The following information pertains to Flaxman Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 124,500 Work in process 118,800 Finished goods 76,300 March 31 Inventory balances Raw materials $ 85,400 Work in process 145,400 Finished goods 80,100 During March Costs of raw materials purchased $ 118,400 Costs of direct labor 100,800 Costs of manufacturing overhead 61,800 Sales revenues 359,000
Calculate the amount of gross margin on the income statement.

Answers

Answer 1

Answer:

Gross Profit   $ 69,300

Explanation:

Flaxman Manufacturing Company

Income Statement

Sales revenues                                                      359,000

March 1 Opening Inventory Raw materials $ 124,500

Add Costs of raw materials purchased $ 118,400

Less March 31 Ending Inventory  Raw materials $ 85,400

Cost of Materials Used  157,500

Add Costs of direct labor 100,800

Add Costs of manufacturing overhead 61,800

Total Manufacturing Costs 320,100

Add March 1 Opening Work in process 118,800

Cost of Goods Available for Manufacture 438,900

Less March 31 Ending Work in process 145,400  

Cost of Goods Manufactured  293,500

Add March 1 Opening Finished goods 76,300

Cost of Goods Available for Sale 369,800

Less March 31 Ending Finished goods 80,100

Cost of Goods Sold                                             (289,700)

Gross Profit                                                           69,300

Gross Margin is also known as gross profit. It is the income before the operating expenses and is obtained by subtracting Cost Of Goods Sold from Sales.We obtain the COGS by doing the above operations.


Related Questions

In open market operations, the selling of bonds by the central bank
Select the correct answer below:

Answers

The sales of bonds by the central bank in open market operations decreases the amount of loans and money supply in an economy.

What is an open market operations?

This operations involves the sales and purchase of securities in the open market by a central bank.

The operation serves as an important tool used by the Federal Reserve in the implementation of monetary policy.

In conclusion, the sales of bonds results to decreases the amount of loans and money supply in an economy.

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Philosopher T.M. Scanlon makes four points about why we should be concerned with economic inequality. What did you think of his arguments? Are there any you find convincing? Explain your position.

Answers

Answer : yes , i find the following scriptures by philosopher convincing:

T.M. Scanlon, a philosopher, has made several points about why we should be concerned with economic inequality.

Fairness and Desert: Scanlon argues that economic inequality is a concern because it can violate principles of fairness and desert. He suggests that individuals should be rewarded based on their contributions and efforts rather than arbitrary factors like birth circumstances. This perspective implies that extreme economic disparities can undermine fairness in society.

Democratic Equality: Scanlon contends that economic inequality can undermine democratic equality by allowing the wealthy to exert undue influence over political decisions, potentially distorting democratic processes. This argument highlights the potential threat to the principle of political equality when wealth disparities are significant.

Social and Economic Power: Scanlon argues that economic inequality can lead to the concentration of social and economic power in the hands of a few, creating disparities in opportunities and social mobility. This perspective suggests that unequal distribution of resources can limit equal access to education, healthcare, and other important social goods.

Social Cohesion and Shared Identity: Scanlon posits that extreme economic inequality can erode social cohesion and undermine the sense of shared identity within a society. When there is a significant gap between the rich and the poor, it can lead to social divisions, conflicts, and a sense of alienation among different groups.

The persuasiveness of these arguments may vary depending on an individual's beliefs, values, and political ideology. Some may find Scanlon's points compelling, as they highlight the potential negative consequences of economic inequality on fairness, democracy, social mobility, and societal cohesion. Others may have different perspectives, emphasizing the importance of individual freedom, market dynamics, and the potential benefits of incentives provided by economic inequality.

It's crucial to engage in thoughtful discussions and consider multiple viewpoints to foster a comprehensive understanding of the complex issue of economic inequality.

Consider that the market demand function For IBM Computer represented as a. Calculate Price elasticity of demand when d=20,000-0.5P, Ceteris paribus the price per unit is Birt 10,000. b. It the demand for IBM Computer aces elsarric, inelastic or Unitary elastic? C. Interpret the result ​

Answers

A. The price elasticity of demand is PED ≈ -0.67.

B. The demand for IBM computers is inelastic because the absolute value of the price elasticity of demand (PED) is less than 1.

