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____ [38]
2 years ago
14

nted below is information related to Viel Company at December 31, 2020, the end of its first year of operations. Sales revenue $

310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on available-for-sale debt investments 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Dividends declared and paid 5,000 Instructions Compute the following: (a) income from operations, (b) net income, (c) comprehensive income, and (d) retained earnings balance at December 31, 2020. (Ignore income tax effects.)
Business
1 answer:
algol132 years ago
8 0

Answer:

Viel Company

(a) Income from operations:

Sales revenue                    $310,000

Cost of goods sold              140,000

Selling & admin. expenses  50,000

Income from operations  $120,000

(b) Net income:

Sales revenue                                 $310,000

Cost of goods sold                          -140,000

Selling & admin. expenses               -50,000

Income from operations                $120,000

Gain on sales of plant assets            30,000

Interest Expense                                 -6,000

Loss on discontinued operations     -12,000

Net Income                                     $132,000

(c) Comprehensive Income

Sales revenue                                  $310,000

Cost of goods sold                           -140,000

Selling & admin. expenses               -50,000

Income from operations                $120,000

Gain on sales of plant assets            30,000

Interest Expense                                 -6,000

Loss on discontinued operations     -12,000

Net Income                                     $132,000

Unrealized Gain on Investments      -10,000

Comprehensive Income              $122,000

(d) Retained Earnings balance at December 31, 2020:

Comprehensive Income     $122,000

less Dividends                           5,000

Retained Earnings Balance $117,000

Explanation:

a) Income from operations is the income generated from running the primary business and excludes income from other sources. For example, gains or losses from asset disposal and discontinued operations, and interest expense.

b) Net Income is the income from operations, including other sources of income, after adding or deducting non-operating gains or losses and interests.

c) Comprehensive income equals net income and unrealized income, such as unrealized gains or losses, and other non-operating gains and losses.

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Answer:

(A) Payback period for the machine= 3.5 years

(B) Simple rate of return for the machine= 87.5%

Explanation:

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(A) The payback period for the machine can be calculated as follows

= cost/amount of cash flow

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(B) The simple rate of return for the machine can be calculated as follows

First we calculate the depreciation expense

= 283,850-107,100/5

= 176,750/5

= 35,350

Annual incremental income= cost savings -depreciation expenses

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Simple rate of return = annual incremental income/cost × 100

= 248,500/283,850 × 100

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Capital markets refer to the market which trades in long term securities whose maturity is more than an year.  The instruments traded in capital markets are usually stocks and bonds.

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Suppose that for 10 bicycles, the total fixed cost is $100 and total variable cost is $300. Then the average fixed cost and aver
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The price one bicycle is $21

Explanation:

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300-100=20

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Victoria is a top executive working with the managers in the major divisions of a multinational corporation to develop their own
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Answer:

The answer is B

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Top-down management or leadership which happen or occurs when the goals, objectives, tasks and projects are determined or evaluated among the firm or the company senior leaders, generally independently of their teams.

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3 years ago
A company sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $780,000. The same variab
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Answer:

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Explanation:

We know that

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The selling price would be

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So, the contribution margin per unit would be

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So, the break even point in  unit should be

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