An income statement reports the revenues earned minus expenses incurred by a business over a period of time.

Benson Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside B

wolverine [178]

Answer:

It should accepted.

Explanation:

$\left[\begin{array}{cccc}&Units&Cost&Total\\$Special Order&49&2,590&126,910\\$Variable Cost&49&1,440&-70,560\\$rejected local&&&0\\$additional cost&&&0\\$Net Income&&&56350\\\end{array}\right]$

We will compare the Special order with the variable cost associate with their productions.

As the orders has a postive income after variables expenses it should be accepted as contributes with the payment of fixed cost and this sales wasn't planned when solvign for the cost. Not doing the sale will avoid the comapny the opportunity of a profitable business cappable of allocate more fixed cost.

8 0

3 years ago

For each of the below, indicate where each item should be presented in the statement of cash flows (using the indirect method) u

Nataly_w [17]

Answer:

Blank 1 Blank 2

i. Depreciation expense A I

ii. Purchase of office equipment B D

iii. Decrease in accounts receivable A I

iv. Payment of cash dividends C D

v. Conversion of bonds into common stock D N

vi. Sold land and warehouse used in the corp. B I

vii. Gain on sale of land and warehouse in part vi. A D

viii. Issued common stock for cash C I

ix. Decrease in accounts payable A D

x. Increase in inventory A D

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the complete question.

How each of the item will appear in the the statement of cash flows (using the indirect method) is also provided below:

XYZ Company

Statement of Cash Flows (Indirect Method Format)

For the year...

Details $ $ 

Operating activities:

Net profit xxx

Adjustment to reconcile net income:

i. Depreciation expense xx

iii. Decrease in accounts receivable xx

vii. Gain on sale of land and warehouse in part vi. (xx)

ix. Decrease in accounts payable (xx)

x. Increase in inventory (xx)

Net cash flows from operating activities xxx

Investing activities:

ii. Purchase of office equipment (xx)

vi. Sold land and warehouse used in the corporation xx

Net cash flows from investing activities xxx

Financing activities:

iv. Payment of cash dividends (xx)

viii. Issued common stock for cash xx

Net cash flows from investing activities xxx

Net cash flow for the year xxx

Beginning cash balance xxx

Ending cash balance  xxx 

Note: The does not affect the cash flows statement:

v. Conversion of bonds into common stock

Download pdf

8 0

3 years ago

Retained earnings balance at the beginning of the year $ 135,000 Cash dividends declared for the year 55,000 Proceeds from the s

olganol [36]

Answer:

$51,200 was the cash dividends paid

Explanation:

Cash dividends paid=opening cash dividends payable +cash dividends declared-closing cash dividends payable

opening cash dividends payable is $27,000

cash dividends declared is $55,000

closing cash dividends payable is $30,800

cash dividends paid =$27,000+$55,000-$30,800=$51,200

The amount of cash transfers made in respect of shareholders dividends in the year is $51,200.

The logic is that the whatever is left unpaid at year end should be deducted from the balance owed year plus the new dividends declared this year

5 0

3 years ago

The stockholders’ equity section of Velcro World is presented here.

Nina [5.8K]

Answer:

Velcro World

1. Prefered stock issued = 5,800,000

2. Common stock issued = 28,000,000

3. Average price of preferred stock = $38

4. Net income for the year = $66

5. Average cost per share of the treasury stock acquired = $30

Explanation:

a) Data and Calculations:

VELCRO WORLD

Balance Sheet (partial)

($ and shares in thousands)

Stockholders' equity:

Preferred stock, $1 par value $ 5,800

Common stock, $1 par value 28,000

Additional paid-in capital 1,028,600

Total paid-in capital 1,062,400

Retained earnings 286,000

Treasury stock, 12,000 (360,000)

Total stockholders' equity $ 988,400

1. Prefered stock issued = 5,800,000

2. Common stock issued = 28,000,000

3. Additional paid in capital = 1,028,600,000

less common stock (part) 812,000,000 ($29 * 28,000,000)

Preferred stock (part) 216,600,000

add Preferred stock 5,800,000

Total preferred stock value 222,400,000

Average price = 222,400,000/5,800,000 = $38

4. Retained earnings at the end = $286,000,000

add dividends paid during the year 30,000,000

Retained earnings at the beginning = $250,000,000

Net income for the year = $66,000,000

$66

5. Average cost per share of the treasury stock acquired = $360,000,000/12,000,000 = $30

3 0

3 years ago

Wideload, Inc, makes, sells, and leases trucks, trailers, and other moving and hauling equipment for consumer use. Verna files a

blondinia [14]

Wideload, Inc, makes, sells, and leases trucks, trailers, and other moving and hauling equipment for consumer use. Verna files a product liability suit against Wideload, alleging a design defect. In deciding whether to hold the maker liable, the court may consider: The expectations of the ordinary consumer.

<h3>Explanation:</h3>

The disputes that are related to any legal sections regarding the liability of the products are subjected to a consumer expectations test. The main purpose of the conduction of this test is to ensure that the product is properly manufactured and the defectiveness in the warning information of that particular product.

A product will be concluded to be defective under this test when a consumer finds that the product is defective. In the given example, Verna files a product liability suit against Wideload, regarding the defects associated with the design. Thus, the court may consider The expectations of the ordinary consumer for making it liable.

6 0

3 years ago

Read 2 more answers