Suppose you are a financial consultant and the following item has been brought to your attention: Turner Company received a new geological report informing it that the amount of coal in its coal mine is 30% greater than in previous estimates. As a result, the cost per ton of coal has decreased. Also, the cost of goods sold reported for the year had decreased by $175,000. Required: a. From the pull-down menu, select the appropriate income statement classifications of the item. b. Determine the amount related to the item that would appear in the income statement. c. Determine whether the item will increase or decrease the net income. Notes: 1. Assume a tax rate of 42%. 2. All items are material. Classification What is the amount related to the item? Would net income increase or decrease? O Increase Choose One $0 Decrease

Suppose you are a financial consultant and the following item has been brought to your attention: Turner Company received a new geological report informing it that the amount of coal in its coal mine is 30% greater than in previous estimates. As a result, the cost per ton of coal has decreased. Also, the cost of goods sold reported for the year had decreased by $175,000. Required: a. From the pull-down menu, select the appropriate income statement classifications of the item. b. Determine the amount related to the item that would appear in the income statement. c. Determine whether the item will increase or decrease the net income. Notes: 1. Assume a tax rate of 42%. 2. All items are material. Classification What is the amount related to the item? Would net income increase or decrease? O Increase Choose One $0 Decrease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject;
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Vd
Accounting Question
Domestic
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets Required: $ 17,200,000 $ 5,100,000 $ 35,500,000 1. Compute the margin for Alyeska Services Company. Note: Round your answer to 2 decimal places. 2. Compute the turnover for Alyeska Services Company. Note: Round your answer to 2 decimal places. 3. Compute the return on investment (ROI) for Alyeska Services Company. Note: Round your intermediate calculations and final answer to 2 decimal places. 1. Margin 2. Turnover 3. ROI % %
need both answer
Vishanu
Ignore B?