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Please i need it before 7:00pm on Sunday. Thanks very much.. Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during
Please i need it before 7:00pm on Sunday. Thanks very much..
Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during the year. The first event related to the effects of a labor strike that resulted in a work stoppage on a major construction project. $2,000,000 of building material that was left exposed to weather conditions during the strike was lost. The second event was a $3,000,000 unrealized gain on available-for-sale securities that continue to be held as an investment. Melanie Mielke's annual sales were $9,000,000, at a gross margin of 15%. Selling expenses totaled $300,000, and administrative expenses totaled $800,000. Mielke is subject to a 30% income tax rate. Prepare the 20XX income statement for Melanie Mielke Construction Corporation. MELANIE MIELKE CONSTRUCTION COMPANY Income Statement For the Year Ending December 31, 20XX Sales $ Cost of goods sold - Gross profit $ - Operating expenses $ - Loss from continuing operations before tax benefit $ Income tax benefit from operating loss - Net loss $ - Other comprehensive income $ - Comprehensive income $ - The accountant for Rimmerex Corporation used a spreadsheet to prepare information needed to prepare the statement of cash flows for the year ending December 31, 20X5. However, the data were accidentally sorted alphabetically into the following listing of items. To compound the problem, the "add" and "subtract" notations for each line item were also deleted. Review the information, and prepare a correct presentation, using the indirect approach. The beginning cash balance was $63,800, and the ending cash balance was $415,000. Bought building by issuing common stock $ 850,000 Decrease in accounts payable 34,000 Decrease in accounts receivable 21,000 Depreciation expense 68,000 Dividends on common 50,000 Gain on sale of land 20,000 Increase in income taxes payable Increase in inventory Increase in prepaid insurance Net income Purchase of equipment 7,000 27,800 3,000 215,000 75,000 Repayment of long-term note payable 180,000 Sale of land 430,000 RIMMEREX CORPORATION Statement of Cash Flows For the Year Ending December 31, 20X5 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Net increase in cash $ Cash balance at January 1, 20X5 Cash balance at December 31, 20X5 - $ - $ - ----------------------------------------------------------------------------------Noncash investing/financing activities: Ashley Corporation provided the following list of cost data related to its manufacturing operations for the month of September 20X4. Beginning raw materials inventory $ 966,400 Raw materials purchased (net) 2,345,500 Ending raw materials inventory 818,200 Direct labor costs 322,300 Indirect materials 125,500 Indirect labor Factory utilities and maintenance 88,900 456,000 Factory depreciation 56,600 Other factory related overhead 24,400 Beginning work in process 777,000 Ending work in process 717,000 (a) Arrange the cost data into a statement of cost of goods manufactured. (b) If Ashley's cost of goods sold for the month was $4,000,000, how much was the increase or decrease in finished goods inventory for the month of September? (a) ASHLEY CORPORATION SCHEDULE OF COST OF GOODS MANUFACTURED FOR THE MONTH ENDING SEPTEMBER 30, 20X4 Direct materials: $ - $ - Raw materials transferred to production $ Direct labor - Factory overhead $ - Total manufacturing costs $ - $ - Cost of goods manufactured (b) $ - Bright Eyes manufactures and sells two products. The first product is a disposable contact lens set that lasts about 3 months. The second product is a wetting solution. Customers of the first product use one bottle of solution each month. As a result, bottles of solution outsell lens sets by a 3:1 ratio. Lens sets sell for $36 per set, and have a contribution margin ratio of 50%. The solution sells for $6 per bottle, but only generates variable costs of $1. The company's total fixed costs are $9,900,000. (a) What level of total sales is necessary to achieve break even? (b) If a competitor began selling a wetting solution that forced Bright Eyes to reduce the price for its solution to $3 (to maintain market share and the 3:1 ratio of solution to lens), how many lens sets must be sold for the company to break even? (a) (b)Step by Step Solution
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