In 2012, XYZ Inc., a medical equipment distributor, sold 10,000 units of its hospital beds at an average price of $500 per unit. The company reported estimated returns and allowances of $200,000. The company purchased 11,000 units of its product from its manufacturer in 2012 at an average cost of $350 per unit. XYZ began 2012 with 1,000 units of its product in inventory (carried at an average cost of $300 per unit). Operating expenses (excluding depreciation) in 2012 were $400,000, and the depreciation expense was $100,000. XYZ had $2,000,000 in debt outstanding throughout all of 2012, which carried an average interest rate of 10%. The company’s tax rate is 40%. Its fiscal year runs from January 1 through December 31. Given this information, prepare the following documents: a. XYZ’s 2012 income statement b. XYZ’s 2012 ending inventory balance (both in unit and in dollar terms)

Answers

Answer 1

a. The preparation of XYZ's Income Statement  for the year ended December 31, 2012 is as follows:

Net sales revenue                             $4,800,000

Cost of goods sold                             3,450,000

Gross profit                                       $1,350,000

Operating expenses      400,000

Depreciation expense    100,000        500,000

Operating income                            $850,000

Interest Expense                                  200,000

Income before taxes                         $650,000

Taxes (40% x $650,000)                   260,000

Net income                                       $390,000

b. The ending inventory balance of XYZ's 2012 is as follows:

Units = (Beginning inventory + Purchases - Sales)

= 2,000 beds (1,000 + 11,000 - 10,000)

Dollars = $700,000 (2,000 x $350).

Data and Calculations:

Units of beds sold = 10,000

Average price per unit = $500

Sales revenue = $5,000,000

Estimated returns and allowances = $200,000

The Net sales revenue is $4,800,000 ($5,000,000 - $200,000).

The Cost of goods sold is $3,450,000 (9,000 x $350 + 1,000 x $300).

The Ending inventory is $700,000 (2,000 units x $350).

Operating expenses = $400,000

Depreciation expense = $100,000

Interest expense = $200,000 ($2,000,000 x 10%)

Tax rate = 40%

Thus, the ending inventory balance of XYZ's 2012 is 2,000 beds, worth $700,000.

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Related Questions

What are your goals that you want to achieve in 5 years?

Answers

Answer:

Consider Why the Job Interests You

Research the Business

Don't Worry If You Don't Know What Kind of Career You Want to Pursue

Be Enthusiastic

Be Realistic

Explanation:

You sell used cars. The best car on your lot has 100,000 miles on it. How could you describe this car to a prospective buyer to make the purchase more attractive

Answers

I would say “ This used car only has 100,000 miles on it, so it is quite the steal.” sorry if this isn’t right but I hope that helped

Davis Manufacturing Company had the following data:
January 1 December 31
Accounts receivable $27,000 $33,000
Materials inventory 22,500 6,000
Work in process inventory 70,200 48,000
Finished goods inventory 3,000 15,000
Collections on account were $625,000.
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000.
Factory overhead was 300% of the cost of direct labor.

a. Compute sales revenue (all sales were on account).
$ ___________________

b. Compute cost of goods sold.
$ ______________

c. Compute cost of goods manufactured.
$ _______________

d. Compute direct materials used.
$ ________________

e. Compute direct labor incurred.
$ ________________

f. Compute factory overhead incurred.
$ __________________

Answers

a) The computation of the sales revenue is $631,000.

b) The computation of the cost of goods sold is $429,080.

c) The computation of the cost of goods manufactured is $441,080.

d) The computation of the direct materials used is $106,500.

e) The computation of the direct labor incurred is $78,095.

f) the Computation of the factory overhead incurred is $234,285.

How are the figures above computed?

The ledger accounts of the inventory accounts can help in the computation of the above figures as shown below.

Data and Calculations:

                                              January 1     December 31

Accounts receivable               $27,000        $33,000

Materials inventory                   22,500            6,000

Work in process inventory       70,200          48,000

Finished goods inventory          3,000           15,000

Collections on account were $625,000

Cost of goods sold was 68% of sales.

