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2 years ago

At the end of the prior year, Durney's Outdoor Outfitters reported the following information.

Business

1 answer:

Vaselesa [24]2 years ago

5 0

Answer:

Please find the detailed answer and explanation below.

Explanation:

Accounts Receivables

Particulars Amount($) Particulars Amount($)

Beginning Bal. 48,271 Collections on accounts 290,700

Sales on account 306,548 Bad debts written off 7,054

Balance c/d 57,065

Total 354,819 354,819

Ending Balance <u>57,065</u>

Allowance for Doubtful accounts

Particulars Amount($) Particular Amount($)

Bad debt written off 7,054 Beginning Balance 8,469

Balance c/d 6,185 Bad debt expense 4,770

Total 13,239 13,239

Ending Balance 6,185

Durney's Outdoor Outfitters

Income Statement (Partial)

For the year ended December 31

Operating Expense:

Bad debt Expense $4,770

Durney's Outdoor Outfitters

Balance Sheet (Partial)

For the year ended December 31

Current asset:

Accounts receivable $57,065

Allowance for Doubtful Accounts ($6,185)

Accounts receivables(Net) <u>$50,880</u>

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Rosita's Restaurante has sales of $4,500, total debt of $1,300, total equity of $2,400, and a profit margin of 5 percent. What i

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Answer:

6.08%

Explanation:

Rosita's restaurant has a sales of $4,500

The total debt is $1,300

The total equity is $2,400

The profit margin is 5%

=5/100

= 0.05

Therefore the return on assets can be calculated as follows

= profit margin×sales/total debt +total equity

= 0.05×$4,500/($1,300+$4,200)

= 225/3,700

= 0.0608×100

= 6.08%

Hence the return on assets is 6.08%

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2 years ago

In addition, your MARGIN PER UNIT must cover another set of important but potentially large costs. To investigate these addition

babymother [125]

Effect of Contribution Margin on the other costs is given below

Explanation:

1.Contribution margin per unit is the net amount that each additional unit sold contributes towards a company's fixed costs and profit. It equals the difference between the product's sales price and variable cost per unit.It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company. It provides one way to show the profit potential of a particular product offered by a company and shows the portion of sales that helps to cover the company's fixed costs. Any remaining revenue left after covering fixed costs is the profit generated.

2.The Formula for Contribution Margin Is

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Contribution Margin=Sales Revenue - Variable Costs

3.The contribution margin is the foundation for break-even analysis used in the overall cost and sales price planning for products. The contribution margin helps to separate out the fixed cost and profit components coming from product sales and can be used to determine the selling price range of a product, the profit levels that can be expected from the sales, and structure sales commissions paid to sales team members, distributors or commission agents.

4,The contribution margin represents the portion of a product's sales revenue that isn't used up by variable costs, and so contributes to covering the company's fixed costs.

The concept of contribution margin is one of the fundamental keys in break-even analysis.

Low contribution margins are present in labor-intensive companies with few fixed expenses, while capital-intensive, industrial companies have higher fixed costs and thus, higher contribution margins

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1 year ago

Where does the management accounting function fit into an organization's structure?

LUCKY_DIMON [66]

Management accounting is the process of measuring and analyzing financial and non-financial information that is relevant to the company. This is an important part of the Controller’s function in an organization since the Controller directly reports to the chief financial officer. The report contains pieces of information which contributes in making strategic decisions to achieve the goal of the organization.

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1 year ago

On January 1, a company borrowed cash by issuing a $300,000, 5%, installment note to be paid in three equal payments at the end

Stella [2.4K]

Answer & Explanation:

1- What would be the amount of each installment?

The principal to be paid in each instalment = $300,000/3 = $100,000

1st instalment = $300,000*5% + $100,000 = $115,000

2nd instalment = $200,000*5% + $100,000 = $110,000

3rd installment = $100,000*5% +$100,000 = $105,000

2- Prepare an amortization table for the instalment note.

Please see excel in attachment

3- Prepare the journal entry for the second installment payment.

Debit loan payables account: $100,000

Debit Interest expenses: $10,000

Credit cash: $110,000

Download xlsx

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1 year ago

On January 1, 2017, Dagwood Company purchased at par 6% bonds having a maturity value of $300,000. They are dated January 1, 201

statuscvo [17]

Answer:

Dagwood bonds receivables 300,000 debit

Cash 300,000 credit

--to record purchase of bonds--

Interest receivables 18,000 debit

Interest revenue 18,000 credit

--to record accrued interest on dagwood bonds--

Cash 18,000 debit

Interest receivables 18,000 credit

--to record collection of interest--

Explanation:

as the bonds are purchased at par we pay for the same as the face value

interest for the year

principal x rate

300,000 x 6% = 18,000

at December 31th the interest are receivables as we didn't collect the cash yet

Then, on january first, we receive the cash and write-off the receivables

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2 years ago