C. The negative value of the price elasticity of demand (-0.67) indicates an inverse relationship between price and quantity demanded.

To calculate the price elasticity of demand (PED), we need to use the formula:

PED = (% change in quantity demanded) / (% change in price)

a. Given the demand function d = 20,000 - 0.5P and the price per unit is $10,000, we can calculate the quantity demanded at this price by substituting P = $10,000 into the demand function:

d = 20,000 - 0.5 * 10,000

d = 20,000 - 5,000

d = 15,000

Now, let's consider a small change in price. Let's say the price decreases to $9,500, and the quantity demanded changes to 15,500. We can calculate the percentage changes:

% change in quantity demanded = (15,500 - 15,000) / 15,000 * 100 = 3.33%

% change in price = (9,500 - 10,000) / 10,000 * 100 = -5%

Now we can calculate the price elasticity of demand:

PED = (% change in quantity demanded) / (% change in price)

PED = 3.33% / -5%

PED ≈ -0.67

b. The demand for IBM Computer is inelastic because the absolute value of the price elasticity of demand (PED) is less than 1. In this case, the PED is approximately -0.67, indicating that a 1% change in price will lead to a smaller percentage change in quantity demanded.

c. The negative value of the price elasticity of demand (-0.67) indicates an inverse relationship between price and quantity demanded. In other words, as the price of IBM Computers increases, the quantity demanded decreases, and vice versa. However, since the demand is inelastic, the change in quantity demanded is proportionately smaller than the change in price. This suggests that consumers are not highly responsive to price changes, and IBM Computers are relatively price-insensitive.

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3. Explain the success of the training program using Conditioning Theory and Social Cognitive Theory. For each theory: A. How do you explain why the training program was not effective? B. How could the program be improved by using some of the concepts from each theory.

Answers

Answer:

you just explain how smart it is.

it can add more tecnoligy

Explanation:

Kramer and Knox began a partnership by investing $58,000 and $65,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income should be allocated to the partners under each of the following three separate plans for sharing income and loss:(1) The partners failed to agree on a method to share income.(2) The partners agreed to share income and loss in proportion to their initial investments. (Do not round intermediate calculations.(3) The partners agreed to share income by granting a $56,500 per year salary allowance to Kramer, a $46,500 per year salary allowance to Knox, 12% interest on their initial capital investments.

Answers

Answer and Explanation:

The computation is shown below:

1. At the time when the partner failed to share the incom and loss so it is assume that the net income i.e. $160,000 should be shared equally so for both it is $80,000 each

2. When the income is shared as per their initial investment  

Particulars              Kramer          Knox           Total

Investment             $58,000       $65,000     $123,000

Investment ratio     47.15%         52.85%

$160,000 income share $75,440 $84,560    $160,000

3. Sharing of the income as per the defined rule

Particulars              Kramer          Knox           Total

Salary allocated     $56,500       $46,500       $103,000

Interest at 12%        $6,960         $7,800         $14,760

Remaining balance  $21,120      $21,120        $42,240

Total                           $84,580    $75,420       $160,000

What is the right definition for "cookies" through internet when people talk about it?

Answers

Answer:

A cookie is information saved by your web browser

Explanation:

A cookie is information saved by your web browser. When you visit a website, the site may place a cookie on your web browser so it can recognize your device in the future.

In the context of the internet, "cookies" refer to small text files that are stored on a user's device when they visit a website. These files can be used to store information about the user's preferences, browsing history, and other data. When the user visits the website again, the website can access the information stored in the cookies to customize the user's experience or track their activity. Cookies can be useful for providing a more personalized experience for users, but they can also be used for tracking and targeted advertising. Users can choose to accept or block cookies through their web browser settings.

The ultimate purpose of economics is

Answers

Answer:

The ultimate purpose of economics is to understand and promote the enhancement of well-being. Which is literally to study how individuals make choices.