Direct materials purchased amounted to $90,000

T-Accounts:

Accounts receivable:

Beginning balance   $27,000

Sales (missing)        631,000

Cash collection                       $625,000

Ending balance                         $33,000

Cost of goods sold is $429,080 ($631,000 x 68%).

Materials inventory

Beginning balance   $22,500

Purchases                   90,000

Work in process                        106,500

Ending balance                          $6,000

Work in process inventory

Beginning balance    $70,200

Materials inventory    106,500
Direct labor                  78,095

Factory overhead     234,285

Finished goods inventory        $441,080

Ending balance                          $48,000

Finished goods inventory

Beginning balance        $3,000

Work in process         $441,080

Cost of goods sold                      $429,080

Ending balance                                15,000

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In general, which type of marketing do you think is most effective for events: push or pull marketing? If you were an event marketer, how would you decide how much push and pull marketing to use? Discuss how an event's ability to help us escape from everyday life and worries can be advantageous for marketeif you were an event marketer how would you decide how much push and pull marketing to use ​

Answers

Push marketing strategies in a way force the potential customer to consume by generating a need that previously did not exist through strategies such as great deals or discounts, bombastic advertisements, etc.

In turn, the pull marketing strategies seek to attract customers in a smoother way, that is, by convincing consumers about the essential characteristics of the product through medium and long-term transformations, such as changes in packaging.

Therefore, push strategies serve to generate consumption in the short term, while pull strategies serve to generate consumption in the medium and long term.

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Explain why the government might prefer to provide incentives to private firms to do investment or research and development, rather than simply doing the spending itself?

Answers

Answer:

One explaination I have heard is that governments are organized for stability and order, which is good, but what they're not good at is creativity and efficiency. The private sector is better at innovation and speed of execuation.

Explanation:

This is only one possible answer of many. I would not consider this answer to be complete.

Which of the following should be included in an individual taxpayers federal gross income

Answers

Answer:

I believe your wages, dividends, business income, capital gain, retirement distributions as well as other income should all be included in an individual  gross business income

Explanation:

Let me know if this helps!

a. Jamie purchases a washer and dryer from McKinney Appliances. She applies for the instore credit card. The application contains a clause stating that the store will retain a security interest in the goods purchased with the card until the goods have been paid in full. Discuss if this is an enforceable security interest. b. In this scenario, Jamie purchases the washer and dryer from McKinney Appliances and she signs a purchase agreement to pay $1,000 down and $100 per month until the balance, plus interest is fully paid. Is this an enforceable security interest

Answers

a. The contract that Jamie entered into for the purchase a washer and dryer based on an in-store credit card with McKinney Appliances constitutes an enforceable security interest.

The enforceability of the contract stems from the fact that Jamie freely agreed to use the store's credit and the agreement was not a fraud.  With this security interest, McKinney Appliances officially establishes its security interest in the washer and dryer.  It can exercise the claim in the appliance when Jamie fails to honor the agreement.

b. Yes. It is an enforceable contract.  This contract involves the sale of goods with a down payment and credit.

Thus, McKinney Appliances can legally force Jamie to pay on his account, failing which, McKinney Appliances may recover Washer and Dryer.

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Option A is an enforceable security interest while option B is not.

The security interest must be linked to a real sale. This means that it can only be established if it is linked to a sale that brings new values ​​into the buyer's assets.

A security intererest agreement must be entered into in connection with the sale. This means that it must be entered into before the item for sale is handed over to the buyer.

Loans can only be given for what is covered by the sale: This means that you can not get a car loan for additional equipment / upgrades that are bought afterwards and / or by someone other than the seller.

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what is marketing planing

Answers

Answer:

The marketing plan details the strategy that a company will use to market its products to customers. The plan identifies the target market, the value proposition of the brand or the product, the campaigns to be initiated, and the metrics to be used to assess the effectiveness of marketing initiatives.

Answer:

Marketing planning is a part of a design to achieve a goal. The marketing plan contains an action plan (who does, what and when) and a vision, strategic objectives, goals, and objectives

1. Briefly summarize the actions a firm can take to enhance the ethical behavior of its purchasing
personnel?

Answers

The actions which a firm can take to enhance the ethical behavior of its purchasing  personnel are:

Enforce strict compliance with rules and regulationsTake them on periodic trainings about ethicsGive out fines for employees who do not act ethically

According to the given question, we are asked to show the actions which a firm can take to enhance the ethical behavior of its purchasing  personnel

As a result of this, we can see that if a firm wants to improve the ethical behaviour, then they would have to make some rules and regulations with the guidelines on how best to use them so that the workers would always act in an ethical way such as being honest, faithful in their duties, etc

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A more wordy and complex way to say "we are cringe"

Answers

There are different ways

We are cowersWe are faunywe are toadies .We are trucklesWe are so cringy .

Answer:

start shrinkdrawbackshy wince flinch blench blanch dodge duck crouch shudder tremble

Explanation:

A complex way to say "we are cringe" are:

we cower.we are shrinking.we are a drawback.we are shy.we are wince.we are finch.we are blench.we are dodge.we are ducks.we are shudder.we are tremble.

Class ________ are the number of observations for each class of a frequency distribution using grouped quantitative data.
Numbers
Boundaries
Frequencies
Widths

Answers

Answer: it's frequencies

Explanation:

4-1) Consider any organization you are aware of from work, study, or the media. How do they manage people? Do people in those organizations feel important?
4-2) What is your personal experience of performance appraisal and/or performance related pay? Consider the arguments made in this course, which best fit your experience? Ask two of others for their experience and briefly describe the appraisal system you want.
you can give your own opinion in brief

Answers

There are different organizations with different ways of management of resources and personnel. The answers to the questions is below;

In the organization that I had worked for, I can say they have a good management. They are very direct in their management, they make you understand your duties and they make sure all follow the process outline. There are often consequences if one fails to perform his or her duties but their management was great and it lead to the growth of the organization.

People in those organizations feel important because the organization value them, value their input and personal wellbeing as well as their growth.

I worked in the accounting/ sales management unit for some months and I can say it was a good experience for me as I got to known more about using good software that makes it easy to work. I did a get job from the onset of my work. The Managing director was happy and had to increase my salary in the first month.

I can say my experience was more of educative as I learnt a whole lot of things. The Experience of the others was a little different from mine but they both believe that they did grow intellectually and morally.

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Determining how much money to keep in cash and how much to invest in other options is called O A. mutual funding O B. capital formation C. asset allocation O D. diversification​

Answers

Answer: in my opinion its C

All goods to be imported whether or not subject to import duties must be declared in writing on prescribed forms.

Answers

A customs declaration is an official document that lists and gives details of goods that are being imported or exported. In legal terms, a customs declaration is the act whereby a person indicates the wish to place goods under a given customs procedure.

With growing dissatisfaction with performance management processes, Agile Manifesto was developed by software developers and emphasized principles of all of these EXCEPT:________.
a. emotional intelligence.
b. regular reflection on how to work more effectively.
c. self-direction.
d. self-organization.
e. collaboration.

Answers

Considering the Agile Manifesto analysis and available options, the correct answer is emotional intelligence.

What is the Agile Manifesto?

Agile Manifesto is the document that establishes the fundamental values and standards in the Agile philosophy context.

Agile Manifesto is formulated to assist the development teams in performing their tasks with efficiency and sustainability.

Four Agile Manifesto PrinciplesRegular reflection Self-directionSelf-organizationCollaboration

Hence, in this case, it is concluded that the correct answer is option A. "emotional intelligence."

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Give detailed accounts of the following financial crises:

The Japanese Banking Crisis of the 1990s

The Asian Crisis of the mid 1990s

The current global financial crisis.

You should include the causes of the crises, providing examples where necessary and citations of any relevant papers.

Answers

Japanese Banking Crisis 1990s

The banking and financial crises that happened during the 1990s in Japan was caused the collapse of the fabled economic bubble and the asset prices in the 1980s.

The crises caused a prolonged recession in the country.

