B. C. D. 2 4. A summary of Max Company’s December 31, 2009, accounts receivable aging schedule is presented below: Age Group 0 - 60 days 61 - 90 days 91 - 120 days over 120 days Amount $60,000 22,000 3,000 1,000 Estimated Percentage Uncollectible 0.5% 1% 10% 50% On January 1, 2009, the allowance for uncollectible accounts had a credit balance of $1,000. During 2009, $950 of accounts receivable were written off as uncollectible. What is Max Company’s uncollectible accounts expense for 2009? A.
4. Norton Co., a U.S. corporation, sold inventory on December 1, 2011, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: What amount of foreign exchange gain or loss should be recorded on January 30? A. $1,516 gain.
A payment of $3,000 cash was made for Sal. Expenses 10. $300 payment made from accounts payable for utilities (b) Determine how much stockholders’ equity increased for the month. The Stockholder’s equity for the month Issued Stock- 20,000 Service Revenue- 9,500 Dividends- (2,000) Rent- (800) Salaries- (3,000) Utilities-(300) Increases in Stockholder’s Equity- 23,400 (c) Compute the net income for the month. The net income for the month was $5,400 1.
Use the following to answer questions 4-5: The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year: Sales $350,000 Variable selling expense 35,000 Fixed selling expenses 25,000 Cost of goods sold (variable) 160,000 Fixed administrative expenses 55,000 Variable administrative expenses 15,000 4. The gross margin of Evans Retail Stores, Inc. for the first quarter is: A) $210,000. B) $140,000. C) $220,000. D) $190,000.
Week 2 Practice Question Solutions EXERCISE 4-8 (15–20 minutes) (a) Net sales $ 540,000 Cost of goods sold (210,000) Administrative expenses (100,000) Selling expenses (80,000) Discontinued operations-loss (40,000) Income before income tax 110,000 Income tax ($110,000 X .30) 33,000 Net income $ 77,000 (b) Income from continuing operations before income tax $150,000* Income tax ($150,000 X .30) 45,000 Income from continuing operations 105,000 Discontinued operations, less applicable income tax of $12,000 (28,000) Net income $ 77,000 *$110,000 + $40,000 Earnings per share: Income from continuing operations
Part (b) Calculate the seasonal forecast of sales for February of Year 3. Part (c) Which forecast do you think is most accurate and why? 11. Question : (TCO 6) Davis Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project A Project B Initial Investment $800,000 $650,000 Annual Net Income $50,000 45,000 Annual Cash Inflow $220,000 $200,000 Salvage Value $0 $0 Estimated Useful Life 5 years 4 years The company requires a 10% rate of return on all new investments.
During the year, the company purchased goods costing $1,500,000. If Uptown Athletic reported ending inventory of $600,000 and sales of $2,000,000, their cost of goods sold and gross profit rate would be 20) During the year, Sarah’s Pet Shop’s merchandise inventory decreased by $30,000. If the company’s cost of goods sold for the year was $450,000, purchases would have been 21) At the beginning of the year, Wildcat Athletic had an inventory of $200,000. During the year, the company purchased goods costing $700,000. If Wildcat Athletic reported ending inventory of $300,000 and sales of $1,000,000, their cost of goods sold and gross profit rate would be 22) The entry to record of sale of $900 with terms of 2/10, n/30 will include a 23) Dobler Company uses a periodic inventory system.
$530,000 (b) During the year, total liabilities increased $100,000 and stockholders' equity decreased $70,000. What is the amount of total assets at the end of the year? $830,000 (c) If total assets decreased $90,000 and stockholders' equity increased $110,000 during the year, what is the amount of total liabilities at the end of the year? $300,000 Hint: Use basic accounting equation. (SO
Net income dropped from $63,125 to $38,197.50 which cuts losses by $24,927.50. Losses were cut by 61%. 2. A firm needs $100 to start and has the following expectations: Sales $200 Expenses $185 Tax rate 33% of earnings o What are earnings if the owners invest the $100? $10.05 o If the firm borrows $40 of the $100 at an interest rate of 10%, what are the firm's net earnings?
In 2007, they reduced their current installments of long-term debt by 0.76%, accounts payable by 1.61%, and other current liabilities by 1.35% in just a year as portion of their Liabilities and Shareholders’ Equity. They however faced an increase of accrued payroll