Rundle Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. RUNDLE COMPANY Income Statements for the Year 2018 Segment A B Sales $ 165,000 $237,000 $264,000 (80,000) (30,000) 154,000 Cost of goods sold Sales commissions (131,000) (18,000) 16,000 (43,000) (6,000) $ (33,000) $ 65,000 (90,000) (30,000) 117,000 (34,000) (18,000) Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) (43,000) Net income $111,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A

Rundle Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. RUNDLE COMPANY Income Statements for the Year 2018 Segment A B Sales $ 165,000 $237,000 $264,000 (80,000) (30,000) 154,000 Cost of goods sold Sales commissions (131,000) (18,000) 16,000 (43,000) (6,000) $ (33,000) $ 65,000 (90,000) (30,000) 117,000 (34,000) (18,000) Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) (43,000) Net income $111,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

See similar textbooks

Similar questions

Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
The following income statement appears in the financial report of MERCADO Company for the year ending December 31, 2020: MERCADO Company Income Statement For the year ending December 31. 2020 Sales 72,485,000.00 Cost of goods sold Gross profit 39.866,750.00 32.618.250.00 Less: Operating expenses: Variable selling expenses: Salesmen's commissions 3,624,250.00 Communication expenses 1,812.125.00 Advertising and promotion 635.350.00 Representation expenses 215.385.00 Gas and oil - salesmen 1,285.000.00 Repairs and maintenance 1,150.000.00 3.722.110.00 Fixed selling expenses Salaries and wages 4,225,000.00 Franchises and royalties 524,150.00 Office supplies and materials 555.000.00 Depreciation 963 300.00 6.267,450.00 14.989,560.00 Fixed administrative expenses Salaries and wages 6.324,650.00 Employee benefits 316,490.00 Communications expenses 335,125.00 Office supplies and materials 275,150.00 Depreciation 325,500.00 104 250.00 7.681,165.00 9.947.525.00 Miscellaneous expenses Operating…
Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions BENSON COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss). Complete this question by entering your answers in the tabs below. Required A Required B A $ 169,000 (130,000) (21,000) 18,000 (43,000) (5,000) $ (30,000) B $ 238,000 (81,000) (23,000) 134,000 (37,000) (14,000) $ 83,000 с $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ 107,000
Sisyphus Inc. records total sales of $657,500 in the current period, with a cost of goods sold of $389,000 . Sisyphus expects 4% of sales to be returned. How much in net sales will Sisyphus recognize for the current period? Group of answer choices $373,400 $268,500 $631,200 $657,500 $257,760 The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflow
The following information pertains to Redping Corporation for the year ended December 31, 2020.Sales to unaffiliated customers $2,000,000Inter-segment sales of products similar tothose sold to unaffiliated customers 600,000All of Redping’s segments are engaged solely in manufacturing operations. Redping has a reportablesegment if that segment’s revenue exceeds ____________________.A. $264,000B. $260,000C. $204,000D. $200,000
Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is the effect on sales due to change in selling price?
Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is the effect on sales due to change in selling price? cite if increase or decrease
A comparative income statement is given below for Rainbow Company Rainbow Company Comparative Income Statement For the Years Ended June 30, 2019, and 2018 2019 2018 Sales P 5,000,000.00 P 4,000,000.00 Less: Cost of Goods Sold 3,160,000.00 2,400,000.00 Gross Margin 1,840,000.00 P 1,600,000.00 Selling Expenses 900,000.00 700,000.00 Administrative Expenses 680,000.00 584,000.00 Total Expenses 1,580,000.00 1,284,000.00 Net Operating Income 260,000.00 P 316,000.00 Interest Expense 70,000.00 40,000.00 Net Income Before Taxes P 190,000.00 P 276,000.00 The president is concerned that net income is down in 2019 even though sales have increased during the year. The president is also concerned that administrative expenses have increased, since the company made a concerted effort during 2019 to pare "fat" out of the organization. Required: 1. Express each year's income statement in common-size percentages. Carry computations to one decimal place. 2. Comment briefly on the changes between the two…
Presented below are excerpts from the income statements of Ralos Company for the years ended December 31, 2021 and 2020. 2021 2020 Inc (Dec) Net sales P2,750,000 P2,500,000 P250,000 Cost of goods sold 1,584,000 1,600,000 ( 16,000) Gross margin P1,166,000 P 900,000 P234,000 The unit cost decreased by 10% on January 1, 2021. What is the effect on sales due to change in selling price? Group of answer choices P275,000 increase P250,000 increase P 0 P 75,000 increase
Sage Hill Corporation had sales of $3,360,000 for the year ended December 31, 2022. The unit selling price was $12. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $832,000 $760,000 Selling expenses 113,000 64,000 Administrative expenses 231,000 71,000 Your answer is partially correct. Prepare a GAAP income statement. SAGE HILL CORPORATION GAAP Income Statement For the Year Ended December 31, 2022 Sales 3,360,000 Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses $ Administrative Expenses Total Operating Expenses Net Income/(LosS) $
Shamrock Corporation had sales of $3,600,000 for the year ended December 31, 2027. The unit selling price was $12. In making the sales, the company incurred the following costs and expenses. Cost of goods sold Selling expenses Administrative expenses (a) Sales Cost of Goods Sold Prepare a GAAP income statement. Gross Profit Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses V Variable $890,000 Net Income/(Loss) 126,000 244,000 Fixed $760,000 65,000 78,000 SHAMROCK CORPORATION GAAP Income Statement For the Year Ended December 31, 2027 $ $