Avenger's Inc. began operations on January 1 of the current year with a $25,000 cashbalance. 40% of sales are collected in the month of sale; 60% are collected in the monthfollowing sale. Similarly, 45% of purchases are paid in the month of purchase, and 55% arepaid in the month following purchase. The following data apply to January - Sales $75000,purchases $60000 and operating expenses - $9000 and February - Sales $ 80000, purchases$65000 and operating expenses - $18000. If operating expenses are paid in the monthincurred and include monthly depreciation charges of $5000, determine the change inAvenger's cash balance during January and February month separately and the cash balanceat the end of January and February

Answer:- The sales on the account means the sale is done on a credit basis. The amount of the credit…

Answered: Avenger's Inc. began operations on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Brick Company had cash sales of $221,600 for Year 1, Its first year of operation. On April 2, the company purchased 227 units of Inventory at $190 per unit. On September 1, an additlonal 170 units were purchased for $209 per unit. The company had 49 units on hand at the end of the year. The company's Income tax rate Is 40 percent. All transactions are cash transactlons. Requlred a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of Inventory, (3) a second purchase of Inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of Income tax expense. Show the amounts of each event In horizontal statements models, assuming first a FIFO and then a LIFO cost flow. b. Compute net Income using FIFO. c. Compute net Income using LIFO. e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet? Complete this question by entering your answers in the tabs below. Required A Required B…
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $400,000, variable expenses of $215,000, and traceable fixed expenses of $47,000. During the same month, the West business segment had sales revenues of $1,070,000, variable expenses of $544,000, and traceable fixed expenses of $205,000. The common fixed expenses totaled $318,000 and were allocated as follows: $159,000 to the East business segment and $159,000 to the West business segment. The contribution margin of the West business segment is: $526,000 $(35,000) $729,000 $138,000
The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $570,000 Sales 567,921 Purchases 294,826 Ending Inventory* 10% Administrative Salaries 50,280 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,300 Depreciation Expense 900 Utilities 2,700 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc. Budgeted Income Statement For the Month Ending Mar. 31, 2020 Sales $fill in the blank 2 Cost of Goods Sold Beginning Inventory $fill in the blank 4 Purchases fill in the blank 6 Cost of Goods Available for Sale $fill in the blank 8 Ending Inventory fill in the blank 10 Cost of Goods Sold $fill in the blank 12 Gross Profit fill in the blank 14 Operating Expenses Administrative Salaries…
Dabble, Inc., has sales of $975,000 and cost of goods sold of $476,000. The firm had a beginning inventory of $33,500 and an ending inventory of $43,500. What is the length of the days' sales in inventory? (Use 365 days a year. Use ending inventory rather than average inventory. Round your answer to 2 decimal places.) Days' sales in inventory days
General Forge and Foundry Company has a quick ratio of 2.00; $33,750 in cash; $18,750 in accounts receivable; some inventory; total current assets of $75,000; and total current liabilities of $26,250. In its most recent annual report, General Forge reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales. How many times is General Forge and Foundry Company selling and replacing its inventory? O 4.44x O 3.179x O 0.35x O 2.89x
Tarmac Co made sales of $1,930,200 during the year ended 31st March X3. Inventory decreased by $132,000 over the year and all sales were made at a mark-up of 45%.What was the cost of purchases during the year, to the nearest $100?
Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the income statement of the company included the information shown below: Sales $1,100,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $67,000 Purchases 840,000 Goods available for sale $907,000 Less merchandise inventory, December 31, 20-- 130,000 Cost of goods sold 777,000 Gross profit on sales $323,000 Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20--. Instead, they had merely estimated the inventory. Required: Under the gross profit method of inventory estimation, determine the following items to check the accuracy of the employees' estimates. Gross profit on sales ? Cost of goods sold ? Ending inventory ?
The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $540,000 Sales 567,932 Purchases 294,830 Ending Inventory* 10% Administrative Salaries 50,340 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,600 Depreciation Expense 900 Utilities 2,300 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc.Budgeted Income StatementFor the Month Ending Mar. 31, 2020 $Sales Cost of Goods Sold $Beginning Inventory Purchases $Cost of Goods Available for Sale Ending Inventory $Cost of Goods Sold Gross Profit Operating Expenses $Administrative Salaries Marketing Expenses Sales Commissions Rent Expense Depreciation Expense Utilities Total Operating…
A sole proprietorship firm has taxable income of $128,200. Assume this is the sole source of income for the owner. Taxable Tax Rate Income 9,525 10 % %$4 9,526 38,700 12 38,701 82,500 22 82,501 157,500 24 157,500 – 200,000 32 The marginal tax rate is percent
The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $580,000 Sales 567,930 Purchases 294,832 Ending Inventory* 10% Administrative Salaries 50,280 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,700 Depreciation Expense 1,200 Utilities 2,500 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc.Budgeted Income StatementFor the Month Ending Mar. 31, 2020 $Sales Cost of Goods Sold $Beginning Inventory Purchases $Cost of Goods Available for Sale Ending Inventory $Cost of Goods Sold Gross Profit Operating Expenses $Administrative Salaries Marketing Expenses Sales Commissions Rent Expense Depreciation Expense Utilities Total…
Procter & Gamble is a multinational corporation that manufactures and markets many household products. Assume sales for the company in a recent year were $66,000 (all amounts In millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 42 percent. Additional account balances were: Accounts receivable (net) Inventory Ending $6,500 6,831 Beginning $6,500 6,292 Required: Compute Procter & Gamble's receivables turnover ratio and Its Inventory turnover ratio. On average, how many days does it take for the company to collect its accounts receivable and sell its Inventory? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute Procter & Gamble's receivables turnover ratio and its inventory turnover ratio. Note: Round your intermediate calculations and final answers to 2 decimal places. Turnover Accounts receivable Inventory
Camino Jet Engines, Inc. Is a supplier of jet engine parts. The company began the most reecent Fiscal Year with inventory of 75 units. The units cost 8,500 each. The company uses a perpetual inventory system to account for inventory. The following transactions occurred during the year. a. Purchases 50 additional units at a cost of $8,900 per unit. Terms of the purchases were 2/10, n/30, and payments was made within 10-days discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b shipping point. The company paid freight charges of $500 per unit b. 6 of the units purchased during the year were returned to the manufacturer for credit. The company were also given credit for the freight charges of $500 per unit it had paid on the original purchase. The units were defective and were returned two days after they were received c. Sales for the year totaled…

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