Homework Answers
Question 1:-
The Net Sales reported on the Income statement is calculated as :- Sales - Sales Returns - Sales Discounts
Net Sales = $365,000 - $3,650 - $5,475
Net Sales = $355,875
Based on the calculation above, the closest answer is Option A and hence, the correct answer is Option A - $355,876
Option B, Option C and Option D are incorrect per the calculation above.
Question 2:-
The correct answer is Option A - Cash sales. When sales are made on cash, the operating expenses for the company is reduced as it is a cash and carry model. The company would be able to source other raw materials immadiately once cash is received. Hence, this is the correct answer.
Option B and Option C are incorrect as debit card and credit card sales involve transactional charges.
Option D is incorrect as Sales on account increases the company's operating costs as the funds are not used and are stuck with the debtors.
Question 3:-
Uncollectible accounts are the same as Option A - Bad Debts. Bad debts is the inability in collecting the balances a business owes. As such, this is the correct answer.
Option B, Option C and Option D are incorrect as they do not represent the term Bad debts.
Question 4:-
The correct answer is Option A - Installation charges.Installation charges are included in the cost of machinery and capitalized and hence is the correct answer
Option B , Option C and Option D are incorrect as these expenses are generally not included in the cost of the machinery.
Kindly note that i have answered the first 4 questions per the Chegg answering guidelines. Request you to post the remaining questions separately so that we can answer them as well. All the best and please let me know if you have any questions via comments :)
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Complete the statement one section at a time, beginning with
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Statement of Cash Flows
Year Ended December 31, 2018
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Problem 11-4A Prepare a statement of cash flows-indirect method (L011-2, 11-3, 11-4, 11- The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. $3,386,000 VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Net sales Expenses : Cost of goods sold $2,200,000 Operating expenses 998,000 Depreciation expense 32,000 Loss on sale of land 8,500 Interest expense 17,500 Income tax expense 53,000 Total expenses Net income ces 3,219,080 $ 167,000 VIDEO PHONES, INC. Balance...
Complete the statement one section at a time, beginning with
the cash flows from operating activities.
Grand Tree, Inc.
Statement of Cash Flows
Year Ended December 31, 2018
Grand Tree, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 442,000 Cost of Goods Sold 210,200 Gross Profit 231,800 Operating Expenses Salaries Expense 78,400 Depreciation Expense-Plant Assets 14,700 Other Operating Expenses 11,000 104,100 Total Operating Expenses Operating Income 127.700 Other Income and (Expenses): Interest Revenue 8,300 Interest Expense...
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