1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ArbitrLikvidat [17]
3 years ago
6

Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $316,547; costs = $219,406; other

expenses = $8,481; depreciation expense = $18,633; interest expense = $14,216; taxes = $15,217; dividends = $10,678. In addition, you’re told that the firm issued $5,629 in new equity during 2015 and redeemed $3,283 in outstanding long-term debt. If net fixed assets increased by $24,154 during the year, what was the addition to NWC?
Business
1 answer:
o-na [289]3 years ago
8 0

Answer:

Net working capital addition was for 8,108 dollars

Explanation:

To solve for NWC we start form the accounting equation and then, we expand it to get the NWC expression:

Assets = Liabilies + Equity

we expend the formula

current assets + fixed assets = current liabliies + non-currnet liab + stock + RE

NWC = net working capital

being: current assets - current liabilities

(current assets - current liabilities) =  non-currnet liab + stock + RE - fixed assets

NWC = -3,283 + 5,629 + RE - 24,154

We need to solve fotr the change in Retained Earnings:

which is net income - dividends:

sales                                316,547

costs                              (219,406)

other expenses                 (8,481)

depreciation expense    (18,633)

interest expense             (14,216)

taxes                                 (15,217)

                 net income      40,594

                dividends         (10,678)

          change in RE           29,916

NWC = -3,283 + 5,629 + 29,916 - 24,154

NWC = 8,108

You might be interested in
Question 1 What forces have caused cost and management accounting systems designed decades ago to become less relevant and less
sergey [27]

Answer to Question 1:

The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:

  • The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.
  • The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.
  • The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.

Answer to Question 2:

The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.

As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.

By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.

5 0
3 years ago
When Luke, Larry, and Lance lost their jobs during the recent recession, they pooled their resources, borrowed a little more, an
stepladder [879]

Answer:

a) Limited liability company

Explanation:

Considering the options given, as an advisor the form of business that I would recommend is: limited liability company that is a structure in which the owners  are not responsible with their personal assets for the company's debts as the three owners are concerned about this risk.

I would not advise the other forms of business because the sole proprietorship is a firm that is run by one person, the general partnership is a structure in which two or more people agree to share unlimited liability which means that they share all their personal assets and are responsible for any debt the company has with them and the master limited partnership is a company that trades securities in the market.

4 0
3 years ago
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
ollegr [7]

Answer:

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given  - credit balance of allowance for doubtful debts

= $920,000 × 0.6%  - $620

= $5,520 - $620

= $4,900

6 0
3 years ago
Which of the following is not a typical adjustment made to the income statement for projection purposes?
ankoles [38]

Answer:

The correct answer is b. Adjusting revenues to only include organic revenue growth.  

Explanation:

One of the quantitative planning techniques is the projection of financial statements or also called pro forma statements.

The applications that can be had among others are the following:

Know how the year will end for tax purposes in terms of income and deductions in order to make decisions before the end of the year.

Another application will be to know the external financing needs for the period you want to know.

The most common and practical method of projecting financial statements is based on sales.

7 0
3 years ago
You would like to use the fixed-order-interval inventory model to compute the desired order quantity for a company. You know tha
7nadin3 [17]

Answer:

c. 50

Explanation:

Fixed-order-interval inventory model also known as fixed reorder cycle inventory model is used to manage supply of raw material to a business based on demand of the product. Review of inventory is done by inventory analyst at fixed intervals and of inventory level is above a predetermined reorder level, nothing is done.

If however stock is at or below set reorder level raw material is purchased and is based on the formula- Maximum level - Current level.

In the scenario above we use the following formula

Standard deviation of demand over the review and lead-time period(SD)=Square root of { (Lead time+ Number of days between review)* (Standard deviation of daily demand)^2}

SD= √ {(10+15)*(10)^2}

SD= √ (25* 100)

SD= √2,500

SD= 50

8 0
3 years ago
Read 2 more answers
Other questions:
  • The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it
    14·1 answer
  • The net present value: Multiple Choice decreases as the required rate of return increases. is equal to the initial investment wh
    12·1 answer
  • there is agrowing demand of architects and engineers in devloping countries like nepal justify this statement​
    5·1 answer
  • "All else held constant" is a major problem facing all methods of estimating the demand for business products. Compare and contr
    11·1 answer
  • Novak Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $
    15·2 answers
  • HELP PLEASE
    10·2 answers
  • A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
    7·1 answer
  • Concentrated ownership is when there are very few shareholders so that each one gets a. Share of the profits
    8·1 answer
  • Phelan Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and
    13·1 answer
  • Company k incurs a $22,000 deductible expense. compute the current year tax savings from the deduction assuming that:_________
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!