Answer:
RPG Company
1. Accrual Net Income for Year 2 and Year 3:
Year 2 Year 3
Amounts billed to customers for services $ 320,000 $ 420,000
Expenses:
Rent 38,500 0
Salaries paid to employees for services 137,000 157,000
Travel and entertainment 27,000 37,000
Advertising 24,000 16,600
Net Income $93,500 $170,900
2. Determination of the liability for Advertising:
Advertising Expense:
Year 1 balance = $4,900
Year 2 = $24,000
Cash paid (13,500)
Balance $15,400
Explanation:
a) Data and Calculations:
RPG Company.
Year 2 Year 3
Amounts billed to customers for services $ 320,000 $ 420,000
Cash collected from credit customers 230,000 370,000
Cash disbursements:
Payment of rent 77,000 0
Salaries paid to employees for services 137,000 157,000
Travel and entertainment 27,000 37,000
Advertising 13,500 32,000
Year 2 Year 3
Service Revenue: $ 320,000 $ 420,000
Accounts Receivable
Service revenue $320,000
Cash collected 230,000
Balance Year 2 $90,000
Service revenue 420,000
Cash collected 370,000
Balance Year 3 $50,000
Advertising Expense:
Year 1 balance = $4,900
Year 2 = $24,000
Cash paid (13,500)
Balance $15,400
Year 3 = 16,600
Cash paid 32,000
Balance 0
The accrual net income for RPG Company in Year 2 is $55,000, and in Year 3 is $194,000. The amount due to the advertising agency shown as a liability on RPG's balance sheet at the end of Year 2 is $0, as it was completely paid off in that year.
In order to calculate the accrual net income and determine the liability of the advertising agency, we first need to correctly account for all the incomes and expenses. Here's how it works:
Accrual net income is calculated as revenues (Amounts billed to customers) minus expenses. For year 2, the expenses include Payments of rent, Salaries paid, Travel and entertainment, and Advertising costs. For year 3, as there was no rent payment and no liabilities at the end of the year, we deduct only the Salaries paid, Travel and entertainment, and Advertising costs from the revenues.
Revenues
Year 2: $320,000
Year 3: $420,000
Expenses
Year 2: Rent($77,000) + Salary($137,000) + Travel & Entertainment($27,000) + Advertising($24,000) = $265,000
Year 3: Salary($157,000) + Travel & Entertainment($37,000) + Advertising($32,000) = $226,000
Accrual Net Income
Year 2: $320,000 - $265,000 = $55,000
Year 3: $420,000 - $226,000 = $194,000
The amount owed to the advertising agency that should be considered as a liability at the end of year 2 can be figured out by taking into account the advertising expenses incurred in year 2 and the previous year's outstanding. But since we learn that there were no liabilities at the end of year 3, the outstanding $4,900 at the end of year 1 must be paid in year 2 along with the incurred cost of $24,000. Therefore, the liability at the end of year 2 would be $0.
#SPJ3
Answer:
Revision of wordy, unorganized paragraphs
Our organization's dress code allows suitable office dresses. Find below the guidelines for allowed dresses:
Explanation:
The use of bulleted or numbered lists can help to organize wordy paragraphs. They also eliminate some of the unnecessary wordings that have been included, thereby reducing the overall length.
Answer:
thats great♡♡♡♡♡♡
Explanation:
just need points♡♡♡♡
Answer:
1998, 1999, 2000:
Index value : -4.840, -4.840, -4.840
Days Receivable Index : 0.7243, 1.0546, 1.2562
Gross Margin Index : 0.5640, 0.4513, 0.2463
Asset Quality Index : 0.4293, 0.4300, 0.3116
Sales Growth Index : 1.3594, 1.1446, 2.2413
Depreciation Index : 0.1160, 0.1151, 0.0908
Selling & Admin Expense Index : 0.1962, 0.1650, -0.0716
Leverage Index : -0.2720, -0.2453, -0.3656
Total Accruals to Total Assets: -0.1491, -0.0285, -0.2709
Probability using norms-dist: 1.8% , 1.86%, 8.05%
Explanation:
Beneish's earning manipulation model is used to ascertain the probability of manipulation in the financial data. In this model ratio are calculated and then their index is identified to know an indication of possibility of fraud. In the given scenario the probability of manipulation is too high. The data is assessed through applying beneish model to understand actual financial position of the company.
(B) manages transportation and warehousing functions.
(C) consumes about one-half of every dollar spent on products in the United States.
(D) links producers to other marketing intermediaries.
(E) directs the flow of products from producers to customers.
Answer:
Option E
Explanation:
In simple words, A marketing channel refers to the individuals, organizations, and practices that are required to complete the sale of commodities from the point of manufacturing to the points of consumption.
It is the manner in which products reach the final-user, the consumer; and is also regarded as a method of delivery. A communication platform is a valuable management tool and is essential to the creation of an efficient and well-prepared marketing strategy.
Thus, from the above we can conclude that the correct option is E.
Answer:
Y = C+ I +G +NX
Explanation:
We know,
The national spending approach is also known as the expenditure approach. According to the expenditure approach, all the goods and services that make up the gross domestic product will be applied to individual consumption, investment, and government expenditure. It also modifies the net exports and imports of a country. Therefore, option A is the correct answer as the expenditure approach, Y = C+ I +G +NX.
The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M).
The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M). This equation includes consumption (C), investment (I), government spending (G), and net exports (X - M). Net exports are calculated by subtracting imports (M) from exports (X).
#SPJ12
Answer and Explanation:
The preparation of the sales section of the income statement is presented below:
Income Statement
For the year ended
Sales
Sales revenue $903,400
Less:
Sales Discount $15,400
Sales return & allowances $22,000
Net Sales $866,000
hence the net sales is $866,000
The freight out would not be considered. Hence, ignored it