Explanation:

I hope this helps!

The ultimate purpose of economics is to study and understand how societies allocate scarce resources to meet unlimited human wants and needs.

What are the benefits?

It analyzes production, consumption, and distribution of goods and services, along with the factors influencing these processes. Economics seeks to optimize resource allocation to achieve maximum efficiency, growth, and welfare for society.

Through the analysis of supply, demand, prices, and market interactions, it provides insights into economic behaviors, policies, and decision-making. By addressing issues like poverty, unemployment, and inflation, economics aims to improve overall well-being and quality of life, contributing to sustainable and prosperous societies.


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name two recent kmi/kmv initiatives that carry out by pick n pay

Answers

The two recent kmi/kmv initiatives that carry out by pick n pay are:

Feed the nation Food gardening education project.

What is the project about?

The project is to feed the nation  and it is one that partners with Pick n Pay, together to join their efforts to give an opportunity to Feed The Nation.

Note that Feed The Nation is seen to be a collectively raised amount of money and provided a lot of  millions of meals to children and other people who are vulnerable.

Hence, The two recent kmi/kmv initiatives that carry out by pick n pay are:

Feed the nation Food gardening education project.

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Jeff has the opportunity to receive​ lump-sum payments either now or in the future. Which of the following opportunities is the​ best, given that the interest rate is ​4% per​ year?

a. one that pays $ 900 now
b. one that pays $ 1080 in two years
c. one that pays $ 1350 in five years
d. one that pays $ 1620 in ten years

Answers

Answer:

c. one that pays $ 1350 in five years

Explanation:

we have to calculate the present value of each option:

option a, $900 (that is the present value)option b, $1,080 in 2 years. PV = $1,080 / (1 + 4%)² = $998.52option c, $1,350 in 5 years. PV = $1,350 / (1 + 4%)⁵ = $1,109.60option d, $1,620 in 10 years. PV = $1,620 / (1 + 4%)¹⁰ = $1,094.41

Option c yields the highest present value = $1,109.60

What two things do you need for supply

Answers

Answer:

To be honest I don't know.

Explanation:

In the Construction version of the Confined Space Entry
Standard, a "Multiple Employer Site" can include blank and a host employer
a "Host Employer".
A. a "Controlling Contractor" (general contractor)
B. "Entry Employers" (subcontractors)
C. "Controlling Employers"
D. Both A and B are correct.
and

Answers

The right response is D. A and B are both true.

A "Multiple Employer Site" in the Confined Space Entry Standard for Construction can have both a "Entry Employer" (subcontractor) and a "Controlling Contractor" (general contractor). A "Host Employer" is likewise regarded as a component of the multiple employer site. As a result, both choices A and B are accurate.

The areas of academic study are called

Answers

Answer:

Academic Focus Areas are related majors that are grouped together because they share a foundation of common course requirements and recommendations. At most institutions, every program of study will fit into one of a limited number (five to seven, generally) of Academic Focus Areas.

An academic discipline or field of study is known as a branch of knowledge.

Explanation:

Answer: Branches of knowledge

Happy to help; have a great day! :)

Question 4 of 10
During a depression or recession, which of the following is most likely to
happen to interest rates?
A. Interest rates will likely decrease as the Federal Reserve Board
increases inflation rates.
O B. The Federal Reserve Board will likely lower interest rates.
O C. Interest rates will likely rise as the Federal Reserve board
decreases inflation rates.
O D. The Federal Reserve Board will likely raise interest rates.
SUBMIT

Answers

B.The federal reserve board will likely lower interest rates

Explanation:

pa brainliest po ako png taga sagot ng mga new question

Compare the capital gains from investing in the three stocks with the interest income on a one-year CD. Which would have been a more profitable investment—the stocks or a one-year CD? Explain your reason.

Answers

Based on the calculation, the stocks are more profitable investment than a one-year CD.

