3. If you are the victim of fraud in Oklahoma, the best place to start is by

Sally's Gift Baskets sells gift baskets, on average, for $125; each gift basket costs, on average, $60. Debby pays salaries each

eimsori [14]

Answer:

a. Traditional Income Statement

Sales ($125 x 140) $17,500

Cost of Sales ($60 x 140) ($8,400)

Gross Profit $9,100

Salaries ($1,300)

Rent ($1,000)

Sales Commission ($17,500 x 5%) ($875)

Net income $5,925

b. Contribution Margin Income Statement

Sales ($125 x 140) $17,500

Less: variable Costs

Cost of Sales ($60 x 140) ($8,400)

Sales Commission ($17,500 x 5%) ($875)

Contribution Margin $8,225

Less: Fixed Costs

Salaries ($1,300)

Rent ($1,000)

Net income $5,925

Explanation:

a.

Traditional Income statement calculates the gross profit after deducting the cost of goods sold from the revenue. After that it deduct all the operating expenses to calculate the Net Income.

b.

Contribution margin income statement consider all the variable expenses as cost of product cost and calculates the contribution margin, after that the fixed costs are deducted calculate the net income.

5 0

3 years ago

Last year Rennie Industries had sales of $395,000, assets of $175,000 (which equals total invested capital), a profit margin of

maxonik [38]

Answer: 5.9%

Explanation:

Before:

Equity is calculated as:

= Total Assets / Equity Multiplier

= $ 175,000 / 1.2

= $ 145,833

Therefore, ROE will be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 145,833

= $ 20935 / $145,833

= 0.1436

= 14.36%

After:

New Total Assets will be:

= $ 175,000 - $ 51,000

= $ 124,000

Equity

= Total Assets / Equity Multiplier

= $ 124,000 / 1.2

= $ 103,333

ROE will then be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 103,333

= $ 20935 / $ 103,333

= 0.2026

= 20.26%

Therefore, the change in ROE will be:

= 20.26% - 14.36%

= 5.9%

= 4.035%

7 0

3 years ago

1. A simple random sample of size 15 is drawn from a normal population whose standard deviation is assumed to be 8. What's the m

WINSTONCH [101]

Answer:

± 4.05

Explanation:

Data provided in the question:

Random sample size = 15

Standard deviation = 8

Confidence level = 95%

Now,

Margin of error is given as:

Margin of error = ± [ ( z × s ) ÷ √n ]

Here,

From standard z table for 95% confidence level z = 1.96

Margin of error = ± [ ( 1.96 × 8 ) ÷ √15 ]

or

Margin of error = ± [ 15.68 ÷ 3.873 ]

or

Margin of error = ± 4.05

7 0

3 years ago

Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable $ 6,800 Retained earnings $ 58,000 Bu

krek1111 [17]

Answer:

Adams Co.

Balance Sheet as of December 31.

Assets

Current Assets

Cash $32,000

Accounts Receivable $12,000

Merchandise Inventory $15,600

Office Supplies $3,600

Prepaid Rent $7,800

Prepaid Insurance $4,600

Total Current Assets $ 75,600

Property, Plant and Equipment

Land $38,000

Building $67,800

Accumulated Depreciation $(6,600) $61,200

(Buildings)

Total Assets $ 174,800

Liabilities

Current Liabilities

Accounts Payables $18,000

Salaries Payable $6,800

Total Current Liabilities $24,800

Long term Liabilities 

Notes Payable $46,000

Mortgage Payable $28,000

Total Long term Liabilities $74,000

Total Liabilities $98,800

Stockholder's Equity

Common Stock $18,000

Retained Earnings $58,000

Total Stockholder's Equity $76,000

Total Liabilities & Stockholder's Equity $174,800

4 0

2 years ago

"On January 1, MM Co. borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $

scoray [572]

Answer:

1.Jan 01 Dr Cash 360,000

Cr Notes payable 340,000

2.Interest expense 28,800

Principal Reduction 61,364

Explanation:

MM Co.

1 . Journal entry

Since MM Co. borrows $360,000 cash on January 1 from a bank this means we have to

Debit Cash with the amounts of money he borrowed which is $360,000 and Credit Notes Payable with the same amount.

Jan 01 Dr Cash 360,000

Cr Notes payable 340,000

2. Calculation of the amount goes toward interest expense and Principal reduction

Interest expense 28,800

(360,000*8%)

Principal Reduction 61,364

(90,164-28,800)

5 0

3 years ago