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3 years ago

48. What does management say they are doing to assure the public that the financial information is reliable

Business

1 answer:

WARRIOR [948]3 years ago

6 0

Answer:

Management of a company is responsible for integrity and objectivity of financial statements. It is management's responsibility to comply with all applicable accounting standards while preparing financial statements.

Explanation:

There should be strict internal controls in a company. A company management is responsible to comply with all laws, and prepare financial standards free from errors. There should be no window dressing and information presented should be reliable. A company management is also responsible to maintain effective internal control system.

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A venture has net sales of $400,000, cost of goods sold of $200,000, operating expenses (selling, general, and administrative) o

Sphinxa [80]

Given:

Net sales = $400000

Cost of goods sold = $200,000

Operating expenses = $100,000

Interest expenses = $50,000

To find:

The operating profit margin

Solution:

To calculate the operating profit margin, first we have to find the operating profit.

Subtract your total operating expenses from gross profit to calculate operating profit.

That is, $\text{Operating profit}=\text{Sales (Revenue) - Cost of goods sold - Operating expenses}$ $\Rightarrow \$400000-\$200000-\$100000=\$100000$

Divide operating profit by gross revenue to calculate operating profit margin.

$\text{Operating profit margin} = \frac{\text{Operating profit}}{\text{Gross Revenue}}\times100$

$\Rightarrow\frac{100000}{400000}\times100=25\%$

Therefore, the Operating profit margin is 25%.

4 0

3 years ago

At the beginning of the current year, Penguin Corporation (a calendar year taxpayer) has accumulated E & P of $55,000. Durin

lakkis [162]

Answer:Of the $40,000 distribution, ....$28,000....................... is taxed as a dividend and $12,000...................represents a return of capital.

Explanation:

we will first compute dividend income for Holly

Loss from operations in the year =$36,000

Loss accrued till October 1st, since it accrues ratably

January - September= 9 months

36,000 x 9/12 = $27,000

But E&P at start of the year = $55,000

Therefore, E&P at October 1st = $55,000- $27,000 = $28,000

The remaining balance. $28,000 after the losses accrued have been deducted will be treated as dividend income

From the statement, the total cash distributed to Holly is $40,000,

$28,000 as calculated from above Is taxed as a dividend and $12,000 ( $40,000- $28,000) represents a return of capital.

3 0

3 years ago

Oriole Products manufactures two component parts: AJ40 and AJ60. AJ40 components are being introduced currently, and AJ60 parts

stepladder [879]

Answer:

Total allocated cost for AJ40 $189,000

Total allocated cost for AJ60 $283,500

Total $472,500

Explanation:

Calculation to Estimate the cost of engineering change orders for AJ40 and AJ60

First step is to calculate for the Total number of change orders

AJ40 AJ60

Units planned 1,500 1,500

÷No. of change orders 4 2

=Total number of change orders 375 +750=1,125

Second step is to for the Total cost of change order

AJ40 AJ60

Units planned 1,500 1,500

×Machine hours per unit 1 1.5

=Total machine hours required 1,500 + 2,250 =3,750

Third step is to find the Total cost of change order

AJ40 AJ60

Total number of change orders 375 750

× Cost of a change order $420 $420

=Total cost of change order $157,500 $315,00

Total cost of change order=$157,500 +$315,000

=Total cost of change order = $472,500

Now let Estimate the cost of engineering change orders for AJ40 and AJ60 using Traditional system

TRADITIONAL SYSTEM

Total allocated cost for AJ40 $189,000 (472,500*1,500/3,750)

Total allocated cost for AJ60 $283,500 (472,500*2,250/3,750)

Hence,

Total allocated cost for AJ40 $189,000+Total allocated cost for AJ60 $283,500

=$472,500

3 0

4 years ago

When should cost, revenue, profit, or investment center be used?

Eduardwww [97]

A concept in managerial accounting, responsibility centers are a method of measuring and evaluating the effectiveness of managers tasked with decision making for their business unit. Not all units of a business have the capacity to generate profit, but instead some support vital functions that incur costs for a business for example, the transportation department in a hospital. A cost center is a unit that does not generate revenue. A revenue center has responsibility for generating revenues, and in most cases will be the same as a profit center, as all units have some level of costs. An investment center is usually found at higher levels in an organization where a unit manager has the responsibility of generating returns on investment capital. I hope this might help you !

7 0

3 years ago

Matt has developed a mathematical model for the film distribution company that employs him. the model will help in determining r

patriot [66]

I guess the correct answer is management science

Matt has developed a mathematical model for the film distribution company that employs him. The model will help in determining release dates and the desirable number of screens for new movies. This model is an application of management science.

8 0

3 years ago