The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of 50,000 will occur in 2020 due to pandemic; What is the projected sales in 2020?
Q: American Movieplex, a large movie theater chain, leases most of its theater facilities. In…
A: Depreciation The term "depreciation" in accounting refers to how an asset's value decreases over…
Q: Integrity Company has the following information: Unsecured creditors…
A: Free assets means assets which is free from all unencumbered. We can calculate free assets by fair…
Q: Say the Fed wants to increase the money supply in the country. Which of the following open market…
A: The Fed can influence the money supply by modifying reserves requirement which generally refers to…
Q: On April 1, 2020, C'est Cheese issues 20,000 shares of 4%, $10 par, cumulative preferred stock $15…
A: Depreciation indicates the reduction in the historical amount of tangible assets with the passage of…
Q: Absorption and Variable Costing Income Statements During the first month of operations ended July…
A: The net income is calculated as difference between sales and total costs incurred. The costs are…
Q: How much gain (loss) does Strawberry recognize due to these transactions? $87,500,000 $137,500,000…
A: Internal Revenue code 336a General rule :- Gain or loss Shall be recognised to a liquidating…
Q: On January 1, the Matthews Band pays $68,600 for sound equipment. The band estimates it will use…
A: Revised Depreciation Expense :— It is the revision of depreciation expense due to change in…
Q: (b) Indicate the amount of mortgage note payable to be reported as a current liability and as a…
A: Introduction: The liabilities of a corporation are listed on its balance sheet, which is a common…
Q: Liman Corporation has a single product whose selling price is $140 and whose variable expense is $60…
A: The target profit refers to the expected amount of profit that the entity wants to achieve. The…
Q: The Department of Education called the attention of LBC (Luzon Brokerage Movement) management for…
A: Here discuss about the social responsibility of the Entrepreneur or the advertiser who are…
Q: The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of…
A: Given Contribution margin ratio= 30% Let Projected sales in 2020 = S Contribution margin = S×30% =…
Q: Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note…
A: Introduction: Liabilities are legally binding promises that must be paid to some other person or…
Q: Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31.…
A: A cash budget enlists the expected total cash receipts and payments during a specific period and…
Q: Explain the 3 important types of Inventories
A: Explain the 3 important types of Inventories. 1. Direct raw material inventory 2. Work-in-progress…
Q: The higher the debt-to-equity ratio, the less debt a company is using co finance its assets. O True…
A: Debt to equity ratio is an important leverage ratio that we use in the world of accounting and…
Q: QS 8-15 (Algo) Intangible assets and amortization LO P4 On January 1 of this year, Diaz Boutique…
A: Introduction: The act of logging any transaction, whether or not it is an economic one, is known as…
Q: Required information Exercise 15-34 Determining Markup Percentage; Target ROI (LO 15-3) [The…
A: Introduction: To keep track of all costs associated with creating a certain product, "absorption…
Q: 10. A furniture company has provided the following data for the year 2010 and 2011
A: Cost Accounting - A perpetual inventory accounting system, the cost accounting system is…
Q: (worth $35,000), inventory (worth $83,750), and copyrights $12,250). Instructions: 1. Prepare the…
A: Journal Entry to record purchase of Jonson Company. Date Particular Debit Credit July 1 Land…
Q: The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts:…
A: The balance sheet is one of the financial statements of a company, that determines its net worth at…
Q: The following information is from the manufacturing budget and budgeted financial statements of…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Each of the three independent situations below describes a finance lease in which annual lease…
A: Annual Lease Payment :— It is the annual payment made by lessee to the lessor for using the asset.…
Q: Determine the second-year depreciation using the straight-line method.
A: Depreciation is a periodical expenses charged to the profit and loss account over the asset life.…
Q: On July 27, 2011, Panda, Inc. sold goods to Small Company for P1,850,000 in exchange for a 4-year…
A: The notes receivables means a document in which the borrower issues a note to the lender that he…
Q: [B] Witham tendered successfully for the supply of coal to the Great Northern over a period on one…
A: Witham is free from the tender's obligation on 19th June, i.e. 2 weeks from the date of the receipt…
Q: In manufacturing footballs, Spector Company's plant used 360 direct labor hours, 450 machine hours,…
A: Overhead Expenses Volume of Activities Cost per Driver Machining Center 175000 25000 Machine…
Q: $800,000. If he received $200,000 in cash and 100 shares of stock, the resulting bases are: O Elon's…
A: Whenever a Business Entity sold goods or provide services, it receive something in consideration.…
Q: Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company…
A: Under process costing manufacturing of products done through various process during different…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 38,800 games…
A: Contribution: The number of profits that are left over after all direct expenditures have been…
Q: on 4 Obinson Corp., which operates on a calendar year, expects to sell 1380 units in October, and…
A: In the given question, sales are increases in the number units, by 130 units every month and the…
Q: A machine with a cost of $65,900 has an estimated residual value of $3,425 and an estimated fe of 5…
A: The double declining balance method of depreciation is an accelerated method of depreciation. In…
Q: ntegrity operates a branch in Laoag City. At close of the business on December 31, 2022. Laoag…
A: Here discuss about the details of the calculation of the unadjusted balance which are incurred with…
Q: 7. A company produces 1,000 packages of chicken feed per month. The sales price is $6.00 per pack.…
A: Introduction: An operating income is its net income before any financial transactions or tax…
Q: During the current year ended December 31, clients paid fees in advance for accounting services…
A: Unearned Service Revenue :— It is revenue that is not accrued but cash for the revenue is received…
Q: SuperCare Pty Ltd pays total taxable wages for the entire financial year beginning 1 July 2019,…
