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2 years ago

Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

Business

1 answer:

HACTEHA [7]2 years ago

5 0

Answer:

- ($51,306)

Explanation:

Given that,

Loss of Contribution = $75,000

Fixed costs will be eliminated by dropping the CUP line = $23,694

Net loss on dropping cup line:

= Loss of contribution - Gain on fixed costs on dropping cup line

= $75,000 - $23,694

= - ($51,306)

Therefore, the net effect on dropping the cup line on net income is $(51,606).

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Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received

muminat

Answer:

a. What is the after-tax cost if she pays the $39,000 bill in December?

= $23,000 x (1 - 32%) = $15,640

b. What is the after-tax cost if she pays the $39,000 bill in January? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

total after tax cost (including investment revenue):

= $23,000 x (1 - 37%) = $14,490

= -$23,000 x 7% x 1/12 x (1 - 37%) = -$84.53

= $14,405.47

c. Should Reese pay the $23,000 bill'in December or January?

January , since the after tax cost is lower

d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $23,000 bill in January?

= $23,000 x (1 - 24%) = $17,480

= -$23,000 x 7% x 1/12 x (1 - 24%) = -$101.97

= $17,378.03

e. Should Reese pay the $23,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year?

December, since the after tax cost is lower

3 0

2 years ago

Nourishmix, Inc. manufactures food processors. The target sales price is $420 per unit. The company desires a 30% net profit

jasenka [17]

Answer:

C. $294

Explanation:

The computation of the company's target full - product cost per unit is shown below:

= Target sale price - target sale price × net profit margin

= $420 - $420 × 30%

= $420 - $126

= $294

Simply we deduct the targeted net profit from the targeted sales price so that the accurate target full - product cost per unit can come.

7 0

2 years ago

At January 1, 2020, Benny Enterprises reported a balance in the Equipment account of $45,000. During the year the company purcha

fiasKO [112]

Answer:

$4,000

Explanation:

The operating activities is the activities which records day to day activities i.e change in working capital, loss or profit on sale of long term assets, depreciation expense etc

In the given situation, there is a loss of $4,000 on the sale of equipment and the same is recorded under the operating activity in a positive sign

The sale of an equipment and the purchase of an equipment would be shown in the investing activity . Hence, we do not considered here

3 0

2 years ago

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500.

Doss [256]

Answer:

Dep expense for the second year 7,600

Explanation:

$\left[\begin{array}{ccccc}Year&Beginning&Dep-Expense&Acc. \: Dep&Ending\\0&-&-&-&47500\\1&47,500&9,500&9,500&38,000\\2&38,000&7,600&17,100&30,400\\\end{array}\right]$

1/10 = straight-line method

straight-line x 2 = DD rate

47,500 x 2/10 = 9500

then we calculate the DD rate again with the book value

47,500-9,500 = 38,000

38,000 x 2/10 = 7,600

6 0

2 years ago

At the beginning of the year, Brick Makers had cash of $183, accounts receivable of $392, accounts payable of $463, and inventor

Pie

Answer:

amount of the net source $15

Explanation: $Working\ capital= Current\ assets-Current\ liabilities$

$source\ of\ cash =[Cash+AR+Inventory]- [Amount\ Payable]$

cash = $183

received amount = $392

inventory =$714

payable amounts =$463

current assest = (183+392+714)-463=$826

current liabilities =(167+682+409-447)=$811

cash = $167

received amount = $409

inventory =$682

payable amounts =$447

current liabilities =(167+682+409-447)=$811

Hence since current liabilities is more than current assests, therefore there will be loss of accounts

Hence source of cash= (826-811) = $15.

7 0

2 years ago