Determine how revenue is accounted for in each of the following
situations in Governmental Funds:
Property taxes, sales taxes, income taxes, licenses and permits,
fines, grants and donations, sales of capital assets and payments
on behalf.
In: Accounting
Dairy Services was organized on August 1, 2019. A summary of the revenue and expense transactions for August follows:
Accounts
Fees earned$760,000
Wages expense540,000
Rent expense35,000
Supplies expense9,000
Miscellaneous expense11,900
Prepare an income statement for the month ended August 31. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign.
use the following labels
| Labels | |
| Expenses | |
| For the Month Ended August 31, 2019 | |
| Amount Descriptions | |
| Net income | |
| Net loss | |
| Total expenses |
In: Accounting
1. B&B Corporations are on the accrual basis of accounting, revenue should be recognized on the Income Statement when:
A. Cash is received
B. Revenue is earned and collectability of any cash is reasonably assured
C. Revenue is earned regardless of the collectability of any uncollected cash
D. Revenue is earned even if the full sales price is uncertain
2. B&B Tech disclosed the following information in its recent annual report:
|
Year 1 |
Year 2 |
|
|
Cost of goods sold |
$16,000,000 |
$20,100,000 |
|
Revenue |
20,000,000 |
25,100,000 |
|
Ending inventory |
4,000,000 |
5,150,000 |
What is the B&B Tech’s’s Gross Profit for Years 1 & 2?
A. $4,000,000 & $8,000,000
B. $12,000,000 &$14,950,000
C. $4,000,000 & $5,000,000
D. None of the Above
3. B&B Co. opened a new business location on April 1. During April, Copy Co. sold
$50,000 of copies for cash along with $280,000 of copies on account to customers.
Payments collected from these customers amounted to $212,000 during April, with
the balance to be collected during May.
How much revenue should B&B. report on its April income statement?
A. $150,000
B. $430,000
C. $380,000
D. $530,000
Presented below are selected amounts from B&B, Inc.’s financial statements:
|
Amounts in thousands |
|
|
Balance sheet |
|
|
Accounts receivable |
$ 22,800 |
|
Inventory |
41,000 |
|
Total assets |
569,000 |
|
Accounts payable |
135,500 |
|
Shareholders’ equity |
288,000 |
|
Income Statement |
|
|
Net sales |
621,000 |
|
Cost of goods sold |
430,000 |
|
Interest expense |
27,000 |
|
Net income |
124,000 |
How many days, on average, does it take B&B's to pay an outstanding account payable?
A. 139.days
B. 115 days
C. 123 days
D. 119 days
E. None of the above
4. Presented below are selected ratios derived from B&B's financial statements:
|
Return on sales |
1.7% |
|
Total asset turnover |
4.25 |
|
Financial leverage |
2.75 |
|
Treasury stock return Dividend retention rate |
3.25 1.95 |
Using the ROE model framework, how much is B&B’s ROE?
A. 12.95%
B. 19.87%
C. 29.18%
D. 39.59%
In: Accounting
In: Accounting
The cost of producing x records is C(x) = 20x + 450. If the revenue generated from sales is R(x) = 35x, then determine the break-even value.
a.1150 units
b. 30 units
c. 20.75 units
d. 8 units
In: Finance
In 2019, a year in which the firm’s revenue increased, the firm’s operating margin increased, but the firm’s net margin decreased. Based on this information, what can you say about the firm’s performance in 2019?
In: Finance
Here are some true and false questions to see if you understand the revenue and profit terms and the three key rules to maximize profit. Briefly explain why you chose that answer
1) When marginal profit is 0 dollars, we know that total profit is 0.
2) If marginal profit is negative, a firm's total profit will increase if the firm produces fewer units of product.
3) At is current output level, the Placone Firm has AR=12 dollars and MC=10 dollars, which means its average profit is two dollars
4) A firm determines it will maximize its total profit by producing 800 units per week because at that output both MR and MC are 600dollars. The price the firm should charge for its output also is 600 dollars.
In: Economics
Pancake Inc. currently makes total revenue of $56,000. The elasticity of demand for their product is .9. If a change in market price causes total revenue to increase to $57,000 then that means.
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
Price went up and the quantity demanded went down
b
Price went down and the quantity demanded went up
c
Price went down and the quantity demanded went down
d
Price went down and the quantity demanded did not change
e
There is no way of knowing from the information given.
In: Economics
A perfectly competitive firm operates in a market where P = $4. The firm's revenue is ______ and marginal revenue is ________.
|
|||
|
|||
|
|||
|
In: Economics
The primary objective of a for-profit firm is to
a. maximize total revenue
b. maximize agency costs
c. minimize average cost
d. maximize shareholder value
In: Economics