Sydney Corporation, a provider of cable television, projects the following revenues: August September October $205,000 220,000 238,000 250,000 290,000 November December Total expenses are equal to 35 percent of the current month's revenues. Of this amount, $12,000 represents depreciation. Sixty percent of all accounts payable for expenses are paid for in the month incurred, with the remainder being paid in the following month. Compute the budgeted cash disbursements during November: $

Sydney Corporation, a provider of cable television, projects the following revenues: August September October $205,000 220,000 238,000 250,000 290,000 November December Total expenses are equal to 35 percent of the current month's revenues. Of this amount, $12,000 represents depreciation. Sixty percent of all accounts payable for expenses are paid for in the month incurred, with the remainder being paid in the following month. Compute the budgeted cash disbursements during November: $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Noventis Corporation prepared the following estimates for the four quarters of the current year:Additional Information• First-quarter administrative costs include the $160,000 annual insurance premium.• Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year.• No special items affect income during the year.• Noventis estimates an effective income tax rate for the year of 40 percent. a. Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.b. Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year.
SafeMark Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $102,200 April 96,100 May 87,500 Depreciation, insurance, and property taxes represent $22,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 59% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May. SafeMark Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses: Paid in March $fill in the blank 1 Paid in April $fill in the blank 2 April expenses: Paid in April fill in the…
MN Plc's revenue as shown in its draft statement of profit or loss for the year ended 31 December 20X9 is GHS27m. This includes: (i) GHS8m for a consignment of goods sold on 31 December 20X9 on which MN Plc will incur ongoing service and support costs for two years after the sale. The cost of providing service and support is estimated at GHS800,000 per annum. MN Plc applies a 30% mark-up to all service costs. (ii) GHS4m collected on behalf of Aintree. MN Plc acts as an agent for Aintree and receives a 10% commission on all sales. At what amount should revenue be shown in the statement of profit or loss of MN Plc for the year ended 31 December 20X9? (Ignore the time value of money.) A. GHS22,920,000 B. GHS21,800,000 C. GHS20,520,000 D. GHS21,320,000
Tokyo Corporation purchases P1,500 in raw material each month to support sales of P2,500 that occur in the following month. In addition, Tokyo Corporation pays wages, rent, and taxes that total P700 each month. What is Tokyo's total monthly cash disbursements? a. P300 b. P4,700 c. P700 d. P2,200 e. P1,000
On January 1, 2021, Petersen Enterprises purchased natural resources for $1,800,000. The company expects the resources to produce 12,000,000 units of product. What is the depletion cost per unit? (Round answer to 2 decimal places, e.g. 52.75.) Depletion cost per unit $ eTextbook and Media If the company mined and sold 20,000 units in January, what is depletion expense for the month? Depletion expense for January $ eTextbook and Media
Crane Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding depreciation) for the next five years are shown in the following table. The company’s tax rate is 34 percent. Year 1 Year 2 Year 3 Year 4 Year 5 Sales $127,450 $176,875 $247,455 $254,440 $271,125 Expenses $141,410 $128,488 $137,289 $145,112 $139,556 Crane will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent. (a1) Calculate accounting rate of return. (Round answer to 1 decimal place, e.g. 15.2%.) Accounting rate of return enter the Accounting rate of return in percentages rounded to 1 decimal place %
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Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated cost of $ 1,348,800. The contract price was $1,888,320. Costs of the contract for 2022, the first year, totaled $1,011, 600. If required, round any division to two decimal places and round your final answers to the nearest dollar. a. What was the gross profit reported by the percentage of completion method for 2022? Sfill in the blank 1 b. After the contract was completed at the end of 2023 at a total cost of $1,416, 240, what was the gross profit reported by the percentage of completion method for 2023? Sfill in the blank 2
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Andre's Bakery has sales of $613,000 with costs of $479,000. Interest expense is $26,000 and depreciation is $42,000. The tax rate is 25 percent. What is the net income?
NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? 1. Use the information given. How much revenue from service contracts is recognized in 2019? a. P204,750 b. P525,000 c. P729,750 d. P1,144,500 Use the information given. How much revenue from service contracts sold in 2019 is recognized in 2020? a. P682,500 b. P862,500 c. P955,500 d. P1,842,750