10-63 (Testing Controls) Following is a list of controls typically implemented in the processing of sales transactions. Required a. For each control identified, briefly indicate the financial misstatement that could occur if the control is not implemented effectively. b. Identify an audit procedure to test for effective
Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales.........
1 Problem: A firm sells two products, one call slingers and the other called widgets.  The firm has a fixed cost of $50,000.00 per year.  Each slinger costs $4 to produce but can be sold in the market for $9 What is the breakeven production of the firm in terms of Widgets and Slingers sold? Each widge
I am working on a short chart with transactions the book says the total sales discounts should be $2680 and I have $2980. Can you help me find my error. I am attaching the scanned page from the book with the problem and the worksheet that I have completed. Thanks for your help.
Need help in developing a set of pro forma financials (income statement and balance sheet only) for the next fiscal year-end using the percent-of-sales method. Assume that the company's sales have increased by 20%. Be sure to list the underlying assumptions of your analysis and computations. Recalculate the same ratios from atta
Using the following example, allocate service center costs to each of the three revenue centers using the step-down method: Full-time Costs Square
Tucson Machinery, Inc. manufactures numerically controlled machines, which sell for an average price of $0.50 million each. Sales for these NCMs for the past two years were as follows: (see chart in attached file) Quarter Quantity Quarter Quantity I 12 I 16 II 18 II 24 III 26 III 28 IV 16 IV 18
Bowerkate Corporation sells handcrafted surfboards to customers through its network of company salespeople. Each surfboard is given a unique identification number and a suggested selling price when finished. Upon employment each salesperson is immediately assigned to service a separate group of customers. When customer data are
Dif: 1 7. Currently, the unit-selling price is $30, the variable cost, $14, and Obj: 03 the total fixed costs, $96,000. A proposal is being evaluated to increase the selling price to $34. (a) Compute the current break-even sales (units). (b) Compute the anticipated break-even sales (units), assuming tha
How would you determine the difference between high sales and high demand? Also, if we conducted market surveys to determine the markets demand could that be misinterpreted if sales were low?
A firm's products have an average contribution margin ratio of 40%, which will be maintained for the next month even though fixed expenses are expected to rise by $20,000. In order to keep operating income for the month from being affected, revenues will have to increase by: $ 8,000 $12,000 $20,000 $50,000
Going back to marketing data Using the data you provided collected for the two variables in calculate the least squares regression equation. Interpret the results of equation and determine what the results tell us about the relationship between the variables.
Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sa
Therapeutic Systems sells its products for $8 per unit. It has the following costs: Rent $120,000 Factory labor $1.50 per unit Executive salaries $112,000 Raw material $.70 per unit
What are some common mistakes new Vice-Presidents of International Sales make, such as PM Company's VP, and why? It would be helpful for me to have specific companies and include web links or books you used in your research. Do not use the classic example of Chevy Nova (nova meaning "no-go").
Question: Martin Corporation currently sells 180,000 units per year at a price of $7.00 per unit; its variable cost is $4.20 per unit; and fixed costs are $400,000. Martin is considering expanding into two additional states, which would increase its fixed costs to $650,000 and would increase its variable unit costs to an average
Hebner Housing Corporation has forecast the following numbers for this upcoming year: ? Sales = $1,000,000. ? Cost of goods sold = 600,000. ? Interest expense = 100,000. ? Net income = 180,000. The company is in the 40 percent tax bracket. Its cost of goods sold always represents 60 percent of its sales. That is, if t
The following service contracts, for which Padres Co receives full pymnt on the contract date, have been entered into with special customers: Date Amt Term 7/1/05 $70,000 35 months 10/1/05 $100,000 25 months 4/1/06 $120,000 40 months Padres Co completes work on the contracts e
Gibson Manufacturing Corp. expects to sell the following number of units of steel cables at the prices indicated under three different scenarios in the economy. The probability of each outcome is indicated. What is the expected value of the total sales projection? Outcome Probability Units Pri
Not sure where to begin. with a sales increase of 15% and I believe that Cambridge will still need some financing, but using the percent of sales calculation I am not seeing it. See below: Cambridge Prep Shops, a national clothing chain, had sales of $200 million last year. The business has a steady net profit margin of 1
Rapid corporate growth in sales and profits can cause financing problems. Elaborate on this statement.
(See attached file for full problem description) --- 1) Determine the year-to-year percentage annual growth in total net sales. Show all work. 2) Based only on your answers to question #1, do you think the company will hit its sales goal of +10% annual revenue growth in 2005? Determine the target revenue figure, and exp
I am truly stuck. I have filled out all portions in which I understand, however I can not seem to make the formulas check themselves. (See attached file for full problem description) Charlie's Furniture Store has been in business for several years. The firm's owners have described the store as a "high-price, high-servi
NEED HELP IN DEFINING THE QUESTION AND READ THE GRAPHS --- 1. Define revenue, fixed cost, variable cost, and contribution margin. 2. What is meant by the term break-even point? Why are managers of a company interested in the break-even point? 3. "A change in fixed costs" in the second cell under break-even analysi
I have 2 machines, one new and one old. The monthly capacity-related costs are 40K for the new, and 32K for the old machine. The flexible costs are $40 per unit for the new, and $44 per unit for the old machine. The sales price per unit is $55 for both. I want to determine the sales level, in number of units, when costs
I am not certain how to work the formulas on this problem. Using Percentage of Sales. Eagle Sports Supply has the following financial statements. Assume that Eagle's assets are proportional to its sales. a. Find Eagle's required external funds if it maintains a dividend payout ratio of 70 percent and plans a growth rate o
Fiscal Years (in millions except shareand per share amounts) 2004 2003 2002 2001 2000 Net Sales $ 8,334 $ 6,141 $ 9,181 $11,933 $11,062 Net Income (loss) $ 811 $519 $(1,245) $(9
Attached is a case I need help anwsering. Q. How did actual sales compare with planned sales?
Elm Company makes a product that has peak sales in September of each year. The company has prepared a sales budget for the third quarter of 2003, as shown below. July August September Budgeted sales $500,000 $600,000 $750,000
For firms with high fixed costs, the percent-of-sales approach for preparing a pro forma income statement tends to ________ overestimate profits when sales are increasing, underestimate profits when sales are increasing, be an accurate predictor of profits, or neither understate nor overstate profits