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1 year ago

The following transactions apply to Ozark Sales for 2016:

Business

1 answer:

-Dominant- [34]1 year ago

5 0

Answer and Explanation:

The preparation of the income statement for 2016 is shown below:-

OZARK SALES

Income Statement

For the Year Ended December 31, 2016

Sales revenue $510,000

Cost of goods sold $330,000

Gross margin $180,000

Expenses

Operating expenses $78,000

Warranty expenses $10,200

Total operating expenses $88,200

Operating income $91800

Interest expense $667

Net income $91133

b. The preparation of balance sheet for 2016 is shown below:-

OZARK SALES

Balance Sheet

As of December 31, 2016

Assets

Cash $284,600

Merchandise inventory $50,000

Total assets $334,600

Liabilities

Accounts payable $130,000

Sales tax payable $8,800

Notes payable $50,000

Warranties payable $4,000

Interest payable $667

Total liabilities $193,467

Here, we added all liabilities to reach the total liabilities

Stockholders' equity

Common stock $50,000

Retained earnings $91,133

Total stockholders' equity $14,1133

Total liabilities and stockholders'

equity $334,600

c. The Preparation of statement of cash flow is shown below:-

OZARK SALES

Statement of Cash Flows

For the Year Ended December 31, 2016

Cash flows from operating activities:

Inflow from customers $510,000

Inflow from sales tax $40,800

Outflow for expenses -$84,200

Outflow for sales tax -$32,000

Outflow to purchase inventory -$250000

Net cash flow from operating activities $184,600

Cash flows from investing activities

Cash flows from financing activities:

Inflow from loan $50,000

Inflow from stock issue $50,000

Net cash flows from financing activities $100,000

Net change in cash $284,600

Plus: Beginning cash balance 0

Ending cash balance $284,600

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Answer:

option C is correct CPI in Kansas City is 125 and in Dallas is 150.

Explanation:

given data

Kansas City pays = $50,000

Dallas that pays = $60,000

solution

we know that CPI base year is always = 100

first we get here real salary value in Kansas City that is express as

Real Value = Salary in Kansas City × (CPI base year ÷ CPI current year) ..........1

put her value we get

Real Value = $50,000 × $\frac{100}{125}$

Real Value = $40000

and now we get here real salary value in Dallas that is express as

Real Value = Salary in Dallas City × (CPI base year ÷ CPI current year) ..........2

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so here correct option is c. 125 in Kansas City and 150 in Dallas

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Answer:

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Using midpoint formula;

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1 year ago

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