To determine which investment would be more profitable  -stocks or a one-year CD - it is important to compare the capital gains from investing in the three stocks with the interest income on a one-year CD. Below are the steps to help you answer the question:

Step 1: Calculate the capital gains for each stockAssuming each stock had a value of $100 at the beginning of the year:Stock A: The stock increased by $10, so the capital gain is $10.Stock B: The stock decreased by $5, so the capital gain is -$5.Stock C: The stock increased by $20, so the capital gain is $20.

Step 2: Calculate the interest income for a one-year CDAssuming a one-year CD with an interest rate of 2% and a principal of $100:Interest Income = Principal x Interest Rate= $100 x 0.02= $2

Step 3: Compare the capital gains with the interest incomeThe total capital gain for the three stocks is $10 - $5 + $20 = $25. On the other hand, the interest income for a one-year CD is only $2.

Investing in the three stocks would have been a more profitable investment than a one-year CD. This is because the capital stocks is significantly higher than the interest income from the CD.

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Each of these factors needs to be monitored and controlled during the execution phase except the _____.
purpose
cost
schedule
quality

Answers

Phase except the purpose
except for the purpose

How vape advertisers target teens and children?

Answers

Answer:

Explanation:

children or teens who see other people having vapes at there age they might want one too.

How do you actually do this? On there template and save it or make my own template.? So confused.
Scenario
You are a certified public accountant (CPA) who is working with a small bakery to prepare their financial statements for three months of the current
fiscal year. Because the company is a startup and so small, the accounting is done manually in Microsoft Excel. You have been given the accounts
and information you need to prepare their financial statements, but you will need to use the accounting cycle to report accurate information to the
finance department
Prompt
Accrual Basis: In your company accounting workbook, apply the accrual basis of accounting and prepare adjusting entries to ensure accurate
accounting for expenses that lack transactions in the current period. (You may refer to the Company Accounting Workbook Template
Spreadsheet if necessary, but keep in mind that your work for this milestone should be added to the work you completed in your workbook for the
previous milestone.)
Specifically, you must address the following rubric criteria:
• Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the Trial Balance" tab of the company accounting workbook,
ensuring that the total debits and credits match.
• Adjusting Entries: Prepare the "Adjusting Entries" tab of the company accounting workbook. Ensure that the entries are correctly transferred
to the adjusting entries portion of the Trial Balance" tab.
• Adjusted Trial Balance: Prepare the adjusted trial balance on the "Trial Balance" tab, ensuring that the debit and credit totals match.
Guidelines for Submission
Build on your work from Milestone One to complete the "Trial Balance" and "Adjusting Entries" tabs in your company accounting workbook. This
should be completed and submitted using Microsoft Excel. Please note that there are drop-down menus embedded in the "Accounts" columns as
well as formulas throughout the spreadsheet to help you complete the workbook without accidentally introducing errors.

Answers

Answer:

The answer is in the picture, Thanks

Explanation:

How do you actually do this? On there template and save it or make my own template.? So confused. ScenarioYou

There are different kinds of template. The template workbook adjustment is shown in the image attached.

What is Adjusting entries?

This is known to be any kind of alterations or changes that are made to journal entries of which a person has already recorded.

Note that these changes are done so that one can be sure that the numbers a person have recorded are in line or match up with the correct accounting periods. Therefore, the adjustment is shown in the image attached.

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Create a business memo to HR director regarding the following: Describe the problems with the company’s hiring practices and the laws that have been violated. Provide one example and evidence to support the problems and the laws that have been violated. Explain how the firm can increase employee diversity​

Answers

The business memo is expected to have the following: address of the sender with designation and date, the address of the HR Director with company name, title or subject of the memo, salutation, body, conclusion, complementary close, your name and contact.

What should be the format of the content of the memo?

The content of the memo is expected to be in the following format:

Sender: [Your Name]

[Your Position]

[Date]

HR: [HR Director's Name]

[Company Name]

[Company Address]

Subject: Problems with Hiring Practices and Violations of Employment Laws

Salutation: Dear [HR Director's Name],

Body: I hope this memo finds you well. I am writing to bring to your attention some significant concerns regarding our company's hiring practices, specifically related to potential violations of employment laws. It is crucial that we address these issues promptly to ensure legal compliance and promote a fair and diverse work environment.

