Answer:
The correct answer is:
A) Cash (Cash Budget)
B) Accounts receivable (Cash Budget)
C) Finished goods inventory (Operating Budget)
B) Accounts payable (Cash Budget)
D) Equipment purchases (Operating Budget)
Explanation:
The operating budget is a planning of the profits and expenses of a company for one or more than one period. It includes the expectations of other budgets on <em>payroll, cost of goods, </em>and <em>inventory</em>.
The cash budget is a plan for a business or individual's cash inflows and outflows. It is often considered the most important financial budget as it allows companies to better manage their cash positions and prevent unforeseen cash flaws. <em>Current cash, accounts payable and receivables</em> are taken into consideration for the projection of this budget.
Answer:
Statement 1: Explicit cost
Statement 2: Implicit cost
Statement 3: Implicit cost
Statement 4: Explicit cost
Accounting profit = Sales revenue - Explicit cost
= 722,000 - (422,000 + 268,000)
= $32,000
Economic profit = Sales revenue - (Explicit cost + Implicit cost)
= 722,000 - (422,000 + 268,000 + 2,000 + 21,000)
= $9,000
Answer:
1. $565,000 and $166,600
Explanation:
In case of recording sale instead of lease the interest should be computed on Cash selling price instead of cost of the equipment
.
Interest income = ($4,965,000 - $800,000)*8%*6/12
= $166,600
As $800,000 is due in July 1
Profit = $4,965,000 - $4,400,000
= $565,000
Therefore, The amount of profit on the sale and the interest income that Koenig would record for the year ended December 31, 2018 is $166,600 and $565,000.
Answer:
The answer is
A. $955,700
B. $570,900
C. $734,400
Explanation:
A. Cost of sales
Gross profit = Sales - Cost of sales.
Therefore, Cost of sales will now be:
Sales - Gross profit
$1,309,200 - $353,500
=$955,700
B. Direct materials cost
Direct materials cost = material purchased - indirect materials - ending material Inventory
$667,700 - $48,400 - $48,400
=$570,900
C.Direct labor cost
Direct labor cost = manufacturing costs for the period - Direct materials cost - Other factory overhead - Indirect labor
$1,445,400 - $570,900 - $22,300 - $117,800
=$734,400
Answer:
two main reasons for having a savings account:
- It can be used as a vacation fund.
- An account to pay cash for new things and cover repairs.
- Can be used as an emergency account.
Hope it helps!
