Last year, leah bought a bond for $1,000 that promises to pay $110 a year. this year, a person who buys a bond for $1,000 receiv
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Answer: The amount of gross margin Mazer would report if the company uses absorption costing is $1350.
Explanation:
Given that,
Mazer Manufacturing Company produced = 2,000 units of inventory
Units Sold = 1,800 units
Variable product cost = $4 per unit
Fixed manufacturing overhead cost = $2,500
Sales price of the products = $6 per unit
Fixed manufacturing cost per unit =
=
= $1.25 per unit
Unit Product cost under Absorption costing = Variable product cost + Fixed manufacturing cost per unit
= 4 + 1.25
= $5.25
∴ Gross margin under Absorption costing = Sales Revenue - Cost of goods sold
= Units sold × sales price - Units sold × Unit Product cost under Absorption costing
= 1800 × 6 - 1800 × 5.25
= 10800 - 9450
= $1350
Answer:
The Accounting Equation states that;
Assets = Liabilities + Equity
Equity as at 2016 = Assets - Liabilities
= 50 - 13
= $37 million
Equity as at 2017 = Assets - Liabilities
= 77 - 18
= $59 million
1. Timmy issued $13 million of stock and declared no dividends.
<em>The Net Income ( loss) will be the figure that gives the Statement of Equity a figure of $59 million.</em>
Net Income = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016 - Issuance of stock
= 59 - 37 - 13
= $9 million
Total stockholders' equity, January 31, 2016 ................ 37
Add: Issuance of stock ......................................................... 13
Net income ......................................................................9
Less: Dividends declared......................................................0
Net loss.......................................................................................0
Total stockholders' equity, January 31, 2017...................59
2. Timmy issued no stock but declared dividends of $17 million.
Net Income (loss) = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016 + Dividends Declared
= 59 - 37 + 17
= $39 million
Total stockholders' equity, January 31, 2016 ................ 37
Add: Issuance of stock ......................................................... 0
Net income ......................................................................39
Less: Dividends declared......................................................(17)
Net loss.......................................................................................0
Total stockholders' equity, January 31, 2017...................59
3. Timmy issued $20 million of stock and declared dividends of $27 million.
Net Income (loss) = Total stockholders' equity, January 31, 2017 - Total stockholders' equity, January 31, 2016 + Dividends Declared - Issuance of stock
= 59 - 37 + 27 - 20
= $29 million
Total stockholders' equity, January 31, 2016 ................ 37
Add: Issuance of stock ......................................................... 20
Net income ......................................................................29
Less: Dividends declared......................................................(27)
Net loss.......................................................................................0
Total stockholders' equity, January 31, 2017...................59
