Are freight charges contra-asset?

Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure fro

QveST [7]

Answer and Explanation:

1. Margie Johnson would be ethically wrong if she grants the boss's favour to not report inventory shrinkage. Also financial statements would not show a true and fair view if she decides to follow what her boss is asking. She should report true inventory value in financial statements.

2. Yes Ryan is being professional since he is out to improve company's sales and income even though he may be putting pressure on employees to work overtime

7 0

3 years ago

Last year Country A had a population of 16 million, nominal GDP of 480,000 million, and a GDP deflator of 120. Country B had a p

stellarik [79]

The answer & explanation for this question is given in the attachment below.

8 0

4 years ago

30pts need asap

seropon [69]

Supply refers to the amount of the good or service able to be supplied. Demand refers to the public’s want of the said good or service. Supply and demand are interconnected because if the supply is low, the demand will be high and the price will rise. If the supply is high, so there are many of the said item or service, then the demand won’t be as high since there is a surplus in supply which leads to lower prices to entice consumers to buy still.

6 0

4 years ago

Problem 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Smoky Mountain Corporation ma

Gelneren [198K]

Answer:

product margins for the Xtreme and the Pathfinder is 7.9% and 17.7% respectively.

Explanation:

Estimated total manufacturing overhead $1,980,000 Estimated total direct labor-hours 120,000 DLHs, then manufacturing overhead per hour is $33 = 1,980,000/120,000 = $16.5

Please see the detailed calculation in excel attached.

Download xlsx

4 0

4 years ago

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate

babunello [35]

Full question:

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)

Sales $ 687,900

Costs $442,800

Depreciation $115,400

EBIT $

Taxes (30%)

Net income $

OCF

What is the depreciation tax shield?

Answer:

Operating Cash Flow(OCF)= $206190

Depreciation tax shield = $34620

Explanation:

To calculate Depreciation tax shield:

Depreciation×tax rate= $115400×0.30=$34620

Operating Cash flow(OCF)= Earnings before interest and taxes(EBIT)+depreciation - income tax expense

So we calculate EBIT and Income tax expense

EBIT= Sales - cost of good sold - depreciation expense

= $ 687,900-$442,800-$115,400= $129,700

Income tax expense= (Sales - cost of goods sold - depreciation expense) × tax rate

=($687900-$442800-$115400)×0.30

=$38910

Therefore, Operating Cash flow(OCF)= $129,700+$$115,400-$38910= $206190

3 0

3 years ago

Are freight charges contra-asset?​

Are freight charges contra-asset?