AM is a trading
Q: insurance company pays its employees a commission of 6 percent on each sale. What is the proper…
A: the constant cost are those cost and industry where is firm cost are not impected by entry or exit…
Q: Hare, Inc., had a cost of goods sold of $43,921. At the end of the year, the accounts payable…
A: Accounts payable (AP) are monies owed to vendors or suppliers for products or services not yet paid…
Q: Using the following information: a. Beginning cash balance on March 1, $76,000. b. Cash receipts…
A: The question is based on the concept of Cost Accounting.
Q: Dexter, Incorporated, had a cost of goods sold of $44,121. At the end of the year, the accounts…
A: Days sales in payable is the number of days takes to pay the outstanding balance of purchases to…
Q: Bailliere Company recorded cash sales of $300,000 and cost of goods sold relating to those sales of…
A: The overheads are said to be under- applied when actual cost is higher than the applied overheads.
Q: For the past year, Hawkeye, Inc., had a cost of goods sold of $63,882. At the end of the year, the…
A: Accounts payable turnover in days is used to signify how long it takes a company to clear its…
Q: The production team had extra capacity and was able to generate enough inventory to satisfy half of…
A: Sales: This term often implies to the revenue that is generated by the business from selling or…
Q: (b) An manufacturer produce a goods and sold all goods to a whole seller by adding 10% profit. The…
A: A Value-added tax may be defined as that type of tax which is charged upon the goods and services…
Q: Measures of annual turnover and throughput: Sales ZMK2.0million Cost of sales ZMK1.7million Material…
A: Working Capital Cycle In a simple term work capital cycle which describes as total time to convert…
Q: Using the following information: a. Beginning cash balance on March 1, $78,000. b. Cash receipts…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: he following are some accounts pertaining to the rooms division of XYZ Inn. Salaries and wages…
A: Introduction:- Revenue means total amount of total sales of goods and services. Which is calculated…
Q: JBC Ltd. sells goods on a gross profit of 25%. Depreciation of TZS 60,000 is considered as a part of…
A: Working capital refers to the funds that a company has available for its daily operations. It…
Q: A department store paid $32.57 for a dinner plate set. Overhead expense is 15% of the regular…
A: Operating profit or loss refers to the financial result of a business's core operations, excluding…
Q: Sheridan Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 80 percent of the…
A: The transactions for which cash is paid out by the company are known as cash outlay. For example, it…
Q: Suppose your company sells goods for $300, of which $200 is received in cash and $100 is on account.…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: One of ABC product line has been unprofitable for the past 18 months. The latest monthly income…
A: Current the product line is incurring a loss of $ 2,600. Income statement assuming the product line…
Q: Required: Using the preceding data: 1. Complete the schedule of expected cash collections. 2.…
A: Solution : Total Cash collections = Cash sales + collection of Credit sales Budgeted purchases =…
Q: Maple Enterprises sells a single product with a selling price of $82 and variable costs per unit of…
A: Break-even point is the point or level where the company is making no profit or loss. It represents…
Q: Rent January Februar Y $4,000 $4,000 $4,000 $4,000 $1,500 $1,500 Depred $1,500 $1,500 ation Advertis…
A: Cash receipt budget represents the money a company collects from the sales it makes in current and…
Q: Un June 1, Steel Corp. consigned 50 tables to Don Mills Inc. Steel's cost was $ 350 per table. Total…
A: Under the earning approach, The amount of total sales is the aggregation of: Cheque received…
Q: Data table Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs…
A: Customer-level operating income=Gross margin-Customer level operating costs
Q: Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the accounts…
A: The payable turnover ratio is a financial ratio used to measure a company's efficiency in managing…
Q: The following companies are competitors in the same industry and have many of the same suppliers.…
A: Days payable outstanding is a financial ratio which tells that how much good terms we are having…
Q: Tim's Technologies is a telecom component manufacturer. The firm typically has a collection period…
A: Operating Cycle = Inventory Period + Accounts Receivable Period
Q: Mandalay Corporation produces and sells two products. In the most recent month, Product A had sales…
A: Contribution margin of Product A= Sales – Variable cost = 38,000 - 9,840 = $28,160 Contribution…
Q: Data table Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs…
A: Customer-level operating income=Gross margin-Customer level operating costs
Q: Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.90…
A: Variable costs are those costs which changes along with change in activity level. Contribution…
Q: Maple Enterprises sells a single product with a selling price of $90 and variable costs per unit of…
A: Break even point is the number of units sold to earn no profit or no loss in the business. The more…
Q: Using the following information: a. Beginning cash balance on March 1, $78,000. b. Cash receipts…
A: Cash Receipt :— It is the cash collection from customer against sale of goods. Cash Disbursement :—…