Problem Description: Our hiring practices have been observed to contain elements that may infringe upon existing employment laws. The following example illustrates one such instance:

Example: In a recent job opening for a senior management position, several qualified candidates from underrepresented groups were overlooked in favor of less qualified individuals from dominant groups. This discrepancy raises concerns about potential violations of anti-discrimination laws, such as the Equal Employment Opportunity Commission (EEOC) guidelines.

Evidence of the Problem and Violations: 1. Job Application Records: Careful analysis of the job application records reveals that a significant number of candidates from underrepresented groups, possessing the required qualifications and experience, were not selected for interviews or job offers. This evidence suggests a potential bias in our selection process, which could be in violation of Title VII of the Civil Rights Act of 1964, as well as other relevant federal and state laws.

Recommendations for Increasing Employee Diversity: To address these concerns and enhance employee diversity, I propose the following measures:

1. Review and Revise Hiring Policies: Conduct a comprehensive review of our hiring policies and procedures to ensure compliance with all applicable employment laws and regulations. Pay particular attention to practices that may introduce bias or hinder the recruitment of a diverse talent pool.

2. Training Programs: Implement mandatory diversity and inclusion training programs for all hiring managers and members of the interview panel. These programs should provide insights into unconscious biases, promote inclusive decision-making, and educate employees about the importance of diversity in the workplace.

3. Diverse Sourcing Strategies: Expand our recruitment efforts to attract a wider range of candidates. Collaborate with organizations, job boards, and educational institutions that focus on fostering diversity and inclusion. Proactively seek out potential candidates from underrepresented groups to create a more diverse applicant pool.

4. Diversity Metrics and Reporting: Establish clear diversity metrics and regularly monitor and report progress in achieving diversity goals. This approach ensures accountability and allows us to identify areas for improvement and take corrective actions as needed.

5. Employee Resource Groups: Encourage the formation of employee resource groups (ERGs) that focus on diversity and inclusion. ERGs provide a platform for employees to share experiences, support each other, and contribute to initiatives aimed at fostering a more inclusive workplace culture.

By implementing these recommendations, we can create a more equitable and diverse workforce that not only complies with employment laws but also brings a range of perspectives and experiences to drive innovation and success.

I request your support and guidance in addressing these concerns effectively. Please let me know if you would like to discuss this matter further or if you have any additional insights to contribute. I believe that by working together, we can make significant strides toward creating a more inclusive and diverse workplace.

Thank you for your attention to this matter.

Closing: Sincerely,

[Your Name]

[Your Position]

[Contact Information]

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Estela Company produces skateboards and scooters. Their pet unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit.

Answers

The company produces skateboards and scooters.

Contribution Margin per Unit  $80 (Skateboard)   $90 (Scooters)

Contribution Margin per Machine Hour $40 (Skateboard)  $30 (Scooters)

Calculation of Estela Company:

Contribution Margin per Unit = Sales - Variable cost

                                                    Skateboard                         Scooters

(a) Contribution Margin per Unit      $80                                     $90

                                                    = $200-$120                       = $400 - $310

Contribution Margin per Machine Hour = Contribution Margin per Unit / Machine Hour per unit

                                                            Skateboard                        Scooters

(b) Contribution Margin per Machine Hour  $40                              $30

                                      =$80/2 machine hour           $90/3 machine hour

As a result, the significance of the company produces skateboards and scooters are the aforementioned.

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Estela Company produces skateboards and scooters. Their pet unit selling prices and variable costs follow.

Teamwork Skills
And what you can learn from it
In in skill In
life

Answers

Some team work skills are
Communication.
Time management.
Problem-solving.
Listening.
Critical thinking.
Collaboration.
Leadership.
And you can learn how to respectfully and confidently express their ideas and opinions effectively in a group setting.

6) The components of the U.S. M1 money supply are demand deposits and other checkable deposits plus A) currency. B) currency plus savings deposits. C) currency plus traveler's checks. D) currency plus traveler's checks plus money market deposits.

