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1 year ago

Venus wholesale co. started carrying a new product in december. purchases and sales of this product during the month were:

1 answer:

7 0

<span>During the month of December Venus Wholesale Co. purchased 140 units at $80 per unit on December 20 and sold 60 units on December 26. And on December 28 they purchased 140 units at $120 per unit. They started carrying the product in December.</span>

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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

Assume that you live in California and are on vacation, traveling by car from California to Texas. You are injured in a motel ro

nevsk [136]

Answer:

a. No. A state court will do a better job in this case because it exercises unlimited jurisdiction. Moreover, you can only bring your case to a federal court if the amount of your claim is up to $75,000 or the issue is exclusive to the federal court. This is not the case here.

b. Yes and No. We need some additional information about the accident location to help answer this question definitively.

c. No. You should not consider accepting the offered settlement. The jury award is meant to pay for your medical bills and also to help you recover financially as though the accident did not happen in the first place. Accepting any lesser amount after the judgment is rendered is in bad taste. The other party should have negotiated to settle out of court before the final judgment was rendered. But it did not. So, go with the jury award.

Explanation:

a) Data and Calculations:

Missed work for 15 weeks

Total medical bills incurred = $50,000

Total lost wages incurred = $15,000

Jury award = $100,000 ($50,000 for medical, $15,000 for lost wages and $35,000 for punitive damages)

Settlement offer = $50,000

7 0

2 years ago

Trueware Corporation is a start-up firm with a capital structure that includes 25 percent debt. Trueware has no preferred stock.

defon

Answer:

$1.53

Explanation:

Calculation to determine the difference in earnings per share (EPS) for the capital structure

Debt = 0.25 × Total assets = 0.25 × $500,000

Debt= $125,000

Equity = (1 − 0.25) × Total assets = 0.75 × $500,000

Equity = $375,000

Net income (NIRuby) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)

Net income (NIRuby) = [$80,000 - (0.10 × $125,000)] × (1 - 0.3)

Net income (NIRuby= $47,250

EPSRuby = Net income/Number of shares outstanding

EPSRuby = $47,250/22,000 shares

EPSRuby= $2.15 per share

Net income (NIEmerald) = [EBIT - (Cost of debt × Total debt)] × (1 - Tax rate)

Net income (NIEmerald) = [$32,000 - (0.10 × $125,000)] × (1 - 0.3)

Net income (NIEmerald) = $13,650

EPSEmerald = Net income/Number of shares outstanding

EPSEmerald = $13,650/22,000 shares

EPSEmerald= $0.62 per share

Difference between the earnings per share = $2.15 - $0.62

Difference between the earnings per share= $1.53

Therefore the difference in earnings per share (EPS) for the capital structure is $1.53

5 0

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

The contribution margin is computed as the difference between the sale price of a product and the variable costs associated with its production and sales process.

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

3 0

2 years ago

At December 31, 2017, Indigo Girls Company has outstanding noncancelable purchase commitments for 36,000 gallons, at $3.00 per g

Whitepunk [10]

Answer:

The journal entries are as follows:

(i) On December 31, 2017

Unrealized gain or loss income A/c Dr. $10,800

To estimated purchase commitment liability $10,800

(To record other income and expenses)

Workings:

Unrealized gain or loss income = 36,000 × ($3 - $2.7)

= 36,000 × $0.3

= $10,800

(ii) On January 1, 2018

Raw material A/c (36,000 × $2.7) Dr. $97,200

Estimated purchase commitment liability A/c Dr. $10,800

To accounts payable $108,000

(To record the materials received in January 2018)

3 0

2 years ago