Homework Answers
Answer: 1st option
This transportation cost is actually for selling products, since it is “out”. Such cost is a part of operating costs; therefore, it increases operating expenses.
Other options are not correct:
2nd option: this is not direct cost; therefore, should not be included in cost of goods sold.
3rd option: this is not a part of inventory.
4th option: since it is not a cost of goods sold item, gross margin would be unaffected.
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How does the following journal entry affect a company's financial statements? 400 Transportation-out Cash 400 Multiple...
Neef Corporation has provided the following financial data from its balance sheet and income statement: Year...
Neef Corporation has provided the following financial data from its balance sheet and income statement: Year 2 $1,302,000 $ 885,000 Year 1 $1,330,000 $ 880,000 Total assets Total stockholders' equity Income Statement For the Year Ended December 31, Year 2 Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (35%) Net income $1,420,000 890,000 530,000 493,000 37,000 17,000 20,000 7,000 $13,000 The company's gross margin percentage...
Which of the following items will require an adjusting journal entry on a company's books? O...
Which of the following items will require an adjusting journal entry on a company's books? O Outstanding checks O Deposits in transit O NSF check O Error made by the bank Which of the following costs should be added to the buyer's Inventory account? O Freight-in costs with terms FOB destination O Freight-in costs with terms FOB shipping point O Freight-out costs with terms FOB shipping point O Freight-out costs with terms FOB destination Which of the following is a...
Creble Company reported net income for 2018 in the amount of $40,000. The company's financial statements...
Creble Company reported net income for 2018 in the amount of $40,000. The company's financial statements also included the following: Increase in accounts receivable $ 4,000 Decrease in inventory 2,000 Depreciation expense 3,000 Gain on sale of equipment 5,000 In the statement of cash flows what is net cash provided by operating activities under the indirect method? Multiple Choice $36,000. $41,000. $40,000. $38,000.
17.4%. 18.5%. 18.0%. 16.5%. 61 days. 92 days. 101 days. 90 days. Financial statements that report...
17.4%.
18.5%.
18.0%.
16.5%.
61 days.
92 days.
101 days.
90 days.
Financial statements that report changes over time include: Multiple Choice statement of shareholders' equity, balance sheet, and statement of cash flows. О O balance sheet, statement of cash flows, and income statement. statement of cash flows, income statement, and statement of shareholders' equity. statement of shareholders' equity, balance sheet, and income statement. Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented...
Please show method of how to calculate each entry Picnic Corporation computed the amount of cash flows from operations...
Please show method of how to calculate each entry
Picnic Corporation computed the amount of cash flows from operations using both the direct and indirect methods, as follows. $527,000 (169,000) (198,000) $160,000 $98,200 Direct method: Collections from customers Payments to suppliers Payments for operating expenses Cash flows provided by operating activities Indirect method: Net income Depreciation Gain on sale of equipment Decrease in inventory Decrease in accounts receivable (net) Decrease in accounts payable Increase in miscellaneous accrued payable Cash flows...
Required information The following information applies to the questions displayed below.] The comparative financial statements for...
Required information The following information applies to the questions displayed below.] The comparative financial statements for Prince Company are below: Year 2 Year 1 $191,500 112,400 79,100 57,700 21,400 6,420 $ 14,980 $167,300 102,000 65,300 54,700 10,600 3,180 $ 7,420 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities...
Q.3 How does the year-end adjusting entry to recognize uncollectible accounts expense affect the elements of...
Q.3 How does the year-end adjusting entry to recognize uncollectible accounts expense affect the elements of the financial statements? Multiple Choice A. Increase total assets and decrease stockholders’ equity. B. Increase total liabilities and increase stockholders’ equity. C. Decrease total assets and decrease stockholders’ equity. D. Decrease total liabilities and increase stockholders’ equity.
For a journal entry with only two lines, the following entry is valid:
For a journal entry with only two lines, the following entry is valid: Decrease in Owners' Equity, Increase in Expense.False B) TrueAllocation is primarily as issue inMeasuring Income B) None of the other threeC) Measuring Assets D) Both Measuring Assets and IncomeABC has beginning inventory for the year of $18,000. During the year, ABC purchases inventory for $230,000 and has cost of goods sold equal to $233,000. ABC's ending inventory equals:A) $21,000. B) $18,000. C) $15,000. D) $19,000.Of the following...
12 Ending cash balance is shown on which of the following financial statements? Part 2 of...
12 Ending cash balance is shown on which of the following financial statements? Part 2 of S Multiple Choice pons Balance Sheet Balance Sheet and Statement of Cash Flows Statement of Cash Flows Income Statement and Statement of Changes in Stockholders Equity
Tu Company's financial statements show a net income of $378,000 in 2016. The following items also...
Tu Company's financial statements show a net income of $378,000 in 2016. The following items also appear on Tu's balance sheet: Depreciation expense $80,000 Accounts receivable decrease 24,000 Inventory increase 56,000 Accounts payable increase 16,000 Using the indirect method, what is Tu's net cash flow from operating activities in 2016?
Neef Corporation has provided the following financial data from its balance sheet and income statement: Year 2 $1,302,000 $ 885,000 Year 1 $1,330,000 $ 880,000 Total assets Total stockholders' equity Income Statement For the Year Ended December 31, Year 2 Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (35%) Net income $1,420,000 890,000 530,000 493,000 37,000 17,000 20,000 7,000 $13,000 The company's gross margin percentage...
Which of the following items will require an adjusting journal entry on a company's books? O Outstanding checks O Deposits in transit O NSF check O Error made by the bank Which of the following costs should be added to the buyer's Inventory account? O Freight-in costs with terms FOB destination O Freight-in costs with terms FOB shipping point O Freight-out costs with terms FOB shipping point O Freight-out costs with terms FOB destination Which of the following is a...
17.4%.
18.5%.
18.0%.
16.5%.
61 days.
92 days.
101 days.
90 days.
Financial statements that report changes over time include: Multiple Choice statement of shareholders' equity, balance sheet, and statement of cash flows. О O balance sheet, statement of cash flows, and income statement. statement of cash flows, income statement, and statement of shareholders' equity. statement of shareholders' equity, balance sheet, and income statement. Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented...
Please show method of how to calculate each entry
Picnic Corporation computed the amount of cash flows from operations using both the direct and indirect methods, as follows. $527,000 (169,000) (198,000) $160,000 $98,200 Direct method: Collections from customers Payments to suppliers Payments for operating expenses Cash flows provided by operating activities Indirect method: Net income Depreciation Gain on sale of equipment Decrease in inventory Decrease in accounts receivable (net) Decrease in accounts payable Increase in miscellaneous accrued payable Cash flows...
Required information The following information applies to the questions displayed below.] The comparative financial statements for Prince Company are below: Year 2 Year 1 $191,500 112,400 79,100 57,700 21,400 6,420 $ 14,980 $167,300 102,000 65,300 54,700 10,600 3,180 $ 7,420 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities...
12 Ending cash balance is shown on which of the following financial statements? Part 2 of S Multiple Choice pons Balance Sheet Balance Sheet and Statement of Cash Flows Statement of Cash Flows Income Statement and Statement of Changes in Stockholders Equity
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