. A company is authorized to issue 750,000 shares of $5 par value common stock. Prepare journal entries to record the following

Answer:

1.                                            Variable           Fixed

Cost of goods sold          70,000,000     30,000,000

Selling Expenses             12,000,000        4,000,000

Administrative Exp.           6,000,000         6,000,000

Total                                  88,000,000     40,000,000

Note:

Cost of goods sold: 70% variable and 30% fixed on 10,000,000 respectively

Selling expenses: 75% variable and 25% fixed on $16,000,000 respectively

Administrative expenses: 50% variable and 50% fixed on $12,000,000 respectively

2. Unit Variable cost = Total variable cost / Units produced

Total Variable cost          88,000,000

Units produced                  1,000,000

Unit variable cost                  88      

Unit Contribution margin = Selling Price - Variable cost per unit

Selling Price                    $188

- Variable cost per unit       $88

Unit Contribution margin   $100

3. Break even Point (Units) = Fixed cost / Contribution margin per unit

Fixed cost                                    40,000,000

Contribution margin per Unit           100    

Break even Point (Units)               400,000

4. Break even point (units) = Fixed cost / Contribution margin per unit

Fixed cost                                           40,000,000

Increased Fixed cost                           5,000,000

Total New fixed cost                          45,000,000

Contribution margin per unit                   100      

Break even point (units)                      450,000

5. Determined sales units = (New fixed cost + Desired Income) / Contribution margin

New Fixed Cost                45,000,000

Desired Income                60,000,000

                                         105,000,000

Contribution margin                100        

per unit

Determined sales units      1,050,000

6. Maximum Income from operation = Total New sales - Total New variable cost - Total Fixed cost

Sales                               188,000,000

Increased sales               11,280,000

Total New sales              199,289,000

Variable cost                    88,000,000

New Variable cost     5,280,000

Total New Variable cost   93,280,000

Total New Fixed cost       45,000,000

Maximum Income from   61,000,000

operation

Number of units = Increase in sales / Price per unit

New variable cost = Number of units * Unit variable cost

Increased sales                    11,280,000

Price per unit                            188    

Number of units                      60,000

Unit variable cost x                  88.00

New Variable cost                 5,280,000

7. Net income = Sales - Variable cost - New fixed cost

Sales                           188,000,000

Less: Variable cost      88,000,000

Less: New fixed cost   45,000,000

Net Income                  55,000,000

8. Option b. Supporting the proposal due to its potential to boost operational income.

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

The key issue faced by Canadian Tire stems from this business approach where decision-making processes become notably sluggish and ineffective. Knowledge management systems improve productivity by granting staff access to effective processes, solutions, best practices, and learned experiences, thereby maximizing database information use, which helps to mitigate the knowledge loss that occurs when employees leave the company.

Answer:

A label indicating "the letter is Unclassified when separated from classified enclosures"

Explanation:

Lacoste is renowned for its cotton knit shirts, recognized for their high quality and the status they confer upon wearers, leading to premium pricing. Consequently, Lacoste enjoys brand protection from competitors and from market price pressures.