Sandhill Co. uses the retail inventory method. The following information is available for the current year.

The approximate cost of the ending inventory by the conventional retail method is (Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.)

Sunland Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:

If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost-to-retail ratio?

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:

Accounts Payable ............  $56,000
Accounts Receivable .........  $42,000
Cash ........................  $11,000
Common Stock ................  $63,000
Cost of Goods Sold ..........  $52,000
Income Tax Expense ..........  $12,000
Insurance Expense ...........  $21,000
Inventory ...................  $70,000
Land ........................  $68,000
Mortgage Payable ............  $49,000
Patent ......................  $31,000
Prepaid Insurance ...........  $17,000
Rental Revenue ..............  $46,000
Retained Earnings ...........  $72,000 (at January 1, 2020)
Sales Revenue ...............  $95,000
Supplies ....................  $19,000
Wage Expense ................  $38,000

ABC Company has not yet recorded adjusting entries related to the following
two items:

(1)  $11,000 of supplies were used up during 2020.

(2)  ABC Company has provided services to a customer totaling $14,000 as of
     December 31, 2020. However, the customer has not yet paid ABC Company.

Calculate the net income reported by ABC Company for 2020 after the appropriate
adjusting entries have been recorded and posted.

Paine Ltd makes and sells a single product. Annual sales in units for 2017 are expected to be 200,000, and standard cost and selling price per unit is:

£

Selling price 35

Variable costs:

Materials 8

Labour 8

Overheads 2

Annual fixed overheads for 2015 are budgeted at:

Manufacturing: 600,000

Non-manufacturing 250,000

Actual production and sales for the first quarter was 45,000 units. The actual revenue and expenditure for the quarter was as follows:

Sales revenue 1,720,000

Expenditure:

Materials 365,500

Labour 375,500

Variable overhead 97,200

Fixed overheads

Manufacturing 135,000

Non-manufacturing 75,000

Paine Ltd divides the annual budget by 4 in order to produce quarterly variance analysis reports.

Required:

a) Prepare the first quarter variance analysis report showing the fixed budget, flexible budget and flexible budget variances.

b) Suggest how this report could be improved in terms of variable costs variance analysis, describing any extra information you would need in order to do so.

These financial statement items are for Ivanhoe Company at year-end, July 31, 2022.

1. Prepare an income statement for the year. Ivanhoe Company did not issue any new stock during the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2. Prepare a retained earnings statement for the year. Ivanhoe Company did not issue any new stock during the year.

3. Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.)

Now, assume that the demand in the fish market is given by: Demand: Quantity = 10, 100 − 100 ∙ Price 5. Find the equilibrium price and quantity, and represent the demand, supply, and equilibrium in a graph (with quantity in the horizontal axis and price in the vertical axis). 6. How much money is each firm making in profit? 7. If there is free entry to the fish market, how many firms will there be in equilibrium in the long run? Finally, imagine that the government sets a tax of $10 per unit on sellers. 8. Compute the equilibrium after tax and the tax revenue. 9. How much surplus do consumers lose due to the tax? And how much do sellers lose in aggregate profit? 10. The government decides to use the tax revenue to fully compensate consumers for their loss in consumer surplus due to the tax, and to use what- ever amount of money is left to partially compensate the sellers for their loss in profit. By how much money does the compensation fall short of the sellers’ loss?

Cost = 400 + Output + Output²

Exercise 7-28 Publishing; Contribution Income Statement (LO 7-7, 7-8)

Europa Publications, Inc., specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company’s operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes.)

Required:
1-a. Prepare a traditional income statement for the company.
1-b. Prepare a contribution income statement for the company.
2. What is the firm’s operating leverage for the sales volume generated during the prior year?
3. Suppose sales revenue increases by 14 percent. What will be the percentage increase in net income?
4. Which income statement would an operating manager use to answer requirement 3?

Here is information for a county government:

The county has four special revenue funds, with the following characteristics:

Which of these special revenue funds meet the first criterion for reporting as major funds in the governmental funds financial statements?

Yankee Hotel Foxtrot initiated operations on July 1, 2014. To manage the company officers and managers have requested monthly financial statements starting July 31, 2014. The adjusted trial balance amounts at July 31 are shown below. Debits Credits Cash $ 7,680 Accumulated Depreciation- Equipment $ 840 Accounts Receivable 810 Notes Payable 6,000 Prepaid Rent 1,965 Accounts Payable 2,140 Supplies 1,160 Salaries and Wages Payable 360 Equipment 11,400 Interest Payable 40 Owner's Drawings 800 Unearned Service Revenue 580 Salaries and Wages Expense 7,145 Owner's Capital 10,640 Rent Expense 2,740 Service Revenue 14,390 Depreciation Expense 665 Supplies Expense 580 Interest Expense 45 Total debits $ 34990 Total Credits $34990 Instructions (A) Determine the net income for the month of July (B) Determine the amount for Owner’s, Capital at July 31, 2014 (C) Determine the Balance Sheet at July 31, 2014 for

The Doctor manufactures and sells TARDISes. A TARDIS sells for $9.826 each. Variable costs amount to $4,000 per TARDIS. Fixed costs amount to $9.825.960 per annum. Any profits are taxed at 30%

Please clearly state your sales price and your fixed costs.  

Sales price used $9.826

Fixed cost used $9.825.960

1. What is the breakeven point in terms of dollar value? (1 mark)

2. What is the breakeven point in terms of units sold? (1 mark)

3. How much profit would the Doctor make (before tax) if he sold 5,000 TARDISes? (1 mark)

4. What would be his margin of safety if he sold 5,000 TARDISes? (1 mark)

5. How many TARDISes would he have to sell in order to make a profit equal to 5% of sales before tax?

(f)Draw and label the total revenue curve along with the total cost curve and identify the breakeven quantity and revenue on a diagram for your above scenario.