The company Corp manufactures plastic balls, bags, and jacket for kids

The production of these three products requires plastic. The production process uses two types of skilled labor: sewing and finishing. The table below shows the consumption of manufacturing resources per unit produced.

On a weekly basis, there is 252 ft² of plastic available along with 240 hours for sewing, and 270 hours for finishing the products.

The unit prices are:

Balls - 26

Bags -  40

Jackets 58

Formulate this problem as a linear program in order to maximize the total revenue.

How many units of each product should the company manufacture on a weekly basis to maximize its revenue?

What's the total revenue?

Kang Company was organized on April 1, 2020. The company prepares quarterly financial statements. The adjusted trial balance amounts at June 30 are shown below (amounts in millions).

1. Prepare Income Statement.
2. Prepare Retained Earnings Statement.
3. Prepare Statement of Financial Position.

1. The unadjusted trial balance and information regarding adjusting entries for Becky’s Carpets, Inc., is given below. Prepare the financial statements for Becky’s Carpet Inc., after making the necessary adjustments

Becky’s Carpets, Inc.,

Unadjusted Trial Balance

December 31, 2019

Adjusting entry information:

1. Salaries earned but unpaid at the end of the year, $1,500
2. Insurance expired, 700
3. Depreciation expense, 800
4. Unearned service revenue earned during the year, $1,500
5. The inventory of supplies at year end was $3,400

Use the following selected data from Business Solutions’s income statement for the three months ended March 31, 2020, and from its March 31, 2020, balance sheet to complete the requirements.

Required:
1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio.
2. Compute the current ratio and acid-test ratio.
3. Compute the debt ratio and equity ratio.
4. What percent of its assets are current? What percent are long term?

A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $594. Customers prepay their subscriptions and receive 290 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $560 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $550 per hour. The company estimates that approximately 30% of the coupons will be redeemed.

Required:

1. How much revenue should Manhattan Today recognize upon receipt of the $560 subscription price?

2. How many performance obligations exist in this contract?

3. Prepare the journal entry to recognize sale of 11 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.

Use the following selected data from Business Solutions’s income statement for the three months ended March 31, 2020, and from its March 31, 2020, balance sheet to complete the requirements.

Required:
1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio.
2. Compute the current ratio and acid-test ratio.
3. Compute the debt ratio and equity ratio.
4. What percent of its assets are current? What percent are long term?

Beavis Construction Company was the low bidder on a construction project to build an office building for $8,000,000. The project was begun in 2017 and completed in 2019. Cost and other data are presented below:

2017 2018 2019

Costs incurred during the year $ 1,500,000 $4,500,000 $1,550,000

Estimated costs to complete 4,500,000 1,500,000 -0-

Billings during the year 1,400,000 5,200,000 1,400,000

Cash collections during the year 1,000,000 4,000,000 3,000,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Also assume that all construction costs are paid in Cash.

Required:

Compute the amount of revenue and gross profit recognized during 2017 and 2018.

Extra credit (9 points):

Prepare the 2018 journal entries to record:

a. Construction costs incurred during the year

b. Billings

c. Cash Collections

d. Revenue Recognition

Two years ago, when the market rate was 5%, your company purchased a fixed asset for $50,000. Starting a year after the purchase, fixed asset started to bring in $20,000 annual revenue with annual costs of $8,000. The expected lifetime of the asset is 8 years. You obtained your second cash flow today and due to the changes in the market, you will need to update your revenue, costs, as well as the interest rate.
Going forward, annual revenue will drop by 40% and annual costs will go up by 20%.

a) Assuming that the market rate is still 5% for now and the coming 6 years, if you could sell the asset today at $13,000, should you?
b) Assuming that market rate is now 1% and is expected to stay at 1% for the coming 6 years, then, would you sell the fixed asset at $13,000 today?

Use the following selected data from Business Solutions’s income statement for the three months ended March 31, 2020, and from its March 31, 2020, balance sheet to complete the requirements.

Required:
1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio.
2. Compute the current ratio and acid-test ratio.
3. Compute the debt ratio and equity ratio.
4. What percent of its assets are current? What percent are long term?