Describe the format of an income statement prepared using the contribution margin approach.

Division a Margin turnover roi

division b

division c

avg operating income

required rate of return

required operating income

actual operating income

required operating income above

required income loss)

Division a

division b

division c

Division a

division b

division c

What is the significance of Income Statement, Balance Sheet, Owner's Equity and Statement of Cash Flows, and what does each financial statement tell us about a business entity?

Hudson Co. reports the contribution margin income statement for 2017.

Assume the company is considering investing in a new machine that will increase its fixed costs by $42,000 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine.

If the company raises its selling price to $240 per unit.

1. Compute Hudson Co.'s contribution margin per unit.
2. Compute Hudson Co.'s contribution margin ratio.
3. Compute Hudson Co.'s break-even point in units.
4. Compute Hudson Co.'s break-even point in sales dollars.

The marketing manager believes that increasing advertising costs by $84,000 in 2018 will increase the company’s sales volume to 11,300 units. Prepare a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs.

RECIPROCAL METHOD: University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.

The following data appear in the company records for the current period:

Required:

Allocate the service department costs using the RECIPROCAL METHOD. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Shadee Corp. expects to sell 560 sun visors in May and 380 in June. Each visor sells for $21. Shadee’s beginning and ending finished goods inventories for May are 70 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 27 closures on hand on May 1, 16 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $2.00 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information: Selling costs are expected to be 11 percent of sales. Fixed administrative expenses per month total $1,300. Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.30.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

• What is the responsibilities of management for errors, omissions, material fraud, illegal acts, and provide examples.

Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:

During the year, Lauer sold 900 laptop computers.
What was cost of goods sold using the LIFO cost flow assumption?

Which of the following statement is incorrect? The general pattern of cash flows from a bond with a positive coupon rate are the coupon interest payments at regular intervals throughout the life of the bond and the face value payment on the maturity date. A bond's market price depends on its yield to maturity and when the YTM is equal to the coupon rate, the market price equals the face value. Cash payments from preferred stock dividends are scheduled to continue forever. To value businesses, assets, and securities, investors and financial managers use a general valuation model to calculate the future value of the historical net income values and that model unfortunately does not incorporate risk and return, and time value of money concepts. Most of the answers are correct.

Wildhorse Co. has the following inventory data: July 1 Beginning inventory 32 units at $21 $672 7 Purchases 113 units at $22 2486 22 Purchases 16 units at $24 384 $3542 A physical count of merchandise inventory on July 30 reveals that there are 52 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is

a. $2366

b. $1112

c. $2430

d. $1176

Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company's first production process September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (3,500 units, 100% complete with respect to direct materials, 70% complete with respect to conversion; consists of $95,800 of direct materials cost, $97,955 conversion cost $ 193,755 Costs incurred in September Direct materials $ 440,000 Conversion $ 386,000 Work in process inventory, September 30 (8,500 units, 100% complete with respect to direct materials, 30% complete with respect to conversion) ? Units started in September 34,500 Units completed and transferred out 29,500 Required: Compute each of the following using the weighted-average method of process costing.

1. & 2. The number of equivalent units for materials and conversion for the month. 3. & 4. The cost per equivalent unit of materials and conversion for the month. 5. The total cost of goods transferred out. 6. The total cost of ending work in process inventory.

QUESTION 52

1. The XYZ Corporation reported the following balance sheet data for 2018 and 2017:
   

   ​	2018	2017
   Cash	$60,375	$22,955
   Available-for-sale debt securities	​	​
   (not cash equivalents)	15,500	85,000
   Accounts receivable	91,000	68,250
   Inventory	165,000	145,000
   Prepaid insurance	1,500	2,000
   Land, buildings, and equipment	1,260,000	1,125,000
   Accumulated depreciation	(610,000)	(572,000)
   Total assets	$983,375	$876,205
   Accounts payable	$70,340	$148,670
   Salaries payable	20,000	24,500
   Notes payable (current)	25,000	75,000
   Bonds payable	200,000	0
   Common stock	300,000	300,000
   Retained earnings	368,035	328,035
   Total liabilities and shareholders' equity	$983,375	$876,205

   
   Additional information for 2018:
   (1.) Sold available-for-sale debt securities costing $69,500 for $74,000.
   (2.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
   (3.) Issued 6% bonds payable at face value, $200,000.
   (4.) Purchased new equipment for $155,000 cash.
   (5.) Paid cash dividends of $20,000.
   (6.) Net income was $50,000.
   
   Required:
     
   Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities. USE Worksheet Provide in class.

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,500 units.

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $236,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.

Partially correct answer iconYour answer is partially correct.

(a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(b) Should ThreePoint Sports Inc. accept the special order?

  

What is the minimum selling price on the special order to produce net income of $5.15 per ball? (Round answer to 2 decimal places, e.g. 15.25.)

8. The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following:

Assets Investment in IBM common shares $1,895,000 Less: Fair value adjustment (200,000) ____________ $1,695,000

No changes occurred during 2018 in the investment portifolio.

Required: Prepare appropriate adjusting entry(s) at December 31, 2018, assuming the fair value of the IBM common shares was

1. $1,331,000 2. $1,770,000 3. $1,920,000

(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the fair value adjustment assuming the fair value of the IBM common shares was $1,331,000.