Q: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of…
A: Contribution per unit = selling price per unit - variable costs per unit…
Q: During its first year of operations, Mack's Plumbing Supply Co. had sales of $550,000, wr off $8,800…
A: Accounts Receivable -The amount that a business retains as cash on hand for supplying goods or…
Q: A department store paid $30.94 for a salad bowl. Overhead expense is 23% of the regular selling…
A: In order to determine the profit, the cost of goods sold are required to be subtracted from the…
Q: Walter Company has the following information for the month of March: Cash balance, March 1…
A:
Q: Prairie Manufacturing has four possible suppliers, all of which offer different credit terms.…
A: The agreed-upon terms and circumstances under which a buyer would pay a seller for products or…
Q: Please check if my total selling and administrative expenses is correct. Put an explanation why is…
A: Selling and admin expenses is an important part or section of income statement of business. It…
Q: manufacturing organization supplied the following information. Beginning inventory of merchandise of…
A: Cost of trading goods means cost of goods which are being resold to customers. This is calculated by…
Q: 1. lf a company sells goods that cost $80,000 for $92.000, the firm will: A reduce Finished-Goods…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: ABC Company has a cash cycle of 12.26 days, an operating cycle of 22.48 days, and an average…
A: Average account payable is defined as the average of amount that is paid in the beginning and the…
Q: To justify changes in collection procedures, the minimum annual reduction of costs (using a 360-day…
A: Average collection period refers to the duration within which a company is able to recover its…
Q: Ascenda Corp distributes the "Smart" brand of electronic controller systems. The company currently…
A: Cost Benefit Analysis: It is the method where rewards expected from situation and total costs…
Q: Wentz Co. made it a priority to negotiate better credit terms with its suppliers so it could defer…
A: Defer payments are those payments which got delayed and no interest or principal amount is paid…
Q: Colleen Company has gathered the following data pertaining to activities it performed for two of its…
A: Answer:- Activity based costing:- It is a technique for assigning overhead costs to items in…
Q: Maple Enterprises sells a single product with a selling price of $60 and variable costs per unit of…
A: Given, Selling price = $60 Variable costs per unit = $40 Fixed costs = $13,479
Q: Company C Industries has sales of $6,100, cost of goods sold of $4,100, accounts receivable of $800,…
A: Sales = $6,100Cost of Goods Sold = $4,100Accounts Receivables = $800Inventory = $600Due to lack of…
AM is a trading entity. Purchases are on credit, with 70% paid in the month following the date of
purchase and 30% paid in the month after that.
Sales are partly on credit and partly for cash. Customers who receive credit are given 30 days to
pay. On average 60% pay within30 days, 30% pay between 30 and 60 days and 5% pay between
60 and 90 days. The balance is written off as irrecoverable. Other
are paid within the month incurred.
AM plan to purchase new equipment at the end of June 2015, the expected cost of which is
P250,000. The equipment will be purchases on 30 days credit, payable at the end of July.
The cash balance on 1 May 2015 is P96,000.
The actual/budgeted figures for the six month to July 2015 were:
| ACTUAL | BUDGETED | |||||
| FEB P000 | MARCH P000 | APRIL P000 | MAY P000 | JUNE P000 | JULY P000 | |
| Credit sales | 100 | 100 | 110 | 110 | 120 | 120 |
| Cash sales | 30 | 30 | 35 | 35 | 40 | 40 |
| Credit Purchases | 45 | 50 | 50 | 55 | 55 | 60 |
| other overhead expenses | 40 | 40 | 40 | 50 | 50 | 50 |
Required:
a. Prepare a monthly
b. Assess the likelihood of AM being able to pay for the equipment when it falls due.
Step by step
Solved in 3 steps
- A company has a turnover of SEK 15,000,000. The supplier credit period is on average 28 days. The annual purchases of goods etc. amounts to SEK 9,000,000. Accounts receivable amount to SEK 1,250,000 on average. Cash and cash equivalents account for 6% of sales. The inventory averages SEK 1,500,000. The management's goal is to reduce the working capital requirement by SEK 250,000. The finance department believes that the goal can be achieved by reducing inventory to an average of SEK 1,400,000, extending the average supplier credit period by two days and shortening the average customer credit period by 3 days. Is it true? Points require both motivation and that all calculations are reported.Question Hare, Inc., had a cost of goods sold of $43,921. At the end of the year, the accounts payable balance was $7,943. How long on average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)A company began operations in March with cash and common stock of $36,000. The company made $582,000 in net income in its first month. It performed print jobs for customers and billed these customers $900,000. The company collected half of its receivables by the end of the month. The company had a cost of goods sold of $162,000 paid for in cash and $6,000 inventory left over at the end of the month. The company's employees earned wages but those are not paid until the first of April. This was the company’s only liability. How would I calculate the income statement and balance sheet for the end of March?
