CASH FLOW DIRECT/INDIRECT 1. Given the following information and using the indirect method prepare the Cash Flows from Operating Activities section of the statement of cash flows. End of Year Beginning of Year Change Cash 23‚500 37‚400 (13‚900) Accounts receivable (net)
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decreased. | 5. | Sales are $500‚000 and variable costs are $350‚000. What is the contribution margin ratio? | A) | 43%. | B) | 30%. | C) | 70%. | D) | Cannot be determined because amounts are not expressed per unit. | 6. | Barcelona Bagpipes produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin
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for $121.90 per unit. According to the activity-based costing system‚ the product margin for product P23F is: A. $9‚223.20 B. $7‚853.60 C. $5‚401.60 D. $22‚950.00 4. Kraska Corporation has provided the following data from its activity-based costing system: Data concerning one of the company ’s products‚ Product O11W‚ appear below: According to the activity-based costing system‚ the product margin for product O11W is: A. $4‚651.80 B. $1‚688.10 C. $17‚934.00 D. $3‚956.10
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What is contribution margin? In cost-volume-profit analysis of managerial accounting contribution margin is a very concept. The evaluation of contribution margin for any product is quite easy yet its usage is wide and when applied with various other metrics of CVP analysis such as PV Ratio‚ Break Even Point‚ variable cost‚ fixed cost‚ etc it helps to take major production decisions relating to volume of production and sales‚ and profitability of such levels of sales or production. Step 1:
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All of these. 2. The break-even point is that level of activity where: A. total revenue equals total cost. B. variable cost equals fixed cost. C. total contribution margin equals the sum of variable cost plus fixed cost. D. sales revenue equals total variable cost. E. profit is greater than zero. 3. The unit contribution margin is calculated as the difference between: A. selling price and fixed cost per unit. B. selling price and variable cost per unit. C. selling price and product cost per unit
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Excel Assignment #2 Preparing a Contribution Margin Income Statement and Operating Leverage Summer 2013 1. Assume that a company is budgeting to sell 2‚500 units of a product at a selling price per unit of $32. The variable cost per unit is $26 and total fixed costs are $5‚000. REQUIRED Prepare a contribution margin income statement and calculate operating leverage. 2. Suppose the company is unsure exactly how many units they will sell. As such‚ their marketing department has provided
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categorize retailers are the Census Bureau‚ Number of Outlets‚ Margin versus Turnover‚ Location and Size. The number of outlets include chain stores‚ the standard stock list‚ the optimal stock list‚ channel captain‚ and private label branding. Margin versus turnover included gross margin percentage‚ gross margin‚ operating expenses‚ inventory turnover‚ high-performance retailers‚ low margin/low turnover‚ low margin/high turnover‚ high margin/low turnover‚ and high
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Section (A) Q: How high do the maintenance margin levels for oil and gold have to be set so that there is a 1% chance that an investor with a balance slightly above the maintenance margin level on a particular day has a negative balance 2 days later? How high do they have to be for a 0.1% chance? Assume daily price changes are normally distributed with mean zero. Explain why the exchange might be interested in this calculation. Answer: Required Maintenance margin level for crude: Based on the calculation
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Investment Analysis & Portfolio Management AD 717 OL Margin Purchase / Short Sale Exercise Homework Exercise 2 For simplicity in this exercise‚ ignore any interest costs‚ brokerage fees‚ etc. associated with the transactions Margin Purchase General Widgets shares are currently priced at $20. Janice believes that the price will increase over the next few months Initial Margin Requirement is 50%. Janice has $25000 to invest A. Direct Purchase 1. How many shares of GW could she purchase directly
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Contribution Margin and Break Even Point by ACC 202 Trident University July 22‚ 2011 Contribution Margin and Break Even Point I’m going to discuss Contribution margin and what it is and how it relates to companies and profits. Contribution margin is the amount remaining from sales revenue after variable expenses have been deducted. It is the amount available to cover fixed expenses such as lease agreements and then to provide profits for the period. Contribution margin is first used
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