Net Sales
$8,436,500
Cost of Sales
3,374,600
Gross Profit
5,061,900
Operating, selling, and general and administrative...
Net Sales
$8,436,500
Cost of Sales
3,374,600
Gross Profit
5,061,900
Operating, selling, and general and administrative expenses
2,530,950
Operating profit
2,530,950
Interest expense, net
180,650
Income before income taxes
2,350,300
Income tax expense
470,060
Net Income
$1,880,240
james estimates that net sales will increase by 6% in
the year 2018. Cost of Sales are estimated to be 42% of net sales,
Operating, selling, general and administrative expenses are
expected to be 29% of net sales, Interest expense is expected to...
Gillette, when they release a new shaving system, considers both
the sale of the razor and...
Gillette, when they release a new shaving system, considers both
the sale of the razor and the longer revenue stream from the sale
of blades and follows a Captive Pricing strategy. As a result, the
concept of Customer Lifetime Value is critical to their marketing
planning efforts. Let’s say they are considering introducing a new
shaving system. Let’s say the average price of their proposed
Gillette He Man Power razor is $15.00. The average customer needs 6
packs of razor...
The Case of the Customer Who Died to
Soon
Facts:
On November 26, a Country Life...
The Case of the Customer Who Died to
Soon
Facts:
On November 26, a Country Life Insurance agent went to the house
of Mike and Anna Anderson. He persuaded the Andersons to buy a life
insurance policy and accepted a check for $1,600. On his way out
the door, he gave the Andersons a “conditional receipt for
medical policy,” dated that day. The form stated that the Andersons
would have a valid life insurance policy with Country Life,
effective November...
LOL (the “Company”), an SEC registrant with a calendar year-end,
is a manufacturer and distributor of...
LOL (the “Company”), an SEC registrant with a calendar year-end,
is a manufacturer and distributor of sports equipment. The Company
was created in 1989 and is headquartered in Southern California.
The Company has manufacturing operations and numerous sales and
administrative locations in the United States. LOL files a
consolidated U.S. federal tax return. (This case will not consider
the evaluation of the state jurisdictions; it will only consider
the federal jurisdiction.)
As LOL’s auditors, you are now performing the Company’s...
SELECT ONLY ONE SCENARIO OF THE GIVEN 3.
Scenario 1 - Liability on Negotiable
Instruments
Porter...
SELECT ONLY ONE SCENARIO OF THE GIVEN 3.
Scenario 1 - Liability on Negotiable
Instruments
Porter Cable hired a bookkeeper, Gerald Smith, and gave him
general authority to issue company checks drawn on First Bank so
Smith could pay employees’ wages and other company bills. Smith
decided to cheat his employers out of $9,500 by issuing a check
payable to Timkin Bearings, one of the suppliers of bearings. Smith
does not intend for Timkin to receive any of the money,...