The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31.

Required:

1. Prepare a multistep income statement.
2. Compute the gross profit percentage.

Company X is in its first year of operations and has decided to use the percentage of sales method for estimating uncollectible accounts. Sales for the year totaled $112,000. Company X has assessed uncollectible accounts at 10% of sales. The company recorded $11,200 of bad debt expense. Write-offs for the period were $3,000. What is the effect of this transaction?

a. Net income is overstated by 3,000

b. None of the these

c. Bad debt expense is overstated by 3,000

d. Cost of Goods sold is understated by 3,000

The Huff Co. has just gone public. Under a firm commitment agreement, the company received $17.64 for each of the 3.2 million shares sold. The initial offering price was $22.50 per share, and the stock rose to $24.15 per share in the first day of trading. The company paid $984,900 in direct legal and other costs and incurred $340,000 in indirect costs. What was the flotation cost as a percentage of the net amount raised?

A- 38.56%

B-40.32%

C-41.68%

D-40.20%

Let x be the average number of employees in a group health insurance plan, and let y be the average administrative cost as a percentage of claims. Suppose a random sample of employees gave the following information. x 2 8 14 32 73 y 50 45 35 28 16 Given that the value of r is -0.949, should y increase as x increases, does the value of r imply that y should tend to increase, decrease, or remain the same? Explain.

Sales revenue for Wholesales ehf is ISK 480,000. Its variable cost is 40% of sales and fixed costs are ISK 80,000.

1. What does the Wholesalers ehf need to sell for great value in order for the business to be in balance (ie where income and expenses are equal)?

2. What is the company's degree of operating leverage, etc. current sales?

3. If Wholesale Sales ehf's sales increase by 10%, how will the results change? Calculate both the percentage change and the change in value.

63. An internal customer is the next process upstream to receive work output.

True

False

8. The percentage of customer demand satisfied by inventory is ___________.

71. Analyzing what a firm is buying, from whom in what quantity and at what price is referred to as purchase analysis.

True

False

72. Offshoring products can be cost-effective for the firm because wages will not increase very much in the labor market supplying production.

True

False

We are evaluating a project that costs $835,201, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 55,236 units per year. Price per unit is $37, variable cost per unit is $16, and fixed costs are $421,600 per year. The tax rate is 35%, and we require a return of 17% on this project. In percentage terms, what is the sensitivity of NPV to changes in the units sold projection?

Use the following information about Rat Race Home Security, Inc. to answer the questions:

Average selling price per unit $317.

Variable cost per unit $198

Units sold 315

Fixed costs $9,229

Interest expense 19,455

Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 6.6 percent?

(You should calculate the degree of financial leverage first).

1) Calculate the value of the ending inventory

2) Calculate and show the schedule for cost of goods sold

3) Calculate and show the schedule for gross profit

4) Calculate and show the gross profit percentage

USE    FIFO / LIFO / WEIGHTED AVERAGE FOR ALL:

Beginning Inv: 10,000 @ $20/unit

Purchased: 30,000 @ $25/unit

Purchased: 15,000 @ $30/unit

Sold: 44,000 @ $50/unit

just looking to get started! student center at school closed down

Solano Company has sales of $760,000, cost of goods sold of $500,000, other operating expenses of $40,000, average invested assets of $2,250,000, and a hurdle rate of 11 percent.

1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.)

2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.))

   a. Company sales and cost of goods sold increase by 40 percent. (Find ROI and Residual income)

  b. Operating expenses decrease by $11,000.   (Find ROI and Residual income)

   c. Operating expenses increase by 20 percent. (Find ROI and Residual income)
  d. Average invested assets increase by $430,000. (Find ROI and Residual income)

  e. Solano changes its hurdle rate to 17 percent. (Find ROI and Residual income)