Question
In: Accounting
Finn Company has the following operating data for the past year: Sales $616,000 Variable Cost $150,000...
Finn Company has the following operating data for the past year:
|
Sales |
$616,000 |
|
Variable Cost |
$150,000 |
|
Fixed Cost |
$100,000 |
|
Minimum required rate of return |
27% |
Balance Sheet Data for beginning and end of year:
|
Assets |
Beginning |
Ending |
| Cash |
$5,000 |
$5,000 |
|
Accounts Receivable |
$35,000 |
$40,000 |
| Inventory |
$90,000 |
$95,000 |
|
Net PP&E |
$100,000 |
$115,000 |
|
Land (held for future use) |
$40,000 |
$40,000 |
|
Investments in affiliates |
$5,000 |
$0 |
|
Total Assets |
$275,000 |
$295,000 |
|
Liabilities & SH Equity |
||
|
Short Term Debt |
$22,000 |
$27,000 |
|
Long Term Debt |
$116,000 |
$117,000 |
|
Stockholder's Equity |
$137,000 |
$151,000 |
|
Total Liabilities and SH Equity |
$275,000 |
$295,000 |
Q.: Finn Company's residual income for the past year is closest to:
Solutions
ekkarill92 answered 1 year agoRelated Solutions
company has the following operating data for the past 2 years: Year 1 Year 2 Residual...
company has the following operating data for the past 2
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Year 1
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$600
?
Return on Investment
10%
87.5%
Required Rate of return
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9%
Average operating assets
?
$42,000
Sales in year 1 is $70,000 less than sales in year 2.
The Company had the same capital turnover in both years.
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1. Meade Corp has the following operating data for the past 2
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10%
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Residual Income
?
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Required Rate of return
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Sales
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Asset Turnover
?
?
The sales margin in year 2 is twice the margin for the first
year.
The Company had the same asset turnover in both years.
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A.
$4,000
B.
$8,000
C.
$10,000
D.
$12,000
E.
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The ABC Partnership has the following revenues and expenses for the past year: Sales $430,000 Cost...
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Cost of Goods Sold 218,000
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Net Income $70,000
The three owners are Albert, Bob, and Clay. Their capital
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Bob 20,000
Clay 50,000
Albert invested an additional $5,000 in the business on june
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Bob...
Whitlaw Corporation has $150,000 of gross profit on sales, operating expenses of $60,000 (excluding cost recovery),...
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Alden Co.’s monthly unit sales and total cost data for its operating activities of the past...
Alden Co.’s monthly unit sales and total cost data for its
operating activities of the past year follow. Management wants to
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costs.
Month
Units Sold
Total Cost
Month
Units Sold
Total Cost
1
315,500
$
153,000
7
364,500
$
311,084
2
160,500
96,750
8
265,500
147,250
3
260,500
201,100
9
76,900
69,500
4
200,500
95,500
10
145,500
126,125
5
285,500
197,000
11
89,500
89,500
6
185,500
107,500
12
95,500
86,150
1....
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Variable Costing Ferguson Company has the following information for July: Sales $630,000 Variable cost of goods...
Variable Costing
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Sales
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Variable cost of goods sold
289,800
Fixed manufacturing costs
94,500
Variable selling and administrative expenses
69,300
Fixed selling and administrative expenses
37,800
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a. Manufacturing margin
$
b. Contribution margin
$
c. Income from operations
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Variable Costing
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Sales
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Variable cost of goods sold
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