(1) The traditional format income statement for Alpine House, Inc for the quarter ended March 31 is shown below:ParticularsAmount ($)Sales1,350,000Less: Cost of Goods Sold:Beginning merchandise inventory 75,000 Add: Merchandise purchases 315,000 Goods available for sale390,000Less: Ending merchandise inventory 120,000 Cost of goods sold270,000Gross Profit1,080,000Less:
Operating Expenses:Variable selling expense46* units soldVariable administrative expense19* units soldTotal Variable Expenses65 Fixed Selling Expenses 140,000Fixed Administrative Expenses115,000Total Operating Expenses255,000Net Operating Income 825,000*Calculation of variable expenses:Variable selling expense per unit= $46Variable administrative expense per unit= $19Total variable expense per unit= $65($46 + $19)
(2) The contribution format income statement for the quarter ended March 31 is shown below:ParticularsAmount ($)Sales1,350,000Less: Variable Expenses:Variable selling expense (46*3,000 units)138,000Variable administrative expense (19*3,000 units)57,000
Total Variable Expenses195,000Contribution Margin1,155,000Less: Fixed Expenses: Fixed selling expenses140,000 Fixed administrative expenses115,000Total Fixed Expenses 255,000Net Operating Income900,000*Calculation of units sold: 3,000 units were sold (Sales/ Selling price per pair of skis = 1,350,000/450 = 3,000 units)
(3) The contribution margin per unit is $195. ($450 - $255) = $195.Contribution margin per unit is calculated as follows:Contribution margin per unit = Selling price per unit - Total variable expenses per unitSelling price per unit = $450Variable expenses per unit = $65 ($46 + $19)Contribution margin per unit = $450 - $65 = $385
For more questions on: Cost
#SPJ8
Answer:
Every 7.86 years the investment doubles.
Explanation:
Giving the following information:
Interest rate= 8.9% compounded annually
To determine the number of years to double the money, we can use the rule of 70:
The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.
Number of Years to Double= 70/Annual Rate of Return
Number of Years to Double= 70/8.9
Number of Years to Double= 7.86 years
Every 7.86 years the investment doubles.
Answer:
Explanation:
The arrival rate (λ) = 20 customers per hour. Since the service times at the pump have an exponential distribution with a mean of 2 minutes, therefore the service rate (μ) = 60 / 2 = 30 customers per hour.
The probability of the no customers being in the system(P₀) is given as:
If no customer is in the system we can sell gasoline for $4/gallon to the next customer. The expected price p of gasoline is given by:
P = $3.665 per gallon
Answer:
increase
listening to the law when a supplier increases the price their supply increases the quality aswell!!
n = 30
i = 6%
Cash Flow Amount Present Value
Interest $111,300,000 $74,454,240
Principal $100,000,000 $13,137,000
Price of bonds $87,591,240
Answer:
Bond Price = $97.4457408 million rounded off to $97.45 million
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 113 million * 0.05 = 5.65 million
Total periods (n) = 30
r or YTM = 0.06 or 6%
The formula to calculate the price of the bonds today is attached.
Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06] + 113 / (1+0.06)^30
Bond Price = $97.4457408 million rounded off to $97.45 million
The price of the bonds issued by Interlink Communications on December 31, 2021, is $87,591,240. This is calculated by adding the present value of the annual interest payments and the present value of the principal, both discounted at the market rate of 6%.
Interlink Communications issued 5% of the stated rate bonds with a face amount of $113 million on December 31, 2021. The bonds matured on December 31, 2051. To calculate the price of the bonds, we need to calculate the present value (PV) of the interest (5% x $113 million) and the principal ($113 million), both discounted at the market rate of interest (6%).
The bonds pay $5.65 million (5% x $113 million) annually. The PV of these payments is $74,454,240 based on the table given where n=30 and i=6%. The PV of the principal, the $113 million due at the end of the bond's term, is $13,137,000, again using the table values where n=30 and i=6%. So, the price of the bonds on December 31, 2021 is the sum of the PV of the interest and the PV of the principal, which is $87,591,240.
#SPJ3
Prepare the journal entry to recognize the impairment.
Explanation:
The journal entries are as follows
On December 31,2017
Loss on impairment Dr $80,000
To Debt investment - available for sale $80,000
(Being the loss on impairment is recorded)
It is computed below:
= $800,000 - $720,000
= $80,000
On December 31, 2017
Fair value adjustment- available for sale Dr $80,000
To Unrealized holding gain or loss - equity $80,000
(Being the fair value adjustment is recorded)
Answer:
Dr Allowance for Doubtful Accounts $80,000
Cr Debt Investments 80,000
Explanation:
Impairment = Cost - Fair Value = 800,000 - 720,000 = 80,000
Companies should use the CECL model to record the impairment of debt investments similar to receivables.
In evaluating the securities, Hagar now determines that it is probable that it will not collect all amounts due. In this case, it records a debit to allowance for doubtful accounts. Hagar includes this amount in income and records the impairment as shown above.
Answer: A. Limited partner in a limited partnership
Explanation: Manny would best serve the role of a limited partner in a limited partnership. A limited partnership as a type of partnership has at least one general partner who manages the business from day-to-day and at least one limited partner who invests money in exchange for shares in the partnership, has restricted rights in the business, and no management role in the business. That is to say that Manny's involvement in the partnership is limited to providing capital to the business.