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creativ13 [48]
3 years ago
15

This year, Johnson Mills has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. Th

e firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense?
Business
1 answer:
malfutka [58]3 years ago
5 0

Answer:

$3,857

Explanation:

From the above, we do know that;

Revenue - Expenses = Net income

But

Expenses = Revenue - Cost of goods sold - Admin expenses - Depreciation expenses

Also,

Net income tax = Income before taxes × ( 1 - tax rate)

Since we do not know Net income taxes,

Net income - Dividends = Change in retain earnings

Net income = $2,810 + $700

= $3,510

Income before taxes = $3,510 / 0.79

= $4,443

$37,800 - $23,200 - $6,300 - Depreciation expenses = $4,443

Therefore,

Depreciation expenses = $3,857

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During 2019, Revitup, Inc., an exercise video retailer, sold $24,000 of videos to its customers. Revitup collected $22,000 and e
Oksanka [162]

Answer:

$24,000

Explanation:

Since in the question it is provided that there is a sale value of the videos to its customers i.e. $24,000 also the collection is of $22,000 and the remaining balance i.e. $2,000 is expected to collect in Jan 2020

Based on the above information, the revenue should be reported on the income statement at the $24,000 as this amount represent the sale value of the videos to its customers and hence, the same is to be considered

Hence, 24,000 would be reported as a revenue in the income statement

4 0
3 years ago
On January 1, 2021, Gridley Corporation had 375000 shares of its $2 par value common stock outstanding. On March 1, Gridley sold
lesya [120]

Answer:

1,075,000

Explanation:

Weighted average numbers of share account the weightage of outstanding numbers of the share in the year based on the outstanding period.

Outstanding Balances

375,000 share  for 2 months

Addition of new 750000 shares on March 1

1,125,000  shares (375,000+ 750,000) for 2 months

Stock dividend of 20% ( 1,125,000 x 20% = 225,000) on May 1

1,350,000  shares (1,125,000+ 225,000) for 3 months

Retirement of 420,000 Shares on August 1

930,000  shares (1,350,000 - 420,000) for 3 months

Issuance of 600000 shares on November 1

1530,000  shares (930,000 - 600,000) for 2 months

Schedule for weighted average numbers of shares is attached please find it.

Download pdf
3 0
3 years ago
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $20; white, $35; and
vagabundo [1.1K]

Answer:

a. break even number in units = $250,000 / $10.0908 = 24,775.04

red units = 24,775.04 x 5/11 = 11,261.38 ≈ 11,262 units

total sales = 11,262 x $20 = $225,240

white units = 24,775.04 x 4/11 = 9,009.11 ≈ 9,010 units

total sales = 9,010 x $35 = $315,350

blue units = 24,775.04 x 2/11 = 4,504.55 ≈ 4,505 units

total sales = 4,505 x $65 = $292,825

total sales = $833,415

b. new break even number in units = $300,000 / $19.4545 = 15,420.60

red units = 15,420.60 x 5/11 = 7,009.36 ≈ 7,010 units

total sales = 7,010 x $20 = $140,200

white units = 15,420.60 x 4/11 = 5,607.49 ≈ 5,608 units

total sales = 5,608 x $35 = $196,280

blue units = 15,420.60 x 2/11 = 2,803.75 ≈ 2,804 units

total sales = 2,804 x $65 = $182,260

total sales = $518,740

c. Management should start using the new material as soon as possible since it doesn't only decrease the break even point, if sales level remain the same, it will increase operating profits.

Explanation:

red's contribution margin = $8

white's contribution margin = $13

blue's contribution margin = $12

sales mix = 5:4:2

weighted contribution margin = ($8 x 5/11) + ($13 x 4/11) + ($12 x 2/11) = $3.6363 + $4.2727 + $2.1818 = $10.0908

new contribution margin:

red's contribution margin = $14

white's contribution margin = $25

blue's contribution margin = $22

sales mix = 5:4:2

weighted contribution margin = ($14 x 5/11) + ($25 x 4/11) + ($22 x 2/11) = $6.3636 + $9.0909 + $4 = $19.4545

4 0
3 years ago
Which of the following best describes a push strategy? Group of answer choices Manufacturer builds strong consumer demand for a
maksim [4K]

Answer: Manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

Explanation:

In a push strategy the manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

In a push strategy, the firm takes it's products to the consumer. The aim of this is for the product to gain much exposure than it already has and attract more sales. Other sales channels are bypassed in the scenario, leaving just the producer and the customer. Advertisment is one of the greatest promotional tool for push strategy.

6 0
3 years ago
Explain why diversification is such an important concept when it comes to investing for your future.
Luden [163]

Answer:When you diversify your investments, you reduce the amount of risk you're exposed to in order to maximize your returns. Although there are certain risks you can't avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.

8 0
2 years ago
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