Yuan is signing a letter of intent to attend the University of Oklahoma after getting a gymnastics scholarship offer. Which step

Answer and Explanation:

a. Below is the computation of the contribution margin for each segment:

                                                     (in millions)

Details            Investor Advisor             Services Services  

Revenue from

operations              $1,681                                  $1,660

Plus:

Depreciation           $171                                     $154

Contribution

Margin                    $1,852                                  $1,814

2. Next, we assess the decrease in operating income

                                                   (in millions)

Details         Combined services          Institutional Services  

Total Revenue          $9,368                                $4,771

Less:

Variable expense    $5,702                                 $2,919

                    ($2,919 + $2,783)

Contribution

margin               $3,666                                 $1,852

Less:

Fixed costs         -$325                                    -$171

Net earnings        $3,341                                  $1,681

So from the previous calculations, it shows that the net operating income has decreased by

= $3,341 - $1,681

= $1,660 million

The variable costs can be calculated as

= Service revenues minus income from operations minus depreciation expense

Response:

Year 1: Cumulative preferred stock dividends amount to $51,000; Common stock dividends amount to 0.

Year 2: Cumulative preferred stock dividends amount to $93,000; Common stock dividends amount to $12,000.

Year 3: Cumulative preferred stock dividends amount to $72,000; Common stock dividends equal $9,000.

Year 4: Cumulative preferred stock dividends amount to $72,000; Common stock dividends total $48,000.

Clarification:

Year 1

Total dividends distributed = $51,000

Cumulative preferred stock dividends due = 60,000 * $60 * 2% = $72,000

Paid dividends to cumulative preferred stock = $51,000

Outstanding cumulative preferred stock dividends carried over = $72,000 - $51,000 = $21,000

Common stock dividends = 0

Year 2

Total dividends distributed = $105,000

Cumulative preferred stock dividends due for year 2 = 60,000 * $60 * 2% = $72,000

Total cumulative preferred stock dividends owed = 72,000 plus the amount carried over from year 1 = $72,000 + $21,000 = $93,000

Dividends paid on cumulative preferred stock = $93,000

Dividends paid to common stock = $105,000 - $93,000 = $12,000

Year 3

Total dividends distributed = $81,000

Cumulative preferred stock dividends owed = 60,000 * $60 * 2% = $72,000

Dividends paid on cumulative preferred stock = $72,000

Dividends paid to common stock = $81,000 - $72,000 = $9,000

Year 4

Total dividends distributed = $120,000

Cumulative preferred stock dividends owed = 60,000 * $60 * 2% = $72,000

Dividends paid on cumulative preferred stock = $72,000

Dividends paid to common stock = $120,000 - $72,000 = $48,000

This scenario exemplifies Agency conflict. It occurs when someone has the authority to make decisions on behalf of an entire organization. In this case, shareholders support an acquisition offer while the board of directors chooses to decline it.

In a scenario where transactions are recorded in the exact sequence they occurred, the customer owes $22. Conversely, if the transactions are arranged from largest to smallest, the customer’s account balance diminishes rapidly, leading to an overdraft of $88. Explanation: In the original order, one fee of $22 accumulates, resulting in a total debt of $22, calculated by multiplying 1 by $22. However, when sorted descending, four occurrences of the $22 fee arise, resulting in an overdraft of $88, as computed by multiplying 4 by $22.

Response:

a. The remaining store supplies at the end of the fiscal year total $2,550.

Debit Supplies expense 2,550

    Credit Supplies 2,550

b. For the fiscal year, the amount for expired insurance, categorized as an administrative expense, is $1,720.

Debit Insurance expense 1,720

    Credit Prepaid insurance 1,720

c. The depreciation expense associated with store equipment, classified as a selling expense, totals $6,500 for the fiscal year.

Debit Depreciation expense 6,500

    Credit Accumulated depreciation, equipment 6,500

d. To gauge shrinkage, a physical inventory count taken at fiscal year-end indicates $10,720 of merchandise is still on hand.

Debit Cost of goods sold 2,280

    Credit Merchandise inventory 2,280

Cash $22,150

Merchandise inventory 10,720

Store supplies 2,550

Prepaid insurance 1,080

Store equipment 42,800

Accumulated depreciation—Store equipment $25,750

Accounts payable 17,000

Common stock 4,000

Retained earnings 25,000

Dividends 2,100

Sales 115,900

Sales discounts 2,100

Sales returns and allowances 2,000

Cost of goods sold 40,280

Depreciation expense—Store equipment 6,500

Sales salaries expense 12,900

Office salaries expense 12,900

Insurance expense 1,720

Rent expense—Selling space 8,000

Rent expense—Office space 8,000

Store supplies expense 2,550

Advertising expense 9,300

Totals $187,425 $187,425

a) The current ratio is calculated as current assets divided by current liabilities, resulting in $36,050 / $17,000 = 2.12

c)  Nelson company

Income Statement

For the month ending January 31, 202x

Revenues:

• Total net sales                                                              $111,800

Expenses:

• Cost of goods sold $40,280
• Depreciation expense - equipment $6,500
• Sales salaries expense $12,900
• Office salaries expense $12,900
• Insurance expense $1,720
• Rent expense - Selling space $8,000
• Rent expense - Office space $8,000
• Store supplies expense $2,550
• Advertising expense $9,300                              ($102,150)

Operating income                                                           $9,650

b) Nelson company

Income Statement

For the month ending January 31, 202x

Sales:

• Total sales $115,900
• Sales discounts ($2,100 )
• Sales returns and allowances ($2,000 )            $111,800

Cost of goods sold                                                           ($40,280)

Gross profit                                                                         $71,520

Selling expenses:

• Depreciation expense - equipment $6,500
• Sales salaries expense $12,900
• Rent expense - Selling space $8,000
• Store supplies expense $2,550
• Advertising expense $9,300                                   ($39,250)

S&A expenses:

• Office salaries expense $12,900
• Insurance expense $1,720 Rent expense - Office space $8,000                     

($22,620)</ul>

Operating income                                                                 $9,650