Riverside Inc. makes one model of wooden canoe. Partial
information for it follows:
| Number of Canoes Produced and Sold | ||||||
| 530 | 680 | 830 | ||||
| Total costs | ||||||
| Variable costs | $ | 71,550 | ? | ? | ||
| Fixed costs | 148,500 | ? | ? | |||
| Total costs | $ | 220,050 | ? | ? | ||
| Cost per unit | ||||||
| Variable cost per unit | ? | ? | ? | |||
| Fixed cost per unit | ? | ? | ? | |||
| Total cost per unit | ? | ? | ? | |||
Required:
1. Complete the table. (Round your cost per unit
answers to 2 decimal places.)
3. Suppose Riverside sells its canoes for $511
each. Calculate the contribution margin per canoe and the
contribution margin ratio. (Round your contribution margin
to the nearest whole dollar and your contribution margin ratio to
the nearest whole percent.)
4. Next year Riverside expects to sell 880 canoes.
Complete the contribution margin income statement for the
company.
In: Accounting
Cash $156,500 Accounts Recieveable 116,650 Allowance for Doubtful Accounts $51,250 Supplies 2,950 Prepaid Insurance 1,700 Building 260,000 Equipment 125,000 Land 111,500 Accumulated Depreciation 167,000 Investment in Bonds held to Maturity 24,000 Accounts Payable 5,650 Current Maturity of Note Payable 3,000 Note Payable 170,000 Unearned Revenue 12,000 Interest Payable 1,500 Salaries Payable 1,950 Common stock 49,100 Retained earnings 100,000 Service Revenue 488,700 Advertising Expense 6,000 Depreciation Expense 55,600 Insurance Expense 15,800 Interest Expense 1,800 Rent Expense 6,700 Salaries Expense 155,000 Supplies Expense 2,200 Travel Expense 550 Utilities Expense 6,200 Loss on Sale of Equipment 2,000 Total $1,050,150 $1,050,150 create a classified balance sheet
In: Accounting
(Capital Gains and Losses – Introduction).
In 2018, Steven Spielberg (single) has $5,000 of net short-term capital loss and $17,000 of net long-term capital loss. In 2019, he has $2,000 of net short-term capital gain, $8,000 of net 28% long-term capital gain, and $4,000 of net 0%/15%/20% long-term capital gain.
Determine the type (short-term or long-term) and amount of capital loss to be carried forward to 2019 and 2020, respectively.
Very well organised, please how every step.
In: Accounting
In: Accounting
Aspen Company estimates its manufacturing overhead to be $631,250 and its direct labor costs to be $505,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $195,600. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $326,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $130,400. Actual manufacturing overhead for year 2 was $801,900. Manufacturing overhead is applied on the basis of direct labor costs.
Required:
Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Note: Enter debits before credits.
|
In: Accounting
DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.
| Month | ||||||||
| 1 | 2 | 3 | 4 | |||||
| Throughput time (days) | ? | ? | ? | ? | ||||
| Delivery cycle time (days) | ? | ? | ? | ? | ||||
| Manufacturing cycle efficiency (MCE) | ? | ? | ? | ? | ||||
| Percentage of on-time deliveries | 85 | % | 80 | % | 77 | % | 74 | % |
| Total sales (units) | 2180 | 2087 | 1980 | 1905 | ||||
Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:
| Average per Month (in days) | |||||||||
| 1 | 2 | 3 | 4 | ||||||
| Move time per unit | 0.8 | 0.5 | 0.6 | 0.6 | |||||
| Process time per unit | 3.1 | 2.9 | 2.8 | 2.6 | |||||
| Wait time per order before start of production | 24.0 | 26.3 | 29.0 | 31.4 | |||||
| Queue time per unit | 4.7 | 5.3 | 6.0 | 6.8 | |||||
| Inspection time per unit | 0.5 | 0.6 | 0.6 | 0.5 | |||||
Required:
1-a. Compute the throughput time for each month.
1-b. Compute the delivery cycle time for each month.
1-c. Compute the manufacturing cycle efficiency (MCE) for each month.
2. Evaluate the company’s performance over the last four months.
3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.
3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.
In: Accounting
Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below:
| Alpha | Beta | |||||||
| Direct materials | $ | 24 | $ | 12 | ||||
| Direct labor | 23 | 26 | ||||||
| Variable manufacturing overhead | 22 | 12 | ||||||
| Traceable fixed manufacturing overhead | 23 | 25 | ||||||
| Variable selling expenses | 19 | 15 | ||||||
| Common fixed expenses | 22 | 17 | ||||||
| Total cost per unit | $ | 133 | $ | 107 | ||||
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.
