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swat32
4 years ago
8

Sandhill Company had cash receipts from customers in 2020 of $117,140. Cash payments for operating expenses were $104,320. Sandh

ill has determined that at January 1, accounts receivable was $14,620, and prepaid expenses were $20,400. At December 31, accounts receivable was $15,400, and prepaid expenses were $26,610. Compute (a) service revenue and (b) operating expenses.
Business
1 answer:
andriy [413]4 years ago
3 0

Answer:

(a) service revenue = $117,920

(b) operating expenses = $98,110

Explanation:

The computations are shown below:

a. For service revenue

= Cash receipts from customers + ending balance account receivable - beginning balance of accounts receivable

= $117,140 + $15,400 - $14,620

= $117,920

b. For operating expenses

= Cash payments for operating expenses + beginning balance of prepaid expense - ending balance of prepaid expense

= $104,320 + $20,400 - $26,610

= $98,110

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Based on the information gotten, the decision on the price to charge and the quantity to produce in the long run will be based on optimal plant size determination based on cost minimization.

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Given the following information, prepare an income statement for the Dental Drilling Company.
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Answer:

Results are below.

Explanation:

<u>Giving the following information:</u>

Selling and administrative expense $90,000

Depreciation expense 75,000

Sales 621,000

Interest expense 46,000

Cost of goods sold 231,000

Taxes 50,000

<u>With the information listed above, we need to make an income statement following the structure below:</u>

<u></u>

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