Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

b. The vertical analysis indicates that the cost of goods sold as a percent of sales ___ by __ percentage points, while selling expenses___by ___percentage points, and administrative expenses_____by ___percentage points. Thus, net income as a percent of sales___by __percentage points.

Inventory by three methods:

The units of an item available for sale during the year are as follows:

Jan 1.        Inventory             21 units at 1,800

May 15       Purchase            28 units at 1,950

August 7     Purchase            10 units at 2,040

Nov. 20        Purchase           17 units at 2,100

There are 20 units of the item in the physical inventory at December 31. ROUND YOUR INTERMEDIATE CALCULATIONS AND FINAL ANSWER TO THE NEAREST DOLLAR

1. Using First in First Out Method calculate cost of goods sold

2. Using Last in First Out Method calculate cost of goods sold

3. Using weighted average cost method calculate Ending Inventory, Cost of Goods Sold        

Inventory by Three Methods; Cost of Goods Sold

The units of an item available for sale during the year were as follows:

There are 18 units of the item in the physical inventory at December 31.

Determine the cost of ending inventory and the cost of goods sold by three methods, presenting your answers in the following form:

0n 4/21/2020, Netflix reported 16 million new subscribers during the first quarter of 2020. Streaming services are a bright spot during this economic shutdown due to the Coronavirus outbreak, but the company faces negative factors as well. Increased operating costs may explain the results, discussed late in the article, that profit of $709.1, or $1.57 a share, was achieved while “the company was expected to earn $1.64 a share.” Nonetheless, shares rose in after-hours following Netflix’s release of its video to discuss financial results in the first quarter of 2020.

So, how does the breakdown of Netflix's new subscribers by geographic area help to assess the company’s operating results? Do you think that assessing financial information in addition to subscriber numbers by geographic area would help to further understand Netflix's performance during this period? Explain your reasoning. Is there a specific requirement to provide information about the geographic areas discussed by Netflix and reported in this article? Explain your answer and provide supporting citations to professional literature.

1. Please Answer the following segments of the unit review question.

A. Department M had 2,600 units 58% completed in process at the beginning of June, 13,600 units completed during June, and 900 units 35% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories?

-.11,000 units

-.12,407 units

-.14,815 units

-.13,915 units

B. Which of the following is the correct flow of manufacturing costs?

-.raw materials, finished goods, cost of goods sold, work in process

-.raw materials, work in process, finished goods, cost of goods sold

-.cost of goods sold, raw materials, work in process, finished goods

-.work in process, finished goods, raw materials, cost of goods sold

C. At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

-.decrease by $1,700,000

-.increase by $1,700,000

-.decrease by $3,400,000

-.increase by $3,400,000

1A) Your client is considering the purchase of a bond that is currently selling for $941.03. The client wants to know what annual rate of return can they expect to earn on the bond. The bond has 11 years to maturity, pays a coupon rate of 7.1% (payments made semi-annually), and a face value of $1000. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%)

1B) What is the market price of a bond with a maturity of 19 years, a coupon rate of 4.8% paid semi-annually, a par value of $1000, and a yield to maturity of 5.8%. (Round your answer to the nearest penny.)

1C) What is the most we should pay for a bond with a par value of $1000, coupon rate of 11.6% paid annually, and a remaining life of 17 years? The yield to maturity is 3.8%. Assume annual discounting. (Round your answer to the nearest penny.)

ANSWER

1. At December 31, 2022, the following balances existed for MICPA Corporation:

The bonds mature on 12/31/28. Straight-line amortization is used.

If 60% of the bonds are retired at 104 on January 1, 2025, what is the gain or loss on early extinguishment?

Answer

$_______________

On January 1, 2021, Winter Company issued $500,000, 5-year, 8% bonds at 97. Interest is paid semiannually on each June 30 and December 31. The maturity date is December 31, 2025. How much Bond Interest Expense will the company record on each semiannual cash interest payment date?

Compute the problem below and file a quarterly income tax return using 1702Q and annual income tax return 1702-EX.

Bless Corporation, a domestic corporation, is into buy and sell business. The following results of operations appear in its records for the quarter ending December 31, 2019:

Gross sales for the 1st quarter 350,000
Cost of sales for the 1st quarter 133,000
Total deductions claimed for the 1st quarter 126,000
Gross sales for the 2nd quarter 210,000
Cost of sales for the 2nd quarter 80,500
Total deductions claimed for the 2nd quarter 84,000
Gross sales for the 3rd quarter 550,000
Cost of sales for the 3rd quarter 350,000
Total deductions for the 3rd quarter 50,000
Gross Sales for the 4rth quarter 730,000
Cost of sales for the 4rth quarter 430,000
Total deductions for the 4rth quarter 120,000

The company has a creditable tax withheld of 15,950.
Required:
How much is the total taxable income to date?
How much is the tax payable for the 1st quarter?
How much is the tax payable for the 2nd quarter?
How much is the tax payable for 3rd quarter?
How much is the annual income tax payable for year 2019?

currency is phillipines

4. Determinants of the price elasticity of demand

Consider some determinants of the price elasticity of demand:

A good without any close substitutes is likely to have relatively   demand, because consumers cannot easily switch to a substitute good if the price of the good rises.

A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the most elastic demand?

Sports car

Amputation procedures for patients with diabetes

Price elasticity for a good depends on the share of a consumer's budget spent on a good. Other things being equal, which of the following goods has the most elastic demand?

Monthly cell phone bill

Thumbtacks

Fish food

The price elasticity of demand for a good also depends on how you define the good.

Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.

The price elasticity of demand is also affected by the given time horizon.

If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to alternatives such as public transportation. Therefore, the demand for gasoline is   elastic in the short run than in the long run.