as follows:
Sales (160,000 units) $960,000
Cost of goods sold 640,000
Gross margin 320,000
Operating expenses 260,000
Operating income $60,000
Kramer is developing the 2016 budget. In 2016 the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost.
a) What is budgeted sales for 2016? $ _________
b) What is budgeted cost of goods sold for 2016? $___________
In: Accounting
Arthur, Inc., had 610,000 shares of common stock issued and outstanding on December 31, 2015. On July 1, 2016, an additional 40,000 shares of common stock were issued for cash. Arthur, Inc. also had unexercised stock options to purchase 32,000 shares of common stock at $15 per share outstanding at the beginning and end of 2016. The average market price of Arthur, Inc. common stock was $20 during 2016. How many shares that should be included in computing diluted earnings per share for 2016?
| $630,000 |
| $638,000 |
| $658,000 |
| $662,000 |
In: Accounting
RE: Netflix Ratios for 2016 - 2017 - 2018
Describe how and why each of the ratios has changed over the three-year period. For example, did the current ratio increase or decrease? Why? Describe how three of the ratios you calculated for your company compare to the general industry
Current Ratio: 2018 (1.49) 2017 (1.4) 2016 (1.25)
Debt Equity Ratio 2018 (1.98) 2017 (1.81) 2016 (1.26) - Industry Avg (36.8)
Price Earnings Ratio: 2018 (118.55) 2017 (220.95) 2016 (328.44) - Industry Avg (27,4)
In: Finance
On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the shares acquired by Spandella Company. On July 2, 2016, Filington paid $620,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,050,000 for the year. Spandella uses the equity method in accounting for its investment in Filington.
Determine the December 31, 2016, balance of the Investment in Filington Company Stock account.
In: Accounting
mooth Riding Limo Company purchased a new limosine for $60,000 on April 30, 2016. The limo is expected to have a service life of 10 years or 110,000 miles and a residual value of $5,000. The limo was driven 12,000 miles in 2016 and 15,000 miles in 2017. Smooth Riding computes depreciation to the nearest whole month. Compute depreciation expense for 2016 and 2017 using the activity method Also, calculate the book value at the end of each year, 2016 and 2017. You must SHOW YOUR WORK! Points are given based on work shown and final answer.
In: Accounting
On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Bond issue costs associated with the bonds totaled $20,058.17.
Required: Prepare the journal entries to record the following:
January 1, 2016 Sold the bonds at an effective rate of 10%
December 31, 2016 First interest payment using the effective interest method
December 31, 2016 Amortization of bond issue costs using the straight-line method
December 31, 2017 Second interest payment using the effective interest method
December 31, 2017 Amortization of bond issue costs using the straight-line method
In: Accounting
Selected financial information for the Bravo-Zulu Company for the fiscal year ended December 31, 2016 is as follows:
|
Net Income |
$122,500 |
|
Depreciation Expense |
50,000 |
|
Purchases of plant assets |
125,000 |
|
Proceeds on Disposals of plant assets |
20,000 |
|
Loss on Disposal of plant assets |
7,500 |
|
Accounts receivable increased |
2,500 |
|
Accounts payable decreased |
4,000 |
|
Interest expense |
5,000 |
|
Income tax expense |
2,500 |
Additionally, Bravo-Zulu issued stock in exchange for an outstanding note payable of $72,500. The cash balance on January 1, 2016 was $37,000. The January 1, 2016 balance for Retained Earnings was $250,000 and the December 31, 2016 balance for Retained Earnings was $342,500. Use this information to prepare Bravo-Zulu Company's Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.
In: Accounting
Selected financial information for the Bravo Zulu company for the fiscal year ended December 31, 2016 is as follows:
|
Net Income |
$122,500 |
|
Depreciation expense |
50,000 |
|
Purchases of plant assets |
125,000 |
|
Disposals of plants assets |
20,000 |
|
Gain on Disposal of plant assets |
7,500 |
|
Accounts receivable decreased |
2,500 |
|
Accounts payable decreased |
4,000 |
|
Interest expense |
5,000 |
|
Income tax expense |
2,500 |
Additionally, Bravo-Zulu issued stock in exchange for an outstanding note payable of $72,500. The cash balance on January 1, 2016 was $37,000. The January 1, 2016 balance for Retained earnings was $250,000 and the December 31, 2016 balance for Retained Earnings was $342,500. Use this information to prepare Bravo-Zulu Company’s Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.
In: Accounting
On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Bond issue costs associated with the bonds totaled $20,058.17. Do not round answers.
Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 10% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs using the straight-line method December 31, 2017 Second interest payment using the effective interest method December 31, 2017 Amortization of bond issue costs using the straight-line method
In: Accounting
Jessica’s office building is destroyed by fire on November 15, 2016. The adjusted basis of the building is $360,000. She receives insurance proceeds of $505,000 on December 12, 2016. (If there is no gain or loss, select "No gain/loss".)
Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $505,000.
Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $415,000.
What is her basis for the replacement property in (a) and in (b)?
Calculate Jessica’s realized and recognized gain or loss if she does not invest in replacement property.
b. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $415,000.
| B | REALIZED GAIN | $145,000 |
| RECOGNIZED GAIN | ???? |
In: Accounting