David Ltd. Had 3 departments D1, D2, D3. Information relating to the department are as follows:DepartmentsD3($)60,000D1($)D2($)Opening StockDirect Materials Consumed 80,000 1,20,00030,00040,00050,000 1,00,00040,000 1,40,000 80,000WagesClosing StockSalesStocks of each departments are valued at cost of the department concerned. Stocks of D1 are37407000transferred to D2 at a margin of 50% above departmental cost. Stocks of D2 are transferred to D3department at a margin of 10% above departmental cost.Other relevant expenses were:Salaries $ 20,000; Printing and Stationery $ 10,000,Stationery $ 60,000; Interest paid $ 40,000; andDepreciation $ 30,000.Allocate expenses in the ratio of departmental gross profits. Opening figures of reserves for unrealisedprofits on departmental stocks were : D2-_ $ 10,000 and D3- $ 20,000.Prepare Departmental Trading and Profit & Loss Account.

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Answered: David Ltd. Had 3 departments D1, D2,…

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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Excerpts from Smith Company's December 31, 20x2 and 20x1, financial statements are presented below: 20x2 20x1 Accounts receivable $ 51,000 Merchandise inventory $ 70,000 43,000 375,100 65,000 Net sales 360,000 Cost of goods sold 144,000 123,000 Total assets 455,000 420,000 Total shareholders' equity 270,000 240,000 Net income 55,000 43,000 What is Smith's asset turnover for 20x2? (Round your answer to 2 decimal places.) Multiple Choice O O C 0.86. 3.16. 3.32. 2.15.
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From the following information, construct a simple income statement and a balance sheet: Sales $1,300,000 Finished goods 300,000 Long-term debt 300,000 Raw materials 150,000 Cash 45,000 Cost of goods sold 590,000 Accounts receivable 230,000 Plant and equipment 260,000 Interest expense 80,000 Number of shares outstanding 70,000 Earnings before taxes 550,000 Taxes 110,000 Accounts payable 250,000 Other current liabilities 30,000 Other expenses 80,000 Equity 405,000 Round your answer for earnings per share to the nearest cent. Corporation X: Income Statement for the Year Ended XX/XX/XX Sales $ Cost of goods sold Other expenses Earnings before interest and taxes Interest expense Earnings before taxes Taxes Net earnings $ Number of shares outstanding Earnings per share $ Corporation X Balance Sheet as of XX/XX/XX Assets Liabilities and Owners' Equity Cash $ Accounts…
Income statements for Burch Company for Year 3 and Year 4 follow: BURCH COMPANY Income Statements Year 4 Year 3 $200,000 124,000 20,000 18,000 $240,000 180,000 Sales Cost of goods sold Selling expenses Administrative expenses 26,000 12,000 7,500 $225,500 14,500 1,200 $ 13,300 8,000 $170,000 30,000 3,000 $ 27,000 Interest expense Total expenses Income before taxes Income taxes expense Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required 8 Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place, (i.e., 0.234 should be entered as 23.4).) BURCH…
The following information is given to you from which you are required to prepare a Statement of Cost and Sales for the period ended on 30th June 2023:Consumable material: KOpening stock 20,000Purchases 122,000Closing stock 10,000Direct wages 36,000Direct Expenses 24,000Factory overheads 50 % of direct wagesOffice and administration overheads 20% of works costSelling and distribution expenses K3 per unit soldUnits of finished goods:In hand at the beginning of the period (Value K12,500) 500Units produced during the period 12,000In hand at the end of the period 1,500Profit on selling price 20% There is no work-in-progress either at the beginning or at the end of the period.
Presented below is the income statement of Coming Company: Sales Cost of goods sold Gross profit Operating expenses Income before income taxes $305,000 180,000 $125,000 68,000 57,000 21,400 $35,600 Income taxes Net income In addition, the following information related to net changes in working capital is presented: Cash Accounts receivable Inventories Salaries payable (operating expenses) Accounts payable Income tax payable Debit $9,600 10,000 $15,620 6,400 9,500 2,400 Credit The company also indicates that depreciation expense for the year was $12,360 and that the deferred tax liability account increased $3,080. Required: (a) Compute the net cash flow from operating activities that would be shown on a statement of cash flows using the indirect method. (b) Compute the net cash flow from operating activities that would be shown on a statement of cash flows using the direct method. P47 PPT (c) State the major difference between the two methods in handling statement of cash flows.
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Locomotive Division Cost of goods sold Direct operating expenses Sales Interest expense General overhead. Income tax Rails Division $ 47,200 27,200 108,000 The income from operations for the Rails Division is O $21,150 Ob. $33,600 O $8,700 O d. $60,800 $30,720 20,040 78,000 Corporate Total $2,040 18,160 4,700
Suresh Company reports the following segment (department) income results for the year. Department M Department N Department 0 Department P $ 82,000 $ 44,000 $ 78,000 $ 65,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department Department M Department N Department O Department P Department T 17,300 45,400 57,800 21,600 75, 100 67,000 $ 6,900 $ (23,000) Decision 18,000 5,700 23,700 $ 54,300 21,500 54,300 75,800 $ (10,800) Department T $ 43,000 51,300 20,300 71, 600 $ (28,600) Total $ 312,000 a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? 153,500 159, 700 313, 200 $ (1,200)
Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) A B C Sales $5,267,000 $1,630,000 Net Operaring Income $737,380 $260,800 Average operating assets $2,290,000 $2,570,000 Margin 6% Turnover 1.60 Return on Investment (ROI) 8%

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