Brief Exercise 18-8 Your answer is correct. Meriden Company has a unit selling price of $770, variable costs per unit of $385, and Fxed costs of $248,325. Compute the break-even point in units using the mathemaTcal equaTon. Break-even point units SoluTon CLOSE Brief Exercise 18-8 The mathema±cal equa±on: $770Q = $385Q + $248,325 + $0 $385Q = $248,325 Q = 645 units ContribuTon margin per unit $385, or ($770 – $385) X = $248,325 ÷ $385 X = 645 units Brief Exercise 18-10 Your answer is correct. ±or ²urgo Company, variable costs are 57% of sales, and Fxed costs are $177,700. Management’s net income goal is $80,429. Compute the required sales in dollars needed to achieve management’s target net income of $80,429. Required sales $ SoluTon CLOSE Brief Exercise 18-10 If variable costs are 57% of sales, the contribuTon margin raTo is ($1 – $0.57) ÷ $1 = 0.43. Required sales in dollars = ($177,700 + $80,429) ÷ 0.43 = $600,300 Brief Exercise 18-11 Your answer is correct. ±or Kozy Company, actual sales are $1,224,000 and break-even sales are $807,840. Compute the margin of safety in dollars and the margin of safety raTo. Margin of safety $ Margin of safety raTo % 645 600,300 416,160 34
ACC 561 Week 1 Individual Assignment Financial Statements (2 Papers) (New Syllabus)
This Tutorial was purchased 25 times & rated A by student like you.
This Tutorial contains following Attachments
- ACC 561 N Week 1 IA Financial Statements 1.docx
- ACC 561 N Week 1 IA Financial Statements.docx
Purpose of Assignment This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company's liquidity, solvency, and profitability. Assignment Steps Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past. Research the company on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows. Develop a minimum 700-word examination of the financial statements and include the following: • Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year? • Explain the relevance of changes in net income to investors. • Determine the ending balance in shareholders' equity. Why would organizations such as labor unions be interested in this? • Determine the total value of assets. • Discuss the relevance of the total value of assets to potential creditors and why this is important. • Compute the return on assets. Discuss the relative profitability of the company based on your results. • Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results. • Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company. • Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making? Show your work in Microsoft® Word or Excel®. Complete calculations/computations using Microsoft® Word or Excel®. Include the four financial statements along with your assignment. Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignment.