Telecom Net Inc. is one among few leading telecommunication service providers in the town. The total sales revenue for Telecom Net Inc. is $250 million. If the cost of goods sold is $35 million, general and administration expenses are $18 million, and other operating expenses are $10 million. Question1 What would be the operating income for Telecom Net Inc. if the company decided to spend $7million on its marketing and sales expenses.
Q: Question 3.2 Cadbury Limited has a public traded debt (debentures) with a face value of R3…
A: Present value of the amount of debenture to be paid on maturity date = Present value of interest…
Q: Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when…
A: calculation of above requirement are as follows
Q: A choice of different measurement models can be applied to investment property, namely: the fair…
A: Investment property is the property which is held by the company or by any business which has been…
Q: Susan Wang is the audit partner for the financial report audit of Macro Ltd for the year ended 30…
A: Here to provide the details of the audit procedures which are implied for the different situation…
Q: Why would a company hire internal auditors if they already have an external auditor?
A: Internal audit is basically the internal department of the organisation which performs checks to…
Q: Problem 8-2 (Issuance of Share Capital for Various Considerations and Subscription Defaults)…
A: Share accounting is a method by which the issue, receipt of payment, allotment of shares and…
Q: 12. Using the information in MC 11, what amount will Camry report as fair value of the interest rate…
A: Interest rate swap is an agreement between two parties in order to exchange one type of interest…
Q: Matie's Playground Equipment has current assets of $125,400 and current liabilities of $74,950. Find…
A: Introduction: Current ratio: Division of current liabilities with current assets value derives the…
Q: 6. An IPS manufacturing company changes the production system from the present system to a new…
A: calculation of above requirement are as follows
Q: Apr. 30 Received $495,000 from Commerce Bank after signing a 12-month, 5 percent, promissory note.…
A: Journal entries are recorded in chronological order where transactions of business has been recorded…
Q: If total contributed capital is equal to total agreed capital with the new partner's investment is…
A: Partnership characteristics includes: Sharing of profits and losses Mutual agency Unlimited…
Q: A Mingoia Company Ltd produced 40,000 lamp poles last year. The following cost data were obtained…
A: Sales units for Desired profit= (Fixed cost + desired profit) / contribution per unit Here…
Q: the descriptions provided, identify the type of power in each instance. 1. Archie Ngidi is widely…
A: Explanation of Concept We can understand the Audit as per their definition which describe Audit as…
Q: QUESTION 2 Balance Sheet The following information has been obtained for Bondy as at 30 June 20X6. $…
A: In a narrative format of statement of financial position, the assets and liabilities are classified…
Q: Matie's Playground Equipment has current assets of $125,400 and current liabilities of $74,950. Find…
A: Current ratio is one of the liquidity ratio being used for analysis. This shows how much current…
Q: The Highland Corporation was organized on January 1, 2022. It is authorized to issue 20.000 shares…
A: Common Stock- Individuals can vote on common stock, which is a claim on profits (dividends). In most…
Q: apital balances: ABC, Capital DEF, Capital GHI, Capital P 110,000 80,000 110,000 According to the…
A: Profit and Loss Appropriation Account- Under this account profit/loss is distributed between…
Q: According to IFRS, which accounting policy may an entity apply to measure investment property in…
A: Investment property means any land or building which is neither held for sale nor for the purpose of…
Q: Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to…
A: (1) Operating Leverage of Companies (A) Larson Operating Leverage = Contribution÷ EBIT = 72900÷48600…
Q: K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and…
A: Answer:- Overhead rate meaning:- A cost assigned to the manufacturing of a product or service is…
Q: Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake…
A: Treasury Stock: Treasury stocks, which are often referred to as treasury shares, are the part of a…
Q: A company reports the following amounts at the end of the year: Total sales revenue = $560,000;…
A: Net sales is the primary figure or the main figure of importance that accounting and financial…
Q: 18. Calapan Company provided the data in the table below. In 2011, accounts written off amounted to…
A: Gross purchases means the amount of inventory purchased during the year without taking into account…
Q: Question 4 Jason works Monday to Friday, from 10:00 AM to 6:00 PM, at $18.54/hour, including 30 min…
A: Hi student Since there are multiple questions, we will answer only first question. Pay of the…
Q: On December 31, 2020 you McCormick Ltd. Sells manufacturing equipment to a customer on the following…
A: Journal- A journal keeps track of all of an organization's business transactions. A company may…
Q: Elaborate the term: “De-recognizing” financial assets
A: Financial asset is a form of liquid asset for the business. These assets gets its value from the…
Q: Date Transaction Apr. 1 Beginning inventory of Units Cost 430 $2.10 2.70 Apr.20 Purchase 420 Dunbar…
A: Introduction:- As per LIFO method, records the most recently produced items as sold first. LIFO…
Q: Number Unit Date Transaction of Units Cost Apr. 1 Beginning inventory 430 $2.10 Apr.20 Purchase 420…
A: Introduction: LIFO: LIFO stands for Last in First out. Which means last received inventory to be…
Q: Sharpie is a listed firm that operates in the UK and prepares its accounts using the International…
