Homework Help is Here – Start Your Trial Now!
Business
Accounting
The contribution format income statement for Huerra Company for last year is given below: Unit $ 50.10 30.06 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,002,000 601,200 400,800 324,800 76,000 30,400 $ 45,600 20.04 16.24 3.80 1.52 $ 2.28 The company had average operating assets of $492,000 during the year.

The contribution format income statement for Huerra Company for last year is given below: Unit $ 50.10 30.06 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,002,000 601,200 400,800 324,800 76,000 30,400 $ 45,600 20.04 16.24 3.80 1.52 $ 2.28 The company had average operating assets of $492,000 during the year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

The contribution format income statement for Huerra Company for last year is given below: Unit $ 50.10 30.06 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,002,000 601,200 400,800 324,800 76,000 30,400 $ 45,600 20.04 16.24 3.80 1.52 $ 2.28 The company had average operating assets of $492,000 during the year.
Transcribed Image Text:The contribution format income statement for Huerra Company for last year is given below: Unit $ 50.10 30.06 Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,002,000 601,200 400,800 324,800 76,000 30,400 $ 45,600 20.04 16.24 3.80 1.52 $ 2.28 The company had average operating assets of $492,000 during the year.
5. Sales are increased by 10%; operating assets remain unchanged. (Round your answers to 2 decimal places.) Margin Turnover ROI Margin Turnover ROI % % 6. Obsolete inventory carried on the books at a cost of $20,000 is scrapped and written off as a loss. (Round your answers to 2 decimal places.) Margin Turnover ROI % % Effect 7. The company uses $184,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your answers to 2 decimal places.) 7.58 % % Effect Effect
Transcribed Image Text:5. Sales are increased by 10%; operating assets remain unchanged. (Round your answers to 2 decimal places.) Margin Turnover ROI Margin Turnover ROI % % 6. Obsolete inventory carried on the books at a cost of $20,000 is scrapped and written off as a loss. (Round your answers to 2 decimal places.) Margin Turnover ROI % % Effect 7. The company uses $184,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your answers to 2 decimal places.) 7.58 % % Effect Effect
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS