Answer:
The answer is given below;
Explanation:
XYZ
Extracts from Balance Sheet
As at XXXXX
Current Liabilities
Current portion of long term loan *$25,000
Long Term Liabilities
Long Term Loan $25,000
As the 50% of the loan will be repaid in next year, therefore ($50,000/2) will be shown in current liabilities. The rest of the loan is shown as long term loan as it will be repaid after 12 months.
Answer:
$5,000
Explanation:
Given that,
Accounting profit = $10,000
Interest rate = 5%
Amount withdraw = $100,000
The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.
Accounting profit is determined by subtracting explicit costs from the total revenue.
Accounting profit = Total revenue - Explicit costs
Economic profit:
= (Total revenue - Explicit costs) - Implicit costs
= $10,000 - (Interest income)
= $10,000 - (5% × $100,000)
= $10,000 - $5,000
= $5,000
Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.)
<span>Shipping Expense: </span>
<span>(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit </span>
<span>86,200 - (13 x 5,100) = £19,900 fixed cost </span>
<span>£ Y = £19,900 + £13 X </span>
<span>Salaries and Commissions </span>
<span>(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit </span>
<span>238,400 - (40 x 5,100) = £34,400 fixed cost </span>
<span>£ Y = £34,400 + £40 X </span>
<span>3. </span>
<span>Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) </span>
<span>Frankel Ltd. </span>
<span>Income Statement </span>
<span>For the Month Ended June 30 </span>
<span>Sales revenue 912900 </span>
<span>Variable expenses: </span>
<span>Cost of goods sold 346800 </span>
<span>Shipping expenses 5,100 x 13 = 66,300 </span>
<span>Commissions 5,100 x 40 = 204,000 </span>
<span>Contribution margin 295,800 </span>
<span>Fixed expenses: </span>
<span>Fixed shipping 19,900 </span>
<span>Insurance expenses 9000 </span>
<span>Depreciation expenses 42700 </span>
<span>Sales salaries 34,400 </span>
<span>Advertising expenses 69200 </span>
<span>Net operating Income 120600</span>
Answer:
Net income allocated to sally is $112000
Explanation:
Sally invested $200000 and Andy invested $100000, which means Andy's investment is half of Sally's investment. So he will receive the half of what Sally will get.
Let
Sally's pay be x
Andy's pay be x/2
Total Net income is 168000 dollars.
So, putting it in an equation, we get
(x+x/2)=168000
x(1+0.5)=168000
x(1.5)=168000
x= 168000/1.5
x=112000
So Sally's share will be $112000
Andy's share will be x/2
=112000/2
=56000
So Andy share will be $56000
Answer:
Accounting costs $145,000
Implicit costs $75,000
Opportunity costs $220,000
Explanation:
What her accounting cost will be during the first year of operation.
Based on the information given we were told that the annual overhead costs and operating expenses amounted to the amount of $145,000 which means that the amount of $145,000 will be the ACCOUNTING COSTS
Her IMPLICIT COSTS will be the amount of $75,000 which is the amount she earn in her current job per year.
Her OPPORTUNITY COSTS be the addition of both her Her accounting cost and implicit costs
Hence,
Opportunity cost=$145,000+$75,000
Opportunity cost=$220,000
