You are working with the marketing team for a FMCG firm that produces shaving cream. The team believes that sales of some of the products are closely related to sales of other products. They want you to explore this in a little more depth for two products, SKU 123 and SKU 456. Unfortunately, all of the base sales data for these products has been destroyed. All that you have is the weekly summary data:

1. Now the marketing team wants to understand the potential weekly sales for these two products. Let the sales price for the two SKUs be 12.50, 7.75, respectively.

What is the expected weekly revenue?

2. What is the standard deviation of the weekly revenue?

3. Assuming the joint distribution is normal, and the marketing team’s correlation of 0.81 is correct. What is the probability that weekly sales will be between 10,000 and 20,000 dollars?

You are one of the members of the audit team of Computer express which is growing at a rapid rate despite being in the competitive industry. The following is part of the information obtained from a planning meeting which the audit manager had with Computer express management.   

2018                       2019

K’000                     K’000

Revenue                        438,616                 373,700

Gross margin                  0.83                        0.79

Expenses as a percentage of revenue:                   

Distribution costs                             0.05                        0.10

Administrative expenses 0.17                        0.13

Selling expenses 0.18                        0.25

Required:           

(a) Given the information above, prepare a list of questions you will ask and observations you will make about Computer express’s performance.

(b) Describe what further information and explanations you will ask for from Computer express management during the audit.

c) Describe the substantive test that you should perform to confirm the figures.

6. Suppose that there are drastic technological improvements in shoe production in Home such that shoe factories can operate almost completely with computer-aided machines. Consider the following data for the Home country: Computers: Sales revenue = ?c?? = 100 Payments to labor = ??? = 50 Payments to capital = ??? = 50 Percentage increase in the price = ∆??⁄?? = 0% Shoes: Sales revenue = ???? = 100 Payments to labor = ??? = 20 Payments to capital = ??? = 80 Percentage increase in the price = ∆??⁄?? = 30% a. Which industry is capital-intensive? Is this a reasonable question, given that some industries are capital-intensive in some countries and labor-intensive in others? b. Given the percentage changes in output prices in the data provided, calculate the percentage change in the rental on capital. c. How does the magnitude of this change compare with that of labor? d. Which factor gains in real terms, and which factor loses? Are these results consistent with the Stolper–Samuelson theorem?

The local student chapter decides to hold a bake sale at Mall in front . The members agree to sell all baked goods for $2.00 each. They discover through a study that demand is distributed N (225, 20^2). Each baked good costs $0.25 to buy and sells that day for $2.00. If they don’t sell all the inventory, each unsold baked good is donated at a revenue per item of $0.00. They estimate that a lost sale costs them the lost $1.75 revenue over the $0.25 to get the baked goods.

a) Make a recommendation to this group for an optimal strategy.

b) Then, imagine they sell items for 20 days. Can they fund a trip to the national conference? Why or why not?

C) A local bakery offers to buy all unsold baked goods at $.50 per item. How much can they make in an average month’s 20 day bake sale?

Mazoon Electric Company is responsible for supplying and upkeep of the distribution of electric power in South Al Batinah region. The company is planning to upgrade the distribution system which will reduce line losses, failure occurrences and increased revenue. This up gradation will cost the company OMR 250,000. Information on the expected revenues and costs for coming years is tabulated below:

Assume that annual interest rate is 8% per annum and compounded annually.

a) Draw a cash flow diagram for the information given above.

b) Compute the Net Present Worth of the future cash flows.

c) Compute the Future Worth at the end of 2026 of cash flows.

The following information was taken from Egeland Ltd.'s adjusted trial balance as at July 31, 2016:

Question:

a.  

Prepare a single-step statement of income for the year ended July 31, 2016.

b.  

Prepare a multi-step statement of income for the year ended July 31, 2016.

c.  

Determine Egeland's gross margin percentage for the year.

d.  

If Egeland had 80,000 common shares outstanding throughout the year, determine the company's basic earnings per share.

Pro forma income statement. Given the income statement in the popup​ window, for California Cement Company for 2013 and an expected sales growth rate of 6.61 % for​ 2014, prepare a pro forma income statement for 2014.

First, find the percentage of each income statement line from 2013 as a percent of sales. ​(Round to three decimal​ places.)

Sales Revenue $22,811,000 ____ %

Cost of goods sold $-11,638,000 ___%

Selling, general, and administrative expenses $-3,973,000 ____%

Depreciation expenses $ -1,369,000 ____%

EBIT $5,831,000 ____%

Interest expense $-173,000 ____%

Taxable income $5,658,000 ____%

Taxes $-2,479,594 ____%

Net Income $3,178,406 ___ %

What is the sales forecast for 2014?

$___ (Round to the nearest dollar.)

Sales Revenue $ ____ 100.00%

Cost of goods sold $ ____ 51.019%

Selling, general, and administrative expenses $____ 17.417%

Depreciation expenses $ ____ 6.001%

EBIT $ ____ 25.562%

Interest expense $ ____ 0.758%

Taxable income $ ____ 24.804%

Taxes $ ____ 10.870%

Net Income $ ____ 13.934%

Hi there,

I am having difficulty with the attached homework question. If you guys could please help work through the steps. My balance sheet isn't balancing :/

These financial statement items for Fairview Corporation at year-end, July 31, 2017.

Salaries and wages payable $2,080

Salaries and wages expense 57,500

Supplies expense 15,600

Equipment 18,500

Accounts payable 4,100

Service revenue 66,100

Rent revenue 8,500

Notes payable (due in 2020) 1,800

Common stock 16,000

Cash 29,200

Accounts receivable 9,780

Accumulated depreciation-equipment 6,000

Dividends 4,000

Depreciation expense 4,000

Retained earnings (beginning of the year) 34,000

Prepare an income statement and retained earnings statement for the year. Fairview Corporation did not issue any new stock during the year.

Prepare a classified balance sheet at July 31.

Thanks.

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.

  5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)