Operating data for Bramble Corp. are presented below.
2020 2019
Sales revenue $730,000 $650,000
Cost of goods sold 480,340 473,850
Selling expenses 105,850 84,500
Administrative expenses 50,370 52,000
Income tax expense 29,930 26,650
Net income 63,510 13,000
Prepare a schedule showing a vertical analysis for 2020 and 2019.
(Round percentages to 1 decimal place, e.g. 12.1%.)
BRAMBLE CORP. Condensed Income Statement For the Years Ended December 31 2020 2019 Amount Percent Amount Percent
Sales $730,000 % $650,000 %
Cost of goods sold 480,340 % 473,850 %
Gross profit 249,660 % 176,150 %
Selling expenses 105,850 % 84,500 %
Administrative expenses 50,370 % 52,000 %
Total operating expenses 156,220 % 136,500 %
Income before income taxes 93,440 % 39,650 %
Income tax expense 29,930 % 26,650 %
Net income $ 63,510 % $ 13,000 %

Answer:

Explanation:

Vertical analysis of financial statement entails the expression of each line of the financial statement as a percentage of a base figure for analysis and evaluation purpose.

In this case , the sales revenue is used as the base figure

Vertical analysis of Bramble corp . Income statement for 2020 / 2019

Item                         2020          %          2019             %

Sales revenue       730,000     100       650,000      100

Cost of goods         480,340     65.8     473,850      72.9

Gross profit             249,660     34.2      176,150       27.1

Selling expenses    105,850      14.5       84,500       13.0

Admin Expenses      50,370        6.9       52,000        8

Operating Expenses 156,220     21.4     136,500       21

Income before tax      93,440      12.8      39,650      6.1

Income tax Expenses 29,930      4.1        26,650      4.1

Net Income                  63,510      8.7         13,000       2

As sales exceed the break‑even point, a high contribution‑margin percentag________.
a. increases profits slower than does a low contribution-margin percentage.
b. increases profits faster than does a low contribution-margin percentage.
c. decreases profits at the same rate as a low contribution-margin percentage.
d. increases profits at the same rate as a low contribution-margin percentage.

When modeling the flow of income and expenditures in an economy the two principal participants are households (consumers) and firms (producers). The normal flow of resources would be that a firm would produce goods and services and the households would consume that good or service. Where else can the income of a household flow

Kathy is a financial analyst in BTR Warehousing’s. As part of her analysis of the annual distribution policy and its impact on the firm’s value, she makes the following calculations and observations:

• The company generated a free cash flow (FCF) of $87.00 million in its most recent fiscal year.
• The firm’s cost of capital (WACC) is 13%. The firm has been growing at 10% for the past six years but is expected to grow at a constant rate of 8% in the future.
• The firm has 21.75 million shares outstanding.
• The company has $232.00 million in debt and $145.00 million in preferred stock.

Along with the rest of the finance team, Kathy has been part of board meetings and knows that the company is planning to distribute $120.00 million, which is invested in short-term investments, to its shareholders by buying back stock from its shareholders. Kathy also observed that, at this point, apart from the $120.00 million in short-term investments, the firm has no other nonoperating assets.

Using results from Kathy's calculations and observations, solve for the values in the following tables.

1. Value of the firm's operations.
a. 6,833.33
b.1,366.67
c. 68.33
d.1,421.33

2. Intrinsic value of equity immediately prior to stock repurchase.
a. 888
b. 948
c. 1276
d. 1153

3. Intrinsic stock price immediately prior to the stock repurchase.

a. 28.88
b. 41.50
c. 30.83
d. 37.50

4. Number of shares repurchased

a. 1.56
b. 1.95
c. 2.54
d. 3.32

5. Intrinsic value of equity immediately after the stock repurchase.

a. 888
b. 1306.67
c. 6773.33
d. 1038.67

6. Intrinsic stock price immediately after the stock repurchase.

a. 37.50
b. 30.83
c. 28.88
d. 41.50

Based on you understanding of stock repurchases, identify whether the following statement is true or false:

"The stock price of a firm increases after the firm repurchases some of its shares."

On June 30, Year 7, King Co. had outstanding 9%, $5,000,000 face value bonds maturing on June 30, Year 9. Interest was payable semiannually every June 30 and December 31. On June 30, Year 7, after amortization was recorded for the period, the unamortized bond premium was $30,000. On that date, King acquired all its outstanding bonds on the open market at 93 and retired them. At June 30, Year 7, what amount should King recognize as gain before income taxes on redemption of bonds

The following are selected 2015 transactions of Pedigo Corporation.
Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite.
May 1 Purchased for $75,000 a patent with an estimated useful life of 5 years and a legal life of 20 years.
Required:
Prepare necessary adjusting entries at December 31 to record amortization required by the events above.

