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3 years ago

Presented below is information for Cullumber Co. for the month of January 2022.

Business

1 answer:

pentagon [3]3 years ago

8 0

Answer:

<u>Cullumber Co.</u>

<u>Comprehensive income statement for the month ended January 2022.</u>

Sales revenue 400,000

Less Sales returns and allowances (17,000)

Net Sales 383,100

Less Cost of goods sold (201,500)

Gross Profit 181,500

Less Expenses

Rent expense 33,900

Sales discounts 10,000

Freight-out 6,300

Insurance expense 13,400

Salaries and wages expense 61,200

Income tax expense 5,300 (130,100)

Profit for the Year 51,400

Other comprehensive income 2,000

Total Comprehensive income 53,400

Explanation:

The Comprehensive income statement for the month ended January 2022 has been prepared above.

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Dove Corporation, a calendar-year C corporation, had the following information for 2019:

elixir [45]

Answer:

$1,032,260

Explanation:

Dove's unappropriated retained earnings balance as of December 31, 2016 = Unappropriated retained earnings balance on January 1, 2016 + Net income - Dividends distributions.

= 796,010 + 386,250 - 150,000.

= $1,032,260

Unappropriated retained earnings balance of Dove corporation as on December 31, 2016 is $1,032,260

3 0

4 years ago

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $430,000; Allowance for Doubtful Ac

denpristay [2]

Answer:

1. Determine the amount of the adjusting entry for uncollectible accounts. $850

Dr Bad debt expense 850

Cr Allowance for doubtful accounts 850

2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

accounts receivable $430,000
allowance for doubtful accounts $4,850
bad debt expense $4,850

3. Determine the net realizable value of accounts receivable.

$430,000 - $4,850 = $425,150

Explanation:

accounts receivable balance $430,000

allowance for doubtful accounts balance $4,000

total sales for the year $1,940,000

total bad debt expense = 0.25% x $1,940,000 = $4,850

adjusting entry = $4,850 - $4,000 = $850

8 0

4 years ago

Following are summary financial statement data for Nordstrom Inc. for fiscal years ended 2014 through 2016.

Gwar [14]

Answer:

Nordstrom Inc.

a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:

= Net income/Total Assets

2019 = 7.15%

2018 = 5.39%

b. Profit Margin (PM) for fiscal years ended 2019 and 2018:

= Net income/Sales * 100

2019 = 3.56%

2018 = 2.82%

c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:

= Total Sales / Average Assets

2019 = 1.98x

2018 = 1.94x

Explanation:

a) Data and Calculations:

$ thousands 2019 2018 2017

Sales $15,860 $15,478 $14,757

Net income 564 437 354

Total assets 7,886 8,115 7,858

Average assets 8,001 7,986

Equity 873 977 870

a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:

= Net income/Total Assets

2019 = $564/$7,886 * 100 = 7.15%

2018 = $437/$8,115 * 100 = 5.39%

b. Profit Margin (PM) for fiscal years ended 2019 and 2018:

= Net income/Sales * 100

2019 = $564/$15,860 * 100 = 3.56%

2018 = $437/$15,478 * 100 = 2.82%

c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:

= Total Sales to Average Assets

2019 = $15,860/$8,001 = 1.98x

2018 = $15,478/$7,986 = 1.94x

b) Return on Assets (ROA) indicates the relative profitability of assets, which indicates the ability of management to generate earnings from the entity's assets.

The Profit Margin (PM) measures the degree to which a dollar-sales is turned into profit.

Asset Turnover (AT) measures the efficiency achieved by the entity in generating sales from its assets.

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3 years ago

American-based Trenton Inc. has decided to establish a wholly owned subsidiary in Argentina. To decide whether to acquire an ent

mojhsa [17]

Answer:

The benefits of greenfield ventures are:

Investors have larger control over the business they are creating fro scratch rather than acquiring an existing local business.
The investor can avoid intermediary costs.
The investor also has the possibility of setting their own marketing strategies.

Greenfield ventures means that the subsidiary will be built from scratch, which allows the parent company to fully shape its subsidiary as they want.

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3 years ago

As compared to companies with low operating leverage, companies with high operating leverage have.

drek231 [11]

Companies with a high degree of operating leverage (DOL) tend to have a higher percentage of fixed costs, which remain largely constant regardless of production volume, whereas companies with a low degree of operating leverage tend to have cost structures with a higher proportion of variable costs that are closely related to production volume.

A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. Businesses with high operating leverage generate revenues with low variable costs and large gross margins. Operating leverage is used to calculate a company's break-even point, which also helps identify the appropriate selling prices to pay all costs and turn a profit. Businesses with substantial operational leverage must pay a higher monthly amount of fixed costs regardless of whether they sell any units of product. The potential risk from forecasting risk, where a relatively modest inaccuracy in sales forecasting can be compounded into huge errors in cash flow predictions, increases with the level of operating leverage.

Learn more about leverage from

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#SPJ4

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1 year ago