The Big Five Factor categories are referred to as ____

Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follow

Amanda [17]

Answer:

Budgeted functional income statement for 2015

Gross sales ($2,000,000 × 1.04 × 1.06) $2,204,800

Less: Estimated uncollectible accounts ($2,204,800 × 2 %) ($44,096)

Net sales $2,160,704

Cost of goods sold (1,100,000 × 1.03) ($1,133,000)

Gross profit $1,027,704

Operating expenses (475,000 × 1.10) ($522,500)

Depreciation ($25,000)

Net income $480,204

Explanation:

Make the adjustments stated on the 2014 Income Statement.

For Operating Expenses, it is wise to first remove the depreciation expense and apply the increment of 10% to reflect Operating Costs for 2015.

Treat Depreciation Expense separately and at the same amount as for 2014, since depreciation is calculated on straight line method.

3 0

3 years ago

Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $4

Savatey [412]

Answer:

$828.36

Explanation:

As for the information provided,

The value = $1,000

Life = 20 years, since interest is semi annual, effective period = 20 $\times$ $\frac{12}{6}$ = 40 periods.

Semi annual interest = $40

Annual interest = 10%, effective interest rate = 5%

Future Value Interest rate = $40 $\times (\frac{1}{(1+0.05)^1} +\frac{1}{(1+0.05)^2} +\frac{1}{(1+0.05)^3} +\frac{1}{(1+0.05)^4} +\frac{1}{(1+0.05)^5} +\frac{1}{(1+0.05)^6} +\frac{1}{(1+0.05)^7} +.................. + \frac{1}{(1+0.05)^4^0} )$

= $40 $\times$ 17.159 = $686.36

Future Value of Principal = $1,000 $\times \frac{1}{(1 + 0.05)^4^0}$

= $1,000 $\times$ 0.142 = $142

Thus, current price of bond = $686.36 + $142 = $828.36

5 0

2 years ago

Kenton is considering the costs of becoming a makeup artist. He talks to several makeup artists and finds out that a cosmetology

tatyana61 [14]

Answer:

The best evaluation for Kenton's research is C) Poor; he has only researched the monetary costs of the career.

Explanation:

Besides monetary costs to him (which was not all that comprehensive as it didn't include training tools, books, etc) there are also non-monetary costs such as time, hard work, and all the other things he must forego while he is focused on becoming a make-up artist.

The career also comes with its perks and advantages. Kenton's work would have been comprehensive if he researched the benefits as well as the risks, and regulatory requirements where there are any.

Cheers

8 0

2 years ago

Which of the following is not one of the steps for recognizing revenue? Identify the performance obligations of the contract. Id

9966 [12]

Answer:

The answer is letter "D": Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods.

Explanation:

There are five steps for revenue recognition established by the Financial Accounting Standards Board (FASB) which are: Identifying the contract with a customer; Identifying the performance obligations in the contract; Determining the transaction price; Allocating the prices to the performance obligations and; Recognizing revenue.

In that sense, estimating the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods has nothing to do with it.

4 0

2 years ago

In 2014, Wire Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses we

victus00 [196]

Answer:

The company's operating cash flow is $100,000

Explanation:

The computation of the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT = Sales - cost of good sold - depreciation expense - administrative and selling expenses

= $740,000 - $550,000 - $95,000 - $90,000

= $5,000

The income tax expense equals to

= (Sales - cost of good sold - depreciation expense - administrative and selling expenses - interest rate) × tax rate

= ( $740,000 - $550,000 - $95,000 - $90,000 - $94,000) × 35%

The amount comes in negative so we cannot compute the tax expense as corporation is suffering from the net loss

And all other items would remain same

Now put these values to the above formula

So, the value would equal to

= $5,000 + $95,000 - $0

= $100,000

5 0

3 years ago

The Big Five Factor categories are referred to as _____. CLEAN OCEAN BFIVE BFPTC