Calculate 2018 and 2019 ROMI:
2018 ($)
2019
2020
Revenue
$9,000,000
$10,000,000
$10,000,000
Variable Costs
Raw...
Calculate 2018 and 2019 ROMI:
2018 ($)
2019
2020
Revenue
$9,000,000
$10,000,000
$10,000,000
Variable Costs
Raw materials
$4,000,000
$5,000,000
$5,000,000
Production
$700,000
$700,000
$800,000
Distribution
$958,500
$1,006,425
$1,048,000
Gross profit
$3,341,500
$3,293,575
$3,152,000
Fixed Costs
Wages
$800,000
$800,000
$900,000
Marketing
$1,500,000
$1,300,000
$1,600,000
G&A
$200,000
$20,000
$200,000
Operating Profit
$841,500
$1,173,575
$452,000
Rate of Change Analyses
Teicher Company presents the following condensed comparative
income statements for 2020, 2019,...
Rate of Change Analyses
Teicher Company presents the following condensed comparative
income statements for 2020, 2019, and 2018:
For Years Ended December 31,
2020
2019
2018
Sales (net)
$120,000
$100,000
$85,000
Cost of goods sold
(72,000)
(55,000)
(45,000)
Gross profit
$48,000
$45,000
$40,000
Operating expenses
(22,000)
(20,000)
(18,000)
Operating income
$26,000
$25,000
$22,000
Other items:
Dividend revenue
400
500
200
Interest expense
(1,200)
(1,000)
(500)
Income before income taxes
$25,200
$24,500
$21,700
Income tax expense
(8,200)
(8,000)
(6,000)
Net income...
Haywood Inc. reported the following information for 2019:
Beginning inventory $25,000
Ending inventory 50,000
Sales revenue...
Haywood Inc. reported the following information for 2019:
Beginning inventory $25,000
Ending inventory 50,000
Sales revenue 1,000,000
Cost of goods sales 620,000
A physical count of inventory at the end of the year showed that
ending inventory was actually $65,000
Required:
1. What is the correct cost of goods sold and gross profit for
2019?
2. Assuming the error was not corrected, what is the effect on
the balance sheet at December 31, 2019? At December 31, 2020?
Required information
[The following information applies to the questions
displayed below.]
In 2018, the Westgate...
Required information
[The following information applies to the questions
displayed below.]
In 2018, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2020. Information related to the contract is
as follows:
2018
2019
2020
Cost incurred during the
year
$
2,580,000
$
4,042,000
$
2,175,800
Estimated costs to complete as
of year-end
6,020,000
1,978,000
0
Billings during the year
2,060,000
4,562,000
3,378,000
Cash collections during...
Required information [The following information applies to the
questions displayed below.] In 2018, the Westgate Construction...
Required information [The following information applies to the
questions displayed below.] In 2018, the Westgate Construction
Company entered into a contract to construct a road for Santa Clara
County for $10,000,000. The road was completed in 2020. Information
related to the contract is as follows: 2018 2019 2020 Cost incurred
during the year $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs
to complete as of year-end 5,810,000 1,826,000 0 Billings during
the year 2,030,000 4,444,000 3,526,000 Cash collections during the...