Vice President for Sales and Marketing Sam Totter is trying to plan for the coming year in terms of production needs to meet the sales demand. He is also trying to determine ways in which the company’s profits might be increased in the coming year.
Instructions (Do all parts):
Northern Illinois Manufacturing markets a simple water control and timer that it mass-produces. During last year, the company sold 701,000 units at an average selling price of 4.20 per unit. The variable expenses were $1,857,650 and the fixed expenses were $646,450.
In: Accounting
Determine the below ratios for 2011 and 2012 and compare the Hospitals financial performance year to year based on those ratios. Make sure you explain what each ratio measures
Current Ratio
Average Payment Period
Operating Margin
Total Margin
Return on Net Assets
Cash Flow to Debt
FINANCIAL STATEMENTS:
Cash Flows from Operating Activities:
2012
2011
Cash received from patient
services
$3783
$2590
Cash paid to employees and
suppliers
(3684)
(2541)
Interest
paid
(16)
(14)
Interest
earned
13
6
Net Cash from
Operations
$96
$41
Cash Flows from Investing Activities:
Purchase of Property and Equipment ($25) ($19)
Securities
Purchase
($35)
($15)
Net Cash from Investing
Activities
($60)
($34)
Cash Flows from Financing
Activities:
Contributions
10
6
Repayment of long-term
debt
(13)
(0)
Net cash from financing
activities
($3)
($6)
Net increase (decrease) in cash and
equivalents
($33)
($13)
Cash and equivalents, beginning of
year
$41
$28
Cash and equivalents, end of
year
$74
$41
Revenues
2012
2011
Patient Service
Revenue
$4042
$2687
Provision for bad debts
$46
$21
Net Patient Service
Revenue
$3996
$2666
Other operating
revenue
$27
$32
Total
Revenues
$4023
$2698
Expenses:
Salaries and
benefits
$2714
$1835
Supplies and
drugs
1042
675
Insurance
90
83
Depreciation
21
15
Interest
16
19
Total
expenses
$3883
$2627
Operating
Income
$140
$71
Non-operating Income:
Contributions
$10
$22
Investment
income
13
6
Total Non-operating
income
$23___
28____
Net income (excess of revenues
over
expenses)
$163
$99
ASSETS
2012
2011
Current Assets:
Cash and cash equivalents
$74
$41
Shor-term
investments
$147
$137
Accounts receivable,
net
727
476
Inventories
27__
22___
Total Current
Assets
$975__
$676__
Investments
125___
$100____
Property and Equipment:
Medical and office
equipment
$56
$54
Vehicles
70__
47___
Total
$126
$101
Less: Accumulated
Depreciation
(45)
(24)
Net Property
Equipment
$81
$77
Total
Assets
$1181
$853
LIABILITIES AND EQUITY
Current
Liabilities:
Notes
payable
$13
$13
Accounts
Payable
40
21
Accrued
expenses
496
337
Total Current
Liabilities
$541
$371
Long term
debt
$154__
$167_
Total Liabilities
$703
$538
Equity (Net
Assets)
$478
$315
Total Liabilities and
equity
$1181
$853
In: Finance
Webber, Inc., began operations at the start of the current year, having a production target of 60,000 units. Actual production totaled 60,000 units, and the company sold 95% of its manufacturing output at $50 per unit. The following costs were incurred:
Manufacturing:
Direct materials used $240,000
Direct labor 480,000
Variable manufacturing overhead 360,000
Fixed manufacturing overhead 600,000
Selling and administrative:
Variable $180,000
Fixed 630,000
a. Compute the company’s absorption-costing operating income.
b. Compute the company’s variable-costing operating income.
c. Reconcile the difference in operating income.
In: Accounting
SHU Inc., manufactures and a product that sells for $1,720 each. During the year, the budgeted fixed manufacturing overhead is estimated to be $1,900,000. Variable costs per unit are $440.
