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3 years ago

Coffee to

Business

1 answer:

geniusboy [140]3 years ago

5 0

Answer:

Is this reading then answering questions or....

Explanation:

I dont get the question sry but I'll try to help

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The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summ

marishachu [46]

Answer and Explanation:

The computation is shown below:-

Incorrect

ROA = Net Income ÷ Average assets

= $101,900 ÷ (($550,000 + $573,000) ÷ 2)

= $101,900 ÷ $561,500

= 0.18

ROE = Net Income ÷ Average equity

= $101,900 ÷ (($340,000 + 356,000) ÷ 2)

= $101,900 ÷ $348,000

= 0.29

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000) ÷ 2)

= $217,000 ÷ $561,500

= 0.39

EPS = Net Income ÷ Number of Common Shares

= $101,900 ÷ 22,000

= $4.63

Correct

ROA = Net Income ÷ Average assets

= ($101,900 - $8,500) ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $93,400 ÷ $557,250

= 0.17

ROE = Net Income ÷ Average equity

= ($101,900 - $8,500) ÷ (($340,000 + 356,000 - $8,500) ÷ 2)

= $93,400 ÷ $343,750

= 0.27

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $217,000 ÷ $276,500

= 0.78

EPS = Net Income ÷ Number of Common Shares

= ($101,900 - $8,500) ÷ 22,000

= $4.25

5 0

3 years ago

L Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and varia

Arlecino [84]

Answer:

<em><u>It would generate a financial disadvantage for 62,800</u></em>

Explanation:

$\left[\begin{array}{cccc}-&continued&discontinued&differential\\Sales&351,900&0&-351,900\\Variable&-260,100&0&260,100\\Contribution&91,800&0&-91,800\\Fixed&-103,000&-74,000&29,000\\total&-11,200&-74,000&-62,800\\\end{array}\right]$

It would generate a financial disadvantage for 62,800

Because the product, while is having a loss, their contribution cover is enought to cover at least the avoidable fixed cost.

5 0

3 years ago

A company acquired an office building on three acres of land for a lump-sum price of $2,450,000. The building was completely equ

galina1969 [7]

Answer:

$735,000

Explanation:

The fair values of the assets may be used as a basis for determining the amount to be recorded for each of the assets.

This will be in a proportional manner such that the higher the fair value, the higher the actual cost assigned and vice versa to the asset.

Hence the amount to be recorded for the building

= 840,000 / (840,000 + 840,000 + 1,120,000) * $2,450,000

= $735,000

7 0

3 years ago

Static Budget Actual Units 5,000 5,100 Sales revenue $60,000 $58,650 Variable manufacturing costs $15,000 $16,320 Fixed manufact

Ipatiy [6.2K]

Answer:

$700 favorable

Explanation:

Calculation to determine what The total sales-volume variance for operating income for the month of July would be

First step is to calculate the of contribution per unit using this formula

Contribution Margin per unit

=Sales− Variable manufacturing costs−Variable marketing and administrative expense/units

Let plug in the formula

Contribution Margin per unit=$60,000−$15,000−$10,000/5,000units

Contribution Margin per unit=$7per unit

Now let calculate the total sales-volume variance using this formula

Total sales volume variance

= Actual units−Static Budget × Static contribution margin per unit

Let plug in the formula

Total sales volume variance=5,100units−5,000units×$7

Total sales volume variance=$700 favorable

Therefore The total sales-volume variance for operating income for the month of July would be

$700 favorable

3 0

3 years ago

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about

alina1380 [7]

Answer:

Annual demand (D) = 1,600 units

Ordering cost per order (Co) = $16

Holding cost per item per annum (H) = $8

EOQ = √2Dco

EOQ = √2 x 1,600 x $16

EOQ = 80 units

Explanation:

EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.

5 0

3 years ago