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3 years ago

"Sanchez Company engaged in the following transactions during Year 1:

Business

1 answer:

kupik [55]3 years ago

6 0

Answer:

6,500 ; $2,000

Explanation:

The computation of the gross margin for the year 2 is shown below:

As we know that

Gross margin = Sales - cost of goods sold

= $15,000 - $8,500

= $6,500

Now for retained earning, first we have to find out the net income for both years which are shown below:

For year 1

Sales 8,400

Less: Cost of goods sold ($4,300)

Less: Operating expenses ($3,800)

Net income $300

For year 2

Sales $15,000

Less: Cost of goods sold ($8,500)

Less: Operating expenses ($4,800)

Net income $1,700

So, the retained earnings is

= $300 + $1,700

= $2,000

We simply added the net income for the year 1 and year 2 so that the retained earning could come

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3 years ago

What is a major drawback to outsourcing, and what solution could company management institute? courcehero

faust18 [17]

Answer with Explanation:

Some of the major drawback of outsourcing and how these issues must be tackled is listed as under:

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3 years ago

The constant dividend growth model: a. is more complex than the differential growth model. b. requires the growth period be limi

Finger [1]

Answer:

The correct answer is letter "D": can be used to compute a stock price at any point in time.

Explanation:

The Gordon Growth Model, also known as the Constant Dividend Growth Model, is used to measure the value of the stock at any point in time based on the projected future dividends of the stock. Investors and analysts are commonly used to compare the estimated value of the stock against the current market price. Analysts interpret the gap between the two prices as proof that the stock could be under or overvalued by the market.

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3 years ago

Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms,

kotykmax [81]

Answer:

Cost of Goods Manufactured 356,700

Net Profit before Income Tax= 566,350

Explanation:

Waterways Corporation

Cost of Goods Manufactured Schedule

Raw materials Inventory - October 31 41,000

Add Raw Materials Purchases 186,500

Less Raw Materials Inventory - November 30 53,000

Raw Materials Used = 174,500

Direct labor 44,000

Factory Overhead: 145,200

Indirect labor 45,000

Factory Utilities 10,500

Factory Supplies Used 16,300

Depreciation-Factory Equipment 17,500

Property Tax on Factory 5,500

Rent - Factory Equipment 45,000

Repairs - Factory Equipment 5,400

Total Manufacturing Costs 363,700

Add Work in Process Inventory - November 30 44,000

Cost of Goods Available for Manufacture 407,700

Less Work in Process Inventory - October 31 51,000

Cost of Goods Manufactured 356,700

Waterways Corporation

Cost of Goods Sold Schedule

Cost of Goods Manufactured 356,700

Add Finished Goods Inventory - November 30 71,800

Cost of Goods Available for Sale 428,500

Less Finished Goods Inventory - October 31 73,500

Cost Of Goods Sold 355,000

Waterways Corporation

Income Statement for the month of November

Sales 1,425,000

Less Cost of Goods Sold 355,000

Gross Profit 1070,000

Less Operating expenses : 503650

Office Supplies Expenses 71,000

Advertising Expense 52,000

Salaries 335,000

Depreciation-Office Equipment 2,900

Sales Commissions 42,750

Net Profit before Income Tax= 566350

( here the salaries are treated as office salaries not factory salaries)

Waterways Corporation

Balance Sheet for the month of November

Assets

Cash 255,000

Accounts Receivable $290,000

Prepaid Expenses 42,500

3 0

3 years ago