ACCT2020 Presented below is information for Yu Co. for the month of January 2012 (A+)

(ACCT2020) Presented below is information for Yu Co. for the month of January 2012.

Cost of goods sold $219,550 Rent expense $32,449

Freight-out 7,871 Sales discounts 9,228

Insurance expense 13,017 Sales returns and allowances 18,858

Salary expense 64,030 Sales 377,990

Requirement:

(a) Complete the income statement below. Assume a 25% tax rate.

(b)Calculate the profit margin ratio and the gross profit rate.

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ACCT2020 Maxfield Corporation reported net sales (A+)

(ACCT2020) Maxfield Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of $37,500, beginning total assets of $500,000, and ending total assets of $600,000. Calculate each of the following values

1) Profit margin ratio

2) Gross profit rate

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ACCT2020 Holmes Company sold goods with a total selling price of $800,000 during the year (A+)

(ACCT2020)Holmes Company sold goods with a total selling price of $800,000 during the year. It purchased goods for $380,000 and had beginning inventory of $70,000. A count of its ending inventory determined that goods on hand was $50,000. What was its cost of goods sold?

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Following is information taken from the accounting records of Kagawa Company (A+ Guaranteed)

Following is information taken from the accounting records of Kagawa Company at the end of 2009.


Net Sales, $660,000
Operating Income (from discontinued operations), $64,000
Cost of Goods Sold, $370,000
Gain on sales of Assets (from discontinued operations), $55,000
Operating Expenses, $134,000
Flood loss, $134,000
Kagawa had 150,000 shares of common stock issued and outstanding throughout the year.
Kagawa’s effective tax rate is 40 percent and is based in an area that does not normally experience floods. Kagawa’s taxable income from the tax return is $100,000.


Required:
Prepare an income statement for Kagawa Company for 2009, including earnings –per-share section.

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Easton Excavation Company is planning an investment of $120,000 (A+ Guaranteed)

Net Present Value Method—Annuity

Easton Excavation Company is planning an investment of $120,000 for a bulldozer. The bulldozer is expected to operate for 1,400 hours per year for five years. Customers will be charged $105 per hour for bulldozer work. The bulldozer operator costs $34 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $9,000. The bulldozer uses fuel that is expected to cost $38 per hour of bulldozer operation.

a. Determine the equal annual net cash flows from operating the bulldozer.

b. Determine the net present value of the investment, assuming that the desired rate of return is 10%. Use the table of present value of an annuity of $1 above. Round to the nearest dollar.

c. Should Easton invest in the bulldozer, based on this analysis?

d. Determine the number of operating hours such that the present value of cash flows equals the amount to be invested.

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Valenzuela Company budgeted selling expenses of $29,670 in January (A+ Guaranteed)

Valenzuela Company budgeted selling expenses of $29,670 in January, $34,405 in February, and $39,468 in March. Actual selling expenses were $31,063 in January, $33,840 in February, and $46,190 in March.

Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.

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ACCT2020 Match where each of these items would appear on a multiple-step income statement (A+)

(ACCT2020)Match where each of these items would appear on a multiple-step income statement

Sales returns and allowances

Depreciation expense

Cost of goods sold

Gain on sale of equipment

1. Sales revenues

2. Other revenues and gains

3. Cost of goods sold

4. Operating expenses

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2. ACCT2020Carpenter Company provides this information for the month ended October 31, 2012 (A+)

(ACCT2020)Carpenter Company provides this information for the month ended October 31, 2012: sales on credit $300,000; cash sales $150,000; sales discounts $5,000; and sales returns and allowances $22,000. Complete the sales revenues section of the income statement below, based on this information. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1.)

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Team incentives encourage cooperation by (A+)

ACCOUNTING

Multiple Choice

Team incentives encourage cooperation by

a. forcing people to work together on difficult tasks.

b. improving morale.

c. letting individuals help one another as they strive toward a common goal.

d. rewarding all teams the same amount.

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Many manufacturing, marketing, and design problems require employees with multiple skills; therefore, teams are used and the members have the added encouragement of (A+)

ACCOUNTING

Multiple Choice

Many manufacturing, marketing, and design problems require employees with multiple skills; therefore, teams are used and the members have the added encouragement of

a. individual incentives.

b. management incentives.

c. morale incentives.

d. team incentives

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