13. Assume that Cane’s customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the raw material available for production is limited to 168,000 pounds. How many units of each product should Cane produce to maximize its profits?
Alpha:
Beta:
In: Accounting
a) A cash-basis business owner pays $2,300 for "in-house" lobbing expenses during the year. How much can she deduct?
b) What is the annual dollar limit of deductible compensation for the top five most highly compensated executives of a publicly held corporation?
c) A taxpayer traveled to a neighboring state to investigate the purchase of two restaurants in 2014. She pays/incurs investigation expenses of $35,000. Assuming she was not in the restaurant business previously, how much can she deduct in 014 if she acquires them and begins operations on July 1st?
In: Accounting
Course: Theory of Interest (Actuarial Science)
Chapter: Yield Rates
Problem: This is a Multi-Part Question
Joe's retirement scheme at work pays $500 at the end of each month. Joe puts his money in an account which earns a nominal 12% converted monthly, the interest is reinvested at a nominal 4% converted monthly. Carol's account also pays $500 at the end of each month, but she earns nominal 12% convertible monthly (principal and interest both earn 12%). After 20 years, Joe and Carol retire.
a) How much money will Carol have? Answer: $184,465.8246
b) How long will it be before Carol's account exceeds Joe's by $1,000,000? Answer: 355.0933299 months or 29.59111082 years
In: Accounting
Twenty metrics of liquidity, Solvency, and Profitability
The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $66 on December 31, 20Y8.
| AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 |
||||
| 20Y8 | 20Y7 | |||
| Sales | $5,409,300 | $4,983,820 | ||
| Cost of goods sold | (2,124,300) | (1,954,360) | ||
| Gross profit | $3,285,000 | $3,029,460 | ||
| Selling expenses | $(1,001,580) | $(1,264,600) | ||
| Administrative expenses | (853,200) | (742,700) | ||
| Total operating expenses | (1,854,780) | (2,007,300) | ||
| Operating income | $1,430,220 | $1,022,160 | ||
| Other revenue and expense: | ||||
| Other income | 75,280 | 65,240 | ||
| Other expense (interest) | (360,000) | (198,400) | ||
| Income before income tax | $1,145,500 | $889,000 | ||
| Income tax expense | (137,500) | (107,100) | ||
| Net income | $1,008,000 | $781,900 | ||
| AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders’ Equity For the Years Ended December 31, 20Y8 and 20Y7 |
||||||||||||||||||
| 20Y8 | 20Y7 | |||||||||||||||||
| Preferred Stock |
Common Stock |
Retained Earnings |
Preferred Stock |
Common Stock |
Retained Earnings |
|||||||||||||
| Balances, Jan. 1 | $950,000 | $1,080,000 | $4,510,450 | $950,000 | $1,080,000 | $3,817,450 | ||||||||||||
| Net income | 1,008,000 | 781,900 | ||||||||||||||||
| Dividends: | ||||||||||||||||||
| Preferred stock | (13,300) | (13,300) | ||||||||||||||||
| Common stock | (75,600) | (75,600) | ||||||||||||||||
| Balances, Dec. 31 | $950,000 | $1,080,000 | $5,429,550 | $950,000 | $1,080,000 | $4,510,450 | ||||||||||||
| AUTOMOTIVE SOLUTIONS INC. Comparative Balance Sheet December 31, 20Y8 and 20Y7 |
|||||
| Dec. 31, 20Y8 | Dec. 31, 20Y7 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash | $1,152,130 | $1,043,070 | |||
| Temporary investments | 1,743,770 | 1,728,520 | |||
| Accounts receivable (net) | 1,073,100 | 1,007,400 | |||
| Inventories | 803,000 | 613,200 | |||
| Prepaid expenses | 217,976 | 208,610 | |||
| Total current assets | $4,989,976 | $4,600,800 | |||
| Long-term investments | 2,587,214 | 1,355,659 | |||
| Property, plant, and equipment (net) | 5,850,000 | 5,265,000 | |||
| Total assets | $13,427,190 | $11,221,459 | |||
| Liabilities | |||||
| Current liabilities | $1,467,640 | $2,201,009 | |||
| Long-term liabilities: | |||||
| Mortgage note payable, 8%, due in 15 years | $2,020,000 | $0 | |||
| Bonds payable, 8%, due in 20 years | 2,480,000 | 2,480,000 | |||
| Total long-term liabilities | $4,500,000 | $2,480,000 | |||
| Total liabilities | $5,967,640 | $4,681,009 | |||
| Stockholders' Equity | |||||
| Preferred $0.70 stock, $50 par | $950,000 | $950,000 | |||
| Common stock, $10 par | 1,080,000 | 1,080,000 | |||
| Retained earnings | 5,429,550 | 4,510,450 | |||
| Total stockholders' equity | $7,459,550 | $6,540,450 | |||
| Total liabilities and stockholders' equity | $13,427,190 | $11,221,459 | |||
Determine the following measures for 20Y8. Round ratio values to one decimal place and dollar amounts to the nearest cent. For number of days' sales in receivables and number of days' sales in inventory, round intermediate calculations to the nearest whole dollar and final amounts to one decimal place. Assume there are 365 days in the year.
