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3 years ago

Fill in the missing amounts.

1 answer:

4 0

Let understand that the organized table are intended to calculate missing numbers on Income Statement for the two companies are drawn below.

Here, we are calculating missing columns for Monty Corp. and Whispering Winds Corp.

Also understand that the bold numbers are the columns calculated according to the question.

Particulars Monty Corp. Whispering Winds Corp.

Sales revenue $90,000 $111,000

Sales return and allowance $6,000 $5,000

Net sales $84,000 $106,000

Cost of goods sold $53,760 $65,720

Gross profit $30,240 $40,280

Operating expenses $15,120 $19,080 

Net income $15,120 $21,200

In conclusion, the formulae used to derived the bolded answers are:

Sales revenue - Net sales = Sales returns and allowance
Net sales - Cost of goods sold = Gross profit
Gross profit - Operating expenses = Net income
Net sales + Sales return and allowance = Sales revenue
Net sales - Gross profit = Cost of goods sold
Gross profit - Net income = Operating expenses

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brainly.com/question/15062414

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3 years ago

Foreign exchange risk arises when:

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Business transactions are denominated in foreign currencies.

Explanation:

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4 years ago

Which of the following is true of business locations?

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Answer:

B. Target market customers are essential factors for selecting business locations.

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3 years ago

As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) produc

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Answer:

A. $74,100 $954,700

B. $880,600

Explanation:

A. Preparation to estimate the financial benefits associated with the adoption of JIT

Current situation After JIT

Sales 1,430,000 1,810,000

Less costs

Production level support 214,500 72,400

(15%*1,430,000=214,500)

(4%*1,810,000=72,400)

Variable manufacturing overhead 400,400 181,000

(28%*1,430,000=400,400)

(10%*1,810,000=181,000)

Direct material 429,000 362,000

(30%*1,430,000=429,000)

(20%*1,810,000=362,000)

Direct manufacturing labor 286,000 235,300

(20%*1,430,000=286,000)

(13%*1,810,000=235,300)

Inventory financing costs 26,000 4,600

(10%*260,000=26,000)

(10%*46,000=4,600)

Total costs 1,355,900 855,300

Operating profits $74,100 $954,700

(1,430,000-1,355,900)

(1,810,000-855,300)

Therefore the the financial benefits associated with the adoption of JIT will be $74,100 $954,700

B. Preparation for the estimated change in annual operating income attributable to the JIT implementation

Current situation After JIT Change

Sales 1,430,000-1,810,000=-380,000

Less costs

Production level support 214,500-72,400 =142,100

Variable manufacturing overhead 400,400 -181,000=219,400

Direct material 429,000-362,000=67,000

Direct manufacturing labor 286,000- 235,300= 50,700

Inventory financing costs 26,000-4,600 =21,400

Total costs 1,355,900-855,300=500,600

Operating profits 74,100-954,700=880,600

Therefore the estimated change in annual operating income attributable to the JIT implementation will be 880,600

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