allocation rate for each of the model years from 1988 through 1990: 1987 1988 1989 1990 OH Rate 435% 435% 575% 565% It can be seen from the table that‚ after outsource of Muffler-exhaust systems and oil pans‚ the overhead rate was dramatic increase from 435 % in 1988 to 575% in1989. The overhead costs went from 109‚890 in 1988 to 78‚157 in 1989‚ finding a 28.88% reduction. But at the same time‚ the direct labor went from 25294 in 1988 to 13‚537 in 1989 with 46.48% reduction. Obviously
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model year budget. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred? Solution: Based on the given info we calculate Overhead Allocation Rate =Overhead for PeriodAllocation Base for Period for each allocation bases vis. Sales‚ Direct Material and Direct Labor Year | 1987 | 1988 | 1989 | 1990 | Sales | $330‚154 | $351‚071 | $216‚338 | $226‚542 | Direct
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below. Blockbuster-Entertainment (Ticker symbol: BV‚ Price per share: $33 ½) increased owned and franchised video stores from 19 at the end of 1986 to 415 at December 31‚ 1988. In the same period revenue jumped from $7.4 million to $136.9 million. Reported earnings also leaped; from $.34 per share in 1986 to $.57 per share in 1988. The stock carries an historical Price to Earnings ratio of 59‚ and there were 25‚741‚549 shares of common stock issued and outstanding as of 12/31/88. A) Some of Blockbuster’s
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during the mid-twentieth century. As a result‚ The United States feared the possibility of a surprise attack from the Soviets and the doctrine of communism coming to America. As President Truman declared‚ “Education is our first line of defense (Brown‚ 1988‚ p.74).” In this essay I will argue that the government transformed public education’s curriculum and structure into a survival program to prepare the nation for the potential of nuclear war. Additionally‚ increased federal intervention in public education
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of her name. Only when Martha has ‘everything packed into the car’ (Weldon‚ 1988‚ P.309) does her chauvinistic husband Martin stroll outside to ‘take the wheel’ (Weldon‚ 1988‚ P309) as any stereotypical man would. There is an implication that women shouldn’t go out to work if they have children demonstrated in the quote ‘it wasn’t the best thing for the children‚ but that must be Martha’s moral responsibility’ (Weldon‚ 1988‚ P309). This partly demonstrates the outdated social context of the 70s‚ but
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did not refine their product costing system displaying failure to understand cost drivers. b) From Exhibit 2 we have: 1988 1989 1990 Direct Labor (DL) Fuel Tanks $4‚238 $4‚415 $4‚599 Manifolds 6‚027 6‚278 6‚540 Doors 2‚731 2‚844 2‚963 Muffler/Exhausts 5‚766 0 0 Oil Pans 6‚532 0 0 Total DL $25‚294 $13‚537 $14‚102 Therefore % Change in Direct Labor from 1988 to 1990 = (($14‚102-$25‚294)/($25‚294)) X 100 = -44.25% Also from Exhibit 2: Overhead by Account Number 1000 $7‚806
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case study I will be discussing following problem: Why has Butler Lumber been profitable in the increasing volume of sales but at the same time it is experiencing cash difficulties in 1988 – 1990? This is a historical problem and my calculations and assumptions are based on income statement and balance sheet for 1988 – 1990. II. General Framework for Financial Analyses There are different financial ratios and questions they answer: • Liquidity ratio – current ratio: Will Butler
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equity. To achieve these goals‚ Interco’s approach was to improve the profitability of existing operations and divesting underperforming assets. Besides that it had to make acquisitions with expected higher returns and growth. During the fiscal year 1988 the overall performance of Interco was positive‚ with increasing sales and net income. This was mainly due to the furniture and home furnishings group and the footwear group. Despite restructuring efforts‚ the apparel manufacturing and general retail
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1. Prepare common-sized financial statements for Regina for the period 1986 to 1988. Also‚ compute key liquidity‚ solvency‚ activity‚ and profitability ratios for the years 1987 and 1988. Given these data‚ identify what you believe were the high-risk financial statement line items for the 1988 Regina audit. I computed the ratios for 1986 as well as the required 1987 and 1988. The most interesting occurrence is how the values for the growth were not translated in the ratios. As sales increased
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Question 1: Construct 1988 Statements of Cash Flow for MiniScribe.（assume that 1988 depreciation expense is $6） Table 1: Statement of Cash Flow of MiniScribe of 1988 and 1987 1988 1987 Statement of Cash Flows Cash Flows from Operating Activities Net Income 26.00 31.00 Non-Cash Adjustments 6.00 11.00 Changes in Assets and Liabilitites Related to Operations Change in Accounts Receivable (116.00) (17.00) Change in Inventory (56.00) (39.00) Change in Account Payable 143
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