Marriage between individuals who have similar social characteristics

During its first year in business, Comfy Home accounted for its inventory using the last in first out (LIFO) method. In the seco

Dmitry [639]

Answer:

Consistency principle

Explanation:

Accounting principles are defined as the general rules of.axcpunting that businesses are expected to follow when reporting financial information.

Accounting principles include:

- Accrual principle

- Conservatism principle

- Consistency principle

- Cost principle

- Economic entity principle

- Full disclosure principle

- Going concern principle

- Matching principle

- Materiality principle

- Monetary unit principle

- Reliability principle

- Revenue recognition principle

- Time period principle

Consistency principle requires one the continue using an accounting method consistently for future accounting periods so that information can be easily comparable.

In the given scenario the accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason.

This is an example of consistency principle

5 0

2 years ago

Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here.

Alexandra [31]

Answer:

Required 1.

Break even point (dollar sales) = $750,000

Required 2.

Break even point (dollar sales) = $1,250,000

Required 3.

ASTRO COMPANY

Forecasted Contribution Margin Income Statement

For Year Ended December 31, 2016

Sales $ 1,000,000

Variable costs ($ 400,000 )

Contribution margin $ 600,000

Fixed costs ($ 450,000 )

Net loss $ 150,000

Required 4.

Sales to meet target profit (dollar sales) = $1,833,333

Sales to meet target profit (unit sales) = 73,334

Explanation:

Break even point is the level of activity where a Company neither makes a profit nor a loss.

Break even point (dollar sales) = Fixed Cost / Contribution Margin Ratio

Where,

Contribution Margin Ratio = Contribution / Sales

= $ 200,000 / $ 1,000,000

= 0.20

Therefore,

Break even point (dollar sales) = $250,000 / 0.20

= $1,250,000

Assuming the machine is installed

Contribution Margin Ratio = ($ 1,000,000 - $400,000) / $ 1,000,000

= $600,000 / $1,000,000

= 0.60

Therefore,

Break even point (dollar sales) = ($250,000 + $200,000) / 0.60

= $750,000

Sales to meet target profit of $200,000

Sales to meet target profit (dollar sales) = Fixed Cost + Target Profit / Contribution Margin Ratio

= ($450,000 + $200,000) / 0.60

= $1,833,333

Sales to meet target profit (unit sales) = $1,833,333 / $25

= 73,334

4 0

3 years ago

Sarah Parks is in the very early stages of putting together a business startup, and is thinking about writing a business plan to

Reptile [31]

Answer:

C. Summary business plan

Explanation:

A "business plan" is very important in order for a person to assess the success of his business. Among the choices above, the best answer is the "Summary business plan." This allows the entrepreneur to summarize the important points needed and to provide solid case of his business idea. This should also be clear and concise because it is going to be read by people who will be investing in the business. Examples of these groups are the banks and investors.

For startup business, it is important to include the following in the summary business plan: business opportunity, target market, business model, marketing and sales strategy, financial analysis, competition, implementation plan, owners/staff, etc.

So, this explains the answer.

4 0

3 years ago

Read 2 more answers

Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasin

kipiarov [429]

Answer:

Yozamba Technology

Divisional Income Statements:

Consumer Commercial Total

Revenues $7,430,000 $6,184,000 $13,614,000

Cost of goods sold 4,123,000 3,125,000 7,248,000

Gross profit $3,307,000 $3,059,000 $6,366,000

Operating expenses 1,465,000 1,546,000 3,011,000

Corporate expenses:

Tech Support 322,500 193,500 516,000

Purchasing 31,360 58,240 89,600

Other corporate administrative expenses 560,000

Total expenses $1,818,860 $1,797,740 $4,176,600

Net income (loss) $1,488,140 $1,261,260 $2,189,400

Explanation:

a) Data and Calculations:

Corporate expenses for the year ended December 31, 20Y7:

Tech Support Department $516,000 Number of computers

Purchasing Department 89,600 Number of POs

Other corporate administrative expenses 560,000

Total corporate expense $1,165,600

Usage of Service:

Tech Support Purchasing

Consumer Division 375 computers 1,960 purchase order

Commercial Division 225 3,640

Total 600 computers 5,600 purchase order

Overhead Rates:

Tech Support = $860 per computer ($516,000/600)

Purchase = $16 per purchase order ($89,600/5,600)

Allocation of Corporate Expenses:

Tech Support Purchasing Total

Consumer Division $322,500 $31,360 353,860

(375 * $860) (1,960 * $16)

Commercial Division 193,500 58,240 251,740

(225 * $860) (3,640 * $16)

Total $516,000 $89,600 $605,600

3 0

2 years ago

The XYZ Fund had NAV per share of $17.50 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.47. Income

STatiana [176]

Answer:

21.26%

Explanation:

Calculation for the Rate of return that the

investor receive on the XYZ Fund last year

Using this formula

Rate of return =Current value - original value +Income distributions+ Capital gain distributions) / original value) x 100

Where,

Current value =$19.47

Original value =$17.50

Income distributions=$0.75

Capital gain distributions=$1.00

Let plug in the formula

Rate of return($19.47 - $17.50 + $0.75 + $1.00)/$17.50

Rate of return =($1.97+0.75+$1.00)/$17.50

Rate of return=$3.72/$17.50

Rate of return =0.2126*100

Rate of return =21.26%

Therefore the rate of return that did investor receive on the XYZ Fund last year will be 21.26%

8 0

3 years ago