All categories

3 years ago

Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations.

Business

1 answer:

elena-s [515]3 years ago

8 0

Answer:

a. $131,880

b. $167,310

c. $156,050

d. $151,390

Explanation:

(a) Income from operations

Income from Operations is Income resulting from Primary Trading Activities of the Company.

Income from Operations = Gross Profit + Operating Income - Operating Expenses

where,

Gross Profit = Sales - Cost of Goods Sold

= $334,910 - $149,030

= $185,880

thus,

Income from Operations = $185,880 - $54,000 = $131,880

(b) Net income

Income resulting from Primary and Secondary Trading Activities of the the Company.

Net income = Income from Operations + Non Operating Income - Non Operating Expenses

= $131,880 + $32,710 + $9,080 - $6,360

= $167,310

Income from both Continuing and Non - Continuing Activities.

Comprehensive income = Net income + Non - Continuing Activities

= $167,310 - $11,260

= $156,050

(d) Retained earnings balance at December 31, 2020

The Income remaining after distributions to shareholders have been made.

Retained earnings = Comprehensive income - Dividends

= $156,050 - $4,660

= $151,390

You might be interested in

McGregor allows customers to pay with credit cards. the credit card company charges 3% of the sale. when a customer uses a credi

Andru [333]

D. Credit service revenue for $206

8 0

3 years ago

What is the difference between intra departmental communication and interpersonal departmental communication

natima [27]

Answer:

Difference between intra departmental communication and interpersonal departmental communication

Explanation:

Intra means within , Inter means between

Intra departmental communication means communication (exchange of information) between people, within the same department in an organisation.

Interpersonal departmental communication means communication (exchange of information) between people, from different departments in an organisation.

5 0

3 years ago

Refer to Scenario 19.2. BASF has decided to offer discounts to its businesses customers in the form of the following: For each o

frutty [35]

Answer:

cumulative discounts

Explanation:

Options:

A) allowance
B )cash
C) seasonal
D) noncumulative
E) cumulative

A cumulative discount refers to a company offering a discount in the sales price of an item or items if the total purchase is higher than a certain threshold. It is similar to offering discounts for buying in bulk (which refers to quantity), only that this type of discount is offered to customers that purchase over a certain amount of money.

6 0

3 years ago

Apply concepts what would be the variables on a supply schedule alike and different

uysha [10]

it would be a to d, c to b, d to e

8 0

3 years ago

Judith puts $5000 into an investment account with interest compounded continuously. which approximate annual rate is needed for

Oxana [17]

In the question, continuously should be annually.

Solution:
Applicable formula is;
A = P(1+r)^n

Where;
A = Total amount after 30 years = $9,110
P = Amount invested = $5,000
r = Annual interest rate in decimals
n = Number of years = 30

Substituting;
9110 = 5000(1+r)^30
9110/5000 = (1+r)^30
1.822 = (1+r)^30
Taking natural logs on both sides;
ln (1.822) = 30 ln (1+r)
0.5999 = 30 ln (1+r)
0.5999/30 = ln (1+r)
0.019998 = ln (1+r)
Taking exponents on both sides
e^0.019998 = 1+r
1.0202 = 1+r
r = 1.0202 -1 = 0.0202 =2.02%

Therefore, annual interest rate should be 2.02%.

3 0

3 years ago