You accepted a new job with starting salary of $52,000 per year. The salary is expected to increase 4% each year. Now it is time to make a retirement plan for the next 39 years you expect to work. Your retirement fund has an annual interest rate of 5%, and You plan to deposit 10% of your annual salary into the account. (Hint: Be sure to move all values to the same point in time for equivalency.)

large global automobile manufacturer is considering outsourcing the manufacturing of a solenoid used in the transmission of its SUVs. The company estimates that annual fixed costs of manufacturing the part​ in-house, which include​ equipment, maintenance, and​ management, amounts to ​$7.1 million. The variable costs of labor and material are ​$8.00 per unit. The company has an offer from a major subcontractor to produce the part for ​$10.75 per unit.​ However, the subcontractor wants the company to share in the costs of the equipment. The automobile company estimates that the total cost would be $ 3.7 ​million, which also includes management oversight for the new supply contact.
A. How many solenoids would the automobile company need per year to make the​ in-house option least​ costly?
B. What other​ factors, besides​ costs, should the automobile company consider before revising its supply chain for​ SUVs?

Question Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit.

National Income Accounts (dollar figures are in billions)
Expenditures for consumer goods and services $2,850
Exports $300
Government purchases of goods and services $810
Social Security taxes $295
Net investment $510
Indirect business taxes $445
Imports $450
Gross investment $700
Corporate income taxes $190
Personal income taxes $875
Corporate retained earnings $210
Net foreign factor income $0
Government transfer payments to households $780
Net interest payments to households $20
On the basis of Table 5.2, GDP is:_______.
A) $2,090 billion.
B) $4,210 billion.
C) $4,400 billion.
D) $4,020 billion.

As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so that you can be able to solve real life business problems after graduation. To achieve this objective, the 2020 class has been divided into ten groups; and each team works in a management capacity with ten management consulting companies in the Greater Accra Region. San Consulting - the firm that your group works with is a project management company that is into Real Estate construction and management consulting. This firm which has twenty years’ experience in this business is the first choice for all individuals and companies that want quality service. You have on the contrary, observed that many of the management practices have not developed precipitously as situations in the business environment warrant. The accountant confirmed this by saying in the last general meeting that a certain percentage of San’s profit margin is being lost because of this situation. She gave the example that the surveying department spent eight labor hours generating data that had been generated two weeks ago by another unit. Due to the fact that the surveying department did not know that the data had already been created, a substantial effort was wasted and this has been a recurrent problem. In addition, the increase in demand of the services of San’s Consulting has placed significant pressures on the five managers whose duties are not clearly defined. For instance, you have observed that any of these managers perform duties in the operations department as well as any other unit within the firm. They are not able to perform all the functions required of them due to the ineffectiveness of the organizational structure. You and the members of your group are expected to write a report to the top-level management team regarding your analysis of the situation in the firm.
1. Explain which of the four main management functions is/are not operating as it/they should within the firm? 3 Marks
2. What recommendations will you make in your report that will help assure that this situation or similar one would not happen again? 4 Marks
3. Assume that the top-level management team has accepted your recommendations, how can their effectiveness be evaluated three months after implementation? 4 Marks
4. Discuss the organizational structure currently used by San’s Consulting and would you recommend the continuous use of this structure? If yes or no, present the factors (4) that influenced your decision regarding the right organizational structure for San’s Consulting. 5 Marks
5. Identify and discuss the main problems that the firm is likely to experience (i) if the current structure is continued or (ii) if a new structure is implemented. 5 Marks

Replace Equipment A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,500 and replace it with a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would reduce annual direct labor costs from $11,200 to $7,400. a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate subtracted or negative numbers or a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 11 Continue with Old Machine (Alternative 1) Replace Old Machine (Alternative 2) Differential Effect on Income (Alternative 2) Revenues: Proceeds from sale of old machine $ $ $ Costs: Purchase price Direct labor (5 years) Income (Loss) $ $ $ b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

On July 1, 2022, Blossom Company sells equipment for $119000. The equipment originally cost $330000, had an estimated 5-year life and an expected salvage value of $50000. The Accumulated Depreciation account had a balance of $196000 on January 1, 2022, using the straight-line method. The gain or loss on disposal is

