In the month of March the Chester Corporation received and delivered orders of 156,000 units at a price of $15.00 for revenue of $2.340mil for their product Camp. Chester uses the accrual method of accounting and offers 30 day credit terms. By the end of May Chester had collected payments of $2.340mil for the March deliveries. How much of the collected $2.340mil should Chester show on the March 31st income statement and how much on the May 31st income statement? $0 in March; $2.340mil in May $2.340mil in March; $0 in May $1.170mil in March; $1.170mil in May $0.772mil in March; $1.568mil in May

Cent Na (Product Name:) Sales 2023 Income Statement Cid Cone Na Na $49,017 $51,685 $0 $0 Na Camp $28,133 2023 Common Total Size $157,314 100.0% $28,479 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $3,081 $12,470 $374 $15,925 $3,201 $12,952 $374 $16,527 $9,564 $19,501 $354 $29,419 $8,841 $20,194 $482 $29,517 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,688 $65, 117 $1,584 $91,388 15.7% 41.4% 1.0% 58.1% Contribution Margin $12,208 $11.951 $19,598 $22,169 $0 $0 $0 $0 $65,926 41.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,293 $446 $1,300 $1,600 $353 $7,992 $4,753 $446 $1,300 $1,600 $357 $8,456 $3,040 $966 $1,300 $1,400 $614 $7,321 $3,673 $966 $1,300 $1,400 $648 $7,987 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,760 $2,824 $5,200 $6,000 $1,972 $31,756 10.0% 1.8% 3.3% 3.8% 1.3% 20.2% Net Margin $4,216 $3,495 $12,278 $14,181 $0 $0 $0 $0 $34,171 21.7% 3.1% 18.6% 2.3% 6.5% 3.4% 0.1% 6.3% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Other $4,872 Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D EBIT $29,299 department expenditures for each product. Admin: Administration overhead is estimated at 1.5% Short Term Interest $3,592 of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Long Term Interest $10,254 each product. Other: Charges not included in other categories such as Fees, Write Offs, and Taxes $5,409 TOM. The fees include money paid to investment bankers and brokerage firms to issue new Profit Sharing $201 stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit $9,844 might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on Variable Margins the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term 2008 Chester interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on 40.0% outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared 30.0% with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing 20.0% 10.0% 0.0% Profit History Market Share History 30% 20% $10,000 $8,000 $6,000 $4,000 $2,000 SO 10% 0% 2015 2017 2019 2021 2023 2015 2017 2019 2021 2023 Profit History Market Share History $10,000 $8,000 $6,000 $4,000 S2,000 SO 2015 2017 2019 2021 2023 2015 2017 2019 2021 2023 ROE History Asset Turnover History 15% 1.0 10% 5% 0.5 0% 0.0 mina Tim Grilni 2015 2019 2015 2017 2019 2021 2023 ROS History ROA History 8% 6% 4% 2% 0% 6.0% 4.0% 2.0% 0.0% hthu 2015 2017 2019 2021 2023 2015 2017 2019 2021 2023