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marissa [1.9K]
2 years ago
11

Selected financial statement data for Schmitzer Inc. is shown below: 2021 2020 Balance sheet: Inventories 75,000 63,000 Ratios:

Gross profit ratio for 2021 40 % Inventory turnover ratio for 2021 6 What was the amount of net sales for 2021
Business
1 answer:
kondaur [170]2 years ago
7 0

The amount of net sales for 2021 is $1,035,000.

Average inventory = (Beginning inventory + Ending inventory) / 2

Average inventory = ($63,000 + $75,000) /2

Average inventory = $69,000

  • The formula for Inventory turnover ratio is <em>{Cost of goods sold/Average inventory]</em>

6 = Cost of goods sold / $69,000

Cost of goods sold = $414,000

Given Gross profit ratio is 40%: Gross profit = 40% on sales

Let the sales be $K

Gross profit = Sales - Cost of goods sold

0.4K = K - $414,000

0.4K = $414,000

K = $414,000 / 0.4

K = $1,035,000

Therefore, the amount of net sales for 2021 is $1,035,000.

See similar solution here

<em>brainly.com/question/14161287</em>

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Between 1985 and x there was a period of no gains in the efficient of passenger vehicles (automobiles). Regulations required eff
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Answer:

2009

Explanation:

During the 1990s and early 2000s, the overall sale of more efficient cars decreased due to more strict fuel efficiency regulations on trucks and SUVs that actually increased the total number off trucks and SUVs sold, decreasing the average fuel efficiency by 1 mile per gallon.

It wasn't until President Obama passed stricter fuel efficiency regulations for all types of passenger vehicles that the overall efficiency increased.

4 0
3 years ago
Joe Jenkins, the owner of Jenkins Manufacturing, is considering whether to produce a new product. Joe will be selling the produc
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Answer:

Jenkins Manufacturing

Joe should produce using the new equipment.

Explanation:

a) Costs incurred using the old equipment:

Variable costs = $45,000 ($50 x 900)

Fixed costs = $40,000

Total costs = $85,000

Operating Loss = $22,000 ($63,000 - 85,000)

b) Costs incurred using the new equipment:

Variable costs = $22,500 ($25 x 900)

Fixed costs = $60,000

Total costs = $82,500

Operating Loss = $19,500 ($63,000 - 82,500)

Production using the new equipment would reduce the operating loss by $2,500.

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3 years ago
Which of the following is NOT a characteristics of good application?
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Answer:

C. completed quickly

Explanation:

8 0
3 years ago
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Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $
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Answer:

A. $2.40 per Machine hour

B. Underapplied = $10,000

C. cost of goods sold (debit) $10,000 , overheads (credit) $10,000

Explanation:

A) Compute the manufacturing overhead rate for the year

Overhead Rate = Total  Fixed Overheads / Budgeted Activity

                         =   $300,000 / 125,000 Machine hours

                         =   $2.40 per Machine hour.

B) What is the amount of under- or over applied overhead at December 31st?

Under Applied Overheads = Actual Overheads > Applied Overheads

Over Applied Overheads = Actual Overheads < Applied Overheads

Actual Overheads = $322,000

Applied Overheads = $2.40 × 130,000 hours = $ 312,000

Underapplied = $10,000

C) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.

cost of goods sold (debit) $10,000

overheads (credit) $10,000

7 0
3 years ago
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Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are
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Answer: $480

Explanation:

The net cash inflow from operating activities on Packard's statement of cash flows for Year 2 will be calculated thus:

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Less : Expenses paid = ($520)

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The net cash inflow from operating activities on Packard's statement of cash flows for Year 2 will be $480.

8 0
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