Business
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense. Knowledge Check 01 What is the budgeted variable manufacturing overhead for the year
Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component 30Y. Consider two activities: testing components and reordering components. After the two components are inserted, testing is done to ensure that the two components in the phones are working properly. Reordering occurs because one or both of the components have failed the test and it is necessary to replenish component inventories. Activity cost information and other data needed for supplier costing are as follows:I. Activity Costs Caused by Suppliers (testing failures and reordering as a result)Activity Costs Testing components $1,200,000Reordering components 300,000II. Supplier DataAlpha Electronics La Paz Company125X 30Y 125X 30YUnit purchase price $10 $26 $12 $28 Units purchased 120,000 84,400 15,000 15,000 Failed tests 1,500 780 10 10 Number of reorders 60 40 0 0 Required:Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent.Alpha Electronics La Paz Company125X 30Y 125X 30YUnit cost: $ $ $ $
Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year's net income of $104,000 under each of the following independent assumptions. No agreement concerning division of net income. Divided in the ratio of original capital investment. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.HawesAlbright(a)$$(b)$$(c)$$(d)$$(e)$$
The comparative statements of Carla Vista Co. are presented here. CARLA VISTA CO. Income Statements For the Years Ended December 31 2017 2016Net sales $1,897,540 $1,757,500Cost of goods sold 1,065,540 1,013,000Gross profit 832,000 744,500Selling and administrative expenses 507,000 486,000Income from operations 325,000 258,500Other expenses and losses Interest expense 24,000 22,000Income before income taxes 301,000 236,500Income tax expense 94,000 75,000Net income $ 207,000 $ 161,500 CARLA VISTA CO. Balance Sheets December 31Assets 2017 2016Current assets Cash $ 60,100 $ 64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 124,800 109,800 Inventory 128,000 117,500 Total current assets 386,900 341,500Plant assets (net) 659,000 530,300Total assets $1,045,900 $871,800Liabilities and Stockholders EquityCurrent liabilities Accounts payable $ 167,000 $152,400 Income taxes payable 45,500 44,000 Total current liabilities 212,500 196,400Bonds payable 230,000 210,000 Total liabilities 442,500 406,400Stockholders equity Common stock ($5 par) 290,000 300,000 Retained earnings 313,400 165,400 Total stockholders equity 603,400 465,400Total liabilities and stockholders equity $1,045,900 $871,800All sales were on account. Net cash provided by operating activities for 2017 was $251,000. Capital expenditures were $135,000, and cash dividends were $59,000.Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)(a) Earnings per share $(b) Return on common stockholders equity (c) Return on assets (d) Current ratio (e) Accounts receivable turnover (f) Average collection period (g) Inventory turnover (h) Days in inventory (i) Times interest earned (j) Asset turnover (k) Debt to assets ratio (l) Free cash flow
The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the companys financial condition and performance.Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet.Cold Goose Metal Works Inc. Balance Sheet for Year Ending December 31 (Millions of Dollars)Year 2 Year 1 Year 2 Year 1Assets Liabilities and equity Current assets: Current liabilities: Cash and equivalents $4,612 Accounts payable $0 $0Accounts receivable 2,109 1,688 Accruals 293 0Inventories 6,187 4,950 Notes payable 1,660 1,562Total current assets $14,062 $11,250 Total current liabilities $1,562Net fixed assets: Long-term debt 5,859 4,688Net plant and equipment $13,750 Total debt $7,812 $6,250Common equity: Common stock 15,235 12,188Retained earnings 6,562Total common equity $23,438 $18,750Total assets $31,250 $25,000 Total liabilities and equity $31,250 $25,000Given the information in the preceding balance sheetand assuming that Cold Goose Metal Works Inc. has 50 million shares of common stock outstandingread each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.Statement #1: Cold Gooses pool of relatively liquid assets, which are available to support the companys current and future sales, decreased from Year 1 to Year 2.This statement is , because:Cold Gooses total current liabilities balance decreased by $2,812 million between Year 1 and Year 2Cold Gooses total current asset balance actually increased from $11,250 million to $14,062 million between Year 1 and Year 2Cold Gooses total current liabilities balance increased from $1,688 million to $2,109 million between Year 1 and Year 2Statement #2: In Year 2, Cold Goose Metal Works Inc. was profitable.This statement is , because:The cash and equivalents account increased between Years 1 and 2Cold Gooses retained earnings account increased between the end of Years 1 and 2Cold Gooses total assets increased between Years 1 and 2