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2 years ago

Assume Mussa Company has the following information available:

Business

1 answer:

crimeas [40]2 years ago

8 0

Answer:

B) $480,000

Explanation:

In this question we compare the operating income

In the first case,

The operating income is

= Contribution margin - fixed cost

where,

= (Selling price per unit - Variable cost per unit) × Expected sales units per year

= ($100 - $45) × 20,000 units

= $1,100,000

And, the fixed cost is $420,000

So, the operating income is

= $1,100,000 - $420,000

= $680,000

In the second case,

The operating income is

= Contribution margin - fixed cost

where,

= (Selling price per unit - Variable cost per unit) × Expected sales units per year

= ($100 - $45) × 20,000 units

= $1,100,000

And, the fixed cost is $420,000 + $200,000 = $620,000

So, the operating income is

= $1,100,000 - $620,000

= $480,000

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In its first year of operations, gomes company recognized $28,000 in service revenue, $6,000 of which was on account and still o

emmainna [20.7K]

Answer:

The accrual basis provides more useful information for decision makers as it matches better revenue against expenses.

Explanation:

net earnings under the cash basis of accounting:

service revenue $22,000

less operating expenses $13,000

less insurance $3,600

Net earnings $5,400

net earnings under the accrual basis of accounting:

service revenue $28,000

less operating expenses $14,500

Net earnings $13,500

The accrual basis provides more useful information for decision makers as it matches better revenue against expenses.

bran-list please almost Virtuoso

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2 years ago

Identify which department has stewardship over the following journals, ledgers, and files.

fredd [130]

Answer:

a. Customer open order file ⇒ SALES ORDER DEPARTMENT

This department deals with customer orders so they open the customer open order file.

b. Sales journal ⇒ BILLING DEPARTMENT.

In order the know how much to bill customers, this department does the sales journal.

c. Journal voucher file ⇒ BILLING DEPARTMENT

Journal voucher file is derived from the sales journal so it also falls under the billing department.

d. Cash receipts journal ⇒ CASH RECEIPTS DEPARTMENT

Cash receipts department are in charge of cash transactions that involve receipts so they are in charge of making the relevant journal.

e. Inventory subsidiary ledger ⇒ INVENTORY CONTROL DEPARTMENT

f. Accounts receivable subsidiary ledger ⇒ ACCOUNT RECEIVABLE DEPARTMENT

As the department in charge of transactions related to the Account receivables, this department is in charge of the ledger that records these receivables.

g. Sales history file ⇒ SALES DEPARTMENT

h. Shipping report file ⇒ SHIPPING DEPARTMENT

The shipping report file shows details of goods shipped to customers and so this falls under the responsibility of the shipping department.

i. Credit memo file ⇒ CREDIT DEPARTMENT

j. Sales order file ⇒ SALES DEPARTMENT

k. Closed sales order file ⇒ SALES DEPARTMENT

The sales department is in charge of these last two because everything that has to do with sales falls under the Sales department except for when the sale is first ordered.

8 0

2 years ago

Carey, a single taxpayer, purchased a rental house in 2018, which he actively manages. During 2018, Carey had a loss of $14,000

noname [10]

Answer:

$6,000

Explanation:

First, Carey's allowable deductions repersents 'real estate loss allowance. The real estate loss allowance is an allowance or tax reduction made available to taxpayers who are also owners of rental properties in the U.S.

The specific allowance states that if the adjusted gross income of the owner of the rental property is $100,000 or less, then the taxpayer is allowed a deduction of $25,000. However, this begins to reduce as the adjusted gross income approaches $150,000 and the allowance is completely eliminated when the income exceeds $150,000

Based on this explanation, Carey's Adjusted Gross Income= $138,000, higher than $100,000 but less than $150,000

The calculation= 50% ($150,000- maximum allowable adjusted gross income- $138,000 - Carey's reported adjusted gross income)

=0.50 ($12,000)

= $6,000

7 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

Jeremy is studying the effects of income on the demand for Greek ceramics. If "ceteris paribus" is used, which factors would be

aliya0001 [1]

Answer:

B) all factors affecting demand, except income

Explanation:

Ceteris paribus can be used to identify the relationship between two specific variables, while leaving all other factors constant. In this case, since Jeremy is studying the effects of income on the demand (of anything really, not only Greek ceramics), it should affect all factors affecting demand except income. Jeremy is going to analyze how the quantity demanded changes when the income changes, all other things constant.

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2 years ago