I have an hour to do it, need to know if it can be done bc its timed

1 answer below »
I have an hour to do it, need to know if it can be done bc its timed


Answered Same DayMay 28, 2022

Answer To: I have an hour to do it, need to know if it can be done bc its timed

Rochak answered on May 29 2022
87 Votes
1.
Wages of assembly line workers Fixed
President's salary Mixed
Plant utilities Fixed
Sales force commissions Variable
Shipping costs Variable
Factory rent Fixed
Research and development expenses Fixed
Property taxes Fixed
Advertising Fi
xed
Supplies used in production Variable
2.
Balance Sheet
    Balance Sheet
    
    
    
    2020
    2019
    Assets
    
    
    Current assets:
    
    
    Cash
    159000
    264000
    Accounts Receivable
    150000
    219000
    Inventory
    168000
    147000
    Total Current Assets
    477000
    630000
    Land
    120000
    120000
    Buildings and Equipment
    780000
    486000
    Less: Accumulated depreciation
    -504000
    -369000
    Total land, building and equipment
    276000
    117000
    Total assets
    873000
    867000
    Liabilities
    
    
    Current liabilities:
    
    
    Short-term debt
    96000
    81000
    Notes payable
    144000
    108000
    Accounts payable
    69000
    87000
    Total Current liabilities
    309000
    276000
    Long term debt
    255000
    330000
    Stockholders equity
    
    
    Common Stock
    120000
    90000
    Retained earnings
    189000
    171000
    Total Stockholders equity
    309000
    261000
    Total liabilities and stockholders equity
    873000
    867000
Statement of Changes in Retained Earnings for the year ended December 31, 2020
    Particulars
    Amount
    Retained Earnings at 2019
    171000
    Add: Net Income in 2020
    27000
    
    198000
    Less: Dividends paid
    9000
    Retained Earnings at 2020
    189000
3.
a. Debt Ratio = Total Debt/Total Assets
= $216,000/$288,000
= 0.75
b. Debt/Equity Ratio = Total Debt/Total Equity
= $216,000/($288,000-$216,000)
= 3.00
c. Times Interest Earned for the year ended December 31, 2019 = Earning before interest and taxes/Interest Expense
= $97,500/$15,000
= 6.5
4.
a. Operating Income for July = ((Current Selling Price – Variable Costs) * Sales) – Fixed Expenses
= (($30-$21)*12,000)-$90,000
= $18,000
b. Breakeven points in units sold = Fixed Cost/(Current Selling Price – Variable Costs)
= $90,000/($30-$21)
= 10,000
Breakeven points in total revenues = Fixed Cost/((Current Selling Price – Variable Costs)/Current Selling Price)
= $90,000/(($30-$21)/$30)
= $300,000
c.
1. Operating Income = ((Current Selling Price – Variable Costs) * Sales) – Fixed Expenses
= (($30-$15)*12,000)-$100,000
= $80,000
2. Breakeven points in units sold = Fixed Cost/(Current Selling Price – Variable Costs)
= $100,000/($30-$15)
= 6,666.67
Breakeven points in total revenues = Fixed Cost/((Current Selling Price – Variable Costs)/Current Selling Price)
=...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here