Answers

The U.S. M1 money supply definition includes demand deposits, other checkable deposits and B) currency plus savings deposits.

What is M1 Money supply?

This represents the most liquid money instruments there are as they can be easily accessed by the population.

The most liquid instruments which are in M1 include:

CurrencyDemand deposits Savings deposits Checkable deposits.

In conclusion, option B is correct.

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Sales total Rs. 400,000 when variable costs total Rs.200,000 and fixed costs total $50,000. What is the breakeven point in sales dollars?

Answers

When fixed costs are $50,000 and variable costs are Rs. 200,000, sales come to Rs. In terms of sales dollars, $100,000 is the breakeven point.

A breakeven point is defined.

Breakeven points are used extensively in business and finance. The output level is what is produced when, in terms of accounting, total production revenue and total production costs are equal. When the purchase price and the market price are equal, this is when an investment reaches its breakeven point. It is known as the breakeven point in options trading when the market price of an underlying asset hits the level at which a buyer would not incur a loss.

Why do we utilize the break-even point?

The break-even point is important for business owners since it shows the minimum amount of sales required to make a profit. A business owner can make well-informed decisions about pricing, output levels, and other factors that have an impact on the bottom line by being aware of the break-even point.

Contribution margin percentage = ($400,000 − $200,000) / $400,000 = 50%;

BE sales = $50,000 / 0.5 = $100,000

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Which of the following helps determine something's value?
O A. utility
O B. beauty
O C. scarcity
D. both A and C

Answers

Answer:

D. Both A and C

Explanation:

Items that are more useful and/or more rare, result in higher prices (and if both are true, even higher prices). If an item is rare but useless, the price would be lower. If an item is useful and not rare (think batteries or paper towels) the price lowers.

Both utility and scarcity help to determine something's value. Option (d) is correct.

According to the law of diminishing marginal utility, the enjoyment or utility that a person derives from an item or a product decreases as they consume more and more of it.

According to the law of diminishing marginal utility, a good or service's marginal utility decreases the more of it is used by a person. Consuming increasing quantities of a good gives economic actors less and less pleasure.

A product's life cycle is covered by a number of laws of diminishing marginal units, each of which is distinct but tangentially connected.

Therefore, Option (d) is correct.

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What is liberalisation? ​

Answers

Answer:

Explanation:

Liberalisation is the process or means of the elimination of control of the state over economic activities. It provides a greater autonomy to the business enterprises in decision-making and eliminates government interference

When and under what conditions might managers change from a functional to a (a) product, (b) geographic, or (c) market structure?

Answers

it’s definitely b it makes the most sense i’m right trust oka

The managers might consider changing from a functional structure to a product, geographic or market structure under various circumstances.

Product Structure: If the organization's products or services become more diverse and complex, a product-based structure may be adopted.

This structure allows dedicated teams for each product line that improving specialization and focus on specific customer needs and markets.

Geographic Structure: When the organization expands into different regions or countries, a geographic structure becomes more suitable.

Market Structure: If the company serves diverse customer segments with unique needs, a market-based structure can be more effective.

This structure involves creating separate divisions or teams for each market segment which allowing targeted strategies and focused marketing efforts.

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Jamie Kerr is an hourly employee of Noonan Company located in Los Angeles. This week, Kerr had to travel to the company's regional office in Santa Fe. He left Sunday at noon and arrived in Santa Fe at 3:30 P.M. During the week, he worked his normal 40 hours in the Santa Fe office (Monday through Friday-9 A.M. to 5 P.M.). In addition, he attended the company's 3½-hour work training session on Wednesday evening. Kerr's hourly rate of pay is $26.90 per hour.

Round the interim computations to two decimal places and use the rounded answers in subsequent computations. Round the final answers to the nearest cent.

a. Kerr's overtime earnings for the week are

b. Kerr's total earnings for the week are

Answers

a) Kerr received $164.78 in weekly overtime pay. Individuals who work for a company and receive compensation are called employees. Under the heading "Income from salaries," earned salaries are taxable.