Moki Hunt recently purchased Swift Waters Adventures, a kayaking and canoeing rental business near the Salt River in Arizona. Swift Waters Adventures had been in operation for five years and was located in an ideal area. Even though the winters in the area can be cold, kayaking and canoeing activities are generally popular year-round. After two months of operation, it became clear why the previous owners had sold the business. While the business appeared to be ideally located, sales were extremely disappointing.
Before administering the questionnaire, Moki discovered through talking to other sports rental businesses that, although retired males made up a small percentage of the area's population, they often rented kayaks and canoes. In light of this, Moki decided to include a minimum of 25 percent retired males in his sample. The final choice of respondents was left up to the interviewers. This sampling method is known as ____ sampling.
a. quota
b. stratified
c. random
d. representative
e. area

Tyare Corporation had the following inventory balances at the beginning and end of May:_______.
May 1 May 30
Raw materials $ 27,500 $ 34,000
Finished Goods $ 77,000 $ 70,000
Work in Process $ 15,500 $ 16,808
During May, $60,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 340 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,250 of direct materials cost. The Corporation incurred $42,600 of actual manufacturing overhead cost during the month and applied $40,800 in manufacturing overhead cost. The actual direct labor-hours worked during May totaled:______.
a. $60,500
b. $71,192
c. $54,000
d. $67,000

The effects of inflation Suppose Friendly Airlines is considering signing a long-term contract with the union representing its pilots. Friendly Airlines and the union both agree that real wages should increase by 2%. Inflation is expected to be 3%, so they agree on a 5% nominal wage increase.
Now, suppose inflation turns out to be lower than expected, coming in at 2%. This would_______ the union and______ Friendly Airlines because the real wage increase would now be______ .
Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicators in order to maximize its financial position. This illustrates the fact that:______
A. Inflation harms lenders and helps borrowers
B. Variable inflation is associated with high transaction costs
C. Inflation obscures relative price changes

In a late October marketing meeting, Theresa, the branch manager, told her marketing manager, Sal, that she needed two things by the end of the year from him: "First I want your goals for next year, and then I need your action plan to reach your goals, your ________."

A compay operates plants in both the United States (where capital is relatively cheap and labor is reltively expensive) and Mexico (where labaor is relatively cheap and capital is relatively expensive) Under what circumstances will the inpupt choice be relatively similar?

A company has a policy of paying salaries for contract labor on the 15th of the month following the labor services received. In December 2021, the company recorded $15,000 paid in salaries for labor services received in November 2021. In addition, labor services received in December 2021 were $12,000 and will be paid by the company on January 15, 2022. What adjusting entry will the company record on December 31, 2021? * I really need help with this*
Multiple Choice
a. Debit Salaries Expense and credit Salaries Payable for $3,000.
b. Debit Salaries Expense and credit Cash for $15,000.
c. Debit Salaries Expense and credit Salaries Payable for $12,000.
d. Debit Salaries Expense and credit Salaries Payable for $27,000.

The roles and responsibilities of human resource management have evolved primarily because of changes in the law that rewrote many traditional

practices and

Omega Healthcare Investors Inc. (ticker symbol on NYSE: OHI) is described as an "equity REIT (real estate investment trust) that supports the goals of skilled nursing facility (SNF) and assisted living facility (ALF) operators with financing and capital." OHI has a relatively high dividend. If OHI is managing its retained earnings to maximize economic profits, a reasonable explanation is that:_____

Jack Spratt is the production manager for a manufacturing firm that produces wizzy-gadgets and other items. The annual demand for a particular wizzy-gadget is 1,600 units. The holding cost is $2 per unit per year. The cost of setting up the production line is $25. There are 200 working days per year. The production rate for this product is 80 per day. If his maximum inventory level is 180 units, how many units did he produce each time he started production of the wizzy-gadgets

Fair Value Journal Entries, Trading Investments Jets Bancorp Inc. purchased a portfolio of trading securities during 20Y3. The cost and fair value of this portfolio on December 31, 20Y3, was as follows: Name Number of Shares Total Cost Total Fair Value Dolphins Inc. 1,600 $28,800 $32,000 Marino Company 1,400 35,000 30,800 Namath Company 600 21,000 19,800 Total $84,800 $82,600
On May 10, 2017, Jets Bancorp Inc. purchased 1,000 shares of Giants Inc. at $24 per share plus a $150 brokerage commission.
a. Provide the journal entries to record the following (refer to the Chart of Accounts for exact wording of account titles and be sure to enter the year as part of the date):
The adjustment of the trading security portfolio to fair value on December 31, 20Y3.
The May 10, 20Y4, purchase of Giants Inc. stock.