However, the government used the various public policy to revive the financial industry and series of bad loans problem in the country.

Asian Crisis 1990s

The Asian financial crisis was a global crisis which destabilized its Asian economy at the end of the 1990s.

The main causes of the Asian crisis is the difficultly in borrowing of dollars to subsidize their domestic industries.

Other causes that contributed to the crisis include collapse of the currency exchange rate.

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Accounting is used to communicate financial information to both internal audiences and external audiences. Internal users are:
a. Only people within a business's accounting and finance departments
b. People within the business like production managers
c. Suppliers that provide goods
d. Contractors that perform work for the business.

Answers

Accounting can be regarded as a term used in communicating financial information across to internal audiences as well as external audiences.

These Internal users are been regarded as people within the business, such as production manager.

These information help in making the financial aspect of the company to succeed.

Therefore, option B is correct.

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Master’s Cleaners’ average variable costs consist of $.70 of direct labor, $.30 of direct

materials, and $.50 of other variable inputs. If it has fixed costs of $1,000, what level of output

is required at a price of $2 to generate $500 in profits?

a. 1,000

b. 1,500

c. 2,000

d. 2,500

e. 3,000

Answers

d, no explanation but hope this helps!

Who should fill out a Free Application for Federal Student Aid (FAFSA)?
PERDELE
A. Only students who have been accepted to college should fill out a
FAFSA.
B. All students should fill out a FAFSA.
C. Only students who are unable to pay for college should fill out a
FAFSA.
D. Only students who have received good grades should fill out a
FAFSA.
EL
14
FREE

Answers

Based on the eligibility requirements stated, those that should fill out a Free Application for Federal Student Aid (FAFSA) are the "Only students who have been accepted to college should fill out a FAFSA."

Eligibility Criteria for FAFSA

According to the United States government website, to be eligible for the program requires one to have the following criteria:

Be a U A Citizen.Have a valid Social Security Number.Register with Selective Service.Have a high school diploma.Be accepted or already a regular student working toward a degree or just No drug record, etc.

Hence, in this case, it is concluded that the correct answer is option A. "Only students who have been accepted to college should fill out a

Only students who have been accepted to college should fill out aFAFSA."

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How is Adam Smith both praiseworthy and suspicious of businessmen's ability to serve the public good

Answers

Answer: Smith does not exactly praise the abilities of businessmen to foster the public good; he just thinks that, given the ability to make their own decisions, these men will make rational ones that make economic sense.

Explanation: Yes

On January 1, Year 1, Hardy Company had a balance of $116,500 in its Common Stock account. During Year 1, Hardy paid $38,000 to purchase treasury stock. Treasury stock is accounted for using the cost method. The balance in the Common Stock account on December 31, Year 1, was $147,500. Assume that the common stock is no par stock. Required a. Determine the cash inflow from the issue of common stock. b. Prepare the financing activities section of the Year 1 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

Basically the answer you just have to use points and haul and you just get the one that you think is the best for highlighting and then you just get the Basically the answer you just have to use points and whole and you just get the one that you think is the best for highlighting and then you just get that and then You do points and whole

Explanation:

P/w

Help help help help help help please please

Answers

Answer:

A

Explanation:

The final answer would be A

Help help help please I need this done ASAP

Answers

It should be noted that cost-push inflation will bring about a scenario where the output level will reduce.

Your information is incomplete. Therefore, an overview of the topic will be given. Cost-push inflation simply means an inflation that occurs when the prices of goods increase as a result of the increase in the factors of production.

It should be noted that cost-push inflation will bring about a scenario where the output level will reduce. This implies that inflation accelerates due to a widening negative output gap.

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Colgate-Palmolive Company has just paid an annual dividend of . Analysts are predicting dividends to grow by per year over the next five years. After​ then, Colgate's earnings are expected to grow per​ year, and its dividend payout rate will remain constant. If​ Colgate's equity cost of capital is per​ year, what price does the​ dividend-discount model predict Colgate stock should sell for​ today?

