A list of account balances for Nicholas Corporation follow: Revenue and Expenses January 1 inventories Purchases of raw materials $140,000 Raw materials $45,000 Direct labor $225,000 Work in process $30,000 Indirect labor $40,000 Finished Goods $105,000 Rent - factory $84,000 Depreciation - machinery $35,000 Insurance - factory $18,000 December 31 inventories Salesperson's salaries $72,000 Raw materials $40,000 Maintenance - machinery $12,000 Work in process $35,000 Administrative salaries $50,000 Finished goods $110,000 Miscellaneous - factory $26,000 Miscellaneous - office $40,000 Sales revenues $850,000 what is Nicholas Corporations's Net Income?
In: Accounting
Common-Sized Income Statement
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages.
| Tannenhill Company |
Electronics Industry Average |
||||
| Sales | $1,060,000 | 100 | % | ||
| Cost of goods sold | 699,600 | 69 | |||
| Gross profit | $360,400 | 31 | % | ||
| Selling expenses | $212,000 | 18 | % | ||
| Administrative expenses | 84,800 | 7 | |||
| Total operating expenses | $296,800 | 25 | % | ||
| Operating income | $63,600 | 6 | % | ||
| Other income | 21,200 | 2 | |||
| $84,800 | 8 | % | |||
| Other expense | 10,600 | 1 | |||
| Income before income tax | $74,200 | 7 | % | ||
| Income tax expense | 31,800 | 4 | |||
| Net income | $42,400 | 3 | % | ||
a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers.
| Tannenhill Company | |||
| Common-Sized Income Statement | |||
| For the Year Ended December 31 | |||
| Tannenhill Company Amount | Tannenhill Company Percent | Electronics Industry Average | |
| Sales | $1,060,000 | % | 100.0% |
| Cost of goods sold | 699,600 | % | 69% |
| Gross profit | $360,400 | % | 31% |
| Selling expenses | $212,000 | % | 18% |
| Administrative expenses | 84,800 | % | 7% |
| Total operating expenses | $296,800 | % | 25% |
| Operating income | $63,600 | % | 6% |
| Other income | 21,200 | % | 2% |
| $84,800 | % | 8% | |
| Other expense | 10,600 | % | 1% |
| Income before income tax | $74,200 | % | 7% |
| Income tax expense | 31,800 | % | 4% |
| Net income | $42,400 | % | 3% |
b. The company is managing the cost of manufacturing product than the industry, and has slightly selling and administrative expenses relative to the industry. The combined impact causes net income as a percent of sales to be than the industry average.
In: Accounting
list of account balances for Nicholas Corporation follow: Revenue and Expenses January 1 inventories Purchases of raw materials $140,000 Raw materials $45,000 Direct labor $225,000 Work in process $30,000 Indirect labor $40,000 Finished Goods $105,000 Rent - factory $84,000 Depreciation - machinery $35,000 Insurance - factory $18,000 December 31 inventories Salesperson's salaries $72,000 Raw materials $40,000 Maintenance - machinery $12,000 Work in process $35,000 Administrative salaries $50,000 Finished goods $110,000 Miscellaneous - factory $26,000 Miscellaneous - office $40,000 Sales revenues $850,000 To answer questions 6 and 7 you will need to prepare an income statement. To get the problems correct you will need to determine the Cost of Goods manufactured and the Cost of Goods Sold. To this requires an understanding of the difference between product and period costs. Choose the best answer below for your determination of the cost of goods sold
In: Accounting
The Dirk Company fails to record these journal entries:
| Accrued revenue | $65 |
| Payment of previously declared dividend | $35 |
| Expiration of prepaid rent | $28 |
Determine the net effect of these errors on the following items. Indicate the dollar amount of the error and the direction of the error. (Example: $17 overstated, or $12 understated, or No Error.)
In: Accounting
In: Economics
Describe in your own words the steps in the revenue recognition process under ASC 606. Provide citation from ASC 606.
In: Accounting
Based off Coca Colas current revenues what would their forecasted revenue be for the next 5 years?
In: Accounting
A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied. Day Revenue Occupied Day Revenue Occupied 1 $ 1,452 32 14 $ 1,425 29 2 1,361 30 15 1,445 31 3 1,426 33 16 1,439 33 4 1,470 33 17 1,348 30 5 1,456 33 18 1,450 34 6 1,430 29 19 1,431 30 7 1,354 29 20 1,446 30 8 1,442 30 21 1,485 30 9 1,394 32 22 1,405 32 10 1,459 30 23 1,461 32 11 1,399 33 24 1,490 32 12 1,458 31 25 1,426 33 13 1,537 34
Click here for the Excel Data File
Choose the scatter diagram that best fits the data.
Scatter diagram 1 Scatter diagram 2 Scatter diagram 3
Scatter diagram 1 Scatter diagram 2 Scatter diagram 3
Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)
c-1. State the decision rule for 0.05 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.)
c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)
c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.05 significance level. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.)
In: Statistics and Probability
1.What are the objectives of the competition act in Canada?
2.Explain the marginal revenue product (MRP) for labour.
3.Explain how wage rates are determined.
4.Explain why there might be a wage difference between two jobs. What could reduce the wage differential? What barriers might prevent the differential from being reduced?
5.Explain how demand for labour is a derived demand.
6.What is are positive and negative externalities. Explain using examples for each.
7.Use a diagram to explain the impact on a market when there are marginal social costs from negative externalities or marginal social benefits from positive externalities.
8.Give an example of a free rider. What is the solution to the problem of free riders?
9.Explain a carbon tax and a cap-and-trade system. What are the pros and cons of each method of carbon pricing?
10. Use an example to explain how an efficient market may be a market with less equity.
11.What is the process of creative destruction? Explain using examples.
12.What happens if we regulate “price gouging” to keep the price of emergency supplies from rising during a disaster?
13.What is the purpose of price discrimination? Describe examples. What does this have to do with elasticity?
Give an example of a natural monopoly. Why are they established? Why do they need to be regulated?
14.What is the concept of economic rent? Why is economic rent so high?
15. Explain the difference between income and wealth. Why is there such an unequal distribution of both in our economy?
16. How does increasing human capital help to reduce poverty?
17. What is the purpose of pay equity leglislation?
In: Economics
New Revenue Recognition Standard
Please discuss some of the key changes included in the new standard. The new standard was implemented this year for publicly traded companies and next year for privately-held companies. Have publicly traded companies encountered challenges with implementation?
In: Accounting