago
Other questions:
  • Furnco manufactures desks and chairs. Each desk uses 4 units of wood, and each chair uses 3 units of wood. A desk contributes $4
    12·1 answer
  • Two types of costs that each combine fixed cost and variable cost behaviors are: a. capacity and incremental costs. b. semi-fixe
    15·1 answer
  • Suppose you buy a CD for $750 that earns 4% APR and is compounded quarterly. The CD matures in 3 years. Assume that if funds are
    12·2 answers
  • Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock currently yields 7%, and its par value
    15·1 answer
  • Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded s
    15·1 answer
  • The following selected information is from Princeton Company’s comparative balance sheets. At December 31 2017 2016 Common stock
    15·1 answer
  • Jake Shirt Co. used 5,300 square yards of polyester to produce 3,000 shirts. The standard quantity of material for the 3,000 shi
    12·1 answer
  • If you owned a business what would be the way to protect your personal assets from liablity?
    13·1 answer
  • In its first year of operations, Cullumber Company recognized $33,700 in service revenue, $6,700 of which was on account and sti
    7·1 answer
  • Why do economists calculate gdp by both the expenditure approach and the income approach?.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!