A: To determine your organization's state tax liability in each Australian state and territory, you…
Q: Question 5 Witherspoon Inc. has compiled the following data in order to put together their first…
A: As per the given information: Sales (units)January - 55,000February - 48,000March - 41,000April -…
Q: Sales budgets. Budgeted sales units Selling price per unit DIMSDALE SPORTS Sales Budget January…
A: Sales budget can be said to be a budget or a financial plan in which we determine the forecasted…
Q: Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the…
A: Predetermined overhead rate is based on the estimated overhead charges incurred and is determined on…
Q: The following data are available for X Corp: Margin of safety 300; MS ratio 20%; Profit of 100 and…
A: Margin of safety: Margin of safety is the point after which profit will be happen in multiple of…
Q: If 91,000 pounds of raw materials are needed to meet production in August, what is the estimated…
A: If 91,000 pounds of raw materials are needed to meet production in August, the estimated cost of raw…
Q: Assuming the Workmans file a joint tax return, determine their gross income minus expenses on the…
A: 1. Determination of Gross Income when Ryan's files joint return. S.NO PARTICULARS AMOUNT ($)…
Q: Jase Manufacturing Co.'s static budget at 7,700 units of production includes $30,800 for direct…
A: Variable cost is the cost that varies with the change in the output. Whereas, the fixed cost is the…
Q: A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a…
A: A Cash budget represents the expected future cash flow of an organization over a defined period of…
Q: On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $96,000. She paid a $20,000…
A: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This…
Q: QUESTION 5 Big Three Company produces televisions. Budgeted sales for February are 1070 units.…
A: As per the given information; Budgeted sales for February - 1070 units Finished goods inventory on…
Q: Following is a list of credit customers along with their amounts owed due and the days past due at…
A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…
Q: Highland Company produces a lightweight backpack that is popular with college students. Standard…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: On January 1, 2017, Pinkley Company sells office furniture for $400,000 cash. The office furniture…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: The following data were taken from the accounts of Miami Heat Corporation as at December 31, 2019:…
A: Out of the profit earned by the business entities, some of the profit is distributed by them to…
Q: Cullumber Industries Inc. manufactures dorm furniture in separate processes. In each process,…
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of 50,000 will occur in 2020 due to pandemic; What is the projected sales in 2020?
Step by step
Solved in 2 steps
- In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019, sales was 20% higher, while profit was P 30,000 higher than the 2018 profit. For 2020, the company expects to have sales that is twice as much as the 2018 sales. The expected increase in production to meet the sales demand in 2020 will not require the company to exceed its normal capacity. a. What is the company's contribution margin ratio? b. How much profit does the company expect to eam in 2020?Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? choices: • 33.33% • 26.45% • 25% • 28.38%SERVICIOS EDUCATIVOS IMPRESOS S.A. wants to do a scenario analysis for the coming year (2022). The pessimistic prediction for sales is $900,000; the most likely amount of sales is $1,125,000; and the optimistic prediction is $1,280,000. The company's income statement for the most recent year is the following: SERVICIOS EDUCATIVOS IMPRESOS S.A. - Income Statement for the year ended December 2021 0 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 25%) Net profits after taxes $937,500 421,875 $515,625 234,375 $281,250 30,000 $251,250 62,813 $188,437 Use the percent-of-sales method, the income statement for December 31, 2021 and the sales revenue estimates to develop pessimistic • most likely • optimistic pro forma income statements for the coming year.
- Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? A• 25% B• 26.45% C• 33.33% D• 28.38%Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? • 28.38% • 26.45% • 25% • 33.33%Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021?(2 Points) • 28.38% • 33.33% • 25% • 26.45%
- A small, US-based manufacturing firm is interested developing a new product to that would be produced andsold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product (i.e., aprediction of the number of units sold each year) anticipates that 72,000 units can be sold the first year at aprice of $99.95 per unit. However, after that, sales are expected to decline each year according to a 95%learning curve.The required manufacturing process can produce 12 units of product per hour, up to a maximum of 72,000units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equipment,which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value at theend of its useful life. While the equipment belongs to the 7-year MACRS property class, the firm willdepreciate the equipment using the most advantageous method allowed by US tax law.The manufacturing process requires the labor of a team of…JBL expects to sell 7,000 units of wireless earbuds this year at P7,199.00 each. What is the projected sales revenue? ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is 10,000 units. What is the percentage change in sales volume?the average insurance company premium cost is $500 and its target loss ratio is 75%. If this company utilizes a technology that decreases losses by 40%, how much should the average premium cost be with this new technology?
- MEINE ON The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2021 is KMS's market share for 2022 is 2019 KMS's market share for 2023 is 10,412 11,570 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2024 is 2020 10,000 units.…The management of Valencia Manufacturing Company is desirous of increasing operating incomeby 20% in 2019. They expect per unit data and total fixed costs to remain the same in 2018.Determine the number of units that must be sold to earn this target operating profit. Is this a realisticgoal?The President of Benoit is under pressure from shareholders to increase operating income by 50% in 2020. Management expects per unit data and total fixed costs to remain the same in 2020. Compute the number of units that would have to be sold in 2020 to reach the shareholders desired profit level. Is this a realistic goal?