Required:
|
a. |
Determine the break-even point in units. b. Determine the break-even sales dollars |
|
c. |
Determine the number of units that must be sold to earn $300,000 in profit before taxes. |
In: Accounting
Anderson plans to acquire an automated assembly line with ten year life at a cost of sh 10 million, delivered and installed. He plans to use the equipment for only five years.He can borrow the required 10 million at a before cost of 10%.The estimated scrap value is sh 50,000 after ten years, but its estimated scrap value after five years is sh 1 million.He can lease the equipment for 5 years at a rental charge of sh 2.75m payable at the beginning of each year.The lessor will maintain the equipment. However if he buys he will bear the cost of maintenance of shs500,000 per year payable at the beginning of the year.The marginal tax rate is 40%
Analyze whether the company should purchase or lease the asset(
In: Finance
Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 79,000 units of product: net sales $ 1,975,000; total costs and expenses $ 1,805,000; and net loss $ -170,000. Costs and expenses consisted of the following.
|
Total |
Variable |
Fixed |
||||
|---|---|---|---|---|---|---|
| Cost of goods sold | $ 1,148,000 | $ 645,000 | $ 503,000 | |||
| Selling expenses | 510,000 | 90,000 | 420,000 | |||
| Administrative expenses | 147,000 | 55,000 | 92,000 | |||
| $ 1,805,000 | $ 790,000 | $ 1,015,000 |
Management is considering the following independent alternatives
for 2017.
| 1. | Increase unit selling price 30% with no change in costs and expenses. | |
|---|---|---|
| 2. | Change the compensation of salespersons from fixed annual salaries totaling $ 205,000 to total salaries of $ 36,000 plus a 5% commission on net sales. | |
| 3. | Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. |
(a) Compute the break-even point in dollars for
2017. (Round contribution margin ratio to 2 decimal
places e.g. 0.25 and final answer to 0 decimal places, e.g.
2,510.)
| Break-even point |
$ enter the break-even point in dollars rounded to 0 decimal places |
(b) Compute the break-even point in dollars under
each of the alternative courses of action. (Round
contribution margin ratio to 4 decimal places e.g. 0.2512 and final
answers to 0 decimal places, e.g. 2,510.)
|
Break-even point |
||||
|---|---|---|---|---|
| 1. | Increase selling price |
$ enter a dollar amount rounded to 0 decimal places |
||
| 2. | Change compensation |
$ enter a dollar amount rounded to 0 decimal places |
||
| 3. | Purchase machinery |
$ enter a dollar amount rounded to 0 decimal places |
Which course of action do you recommend? select a course
of action using the break-even analysisselect a course of action
using the break-even analysis Alternative 1Alternative
2Alternative 3
In: Accounting
According to a survey, 62 % of murders committed last year were cleared by arrest or exceptional means. Fifty murders committed last year are randomly selected, and the number cleared by arrest or exceptional means is recorded. When technology is used, use the Tech Help button for further assistance. (a) Find the probability that exactly 41 of the murders were cleared. (b) Find the probability that between 35 and 37 of the murders, inclusive, were cleared. (c) Would it be unusual if fewer than 18 of the murders were cleared? Why or why not?
In: Statistics and Probability
The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $95,966 1,460 Units May 97,184 2,040 Units June 99,116 2,960 Units (a) Using the high-low method, determine the variable cost per unit. Round your answers to two decimal places. $ per unit (b) Using the high-low method, determine total fixed costs. $
In: Accounting
1.
Glenn is an accountant who races stock cars as a hobby. This year Glenn was paid a salary of $80,000 from his employer and won $2,000 in various races. What is the effect of the racing activities on Glenn's taxable income if Glenn has also incurred $4,200 of hobby expenses this year? Assume that Glenn itemizes his deductions but has no other miscellaneous itemized deductions.
|
no change in taxable income. |
||
|
increase in taxable income of $1,640. |
||
|
increase in taxable income of $2,000. |
||
|
decrease in taxable income of $2,200. |
||
|
decrease in taxable income of $560. |
2.
Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2019?
|
$20,300. |
||
|
$18,350. |
||
|
$12,200. |
||
|
$19,650. |
||
|
$13,850. |
3.
Campbell, a single taxpayer, has $400,000 of profits from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?
|
$100,000. |
||
|
$80,000. |
||
|
$1,000. |
||
|
$0. |
||
|
$20,000. |
In: Accounting
The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $213,724; income tax applicable to loss on discontinued operations $28,186, and unrealized holding gain on available-for-sale securities (net of tax) $23,100. Gain on sale of equipment $97,400 Cash dividends declared $153,000 Loss on discontinued operations 82,900 Retained earnings January 1, 2017 542,500 Administrative expenses 246,100 Cost of goods sold 894,100 Rent revenue 42,300 Selling expenses 322,400 Loss on write-down of inventory 61,700 Sales Revenue 2,013,200 Shares outstanding during 2017 were 90,400.
1. Prepare a multiple-step income statement.
2. Prepare a comprehensive income statement for 2017, using the two statement format.
3. Prepare a retained earnings statement for 2017.
In: Accounting