Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
<u>Charlie’s Crispy Chicken (CCC) Balance sheet at September 30</u>
Assets
<u>Non- Current Assets</u>
Equipment 49,000
Land 23,400
Total Non- Current Assets 72,400
<u>Current Assets</u>
Supplies 2,300
Cash 2,300
Total Current Assets 4,600
Total Assets 77,000
Equity and Liabilities
<em>Equity</em>
Common Stock 36,000
Retained Earnings 3,900
Total Equity 39,900
<em>Liabilities</em>
<u>Non-current Liabilities</u>
Note Payable (long-term) 34,000
Total Non-current Liabilities 34,000
<u>Current Liabilities</u>
Accounts Payable 2,900
Salaries and Wages Payable 200
Total Current Liabilities 3,100
Total Equity and Liabilities 77,000
Explanation:
When preparing a Balance Sheet, it is important to remember the Accounting equation : Assets = Equity + Liabilities
<u>Explanation</u>:
i. Limited cash on hand to make changes
It is apparent from the case that the company is experiencing a drop in the sales from the past 5 years and thus, the financial reserves will be a constraint in the accomplishment of the idea.
ii. Costumers purchase lifestyle products from people who they know and who have expertise
It is the idea that the director of the company mark always encourages direct interaction with the clients and personal selling rather than retail or online sales considering personal relation makes exposure to the experts and their advice.
iii. Meet with mark, your direct supervisor, about how to establish your credibility with the owner
Being a newbie to the company, it is a wise option to follow the instructions of the reporting authority to establish rapport with the owner of the organization.
iv. Sales have declined because customers have lower disposable income
It is also evident from the case of the financial crisis and recession in going in the market due to which the customer has a lower income to make purchases.
v. Suggesting techniques to help our sales reps become more trusted advisors
It is the time to perform a forward step by the sales reps to take the role of the advisors i.e. trusted ones for the customer in recommending the best of all.
The correct answer is the leveraged buyout. A leveraged
buyout or also known as the LBO is defined as an acquisition of another company
by means of having to use a significant amount of money that is borrowed in
order to meet the cost of acquiring the company.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year.
Budgeted factory overhead costs for the coming year are:
Assembly $310,000
Finishing 240,000
Total $550,000
The machine hours expected to be used in the coming year are as follows:
Assembly Dept.
Product A 15,100
Product B 4,900
Total 20,000
Finishing Dept.
Product A 9,000
Product B 11,000
Total 20,000
A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 550,000/40,000= $13.75 per machine hour
B) Departamental rates:
Assembly= 310,000/20,000= $15.5 per machine hour.
Finishing= 240,000/20,000= $12 per machine hour.
