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Nataly [62]
3 years ago
7

two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $235,000, variable expenses of $132,600,

a traceable fixed expenses of $63,800. The Alpha Division has sales of $545,000, variable expenses of $309,800, an traceable fixed expenses of $121,500. The total amount of common fixed expenses not traceable to the individual divisions is $120,200. What is the company's net operating income
Business
2 answers:
erica [24]3 years ago
8 0

Answer:

Net operating  income  $32,100

Explanation:

The sum of the the two divisions sales and expenses would be the the reported figures for the entire company. The net operating income would be computed as follows

                                                                                                           $

Total sales  ($235,000 + $545,000)                                         780,000

Variables expenses (132,600 +309,800)                                 <u>(442,400</u>)

Contribution                                                                                  337,600

Traceable fixed expenses(63,800+ 121,500)                          (185,300 )

Common fixed expenses                                                           <u>(120,200)</u>

Net operating  income                                                               <u>   32,100 </u>

Oliga [24]3 years ago
6 0

Answer:

$ 32,100

Explanation:

company's net operating income =  Beta Division Controllable Profit + Alpha Division Controllable Profit - Common fixed expenses not traceable

Beta Division Controllable Profit = ($235,000-$132,600-$63,800)

                                                      = $38,600

Alpha Division Controllable Profit = ($545,000-$309,800-$121,500)

                                                      = $113,700

therefore,

company's net operating income = $38,600 + $113,700 - $120,200

                                                       = $ 32,100

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On October 1, 2022, Sheridan Company places a new asset into service. The cost of the asset is $81000 with an estimated 5-year l
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Answer:

the depreciation expense for 2022 is $3,000

Explanation:

Straight line method of depreciation charges a fixed amount of depreciation over the period of use of an asset.

Depreciation Expense = (Cost - Residual Value) / Number of useful life

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The Annual depreciation charge for this machine will be $12,000 for each of the years that it is used in the business.

However since it was paced in use during the year that is 1 October, we have to apportion the Annual charge withe number of months that its has been in use during 2022.

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8 0
3 years ago
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Ira Lisetskai [31]

Answer:

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3 0
2 years ago
Platen purchased inventory on August 17 and received an invoice with a list price amount of $5,900 and payment terms of 4/10, n/
ch4aika [34]

Answer:

$5,664

Explanation:

Calculation of the amount that Platen should record the purchase.

Using this formula

List price -(Percentage of payment term × list price)

Let plug in the formula

$5,900 -(4%×5,900 )

=$5,900-$236

=$5,664

Therefore Platen should record the purchase on August 17 as a:

Debit to Purchases (periodic system) and a Credit to Accounts Payable for $5,664

Therefore the amount that Platen should record the purchase will be $5,664

7 0
2 years ago
suppose that lenders want to receive a real rate of interest of 5%, and that they expect inflation to remain steady at 3% in the
HACTEHA [7]

The interest rate is 7%.

<u>Solution:</u>

The real rate of interest is always above the nominal interest rate when inflation is positive. In this case, we are told inflation is 3%. Since the real rate of return is the nominal interest rate minus inflation, we need a nominal interest rate of <u>5%+3%=8%</u> to get a real interest rate of 5%.

To calculate the real interest rate subtract the inflation rate from the nominal interest rate. Mathematically it looks like this The real interest rate is the nominal interest rate minus the inflation rate. Creeping inflation is a type of inflation in which the price level rises steadily at a moderate rate over an extended period of time.

Learn more about The interest rate here:-brainly.com/question/25793394

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7 0
1 year ago
According to MM proposition II, as debt increases. the firm's return on assets remains constant even while its return on equity
MissTica

Answer:

<u>decreases</u>

Explanation:

As per modigliani- miller approach, the value of a firm is not dependent upon the choice of capital structure of the firm.

Capital structure refers to the the blend or mix of different sources of capital a firm avails to raise funds. Such as debt and equity.

As per MM proposition 2, the expected yield of a stock is equal to equity capitalization rate plus an additional compensation for risk assumed by employment of debt in the capital structure due to which the debt-equity ratio rises.

As proportion of debt is increased in the capital structure, the earnings available to stockholders rise but this rise is offset by the rise in the expectation of shareholders which offsets the effect and thus value of firm remains the same.

Return on equity is given by  \frac{net\ income}{stockholders\ equity}

Thus, as the return on equity increases , the amount of equity in capital structure decreases as this net income rises owing to employment of more and more debt in the capital structure.

4 0
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