- Morrison Company Balance Sheet January 1 Assets Cash $ 40,950 Raw materials Work in process Finished goods Prepaid expenses Property, plant, and equipment (net) $ 17,800 6,600 31,800 56, 200 3,350 124,000 $ 224,500 Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings $ 7,100 217,400 Total liabilities and stockholders' equity $ 224,500 During January the company completed the following transactions: a. Purchased raw materials on account, $75,200. b. Raw materials used in production, $91,500 ($80,200 was direct materials and $11,300 was indirect materials). c. Paid $202.100 of salaries and wages in cash ($108,800 was direct labor, $41,700 was indirect labor, and $51,600 was related to employees responsible for selling and administration). d. Various manufacturing overhead costs incurred (on account) to support production, $43,350. e. Depreciation recorded on property, plant, and equipment, $63,600 (70% related to manufacturing equipment and 30% related to…QUESTION 1 REQUIRED Prepare the Cash Budget for a project of Aston Enterprises for the period 01 May 2021 to 31 July 2021. (Ensure that your cash budget has separate monetary columns for each month.) INFORMATION The following information was provided by Aston Enterprises: 1. The bank balance on 30 April 2021 is expected to be R50 000 (favourable). 2. Expected sales (excluding discounts) are as follows: April May June July R R R. R Cash sales 100 000 120 000 160 000 170 000 Credit sales 140 000 150 000 180 000 230 000 3. A discount of 5% is given to customers on cash sales. 4. Customers who purchase on credit usually pay one month after the sale. 5. The production estimates reveal the following: Production costs March April May June July R R R R R Direct materials 75 000 77 000 45 000 55 000 60 000 Direct labour 32 000 35 000 36 000 39 000 41 000 Overheads 25 000 27 000 29 000 33 000 35 000Ascenda Corp. distributes the "Smart" brand of electronic controller systems. The company currently has a credit policy of 1/10, net 40, though an average only 20% of the customers pay in 10 days and take the discount, while another 30% pay on avorage in 15 days yet still take the unearned discount. The company's remaining customers pay on average in 50 days. Bad debt losses are 3% of sales. The company's sales are currently $600,000 per month, all on credit. Ascenda is thinking of restructuring its credit and collections department, with the goal of eliminating all unearned discounts and reducing bad debt losses to 1.5%. With this new policy, the company believes that sales will fall by 5% and 40% of the customers will pay in 10 days and obtain the discount, and that the remaining customers will pay in 40 days. Ascenda's variable costs are 60% of sales, its monthly collections department expense is expected to rise by $6,000 to $20,000, and its opportunity cost on funds is 12%…
- Using the following information. a. Beginning cash balance on March 1, $81,000. b. Cash receipts from sales, $305.000. c. Cash payments for direct materials, $130.000. d. Cash payments for direct labor. $79,000. e. Cash payments for overhead, $38.00. f. Cash payments for sales commissions, $7000 g. Cash payments for interest, $130 (1% of beginning loan balance of $13,000) h. Cash repayment of loan, $13.000. Prepare a cash budget for March for Gado Company. GADO COMPANY Cash Budget March Total cash available Less: Cash payments for Total cash payments $4 Loan activity Loan balance, end of month %24 K Prev earchCS&N Enterprises expects to sell 50,000 units in January and produce 55,000 units. The selling price per unit is $40. All sales are on credit. Customer amounts on account are collected 70% in the month of sale and 25% in the month following and 5% are never collected. Estimated Variable S&A are expected to be $3 per unit sold plus bad debt. Fixed S&A are estimated to be $30,000 of which $4,000 of the $30,000 is depreciation. What is the total budgeted selling and administrative expense?Selling, general, and administrative costs totaled $20 million, all on a short-term credit basis with vendors. We paid $19 million (cash) in outstanding accounts payable during the quarter. What are the journal entries?
- 16. At the end of the year, a company finds that it has under-applied factory overhead by $1,000. What would be the most common accounting treatment in this case? Increase Assets by $1,000 on the Balance Sheet Increase Profit by $1,000 in the Income Statement Increase Liabilities by $1,000 on the Balance Sheet Decrease Cost of Goods Sold by $1,000 in the Income Statement Increase Cost of Goods Sold by $1,000 in the Income Statement.Aidel Inc., a merchandising company, reported the following results for September. Cost of goods sold 205,837 Fixed selling and administrative expense 41,331 Variable selling and administrative expense, 86,269 Sales revenue 563,800 This question is independent of all other questions. Please use only the information in this question to calculate the answer. Based on the information provided above, calculate break – even in dollars. Cost of goods sold is a variable cost in this company. Enter only the amount for the break – even in dollars in the box provided below ( rounded to a whole number, based on general rounding rules). Enter the amount only. Do not enter letters, words, dollar signs or the calculation.Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Jerry, Incorporated Kate Company 6 30 1,000 420 4 5 50 13 140 5 Colleen sells its products at $290 per unit. The firm's gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Cost Driver and Rate $800 per visit Order processing Deliveries Sales returns Sales salary Required: 180 per order 410 per order 270 per return and $3 per unit returned 107,000 per month 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company…
