Create waterways statements for division using condensed

Assignment Help Accounting Basics
Reference no: EM131788407

Assignment

Waterways Continuing Problem-8 (Part Level Submission) When Waterways' management met to review the year-end financial statements, the room was filled with excitement. Sales had been exceptional during the year and every department had exceeded the budget and last year's sales totals. Several years ago Waterways had implemented a bonus system based on percentage of sales over budget, and the managers were expecting healthy cheques at the end of the year.

Yet the plant manager, Ryan Smith, was stunned into silence when he read the bottom line on the income statement for manufacturing operations. It was showing a loss! He immediately approached the CFO asking for an explanation. Ryan wondered, "Why did we go through all that trouble and inconvenience to adopt those cost-cutting measures when they had the opposite effect?" One of those measures was to move toward lean manufacturing.

The CFO retrieved the following information with respect to the top-selling line from the manufacturing operations for the last three years. Production on this line began on January 1, 2014.


2014

2015

2016

Beginning inventory of finished units

0


 

Production in units

68,000

74,800

52,360

Sales in units

58,000

64,800

72,360

Selling price

$33

$33

$35

Direct material

$4

$4

$5

Direct labour

3

3

4

Variable manufacturing overhead

5

5

5

Variable selling and administration

6

6

6

Fixed manufacturing overhead

523,600

523,600

523,600

Fixed selling and administration

140,000

140,000

140,000

Waterways uses the absorption-costing method and accounts for inventory using FIFO. Warning

Don't show me this message again for the assignment

Using the information provided, recreate Waterways' statements for this division using condensed, three-year comparative income statements.

Reference no: EM131788407

Questions Cloud

Identify the performance obligations in the contract : Identify the performance obligations in the contract. Determine the transaction price. Allocate the transaction price to separate performance obligations.
Elements of a two-dimensional array : Find where the indicated elements of a two-dimensional array t of the specified type are stored, if the base address of t is 100 and storage is row wise.
What is the modified internal rate of return : What is the modified internal rate of return? An approximation from Appendix B is adequate for the final answer. (You do not need to interpolate.)
Find the percent of the saturday deliveries : Find the percent of the Saturday deliveries that exceeded 30 minutes that would result in a free order
Create waterways statements for division using condensed : Using the information provided, recreate Waterways' statements for this division using condensed, three-year comparative income statements.
How large a cash flow benefit did the depreciation provide : Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is in a 40 percent tax bracket.
Compute cash flow in the given problem : Assume a firm has earnings before depreciation and taxes of $400,000 and depreciation of $100,000.
What will the selling price be galleys marketing team expect : What will the selling price be if Galley's marketing team expects to set the price at 23% markup on the full life-cycle cost?
Annotated bibliography on child pornography : Prepare Annotated Bibliography on child pornography - Evaluate and characterize risk factors in juveniles

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd