What is the value of Sales?
Q: Why does Sales discounts are variable consideration?
A: Variable considerations: Variable consideration refers to the amount that the corporation is…
Q: What is the Importance of the Profit Ratio?
A: Profit ratio: Profit ratio is utilized to assess the corporation's capacity to make revenue as…
Q: net sales is
A: Net Sales is the Revenue that is reported in the profit and loss account of the entity The formula…
Q: What assumption is usually made concerning sales mix inCVP analysis?
A: Sales mix: A proportion of two or more products sold by the company to maximize the profit, that…
Q: Define the term sales mix.
A: The sales mix is a calculation that determines the proportion of each product a business sells…
Q: What is Dollar-Value LIFO Retail Method ?
A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…
Q: Describe the ways to increase sales and profitability
A: Sales indicate the revenue generated by the business entity in consideration of offering their…
Q: Define sales returns.
A: Sales: It is the goods and services sold by one company to their customers for a period.
Q: What is the formulae to find New sales level?
A: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. or
Q: How do the costs of doing business affect prices?
A: The cost of producing a product or service that a company sells is usually referred to as the cost.…
Q: How is standalone selling price defined?
A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…
Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…
A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…
Q: what is profitability ratio?
A: Financial ratios provide information related to the company. There are various types of ratios like…
Q: culate sales
A: Current month Ending Inventory Will be the next month beginning inventory.
Q: What are the optimal prices and profits for selling the goods seperately?
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: What would be the sales value or turnover corresponding to the threshold of profitability
A: Sales turnover: It is the company's total amount of services / products sold over a given period of…
Q: What does the price earning ratio indicate?
A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…
Q: How does the goal of the firm influence the sales maximization and profit maximization decision.
A: The goal of the Firm: Every firm has a goal of wealth maximization which is accomplished from the…
Q: What is the market value of goods
A:
Q: Explain the Sales Comparison Approach?
A: Sales comparison approach is comparative market analysis that compares a property to other…
Q: How do I get the sales formula?
A: Sales is the total revenue earned by the business from the inventory sold during the period.
Q: What is market approach measurement?
A: The market approach is just like comparing one set of assets with another both having the same…
Q: What is operating profit margin?
A: The operating profit is the profit earned during the year after deducting all the operating expenses…
Q: What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP…
A: Sales mix of a product is the proportion of a product sales in overall sales of the company. A…
Q: Define what net sales?
A: Net sales means the amount of revenue earned from selling the goods or services in which business…
Q: What is meant by the term sales mix?
A: Sales Mix: Sales mix is the relative proportion or ratio of a business's products that are sold.…
Q: WHAT IS THE TOTAL SELLING AND DISTRIBUTION EXPENSES
A: Selling and distribution expenses includes all the expenses incurred for making a sale and providing…
Q: What is target profit?
A: Target costing: Target costing is a business procedure that targets the cost at the earliest…
Q: Explain the calculation procedures for and significance of return on sales.
A: The return on sales (ROS) ratio is a statistic for evaluating a business's operational efficiency.…
Q: Explain profit margin on sales
A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…
Q: What is net profit margin?
A: The margin of net profit is equal to the amount of income produced by the net sales or gains. For a…
Q: What is Profitability analysis?
A: Profitability analysis is an important measure for the business to analyze the company's ability in…
Q: Sales return is a?
A: Suppose a manufacturing entity sales 10,000 units($50,000) of erasers to wholesalers, then the buyer…
Q: A key factor is one which restricts O The volume of sales The volume of production The volume of…
A: Key factors means those significant factors which can impact a business organisation to a great…
Q: What are trade margins? How do they relate to thepricing for a produce, of goods?
A: A product is manufactured so that it can be sold to the consumer for the consumption purpose.…
Q: Why more sales is not more profit?
A: The term sales generally refers to exchange of goods or services in return of some adequate…
Q: What is Transfer Pricing? What are the approaches in determining transfer prices? In your own…
A: Explanation of transfer pricing and approaches determining transfer pricing are as follows.
Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…
A: Transfer price is a price at which a transaction of two related divisions of the same corporation…
Q: Explain how the sales mix can affect the profitability of a company.
A: The sales mix is a calculation that determines the proportion of each producta business sells…
Q: Define Return on sales
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: Define Selling profit.
A: Net income: Net income is the excess amount of revenue that arises after deducting all the expenses…
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- 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.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.At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
- Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of 300,000 and 270,000 in 2019 and 2018, respectively. Fava reported expenses (excluding income tax expense) of 125,000 and 120,000 in 2019 and 2018, which included cost of goods sold of 55,000 and 45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by 8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year. Required: 1. Prepare the journal entry to reflect the change. 2. At the end of 2019, prepare the comparative income statements for 2019 and 2018. Notes to the financial statements are not necessary. 3. At the end of 2019, prepare the comparative retained earnings statements for 2019 and 2018.Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
- Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.
- Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: The following; additional information is also available. The December 31, 2019, ending inventory is 14,700. During 2019, 4,200 shares of'common stock were outstanding the entire year. The income tax rate 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Gaskins cost of goods sold. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 multiple-step income statement. 4. Prepare a 2019 statement of comprehensive income.Inventory Costing and LCM Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2019, Ortman had 5,000,000 gallons on hand, for which it had paid $0.50 per gallon. During 2019, Ortman made the following purchases: During 2019, Ortman sold 65 000,000 gallons at $0.75 per gallon (35,000,000 gallons were sold on June 29 and 30,000,000 gallons were sold on Nov. 22), leaving an ending inventory of 7,000,000 gallons. Assume that Ortman uses a perpetual inventory system. Ortman uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the chemical is $0.76 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the chemical is $0.58 per gallon on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)A. At the end of December 2020, the accounting records of XYZ firm present the following transactions for a particular merchandise that sold at €20 per unit: Transaction Units Amount Inventory, 1/12/2020 200 2,000 € Purchase, 10/12/2020 150 1,800 € Purchase, 15/12/2020 120 1,800 €Purchase, 23/12/2020 170 2,720 € Sale 180 Sale 120 In addition, the level of operating expenses in December is €1,500 and the tax rate is 20%. The firm has decided to distribute the after-tax profits to shareholders. 1. If XYZ firm uses a periodic inventory system, prepare a summarized income statement for December 2020 under each inventory cost flow assumption: (a) weighted average, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was out of the beginning inventory and the second sale was out of the December 23 purchase. Exhibit inventory calculations in detail. 2. Which…