During the current year, merchandise is sold for $8,920,000. The cost of the goods sold is $6,065,600. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
What is the amount of the gross profit? Round your answer to the nearest dollar.
$
Compute the gross profit percentage (gross profit divided by sales). Round your answer to the nearest whole number.
%
Will the income statement always report a operating income?
In: Accounting
The Hamilton’s house is valued at $390,000. The mortgage was for $347,100 with a 5-year term, amortized over 25 years at 3.4%.
Please Calculate the Monthly Mortgage Payment:
They have made 20 payments on the mortgage. Please calculate the balance owing on the loan.
In: Finance
Depreciation by units-of-activity Method
Prior to adjustment at the end of the year, the balance in Trucks is $419,400 and the balance in Accumulated Depreciation—Trucks is $124,880. Details of the subsidiary ledger are as follows:
| Truck No. |
Cost |
Estimated Residual Value |
Estimated Useful Life |
Accumulated Depreciation at Beginning of Year |
Miles Operated During Year |
|||||
| 1 | $83,000 | $12,450 | 220,000 | miles | — | 33,000 | miles | |||
| 2 | 115,400 | 13,848 | 280,000 | $23,080 | 28,000 | |||||
| 3 | 96,000 | 13,440 | 200,000 | $76,800 | 20,000 | |||||
| 4 | 125,000 | 15,000 | 420,000 | $25,000 | 50,400 | |||||
a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value.
Round the rate per mile to two decimal places. Enter all values as positive amounts.
Truck No. |
Rate per Mile (in cents) |
Miles Operated |
Credit to Accumulated Depreciation |
|||
| 1 | $ | 33,000 | $ | |||
| 2 | $ | 28,000 | $ | |||
| 3 | $ | 20,000 | $ | |||
| 4 | $ | 50,400 | $ | |||
| Total | $ | |||||
Feedback
b. Journalize the entry to record depreciation for the year.
In: Accounting
New lithographic equipment, acquired at a cost of $940,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $105,750. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, the equipment was sold for $151,924. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double declining- balance method. Round your answers to the nearest whole dollar. 2. On January 1, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 3. On January 1, journalize the entry to record the sale, assuming that the equipment was sold for $105,874 instead of $151,924. Refer to the Chart of Accounts for exact wording of account titles.
In: Accounting
In a survey of 2272 adults in a recent year, 1210 say they have made a New Year's resolution.
What is a 90% confidence intervals
what is a 95% confidence intervals for the population proportion.
Interpret the results and compare the widths of the confidence intervals.
In: Statistics and Probability
A Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The firm actually sells $3,900,000 worth of goods. It is also planning on purchasing $2,000,000 in new equipment during the year. At the beginning of the year, the company has $400,000 in inventory in its warehouse. Answer the following based on the information above and show all your work:
a) Calculate desired investment
b) Calculate realized investment
c) Calculate desired end of the year inventories
d) Calculate realized end of the year inventories
e) Calculate unplanned inventory investment
f) Calculate Y
g) Calculate E
h) Based on your answers above, should the government follow expansionary or contractionary policies and what kinds? Why?
In: Economics
discuss the importance of childhood immunizations and list the schedule for the first year of life.?
In: Nursing
1. You are an accounting student at Berkeley College and will not graduate for another year. But because of your excellent grades so far, you have been able to land a job in the purchasing department of a retailer. One of the purchasing agents in your company is negotiating for the receipt of a very large order of uninsured goods from a supplier. The purchasing agent is able to get a better deal on the goods if they are shipped FOB shipping point rather than FOB destination. The agent doesn’t know the difference between these two concepts. He also doesn’t understand why choosing one over the other should make any difference to the company. As a student of accounting at Berkeley College, you know well the difference between these 2 concepts and you know why one would be a better choice over the other in the case of uninsured goods. Please explain these two concepts in this discussion and tell the purchasing agent which shipping method is preferable and why. In addition to your response, please comment to at least one classmate’s post including information from Chapter 6 in your eText.
2. Explain the difference between the Perpetual and Periodic inventory systems and let us know why anyone would use Periodic inventory in this computerized age.
In: Accounting
The projected annual sales of an LED keychain are projected to be 25,000 the first year and increase by 10,000 per year until 55,000 are sold during the fourth year. Sales are then predicted to decrease by 5,000 per year in the fifth year and each year therafter until 25,000 are sold in the tenth year.
Proposal A is to purchase manufacturing equipment costing $100,000 with an estimated salvage value of $20,000 at the end of 10 years.
Proposal B is to purchase manufacturing equipment costing $245,000 with an estimated salvage value of $50,000 at the end of 10 years. The variable manufacturing cost per unit under proposal A is estimated to be $0.80, but only $0.25 under proposal B.
1. If the interest rate is 9% what is the Present Equilavent cost of each proposal for a 10-year production period?
2. Which proposal should be accepted for a 10-year production period?
In: Accounting
Income Statement
For the Year Ended December 31, 2018
Sales $8,500,000
Manufacturing Expenses
Variable $3,250,000
Fixed overhead 640,000 3,890,000
Gross Margin $4,610,000
Selling and administrative expenses
Commissions $580,000
Fixed marketing expenses 300,000
Fixed admin expenses 450,000 1,330,000
Net Operating Income $3,280,000
Fixed Interest expenses 230,000
Income before Taxes $3,050,000
Income Taxes (21%) 640,500
Net Income $2,409,500
Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).
1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.
2.Prepare contribution format projected income statements assuming the outsourcing is rejected.
(Please show how you got each answer)
In: Accounting