Answer:
a. The value of shareholder's equity account for this firm is $16,600.
b. The net working capital for Wims Inc. is $1,500.
a. We start off by looking at the Accounting Identity:
Since
and
We can rewrite this accounting identity as follows:
----- (1)
Plugging in the values from the question in (1) above we get,
b. The formula for Net Working Capital is:
Try making discount to 5% they will have to pay just a little more for what they are buying. Try moving the payment to 822,000 so you can save the 441 dollars.
Answer:
Instructions are listed below.
Explanation:
A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.
Sales=
Variable costs:
Cost of good sold=
Sales commissions=
Shipping expense=
Total variable cost (-)
Contribution margin=
Fixed costs:
Advertising expense=
Shipping expense=
Administrative salaries=
Insurance expense=
Depreciation expense=
Total fixed cost= (-)
Net operating profit=
Degree of operating leverage= % change in EBIT/ % change in sales
Answer and Explanation:
The answer is attached below