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Lubov Fominskaja [6]
3 years ago
15

Financial information is presented below: Operating Expenses $ 90800 Sales Returns and Allowances 26600 Sales Discounts 11200 Sa

les Revenue 293000 Cost of Goods Sold 158600 Gross profit would be $96600. $107800. $123200. $134400.
Business
1 answer:
Ymorist [56]3 years ago
5 0

Answer:

The correct answer would be option A, $96600.

Explanation:

Gross profit is the amount of profit which a company earns after deducting all the costs which incurred in the making and sale of the products of the company.  

Gross profit can be found out by the following formula:

Gross Profit = Total Sales - Cost of Goods Sold

Total Sales will be Sales Revenue - Sales Return - Sales Discounts

So here total sales revenue will be = 293000 - 26600 - 11200

= 255200

Total sales Revenue: 255200

Cost of goods Sold = 158600

Gross Profit = 255200 - 158600

Gross Profit = $96600

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Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are
worty [1.4K]

Answer:

Retained Earnings Balance at end of Year 1 =  $360

Explanation:

First we need to determine the profit/loss for the year as part of the retained earnings calculation.

Lexington Company

Income Statement for the year ended - Year 1

Revenue Earned                                                $3,200

Less Expenses                                                  ($2,420)

Net Income / (Loss)                                               $780

Then we calculate the Retained Earnings Balance

Retained Earnings Statement

Beginning Retained Earnings Balance                  $ 0

Add Profit earned during the year                      $780

Less Dividends                                                   ($420)

Ending Retained Earnings Balance                    $360

5 0
3 years ago
Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DU
Ghella [55]

Answer:

Companywide income would increase by $6,000 if West Division is eliminated.

Explanation:

The amount by which the companywide income will increase or decrease if West Division is eliminated can be determined by comparing Revenue with avoidable cost.

Avoidable cost refers to the cost that will be eliminated or not incurred if a firm decides to change the course of a business.

In this question, avoidable cost is simply the cost or expenses that will be eliminated if West Division is eliminated.

Among all the expenses in the question, only Companywide facility-sustaining costs which is $78,000 cannot be eliminated if West Division is eliminated.

Therefore, avoidable cost can be calculated as follows:

Avoidable cost = Salaries for drivers + Fuel expenses + Insurance + Division-level facility-sustaining costs = 210,000 + 30,000 + 42,000 + 24,000 = $306,000

Since, Revenue = $300,000

Decision rule:

1. If revenue is greater than avoidable cost, we have a decrease in income. Therefore, the division should not be eliminated.

2. If revenue is less than avoidable cost, we have an increase in income. Therefore, the division should be eliminated.

Since the revenue of $300,000 is less than the avoidable cost of $306,000, it implies we have an increase in income based on the decision rule 2. The increase in income is calculated as follows:

Increase in income if West Division is eliminated = Avoidable cost – Revenue = $306,000 - $300,000 = $6,000

Therefore, companywide income would increase by $6,000 if West Division is eliminated

Since there would be an increase in income of $6,000, West Division should therefore be eliminated.

4 0
3 years ago
jones enterprises was started when it acquired $6,000 cash from creditors and $10,000 from owners. the company immediately purch
Kobotan [32]

Answer:

The answer of each requirement is given below.

A.) record the events under an accounting equation

Accounting equation is given below.

Asset = Equity + Liability

Land + Cash = Equity + liability

12,000 + 4000 = 10,000 + 6,000

16,000 = 16,000

B.) After all events have been recorded, Jones's obligations to creditors represent what percent of total assets

Percentage = 6,000/16,000*100 = 37.5%

C.) after all events have been recorded, Jones stockholders equity represents what percent of total assets?

Equity percentage = 10,000/16,000* 100 = 62.5%

D.) assume the debt is due. given that jones has $10,000 in stock holders' equity can the company repay the creditors at this point? why or why not

No, the company will not be able to pay debt as the company has acquired land of 12,000 dollars and has only 4,000 dollars in liquid form.

4 0
3 years ago
Những nhân tố ảnh hưởng đến hành vi mua hàng của người tiêu dùng là gì
sergey [27]

Nhận thức, động cơ, học tập, niềm tin và thái độ là tất cả các yếu tố tâm lý ảnh hưởng đến việc mua hàng của người tiêu dùng. Quá trình mọi người lựa chọn và giải thích thông tin để đưa ra quyết định mua hàng được gọi là nhận thức.

8 0
2 years ago
What is the main activity of a producer cooperative?
fomenos
I think it's C

I hope it helped you!
5 0
2 years ago
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