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uranmaximum [27]
2 years ago
15

Lake Corporation reported the following amounts in its income statement: Sales revenue $ 440,000 Advertising expense 60,000 Inte

rest expense 10,000 Salaries expense 55,000 Utilities expense 25,000 Income tax expense 45,000 Cost of goods sold 180,000 What was Lake's operating income
Business
2 answers:
7nadin3 [17]2 years ago
6 0

Answer:

$120,000

Explanation:

Operating income is an element of the income statement. Income statement is the financial statement that shows the company's revenue and expenses.

The difference between the revenue and the expenses gives the net operating income. Operating income excludes taxes and interest expenses.

Lake's operating income

= $440,000 - $180,000 - $60,000 - $55,000 - $25,000

= $120,000

goldenfox [79]2 years ago
3 0

Answer:

Lake's operating income is $120000

Explanation:

Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.

The formula for operating income = Sales - Cost of Sales - operating expenses.

The operating expenses here, are = Advertising + Salaries + Utilities

Thus, operating expenses = 60000 + 55000 + 25000 = $140000

The Operating Income = 440000 - 180000 - 140000 = $120000

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Which of the following selections effectively use the "you" view.
-Dominant- [34]

Answer:

  • B. Thank you for your letter regarding your CRB2 home entertainment center.
  • D. You are invited to take advantage of our professional development workshops.

Explanation:

The ''you'' view refers to a style of writing where the sender intends to make sure that the focus is on the person receiving the correspondence.

By using the ''you'' view, the receiver becomes the subject of the correspondence such that the text and its contents and are directed at the receiver.

The correct options would be B and D because the options were directed strictly to the receiver and no one else.

4 0
3 years ago
What is break even point?
maks197457 [2]

Answer:

The break-even point in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return.

Explanation:

6 0
3 years ago
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
krek1111 [17]

Answer:

$61

Explanation:

The computation of unit product cost for the month under absorption costing is shown below:-

Unit product cost = Direct material + Direct labor + Variable Manufacturing overhead + Fixed manufacturing cost

= $18 + $10 + $4 + ($255,200 ÷ 8,800)

= $61

Therefore for computing the unit product cost for the month under absorption costing we simply applied the above formula.

4 0
3 years ago
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company
Monica [59]

Answer:

$91

Explanation:

Given the following information,

Direct materials per unit = $54

Direct labor per unit = $20

Variable overhead per unit = $6

Fixed overhead for the year = $462,000

For Absorption costing method, it includes all costs associated with production, including fixed and variable cost. The unit product cost is calculated using direct material, direct labor and total unitary manufacturing overhead.

Unitary cost = (Fixed overhead for the year / Units produced) + Direct materials per unit + Direct labor per unit + Variable overhead per unit

Unitary cost = ($462,000 / 42,000) + $54 + $20 + $6

Unitary cost = $11 + $54 + $20 + $6

Unitary cost = $91

Therefore, the product cost per unit is $91

5 0
2 years ago
Randy is an accountant at XYZ Store Co. In January the store had $150,000 in sales, $35,000 in payroll, $20,000 in rent and util
xenn [34]

Net cash flow is basically the difference of the cash balance from the beginning of the period to the end of the period. For this instance, we take sales and subtract the listed expenses.

January = 150,000 - 35,000- 20,000 -20,000 = 75,000 net cash flow

February = 175,000 - 39,000 - 25,000 - 45,000 = 66,000 net cash flow

For the change you divide (February/January) -1 or (66,000/75,000)-1= -.12

The growth in cash flow was -12%

5 0
2 years ago
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