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4 years ago

EA4.

Business

1 answer:

mart [117]4 years ago

8 0

Answer:

$1,000

Explanation:

As we know that

Cost of material used = Beginning balance of inventory + purchase made during the month - ending balance of inventory

$900 = $200 + purchase made during the month - $300

$900 = -$100 + purchase made during the month

So, the purchase made during the month would be

= $900 + $100

= $1,000

We simply added the purchase to the beginning inventory and deduct the ending inventory

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The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax

xxMikexx [17]

Answer:

$129

Explanation:

Pretax accounting income: $ 160

Overweight fines (not deductible for tax purposes) 8

Depreciation expense 80

Depreciation in the tax return using MACRS: 119

Franklin's taxable income ($ in millions) = $160 + $8 - ($119 - $80) =

3 0

4 years ago

Alan, Jason, and Greg want to incorporate their small roofing business. To do so, they must file legal documents with the approp

Vladimir79 [104]

Answer:

Articles of Incorporation

Explanation:

The incorporation articles are a collection of official documents submitted with a government body to legally record an organization's formation.

Articles of incorporation usually contain relevant information, including the title of the company, physical address, system service agent and the quantity and nature of inventory to be released.

3 0

3 years ago

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per

Blizzard [7]

Answer:

a. Degree of operating leverage is 1.23; and Percentage increase in net income is 23.37%.

b. Therefore, this year's net operating income would be $636,000 if the sales manager's ideas are implemented.

Explanation:

a. Assume the president expects this year's sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year?

The degree of operating leverage (DOL) refers to a metric used to gauge the amount by which the operating income of a firm will change as a result of a change in its sales. DOL can be calculated as follows:

Degree of operating leverage = contribution margin / net income = 960,000 / 780,000 = 1.23

From the DOL, the percentage increase in net income can can be determined as follows:

Percentage increase in net income = Degree of operating leverage * Expected percentage increase in net income = 1.23 * 19% = 23.37%

b. If the sales manager is right, what would be this year's net operating income if his ideas are implemented?

Note: This required part b is not complete. The complete requirement is therefore presented as follows:

The sales manager is convinced that a 13% reduction in the selling price, combined with a $72,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented?

The answer to par b is now provided as follows:

Initial sales in unit = Initial sales / Initial selling price = $1,920,000 / $80 = 24,000 units

This year's sales in unit = Initial sales in unit * (100% + percentage increase in sales) = 24,000 * 125% = 30,000 units

This year's sales = This year's sales in unit * [Old selling price * (100% - expected percentage fall in selling price)] = 30,000 * [$80 * (100% - 13%)] = $2,088,000

This year's operating income can now be determined as follows:

Feather Friends, Inc.

Income Statement (Variable Costing)

For this year

Particulars Amount ($)

Sales 2,088,000

Variable expense (30,000 * $40) (1,200,000)

Contribution margin 888,000

Fixed expense (180,000 + 72,000) (252,000)

Net operating income  636,000 

Therefore, this year's net operating income would be $636,000 if the sales manager's ideas are implemented.

5 0

3 years ago

An asset group is being evaluated for an impairment loss. The following financial information is available for the asset group:

oee [108]

Answer:

The amount of impairment loss that should be recognized is $20,000,000

Explanation:

In order to calculate the amount of impairment loss that should be recognized we would have to make the following calculation:

amount of impairment loss=Carrying value - Fair value

Carrying value=$100,000,000

Fair Value=$80,000,000

Therefore, amount of impairment loss=$100,000,000-$80,000,000

amount of impairment loss= $20,00,000

The amount of impairment loss that should be recognized is $20,000,000

6 0

3 years ago

Scheduling personnel is an example of an operations management:

Molodets [167]

Answer:

B. operational decision

Explanation:

Scheduling personnel is an example of an operations management: operational decision

6 0

3 years ago