| 13. Asset turnover | ||
| 14. Return on total assets | % | |
| 15. Return on stockholders’ equity | % | |
| 16. Return on common stockholders’ equity | % | |
| 17. Earnings per share on common stock | $ | |
| 18. Price-earnings ratio | ||
| 19. Dividends per share of common stock | $ | |
| 20. Dividend yield | % |
In: Accounting
The following information is taken from Smith Corporation's financial statements:
December 31
2020 2019
|
Cash |
$100,000 |
$ 27,000 |
|
Accounts receivable |
95,000 |
80,000 |
|
Allowance for doubtful accounts |
(4,500) |
(3,100) |
|
Inventory |
145,000 |
175,000 |
|
Prepaid expenses |
7,500 |
6,800 |
|
Land |
100,000 |
60,000 |
|
Buildings |
287,000 |
244,000 |
|
Accumulated depreciation |
(35,000) |
(13,000) |
|
Patents |
20,000 ———————— $715,000 |
35,000 ———————— $611,700 |
|
Accounts payable |
$ 90,000 |
$ 84,000 |
|
Accrued liabilities |
54,000 |
63,000 |
|
Bonds payable |
135,000 |
60,000 |
|
Common stock |
100,000 |
100,000 |
|
Retained earnings——appropriated |
80,000 |
10,000 |
|
Retained earnings——unappropriated |
271,000 |
302,700 |
|
Treasury stock, at cost |
(15,000) ---——— $715,000 |
(8,000) -———— $611,700 |
For 2020 Year
—————————————
Net income $63,300
Depreciation expense 22,000
Amortization of patents 5,000
Cash dividends declared and paid 25,000
Gain or loss on sale of patents none
INSTRUCTIONS
Prepare a statement of cash flows for Smith Corporation for the year 2020. (Use the indirect method.)
In: Accounting
Menlo Company distributes a single product. The company’s sales and expenses for last month follow:
| Total | Per Unit | |||||
| Sales | $ | 302,000 | $ | 20 | ||
| Variable expenses | 211,400 | 14 | ||||
| Contribution margin | 90,600 | $ | 6 | |||
| Fixed expenses | 72,600 | |||||
| Net operating income | $ | 18,000 | ||||
Required:
1. What is the monthly break-even point in unit sales and in dollar sales?
2. Without resorting to computations, what is the total contribution margin at the break-even point?
3-a. How many units would have to be sold each month to attain a target profit of $40,800?
3-b. Verify your answer by preparing a contribution format income statement at the target sales level.
4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.
5. What is the company’s CM ratio? If sales increase by $88,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
In: Accounting
Lindon Company is the exclusive distributor for an automotive product that sells for $32.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $177,600 per year. The company plans to sell 20,900 units this year.
Required:
1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)
2. What is the break-even point in unit sales and in dollar sales?
3. What amount of unit sales and dollar sales is required to attain a target profit of $81,600 per year?
4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.20 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $81,600?
In: Accounting
In: Accounting
Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $3.40 per unit. Enough capacity exists in the company’s plant to produce 30,200 units of the toy each month. Variable expenses to manufacture and sell one unit would be $2.14, and fixed expenses associated with the toy would total $56,578 per month.
The company's Marketing Department predicts that demand for the new toy will exceed the 30,200 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed expense of $2,829 per month. Variable expenses in the rented facility would total $2.38 per unit, due to somewhat less efficient operations than in the main plant.
Required:
1. What is the monthly break-even point for the new toy in unit sales and dollar sales.
2. How many units must be sold each month to attain a target profit of $12,546 per month?
3. If the sales manager receives a bonus of 15 cents for each unit sold in excess of the break-even point, how many units must be sold each month to attain a target profit that equals a 28% return on the monthly investment in fixed expenses?
(For all requirements, Round "per unit" to 2 decimal places, intermediate and final answers to the nearest whole number.)
In: Accounting