MAKE SURE YOU USE EXCEL. Spooktacular Co. sells a skeletons in Mission, which sells for $449 per skeleton. Last year Spooktacular's sold 5,000 skeletons, each of which costs $52 to produce. Spooktacular's incurred selling and administrative expenses of $240,000 and amortization expense of $30,000. In addition, Spooktacular's has a $200,000 loan outstanding at 12%. Its tax rate is 30%. There are 75,000 common shares outstanding. Prepare an income statement for Spooktacular's in good form (include EPS). Q Fir

MAKE SURE YOU USE EXCEL. Spooktacular Co. sells a skeletons in Mission, which sells for $449 per skeleton. Last year Spooktacular's sold 5,000 skeletons, each of which costs $52 to produce. Spooktacular's incurred selling and administrative expenses of $240,000 and amortization expense of $30,000. In addition, Spooktacular's has a $200,000 loan outstanding at 12%. Its tax rate is 30%. There are 75,000 common shares outstanding. Prepare an income statement for Spooktacular's in good form (include EPS). Q Fir

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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On 1-March-2010, Alpha Pharmaceuticals Ltd. purchased 10 machines for manufacturing tablets. The price of each machine is $150,000. The transportation and installation cost is 1% and 2.5% of the price respectively for each machine. The company also had to bear the cost of test runs for each machine, which were $1,500. The approximate repair and maintenance expense for each machine is $4,000 per year. The company paid 25% of price in cash and signed a 6 month, Notes Payable (N/P) for the remaining balance. The N/P bears interest expense for the company at 5% per annum. Each machine is useful for 5 years and experts estimate that each machine can be sold at the end of its useful life for 10% of its purchase price.During its useful life, the machine will produce 7,500,000 tablets. Following table shows number of tablets produced in each year. Please note that the company’s fiscal year ends on 30th June. year unit produced 1 2,500,000 2 1,700,000 3 1,400,000 4 1,200,000 5…
With a $100,000 investment in a new injection mouldingmachine, A-Design Inc., a company specialized in thedesign and manufacturing of armrests for wheelchairswas able to achieve an operating income of $36,000 inits first year of production/operation. The interestexpenses on the money A-Design has borrowed were$5,000 per year. 4. With a net unit price of $5 per armrest, how many armrestsmust A-Design sell to break-even with respect to theinvestment?
Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $36,000 per year. Nancy can buy a used truck for $8,000 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $27,000 per year. At the end of 3 years, the used truck will have an estimated salvage value of $2,000. Nancy's MARR is 24%/year. a. What is this investment's internal rate of return? IRR = % Do all calculations to 5 decimal places and round final answer to the whole number. The tolerance is +/- 1.
McCafe Inc.has built a separate car parking area having parking space of 1,000 cars.$1/hour is charged for each car as parking fee whereas, the parking area operates for 2,600 hours/year. Normally, customers use the parking area as an average fortwo hours. McCafe has rented this parking area for $7,500/month from a construction company There arefive employees who look after the parking area who are paid for 50 weeks; $350/week. These employees are allowed two-week holidaysand an additional compensation of $600are paidto each employee duringthese holidays. All five employees work during the months when traffic load is high whereas, four employees handle all the matters when traffic load is lesser. The overall workload is managed byaManager who is paid $25,000/year. Maintenance and other operating costs of parking area include fixed costs of $2,500 per month whereas 7cents/parking-space/hour is included in variable cost.Required:(i) Calculate the annual break-even point in dollars (Car…
b. Al Huda enterprises supplies small water coolants to various government and private sector entities. The price for each coolant is 75 OMR and the cost is 55 OMR. On 01/01/2015, AI Huda signed a contract with SQU to supply 350 water coolants. Al Huda offers a 5% volume discount if an entity purchases 300 or more units. On 20/05/2015, Al Huda delivered 270 coolants to SQU. From past experience, Al Huda believes that SQU will meet the discount volume threshold. Required For Al Huda Enterprises: DISTR a. Prepare the journal entry, if any, on 01/01/2015 b. Prepare the journal entry on 20/05/2015
Junker Rental Car has a contract with a garage for major repair service for $450 per car, every 6 months. Management estimates that for $350,000, the company could have its own facility, financed at 8% interest for 20 years, and a salvage value of $20,000. They will do their own car repairs at a cost of $200 per car, every 6 months. Ignoring taxes and other economic factors, what is the minimum number of cars needed to make the change feasible?
VITRAN Bus Services purchases diesel fuel from Domino Gas Supply. In addition to fuel cost, Domino Gas Supply charges VITRAN Bus Services $250 per order to cover the expenses of delivering and transferring the fuel to VITRAN Bus Services storage tanks. The lead time for new shipment from Domino Gas Supply is 10 days, the cost of holding a gallon of fuel in the storage tanks is $0.04 per month, or $0.48 per year and the annual usage of fuel is 150,000 gallons. VITRAN Bus Services buses operate 300 days a year. The VITRAN Bus Services storage tanks a capacity of 15,000 gallons. Should VITRAN Bus Services considers expanding the capacity of its storage tanks? What is the reorder point?
Big Dig Cats just bought a new loader including tires for $125,000. The tires are valued at $6,000. In 6 years it is estimated to have a salvage value of $35,000. It is used approximately 2,200 hours per year. Additionally, tax = 1.7%, insurance = 1.1%, and interest = 2.5%. Also, the total average operating cost is $35.55/hr, and the overhead cost is $1,700/year. a. Find the IT charge rate in $/hr using the AAV formula. b. Calculate the total cost per hour.
On March 1, Bartholomew Company purchased a new stamping machine with a list price of $88,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $3100; sales tax paid, $6,720, installation costs, $1,900; routine maintenance during the first month of operation, $3,000. The cost recorded for the machine was:
Nancy’s Notions pays a delivery firm to distribute its products in the metro area. Shipping costs are $30,000 per year. Nancy can buy a used truck for $10,000 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $25,000 per year. At the end of 3 years, the used truck will have an estimated salvage value of $3,000. Nancy’s MARR is 24%/yr. Solve, a. What is the internal rate of return of this investment? b. What is the decision rule for judging the attractiveness of investments based on internal rate of return? c. Should Nancy buy the truck?
Edmund Supplies Company sold 3,170 metal connectors on account to Door Incorporated for $200 each on September 15. Each metal connector costs Edmund $150 to make. Door has 60 days to return the unused goods. Edmund believes that Door will ultimately return 75 of the connectors. On September 29, Door returns 50 connectors. Edmund has a September 30 fiscal year end. At year end, Edmund believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Edmund expects to be able to resell these goods for a profit. Instructions Prepare the following journal entries on the books of Edmund Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.