Local co. has sales of $ 10.6 million and cost of sales of $ 5.6 million. its​ selling, general and administrative expenses are

Response:

At the time of retirement, Luis will possess $ 1,153,675.657524 in his retirement account.

Reasoning:

Luis currently has $170,000 in his retirement fund

After compounding at 4.5% quarterly for 30 years, his account will grow to

Account balance = $ 170,000(1 + (0.045/4))^(4*30)

Account balance = $ 650,838.260724

Moreover, Luis intends to contribute $2000 each quarter into the new account for the next 30 years prior to retirement.

The future value (FV) of this account is calculated as

FV = 2000[(1 + (0.045/4))^(4*30) -1] / (0.045/4)  0.01125

FV = $ 502,837.3968

To determine Luis’s total balance at retirement, we calculate the following:

Total amount = Account balance + FV

Total amount = $ 650,838.260724 +  $ 502,837.3968

Total amount = $ 1,153,675.657524

Luis will have $ 1,153,675.657524 in his retirement account.

This pertains to permutations, and since we are fixing the first and last joke's positions based on the information provided, there are 10 remaining jokes to arrange. Any unique ordering of these 10 jokes will yield a different configuration, thereby giving us a total of 10! arrangements, which can be calculated as 10! = 10*9*8*7*6*5*4*3*2*1 = 3628800. Thus, there are 3628800 different sequences to present the old joke first and the new joke at the end.

Answer:

additional revenue = $26,250

relevant costs:

direct materials = 350 x $82 = $28,700

direct labor = 525 x $15 = $7,875

setup hours = 1 x $5 = $5

inspection costs = 20 x $5 = $100

machining = 175 x $3 = $525

total relevant costs = $37,205

1) change in income if order is accepted:

total revenue - total relevant costs = $26,250 - $37,205 = -$10,955

the company will incur a loss of $10,955 if the order is approved.

2) if the cost of direct materials is decreased by $13 per unit = $13 x 350 = $4,550, and if direct labor can be reduced by 0.5 hours per unit = 175 hours (= 175 x $15 = $2,625) ⇒ total relevant costs will be lowered by $7,175.

It results in a $3,780 (= $10,955 - $7,175) loss if the special order is accepted.

Response:

Income statement

sales 78000

costs  (25000 )

insurance  (7000 )

depreciation  (9000 )

EBIT          37000

TAX                  (11000)

net profit  26000

EPS                    3.25

STATEMENT OF STOCKHOLDER'S EQUITY

  Common stock  retained earnings  additional paid-in capital  

opening balance  8000                   9000                57000  

net profit                     26000    

closing balance  8000                    35000                  57000

BALANCE SHEET  

assets    

non current assets   154000

machinery           77000

accumulated depreciation  (20000)

book value   57000

current assets   36000

prepaid insurance   3000

cash                   18000

accounts receivable  15000

   

total assets            190000

Equity and liabilities    

stockholder's equity  100000

common stock   8000

retained earnings   35000

paid-in capital           57000

   

Liabilities           90000

current liabilities   90000

Accounts payable   11000

wages payable   4000

income tax payable  75000   balancing figure

Clarification:

missing data;

Additional information yet to be recorded as of December 31 includes:

Insurance that expired in the current year, $7.

Wages owed, $4.

Depreciation expense incurred this year, $9.

Income tax expense for the year, $11.

Requirements:

1. Based on the adjusted figures, create an income statement for the current year. (Round "Earnings per share" to two decimal points. Submit answers in thousands.)

2. Based on the adjusted figures, compile a statement of stockholders’ equity for the current year. (Negative amounts should be noted with a minus sign. Provide answers in thousands.)

3. Based on the adjusted figures, construct a balance sheet for the current year. (Negative amounts should be noted with a minus sign. Provide answers in thousands.)