Question
In: Accounting
In year 1, a company makes xxx sales and xxx expenses. The end result is negative...
In year 1, a company makes xxx sales and xxx expenses. The end result is negative net income. In year 2, the company's sales and expenses are the same and thus still have negative income.
In year 1, the company sold its assets and reduced some current liabilities, resulting in positive cash flow in operating activities. Investing activities were marginally positive with an increase in ppe. Cash flow from financing activities was negative and the overall balance sheet changes as negative. In year 2, the company saw negative cash flows in operating and investing activities, but a positive cash flow in financing activities. The overall balance sheet changes were positive due to a substantial increase in finance activities.
Compared to year 1, how is the health of the company in Year 2?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
In year 1, a company makes xxx sales and xxx expenses. The end result is negative...
In year 1, a company makes xxx sales and xxx expenses. The end
result is negative net income. In year 2, the company's sales and
expenses are the same and thus still have negative income.
In year 1, the company sold its assets and reduced some current
liabilities, resulting in positive cash flow in operating
activities. Investing activities were marginally positive with an
increase in ppe. Cash flow from financing activities was negative
and the overall balance sheet changes as...
In year 1, a company makes xxx sales and xxx expenses. The end result is negative...
In year 1, a company makes xxx sales and xxx expenses. The end
result is negative net income. In year 2, the company's sales and
expenses are the same and thus still have negative income.
In year 1, the company sold its assets and reduced some current
liabilities, resulting in positive cash flow in operating
activities. Investing activities were marginally positive with an
increase in ppe. Cash flow from financing activities was negative
and the overall balance sheet changes as...
Before the year-end, a company is assessed $200,000 in additional taxes as a result of an...
Before the year-end, a company is assessed $200,000 in
additional taxes as a result of an IRS audit. The company's tax
attorney believes that a settlement with the IRS can be reached for
$110,000. Settlement has not been reached before the financial
statements are issued.
Should the company disclose this matter in the footnotes to the
company's financial statements at year-end?
Please reference the appropriate accounting standards or other
professional pronouncements
Accrued expenses at the end of one accounting period are expected to result in cash payments...
Accrued expenses at the end of one accounting period are
expected to result in cash payments in a future period.
true or not
1. For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):...
1. For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales$15,300
Food and packaging$4,706
Payroll3,900
Occupancy (rent, depreciation, etc.)4,034
General, selling, and administrative expenses2,200 $14,840
Income from operations$460
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
a. What is Wicker Company's contribution
margin? Round to the nearest million. (Give answer in millions of
dollars.)
$ _____________________________ million
b. What is Wicker Company's...
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDugal's company-owned restaurants had the
following sales and expenses (in millions):
Sales $36,000
Food and packaging $8,820
Payroll 9,500
Occupancy (rent, depreciation, etc.) 12,180
General, selling, and admin. expenses 5,500
Other expense 720
Total expenses (36,720)
Operating income (loss) $(720)
a. What is McDonald's contribution margin? Enter your answer in
million, rounded to one decimal place.
b. What is McDonald's contribution margin ratio? Round your
percentage answer to one decimal place.
c. How much would operating...
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDugal's company-owned restaurants had the
following sales and expenses (in millions): Sales $20,200 Food and
packaging $7,702 Payroll 5,400 Occupancy (rent, depreciation, etc.)
3,998 General, selling, and admin. expenses 3,100 Other expense 400
Total expenses (20,600) Operating income (loss) $(400) Assume that
the variable costs consist of food and packaging, payroll, and 40%
of the general, selling, and administrative expenses. a. What is
McDonald's contribution margin? Enter your answer in million,
rounded to one decimal place....
What negative consequence might occur if the performance measure is selling and administrative expenses ÷ sales...
What negative consequence might occur if the performance measure
is selling and administrative expenses ÷ sales in the current year
versus the prior year? Please include the entire answer cause
previous answers were vague
1). Contribution Margin is: a). Sales - Total Variable expenses b). Sales - Total variable expenses...
1). Contribution Margin is:
a). Sales - Total Variable expenses b). Sales - Total variable
expenses - Total fixed expenses c). Sales revenue per unit x Sales
quantity d). Variable expense per unit x Sales quantity
2). When preparing segmented income statements fixed expense are
separated into the following categories:
a). Traceable and common b).Fixed and Variable c).Direct and
indirect d).Product and period
3).A Co. reported: Sales $125000; Contribution margin $62000;
Total fixed expenses $42000; Common fixed expenses $15000. How...
At the end of the financial year 2019, Strong Tool Company anticipated its revenues, expenses, capital...
At the end of the financial year 2019, Strong Tool Company
anticipated its revenues, expenses, capital expenditures and
changes in working capital over the next 3 years (2020-2022) to be
as shown in the table below.
Year
Revenues
Expenses
Capital Expenditures
Incremental Changes in Working Capital
2020
$400,000
$200,000
$40,000
$15,000
2021
$410,000
$200,000
$60,000
‒
$25,000
2020
$420,000
$200,000
$80,000
$35,000
The company estimated the depreciation charges to be fixed at
$15,000 every year. The firm has a...
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