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3 years ago

Budgeted sales in Allen Company over the next four months are given below:

Business

1 answer:

Snezhnost [94]3 years ago

8 0

Answer:

Cash collections for December should be $103,500

Explanation:

As a percentage of any sales is usually made on account which is 75%. The cash collection shall be received in categories as follows:

Cash collection on account $

Month of sale

50% × 75% December Sales =

50% × (100-25)% × 120,000 = 45,000

One month after sales

30% × 75% × November sales

30% × 75% × 180,000 = 40,500

2 months after sales

15% × 75% × October sales

15% × 75% × 160,000 = 18,000

103,500

Cash collections for December should be $103,500

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Answer:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Explanation:

Giving the following information:

MNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours.

We don't have the data necessary to calculate the estimated manufacturing overhead rate, but we can provide the formula and an example:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

For example:

Estimated overhead= 150,000

Estimated direct labor hours= 12,000 hours

Estimated manufacturing overhead rate= 150,000/12,000= $12.5 per direct labor hour.

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4 years ago

Which of the following is considered the more industrial version of hunting?

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i believe it's A. Trapping

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2 years ago

Software Distributors reports net income of 555,000. Included in that number is depreciation expense of 510.000 and aloss on the

Alex_Xolod [135]

Answer:

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $555,000

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Add : Depreciation expense $510,000

Add: Loss on the sale of land $5,000

Add: Decrease in accounts receivable $25,000

Add: Decrease in inventory $515,000

Add: Increase in accounts payable $545,000

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The operating cash flow is shown below:

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4 years ago

Badger corp. declared a stock dividend to all shareholders of record on march 25 of this year. shareholders will receive one sha

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Answer to 2nd question is "The new stock is allocated part of the tax basis of the old stock based on relative fair market value.
After the stock dividend, Madison will own 1,100 shares of Badger stock (1,000 + 1,000/10), each with the same fair market value.
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3 years ago

Read 2 more answers

Whitman Antique Cars Inc. has the following data, and it follows the residual dividend model. Some Whitman family members would

djverab [1.8K]

Answer:

Dividends would increase by $552500.

Explanation:

Original capital budget $3,000,000

New capital budget $2,150,000

Net income $3,500,000

% Debt 35%

Old New

% Debt 35% 35%

% Equity = 1 – %Debt 65% 65%

Capital budget $3,000,000 $2,150,000

Net income (NI) $3,500,000 $3,500,000

Equity needed to support

the capital budget =

%Equity * Capital budget $1,950,000 $1,397,500

Dividends paid = $1,550,000 $2,102,500

NI - Equity needed

if positive.

Increase in dividends paid = $2,102,500 - $1,550,000 = $552500.

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3 years ago