A person may be willing to pay more than the fundamental value of a stock today if he or she believes that someone else will pay even more for it in the near future. When many people purchase stocks based on this reasoning, the stock market can develop:

Lion Company's direct labor costs for the month of January were as follows: What was Lion's direct labor efficiency variance? Select one: a. $6,000 favorable b. $6,150 favorable c. $6,300 favorable d. $6,450 favorable

Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:Activity Cost Pool Activity Measure Activity RateOrder size Number of direct labor-hours $17.80 per direct labor-hourCustomer orders Number of customer orders $354.00 per customer orderProduct testing Number of testing hours $72.00 per testing hourSelling Number of sales calls $1,488.00 per sales callThe managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 130 direct labor-hours, 11 hours of product testing, and 5 sales calls.Required:Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order?Activity Cost Pool ABC CostOrder size Customer orders Product testing Selling Total overhead cost

On January 2, 2021, Crane Company issued at par $9300 of 7% bonds convertible in total into 1000 shares of Crane's common stock. No bonds were converted during 2021. Throughout 2021, Crane had 1000 shares of common stock outstanding. Crane's 2021 net income was $4100, and its income tax rate is 25%. No potentially dilutive securities other than the convertible bonds were outstanding during 2021.


Crane's diluted earnings per share for 2021 would be _________ (rounded to the nearest penny)

Patterson Lawn Co. wants to determine the cost of each lawn care maintenance job. The Company has two operating departments, one that performs lawn care services for commercial properties and one that services residential properties. Both operating departments are supported by two service departments, administrative and machine maintenance. Costs for each of these supporting departments are as follows:
Administrative Machine Maintenance
Total cost $178,200 $441,000
The following estimates that are related to the operating departments is as follows:
Commercial Residential Total
properties properties
# of employees 42 24 66
# of customers 135 170 305
# of billable hours 5,000 4,000 9,000
Total overhead cost* $ 435,000 $ 360,000 $ 795,000
*Note that total overhead cost includes costs allocated from service departments and other overhead costs.
The Company uses the direct method for all cost allocations. Assume that total overhead cost is allocated based on the # of billable hours incurred by each operating department. Suppose a lawn care maintenance job in the residential properties department has a direct cost of $170 and takes 4 hours to complete. What is the total cost of this job?

Bridgeport Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000Common stock, $5 par (110,000 shares authorized, 22,000 shares issued) 110,000Additional paid-in capital 132,000Retained earnings 419,000Total $861,000During 2017, Bridgeport took part in the following transactions concerning stockholders’ equity.1. Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.2. Purchased 1,700 shares of its own outstanding common stock for $41 per share. Bridgeport uses the cost method.3. Reissued 600 treasury shares for land valued at $28,400.4. Issued 480 shares of preferred stock at $103 per share.5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $44 per share.6. Issued the stock dividend.7. Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.A) PREPARE THE JOURNAL ENTRIES TO RECORD TRANSACTIONS ABOVEB) Prepare the December 31, 2017, stockholders’ equity section. Assume 2017 net income was $312,000.

Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie's Farms is the only company that grows fresh apricots, while Darryl's Dried Victuals is the only producer of dried apricots. Fannie's sells some of its apricots directly to consumers for consumption. The relevant revenue and cost information for each of the two firms in the economy is given below: Darryl's Dried Victuals Revenue from selling dried apricots: Cost of buying fresh apricots from Fannie's: Interest on funds borrowed to buy drying racks: Wages paid to employees Taxes $2,750,000 1,800,000 200,000 550,000 90,000 Fannie's Farms Revenue from selling fresh apricots: Rent on land (including apricot trees) Wages to employees Taxes $2,350,000 400,000 1,100,000 180,000 Darryl's profit from selling dried apricots is:_________.A) $5,390,000 B) $110,000 C) None of these are correct D) $150,000 E) $670,000

Cabinet Division would like to purchase 11,900 units from the Handle Division at a price of $130 per unit. Handle Division has no excess capacity to handle the Cabinet Division's requirements. The Cabinet Division currently purchases from an outside supplier at a price of $140. If the Handle Division accepts a $130 price internally, the company, as a whole, will be better or worse off by: