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Nana76 [90]
3 years ago
7

Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follow

s:
Pendleton Company Income Statement For Year Ending December 31, 2014
Gross sales $3,000,000
Less:
Estimated uncollectible accounts (60,000)
Net sales 2,940,000
Cost of goods sold (1,650,000)
Gross profit 1,290,000
Operating expenses (including $25,000 depreciation) (750,000)
Net income $540,000
The following are management's goals and forecasts for 2015:
1.Selling prices will increase by 6 percent, and sales volume will increase by 4 percent.
2.The cost of merchandise will increase by 3 percent.
3.All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 percent. The company uses straight-line depreciation.
4.The estimated uncollectibles are 2 percent of budgeted sales.
Prepare a budgeted functional income statement for 2015.
Business
1 answer:
Rom4ik [11]3 years ago
7 0

Answer:

$651,076

Explanation:

Preparation of a budgeted functional income statement for 2015.

PENDLETON COMPANY budgeted functional income statement for the year 2015.

Sales $3,307,200

($3,000,000*106%*104%)

Less: Estimated uncollectible accounts $66,144

($3,307,200*2%)

Net sales $3,241,056

($3,307,200-$66,144)

COGS $1,767,480

(1,650,000*104%*103%)

Gross Profit $1,473,576

($3,241,056-$1,767,480)

Operating expenses $822,500

[(725000*110%)+25000]

($750,000-$25,000=$725,000)

Net Income $651,076

($1,473,576-$822,500)

Therefore the budgeted functional income statement for 2015 is $651,076

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yuradex [85]

Answer:

  • The federal government reserves the power to print money.
  • By printing money to pay its debts, the government decreases the value of money and causes the inflation tax.

Explanation:

As per the Constitution, the Federal government reserves the sole right to print currency. This ensures that all the states have a stable medium of exchange thereby allowing goods and services to flow across states undisturbed.

When the government prints money to enable it pay off its debt, the value of the currency decreases because the supply of money has increased relative to its demand. As a result, the currency will only be able to buy less than it was able to buy before thereby creating a sort of inflation tax because people would be paying an extra amount in order to purchase goods and services

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3 years ago
Vaughn Manufacturing reported net income of $1.5 million in 2017. Depreciation for the year was $153.008, accounts decreased $34
borishaifa [10]

Answer:

..................................................Vaughn Manufacturing.......................................

Cash flows from operating activities 2017

Net Income.........................................................................$1,500,000

Adjustments to reconcile net income to Net Cash provided by Operating Activities  

Add Decrease in Accounts Receivable .........$343,900  

Less Decrease in Accounts Payable.............$(282,900)  

Add Depreciation.............................................$153,000....$214,000

Net cash provided by Operating Activities........................$1,714,000

7 0
3 years ago
Dmitri lives in Detroit and runs a business that sells guitars. In an average year, he receives $701,000 from selling guitars. O
Black_prince [1.1K]

Answer:

EXPLICIT COST

The wholesale cost for the guitars that Dmitri pays the manufacturer

The wages and utility bills that Dmitri pays

IMPLICIT COST

The rental income Dmitri could receive if he chose to rent out his showroom

The salary Dmitri could earn if he worked as a financial advisor

Explanation:

Explicit cost: those which are actually incurred this means it represent accrued expenses or actual cash outlay.

Implicit cost: refers to the opportunity cost of a factor wasted opprtunity for weing deploy in the current project. These do not represent actual expenses but potential use of the factors

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The prediction that the inflation rate will change is that there will be a right-ward shift of the curve to indicate that inflation is on the increase. Recall that unemployment is depicted on the x -axis, and inflation on the y-axis.

<h3>What is a Phillips curve?</h3>

The Philips curve shows an inverse relationship between unemployment and inflation.

<h3>What will happen if the unemployment rate now rises to 7 percent per year? </h3>

Because the relationship between inflation and unemployment is inverse (that is, all things being equal), if the unemployment rate now rises to 7 percent per year, the inflation rate is sure to fall.

Learn more about Phillips curve at;
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Luden [163]

Answer:

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Explanation:

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It does not include Intensely focusing on the responsibilities of an individual and maximizing the output of the department in the organization in which that individual works.

The following are ambidextrous behaviour:

(1) Individuals take time and are alert to opportunities beyond the confines of their own jobs;

(2) they are cooperative and seek out opportunities to combine their efforts with others;

(3) they are brokers, always looking to build internal networks; and

(4) they are multitaskers, who are comfortable wearing more than one

4 0
4 years ago
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