Answer: A. Separate costs into fixed and variable categories.
Explanation: The contribution income statement separates variable and fixed costs in an effect to show the amount of revenues left over after variable costs are paid, that is, it lists variable costs (costs that do not remain consistent) and fixed costs (costs that are constant whatever the amount of goods produced) in order to calculate the contribution margin of the company. It is also known as the contribution margin income statement. As opposed to the traditional income statement which separates product costs from period costs, it separates variable costs from fixed costs and is applied to determining net profit or loss for the period.
Answer: the operating capital is $40.00
Explanation:
operating capital is also known as working capital. it is the value of running a business on daily basis. it is also the value of short term resources available for use in daily activities. it is current assets minus current liabilities of a business.
current assets = cash + inventory + account receivable + short term investment = 20+50+20+60= 150
current liabilities = accruals + account payable + notes payable=50+30+30=110
operating capital = 150 - 110 = 40
Answer: $8,391.90
Explanation:
So the company borrowed $40,000 from a bank.
They are to pay 7% interest on the note per year for 6 years.
We are to find the annual payments.
7% represents a constant payment schedule per year so we can use an Annuity formula.
Seeing as the Annuity factor has been calculated for us already we don't need to formula though.
The present value of an annuity factor for 6 years at 7% is 4.7665.
Calculating the present value of the annual payment can be done as follows,
= Amount / PVIFA (Present Value Interest Factor for an Annuity)
= 40,000/4.7665
= 8391.90181475
= $8,391.90
The annual payments equal $8,391.90.
Answer:
$175,000
Explanation:
Conversion costs are production costs that must be incurred in order to change raw materials into products.
Therefore, we have:
Total of the conversion costs = Cost of clay used in production + wages paid to the workers who paint the figurines = $76,000 + $99,000 = $175,000
Answer:
Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) they would not be able to claim her as a dependent.
Explanation:
If the grandparents provided $14,000 their contribution to Anna's school fees is not up to half so they cannot claim Anna as an exemption. Anna had $12,000 personal money and $8,000 scholarship, it is crowned that she provided $20,000 by herself.
However since she is under the age of 21 and in college, her parents can claim her.
