Dear Mr. Giberson‚ After a careful review and analysis of your annual costs and income‚ our team has some suggestions on how to best make a profit for your business. It seems that the prices you are charging for your products too low to cover all of your costs. Since the main constraint in your business is your time‚ we determined a rate that you should charge per minute of your time in order to make a profit. We then came up with a price per piece that we suggest that you charge according to how
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increase in monthly sales. If the sales manager is right‚ what will be the effect on the company’s monthly net operating income or loss? (Use the incremental approach in preparing your answer.) Requirement 2 (continued) Incremental method Variable expense ($14 per unit) Contribution Margin $340‚000 Sales increased 238‚000 VE increased 102‚000 CM increased Fixed Expenses 98‚000 Net Operating Income $4‚000 Sales (17000 units x 20) $70‚000/20 = 3500 units $189‚000/13500 = $14 per unit $90‚000 + 8
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Following is an income statement calculated based on the different equity theories of accounting. Entity Theory Proprietary Theory Orthodox Unorthodox Residual Equity Theory Revenues $ 1‚000‚000 $ 1‚000‚000 $ 1‚000‚000 $ 1‚000‚000 Less: Operating Expenses Cost of goods sold $400‚000 $400‚000 $400‚000 $400‚000 Depreciation $100‚000 $100‚000 $100‚000 $100‚000 Salaries and Wages $200‚000 $200‚000 $200‚000 $200‚000
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specific point in time‚ including assets‚ liabilities and net worth. It allows the company to know what they have been paying for or what they owe out to people. An income statement is a report that tracks a company’s revenues‚ gross profits‚ operating income‚ and net worth. All businesses need to have revenue in order to establish a good foundation to have their business up and running. A retained earnings statement is the portion of net income not paid out to investors in the business as dividends
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Introduction Computer/Technology Industry The computer/technology industry has many key players with two of the major competitors being Dell and HP. The computer industry has come a long way since its first inception with the invention of Electronic Numerical Integrator and Computer in 1946. This industry is comprised of many items such as computers‚ monitors‚ printers‚ scanners‚ mainframes‚ servers‚ electronic computer components‚ networking and workstations to name a few. The industry started
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Financial Feasibility Monthly Income Statement Factors Calculations Results Potential Gross Income $2.30/sq ft * 201‚707 sq ft $463‚930.00 Leasable space 201‚707 sq ft Parking 400 * $145 $58‚000.00 Vacancy allowance: 15% 15%* ($463‚930+$58‚000) $ 78‚290.00 EGI: $463‚930-$69‚590 $443‚640.00 Operating expenses: 32% of EGI $257‚094*.32 $141‚965.00 Net operating income: $257‚094 - 82‚270 $301‚675.00 Assumptions Changes in Rent “Commercial real estate investors and occupiers
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cash flow. To identify and understand the ending cash balance of Tyva (Datar & Schoenbeck‚ 2013). Review the product sales mix‚ comparison of the monthly budget statements for significant changes. Finally‚ a recommendation will be given on how the net income can be improved based on the analysis. Analysis Based on the June cash budget‚ what are the relevant items that could impact the ending cash balance? The Cash Inflow would come from the May Sales from customers at 38% collected ($307‚000)
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bought at low prices‚ including a Heidelberg Offset Kord‚ originally acquired at 380 000 pesos‚ now valued at 1.2 million pesos. Upon reviewing the company’s income statements and balance sheets‚ Jose noticed that company sales did not reach 1 million pesos despite being in the business for 25 years. In addition‚ he computed a 6% increase in net margin should assets be sold and treasury bills invested in. Jose presented the information to his father; however‚ the latter only gave him freedom in
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ended December 31‚ 2012 Increasing Corporate Value Through Sustainable Growth Yamaha Motor Co.‚ Ltd. is a multinational enterprise with 140 consolidated subsidiaries and equity-method affiliates in 30 countries‚ and about 90% of our consolidated net sales are derived from overseas markets. We operate global development‚ production and sales networks‚ and our products are sold in more than 200 countries and regions. We have successfully diversified our business by capitalizing on our world-leading
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develop a cash flow analysis (use vs. source) and the cash flow statement based upon the income statement and the balance sheet provided in the case for the period of 1988 to 1990.) Through the period of 1988 to 1990 Mark Butler has met the needs of financing through decreasing the amount of cash the company carries‚ by increasing bank loans‚ by increasing the size of accounts payable‚ and by carrying net income over into retained earnings. The needs of this cash was generated by the loan to Mr. Stark
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