reviewing CB, Inc.’s (CB) income statements and balance sheets for years 6, 7 and 8 we find fluctuations in sales, cost of goods sold and several other line items. CBs’ net sales experienced an increase of 33.3% from year 6 to year 7 with an increase in net earnings of 313.4%. In comparing year 7 to year 8 we find that CB did not have quite as good of a year; during year 8 the company experienced a 15% reduction in Net Sales with an 81.6% reduction in Net Earnings. We need to take a closer look
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1 For an activity base to be useful in cost behavior analysis, A. the activity should always be stated in dollars. B. the activity level should be constant over a period of time. C. the activity should always be stated in terms of units. D. there should be a correlation between changes in the level of activity and changes in costs. 0.5 points Question 2 A variable cost is a cost that A. varies in total in proportion
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stockholders are the ultimate owners of the firm, they are primarily concerned with profits or the return on their investment. | | | 3-2. | Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down return on stockholders’ equity.The Du Pont system of analysis breaks out the return on assets between the profit margin and asset turnover. Return on Assets = Profit Margin × Asset TurnoverIn this fashion, we can assess the joint impact of profitability
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1-2. 1. Cost of goods sold $126,000 2. Cost of goods sold $293,000 1-3. 2. Gross profit on sales $ 25,850 Net income $ 10,650 3. Total assets $442,100 1-4. 3. Cost of goods manufactured $ 91,000 Net income $162,850 1-5. 8. Dr. to Work in Process (Factory Overhead) $76,900 1-6. 1. Cost of goods manufactured $348,000 2. Prime cost $264,000 3. Conversion cost $240,000 1-7. Cost of goods manufactured…………………………………………
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Merrimack.) Prepare a pro-forma income statement assuming no changes in accounting policy for 2008 assuming that the company sells 10,000 units each quarter at a price of $2,000 per unit with Sales General and Administration costs the same as for 2007. The cost of goods sold (COGS) is depends on the beginning inventory, purchases in the quarter and the ending inventory. Cost of Goods Sold = Beginning Inventory + Purchases – Ending Inventory In this case, assuming Merrimack Tractors has generated
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Table of Contents Introduction 2 1.1 Sources of fund and income 2 1.2 Contribution made by the methods of generating income 4 2.1. Elements of cost 5 Instructions for gross profit margin 6 3. Just In Time 7 4. Economic Order Quantity 7 2.2 The Best Methods for Controlling the Cash Flow 7 3.1 Sources of trial Balance 8 The main sources of trial balance are- 8 Journal entries 8 Ledger 8 Closing entries 8 Adjusting entries 8 3.1 Structure of a Trial Balance
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analysis of Intel and Microsoft in 2013 LNU SWIBS Management 3 Ellie 126602308 The two companies I chose are Microsoft Inc.’s and Intel Corporation’s. Microsoft. Based on the compare with these ratios, we could do some fundamental analysis of risk level and profitability of Intel and Microsoft, to appraise the financial performance and financial position of two companies. The relative ratios of two companies are calculated as follows： Ratio | Intel | Microsoft | return on equity=net profitsharesholder's
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Chapter 4 Cost-Volume-Profit Analysis QUESTIONS 1. Variable costs are costs that change in response to changes in activity (e.g., production or sales activity). Fixed costs are costs that do not change in response to changes in activity. 2. A mixed cost is a cost that has a fixed cost component and a variable cost component. For example, the amount paid for telecommunication services would be a mixed cost if there was a fixed monthly fee plus a charge for use. 3. Discretionary
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managers tend to fall on a kind of generic “one-size-fits-all” approach to new product development. One size does not fit all because the best way to organize for successful innovation depends on the opportunity cost and the development risk of the project. The question of product/company fit means how well the firm can deal with the development, manufacturing and marketing requirement. Does it possess the financial, human and other skills and resources to enter the market? Can it successfully upgrades
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operating results, and investing/financing activities of an organization. Financial statements reflect only past transactions and events. A transaction typically involves an exchange of resources between the business and other parties. Purchase of goods held for resale,
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