Answers

The amount of $97.85 is the price that​ dividend-discount model predict that Colgate stock should sell for​ today

Given Information

Current dividend (D0) = $1.59

   

Dividend payments for next five years includes:

D1 = 1.59 +0.18

D1 = 1.77

   

D2 = 1.77 +0.18

D2 = 1.95

D3 = 1.95 +0.18

D3 = 2.13

D4 = 2.13 +0.18

D4 =2.31

D5 = 2.31 +0.18

D5 =2.49

Year  Cash Flow         PVF at 8.1%        Present value

1            1.77                0.92506938        1.637372803    

2           1.95                0.855753358      1.668719048

3           2.13                0.791631229        1.686174517    

4           2.31                0.73231381           1.691644901    

5           2.49               0.677441082        1.686828295

Present value of Dividends                   8.3707

PV of remaining dividends in 5 year = D5 x (1+g)/(Ke-g))      

PV of remaining dividends in 5 year = 2.49(1+0.061)/(0.081-0.061)    

PV of remaining dividends in 5 year = $132.0945

Given that g=6.1%, ke=8.1%      

PV of remaining dividends in year = 0 = PV of the remaining dividends in year 5* 1/(1+0.081)^5

= 132.0945 * 1/(1+0.081)^5    

= $89.48624      

As per dividend-discount model, Colgate stock should sell for​ today = PV of Dividends till 5th year + PV of Remaining Dividend at t=0

= $89.48624 + $8.3707    

= $97.8531

= $97.85

Hence, the amount of $97.85 is the price that​ dividend-discount model predict that Colgate stock should sell for​ today.

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According to the income balance, the “+” sign refers to _____ and the “-” sign refers to _____

Answers

Answer:

positive negative or addition and subtraction

incoming dollars coming in when merchandise is exported; dollars that leave the country to pay for imports

Which of the following is not an example of a digital transaction?
A. Ellis uses his frequent flyer miles to buy a plane ticket.
B. Marcos buys a pair of sneakers with cash he received from his
grandmother.
C. Lauren uses the credit card stored at an online retailer to purchase
her books for school.
D. Amy tells her smart speaker to refill her grocery order.

Answers

Pretty sure it’s B since Marcos is using cash

Do anybody know how to do the mega mogul project on knowledge matters ? Make over 30 million dollars pls help

Answers

Based on the business management analysis, to do the mega mogul project on knowledge matters requires following specific steps, which begin with "detecting the opportunity."

What is the Mega Mogul Project?

Mega Mogul Project is a business project whereby individual starts with one location and continue to grow and expand their entrepreneurial conglomerate to numerous businesses and several locations.

Some other steps to take when conducting a mega mogul project on knowledge matters are:Market ResearchCreating a Business PlanRaising Money & FinancialsBuilding a TeamAcquiring ResourcesGoing to Market Operations & FeedbackShark ProjectBusiness Plan ProjectMega-Mogul Project.

Hence, in this case, it is concluded that various steps are involved when carrying out a mega mogul project on knowledge matters.

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Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities account. During the period the Company paid $10,000 to purchase marketable securities. If the Company reported a gain on the sale of marketable securities of $1,000 the amount of the cash inflow from the sale of securities is

A. $7,000.
B. $6,000.
C. $5,000.
D. None of the answers is correct.

Answers

B I think sorry if wrong :/

A characteristic of a process cost accounting system is: Group of answer choices It is used by a company manufacturing custom machinery. None of these is correct. Work in process inventory is restated in terms of equivalent production. Costs are accumulated by order.

Answers

There are different aspect of process cost accounting. A characteristic of a process cost accounting system is Costs are accumulated by order.

Process costing is known to be a common accounting methodology. It helps one to evaluate or finds out and accumulates direct costs, and gives indirect costs of a manufacturing process.

This system is commonly used to give the cost to departments or processes particularly. It consist of all the allocation of direct material, labor, and other overheads.

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Define assets and liabilities and give an example

Answers

No entiendo el ingles me pueden decir como le cambio el idioma

Assets are things of value a person or company owns that provides an economic benefit to them e.g. machinery. Liabilities are what a person or company owes (debts) e.g. loan.
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