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Various Financial Accouting Questions

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Problem 4-14 - Refer to problems at the end of the chapter for details and instructions:
Use template to complete the problem:

Bradley Corporation
COST FOR JULY, 201X Units Sold 13,000
Material $2 Price per Unit $16
Labor $4 Beginning Inventory 3,000
Overhead $2 Units Produced 12,000
$8 Cost July-Dec. $11

Solution:
Sales Value of Ending Inventory:
Cost of goods sold: Beginning Inventory
Old Inventory: FIFO Total Production
Quantity (Units) Total Inventory available for sale
Cost per Unit Cost of goods sold
Total Ending Inventory
New Inventory:
Quantity (Units)
Cost per unit
Total
Total Cost of Goods Sold:
Gross Profit

Problem 4-17 - Refer to problems at the end of the chapter for details and instructions:
Use template to complete the problem:

Victoria's Apparel
Credit Sales
September $50,000 Sales Collected in month of sales 20%
Fourth Quarter Sales Collected the following month 70%
October $40,000 Sales never collected 10%
November $35,000
December $60,000

Solution:
September October November December
Credit Sales
20% collected
70% collected
Total Collected

Problem 4-27 - Refer to problems at the end of the chapter for details and instructions:
Use template to complete the problem:

Owen's Electronics
Sales 100,000,000 Balance Sheet (in $ millions)
Profit Margin 7% Cash 2 Accounts payable 15
Dividend Payout Ratio 40% Accounts Receivable 20 Accrued wages 2
Sales- increase next year 10% Inventory 23 Accrued taxes 8
100 Current Assets 45 Current Liabilities 25
110,000,000 Fixed Assets 40 Notes Payable 10
Common stock 15
Retained Earnings 35
Total liabilities &
Total assets 85 Stockholders' equity 85

Solution:
Change in sales
Required New funds

RNF

Problem 5-8 - Refer to problems at the end of the chapter for details and instructions:
Use template to complete the problem:

Air Purifier, Inc.
Fixed Costs $2,400,000
% of Depreciation value 15%
Depreciation $360,000
Contribution Margin $30.00

Solution:

Cash Related Fixed Costs =

Cash Breakeven =

Problem 5-11 - Refer to problems at the end of the chapter for details and instructions:
Use template to complete the problem:

Harding Company Solution:
Number of units = Q 10,000 a) DOL =
Sales Price per Unit = P $50
Variable Costs per Unit = VC $20
Fixed Costs = FC $150,000 b) DFL =
Interest Expense = I $60,000
Taxes 40%
Harding Company c) DCL =
Income Statement
For the Year Ended Dec. 31, 201X
Sales (10,000 tires @ $50 each) $500,000 d) BE =
Variable costs (10,000 tires @ $20) ($200,000)
Fixed Costs ($150,000)
EBIT $150,000
Interest Expense ($60,000)
EBT $90,000
Income Taxes @ 30% ($36,000)
EAT $54,000

Problem 5-15 - Refer to problems at the end of the chapter for details and instructions:
Use template to complete the problem:

U.S Steal Income Statement Data
Units Sold Total VC Fixed Costs Total Costs Total Revenue Operating Income
40,000 $80,000 $50,000 $130,000 $160,000 $30,000
60,000 $120,000 $50,000 $170,000 $240,000 $70,000
Solution:
a)
DOL =

b) Q =
P =
VC =
DOL =

Attachments

Solution Summary

The solution answers various financial accounting questions related cost of goods sold, total Inventory available for sale, cash budget, additional financial needs, cash breakeven, degree of operating leverage, degree of financial leverage, degree of combined leverage, breakeven point.

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