How does income relate to salary?

For the purposes of income tax, the amount that an employee receives from his employer in any of the following forms during a fiscal year will be considered "Salary": Wages: Wages are a set amount of money that an employer pays its employees in exchange for their work.

In the Netherlands, what is the "30 rule"?

Employees recruited from outside the Netherlands to temporarily work here can take advantage of the 30% facility. They are exempt from paying tax on up to 30% of their salary provided they meet the conditions for the 30% facility.

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Name 4 main parts of a business plan.

Answers

Market anyalysis.
Breakdown of Your Products and Services.
Marketing Plan.
Sales Strategy.
Executive summary
Marketing plan
Key management bios
Financial plan

In Chapters 1 and 2 you have been learning about the accounting equation, debits/credits, and account normal balances. The accounting equation is the foundation of accounting. Understanding debits/credits and the account normal balances are just as important. Sometimes, these concepts are difficult to understand and/or remember. Please research the Internet to find fun and easy ways to remember this information. It could be a song, a mnemonic, phrase, video, etc. I need the answer and cititation for the answer

Answers

The best phrase to remember in the accounting equation is to debit all assets, expenses, and losses, and to credit all liabilities, equity, gains, and incomes.

What is the accounting equation?

The accounting equation shows that assets are equal to liabilities and equity, given each business transaction.

The implication of the above definition is that when a transaction occurs, which may give rise to expenses, losses, gains, and incomes, the assets and liabilities and equity equation remains in balance.

For instance, when a company incurs an expense for cash, the assets (cash) side is reduced by the amount.  Similarly, the equity side is also reduced by the same amount.

Thus, the best phrase to remember in the accounting equation is to debit all assets, expenses, and losses, and to credit all liabilities, equity, gains, and incomes.

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Donald Jackson invests $58,800 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Donald withdraws the accumulated amount of money.

Required:
a. Compute the amount Donald would withdraw assuming the investment earns simple interest.
b. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.
c. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.

Answers

Answer:

a. Compute the amount Donald would withdraw assuming the investment earns simple interest.

future value = $58,800 x [1 + (10% x 10)] = $117,600

b. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.

future value = $58,000 x (1 + 10%)¹⁰ = $152,512

c. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.

this is identical to (b) = $152,512

the advantage of compound interest is that previously earned interest, will earn interest by itself.


Prepare a columnar condensed income statement for Crane Company, assuming Division II is eliminated. Division II's unavoidable
fixed costs are allocated equally to the continuing divisions.

Answers

Crane Company engages in the management of a subsidiary, which manufactures aerospace equipment, electronics systems, and flows control systems. The company was founded on December 2, 2021, and is headquartered in Stamford.

Crane Company manufactures engineered industrial products. The Company offers vending machines, airplane braking devices, pumps, valves, and other industrial goods.

Fixed Portion of COGS:

Revised Fed COGS for other even

Dwisont Sssoo0 $2850 555.000

Divison $510 § 2880 $57,050

Diisioniv S290 $ 280 S$ osa30

($25,30°9018)/3 = $4,305

Division Smee $4305 $a.

Dwison it $2000 $ 4305 $33,205

Division v 3 19;00 $4305 $23,805

‘visions 7 m w. OTA)

Sales 324500] § 5.04000] 5 —4.50,000/ 3 11,39.00

Variable cone

Cost of goods sid $_aasio0|$_2asaz0| 5 asso] $s 7570)

Selling and sdminirative '$_15,236] § 3,000] $20,500] $ 97.76

Total variable costs $ra236] $275.20] § 217.250] § 667306)

Contribution margin $7768] $228,180] 5 232750] 5 531608)

Costof goods aid 3 seaw0] $ S780] 3 a0] $_aawTD

selling and edrniaive Sages] $_3305[ 5 23.605[ 5 1.05 570)

Tol Fined costs '$it5.49] § 90,365] § a.sa5| $ —2.24,509]

incomel les) rom operations $_-34s85[$ i785] $ aas.is| $ —247.085

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