In: Accounting

A well-known consignor consigned goods costing $1,560,000 to be sold at a total advertised selling price of $3,120,000. The consignee remitted $1,422,600 to its consignor after deducting the following charges: $52,500 cartage, $22,500 installation, and a commission equal to 20% of the sales proceeds after deducting the commission. Determine the net income of the consignor.

**Step 1: Determine the percentage of items sold over items consigned during the period.**

Remittance | 1,422,600 |

Cartage | 52,500 |

Installation | 22,500 |

Net remittance after commission | 1,497,600 |

Add commission (20%) | 299,520 |

Proceeds from sale of goods | 1,797,120 |

Divided by total advertised price | 3,120,000 |

Percentage of units sold | 57.60% |

**Step 2: Compute for the net income.**

Revenue from sale | 1,797,120 |

Cost of sales: | |

Purchase price (1,560,000 x 57.6%) | (898,560) |

Cartage (52,500 x 57.6%) | (30,240) |

Gross profit | 868,320 |

Installation | (22,500) |

Commission | (299,520) |

Net income |
546,300 |

Net income is $546,300.

Cushman Company had $818,000 in sales, sales discounts of $12,270, sales returns and allowances of $18,405, cost of goods sold of $388,550, and $281,395 in operating expenses. Net income equals:
(a) $7,87,325
(b) $1,17,380
(c) $3,98,775
(d) $1,78,730
(e) $1,48,055

NBA stars Kevin Durant and Chris Paul own a company that faces a 40% tax rate and uses a 14% discount rate. They just invested $677,000 in equipment for the banking app “Goalsetter” that would be depreciated on a straight-line basis to zero over the 6-year life of the project. The equipment will be salvaged for $182,000 at the end of the project. Kevin Durant and Chris Paul know that the project's operating cash flow will be $165,300 per year. What is the NPV of this project if it...

Company A wishes to invest in 4 projects X, W, Y & Z whose net benefits are given in the table below.
Project
Years
0
1
2
3
4
W
(1000)
1200
0
0
0
X
(1361.1)
500
500
500
500
Y
(1000)
1200
1500
0
0
Z
(2000)
1000
0
0
0
Using a discount rate of 10% appraise the 4 projects using the NPV criteria.

Below is a partial listing of the adjusted account balances of yates Co at year end on december 31 ,2018
Cost of Goods sold-$ 212,000
Freight out- $7,000
insurance expense-$ 12,000
Rent expense- $32,000
Salaries Expense-$62,000
Sales Discount-$ 8,000
Sales Return and allowances-$ 17,000
Sales-$ 370,000
Prepare a multi step Income statement .assume 25% income tax rate.

Jarren Cough drops operates two divisions. The following information pertains to each division for year 1.
Required
Compute each division’s residual income.
Which division increased the company’s profitability more?

The following information pertains to Cenon Company for 200B:
Accounts receivable, January 1, 200B
8,000
Accounts receivable, December 31, 200B
9,600
Net Cash Sales
3,200
Accounts Receivable turnover for 200B
5 times
The company's net sales for 200B was
a. 47,200
b. 88,000
c. 51,200
d. 48,000

A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years.
Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals....

Baird Home Maintenance Company earned operating income of $6,587,900 on operating assets of $58,300,000 during Year 2. The Tree Cutting Division earned $1,242,260 on operating assets of $6,940,000. Baird has offered the Tree Cutting Division $2,070,000 of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to $432,630. Baird has a desired return on investment (ROI) of 9.30 percent.Required
Calculate the return on investment for Baird, the...

The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $52 per unit. Division B is able to supply Division A with 17,500 units at a variable cost of $50 per unit. The two divisions have recently negotiated a transfer price of $48 per unit for the 17,500 units. By how much will each division's income and the company's total income change as a result of this transfer? Enter an increase as a positive...

Harvey Specter started his own firm, Specter Co. on .July I, 2011. The list of different Account titles with respective balance (each account has a normal balance) at September 30, 20l3 as follows Specter Co.
List or Accounls
...