A: Key Points: 1.If an equity investment is not kept for trade, a corporation can make an irreversible…
Q: 25. Calculate the amount of corporate income tax due and the net income after taxes (in $) for the…
A: Tax is calculated on the net income of a entity. It is the liability payable to the government on…
Q: Tradewinds Construction Company had 4 dump trucks, 2 excavators, and other construction machinery…
A: In order to determine the net investment, the depreciation is required to be deducted from the gross…
Q: The following information was taken from the accounting records of Tampa Roofing Company for the…
A: Under fifo method of inventory valuation the units purchased first will be sold first. And in…
Q: Provide a formula in the solution. Thank you! ABC Company is considering publishing a paperback…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Variable…
Q: q23 Which of the following is not a requirement for the recognition of an intangible asset? Select…
A: An assets which does not have any physical existence or substance and are non-monetary in nature are…
Q: Garrison Company uses the retail method of inventory costing. It started the year with an Inventory…
A: Markup is the difference between the cost and sales price that is considered as profit for the…
Q: Diksh and Nadia are 78 years old and are married. Nadia has $7000 in AS income, $50,000 in…
A: As per the prevailing law , a person with age 65 years or more can split up to 50% of pension income…
Q: A business owner by Chary was short of cash and she decided to form a partnership with Deli and…
A: First we are required to calculate the status of business owned by Chary before formation. For the…
Q: Which of the following are the ways that a company can finance the purchase of assets? Equity…
A: the correct option with proper explanation are as follows
Q: why is there a need to re evaluate impairment of assets due to trigger events?
A: The impairment refers to the decrease in the value of assets of the company. This reduction is…
Q: Concord Company classifies its selling and administrative expense budget into variable and fixed…
A: The selling and administrative expenses are the operating expenses of a business. These expenses are…
Q: Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory…
A: LIFO means last in first out. As per this method, the inventory bought at last should be sold first.
Q: 8. Given the following data, calculate product cost per unit under variable costing. Direct labor $7…
A: Introduction: Variable costing: Variable cost varies according to change in the units. It's not…
Q: The margin of safety is the excess of: O Break-even sales over expected sales. O Expected sales over…
A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…
Q: Describe situations in which you might use a certified check, cashiers check or money order.
A: Certified Check A certified check is a personal check that issued by a drawer in which the payer’s…
Q: 18. Using the information in MC 17, under accrual basis, what amount should be reported as gross…
A: Accrual basis of accounting says that all expenses incurred in the particular period shoul be…
Q: A.] Prepare balance sheet and income statements in formal reports using the data given below. 1.…
A: Financial statements are those statements which are prepared at the end of accounting period for the…
Q: Ty pany rchased a machine for P5,280,000 a preciated it by the straight line meth ing an estimated…
A: In straight line method of depreciation there is uniform depreciation over the period of life of…
Q: Danner Company expects to have a cash balance of $54,000 on January 1, 2020. Relevant monthly budget…
A: Introduction
Q: The following information relates to Midas Ltd, a small but successful investment holding company.…
A: Here discuss about the details of the investment which are made in the equity for fair value through…
Q: On January 1, 2008, Flax Company purchased a machine for P5,280,000 and depreciated it by the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Indi Systems Inc., headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of three divisions: (1) insurance, (2) retail and (3) hospitality. For 2023, it recorded the following data: Sales revenues Variable costs (% of sales) Traceable fixed costs Common fixed costs 2. Which segment is most profitable? Insurance $ 4,500,000 2,150,000 O Insurance O Retail O Hospitality 30% Retail $ 5,594,000 2,768,450 Insurance Indi Systems Inc., Segment Performance Report Profit Centres 40% Retail Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12-3 as a guide. (Round "Percentage" answers to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) Hospitality $ 1,970,000 % 45% 730,560 Hospi Total $ 12,064,000 % 5,649,010 1,590,000 Total panyRotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $61,100. Costs and expenses for the year were as follows: Cost of revenue $26,300 Selling, general, and administrative expenses 16,500 Depreciation 6,700 Assume that 60% of the cost of revenue and 40% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts). In part (a) and (b), round all interim calculations and final answers to one decimal place. a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number. accounts b. How much revenue per account would be sufficient for Rotelco to break even if the number of accounts remained constant? Round to the nearest dollar.$ per accountMBI Incorporated had sales of $35 million for fiscal 2022. The company's gross profit ratio for that year was 26%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2022. b. Assume that a new product is developed and that it will cost $469 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2022. c. From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price. Complete this question by entering your answers in the tabs below. Required A Required B Required C From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price.
- Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): InvestorServices AdvisorServices Revenues $5,411 $2,067 Operating income 2,031 962 Depreciation 180 54 Investor Services(in millions) Advisor Services(in millions) Estimated contribution margin 2211 1016 d. If Schwab decided to sell its “Advisor Services” accounts to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve Advisor investors would not be sold but would be used by the other sector: ____________ Assume the fixed assets were “sold”: ________________Sprint Corporation (S) is one of the largest digital wireless service providers in the United States.In a recent year, it had approximately 60 million direct subscribers (accounts) that generated revenueof $33,347 million. Costs and expenses for the year were as follows (in millions):Cost of revenue $14,958Selling, general, and administrative expenses 7,994Depreciation and amortization 8,150 Assume that 30% of the cost of revenue and 70% of the selling, general, and administrative expensesare fixed to the number of direct subscribers (accounts).a. What is Sprint’s break-even number of accounts, using the data and assumptions given? Roundto one decimal place.b. How much revenue per account would be sufficient for Sprint to break even if the number ofaccounts remained constant? Round to one decimal place.Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is $250,000. In its most recent year, Kyzera reported net income of $65,000 on revenues of $475,000. Does return on assets seem satisfactory for Kyzera given that its competitors average a 12% return onassets?
- Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping cart. You looked at competitive information and found that the cost of sales for them is 85%. You would like to invest $250,000 for marketing in your business How many customers must you get to breakeven? How many customers must you get to make a 10% operating profit? how would the income statement for this to be presented per unit sale $? per unit cost of sale number of customers needed to make 10% profit total sales $$ total cost of sales gross profit marketing investment operating profit operating profit margin in % ROIMacon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $40 million. Total assets were $470 million, non-interest-bearing current liabilities were $72,000,000. What are the invested capital and ROI for Macon? Solution What is the invested capital (Total Assets – Non-Interest-Bearing Current Liabilities)? What is the ROI (Net Income/Invested Capital)?ndi Systems Inc., headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of three divisions: (1) insurance, (2) retail and (3) hospitality. For 2023, it recorded the following data: Insurance Retail Hospitality Total Sales revenues $ 4,017,000 $ 5,824,000 $ 1,944,000 $ 11,785,000 Variable costs (% of sales) 30 % 41 % 44 % Traceable fixed costs 2,121,000 2,852,000 724,500 5,697,500 Common fixed costs 1,200,000 Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12–3 as a guide. (Round "Percentage" answers to 2 decimal places.) 2. Which segment is most profitable? multiple choice Insurance Retail Hospitality
- Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is$250,000. In its most recent year, Kyzera reported net income of $65,000 on revenues of $475,000. Required Does return on assets seem satisfactory for Kyzera given that its competitors average a 12% return on assets?Rancor Electronics sells 6,000 mp3 players and earns Tk.3.0 million in revenues. Rancor's variable costs are Tk.500,000 and its fixed operating costs are Tk.1.52 million. a. How many mp3 players does Rancor have to sell to recover all its operational costs? b. Can Rancor earn a larger increase in operating income by making a smaller increase in sales? Explain. c. Suppose Rancor has Tk.1.2 million in debts at a 12 percent rate of interest and is subject 38 percent tax rate. How many mp3 players will Rancor have to sell in order attain its financial breakeven point?Jakara Company is a service firm with current service revenue of $400,000 and a 40% contribution margin. Its fixed costs are $80,000. Maldives Company has current sales of $6,610,000 and a 45% contribution margin. Its fixed costs are $1,800,000. a. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why. b. Illustrate your findings in an Income Statement that is increased by 15%.