Business, 30.08.2020 14:01 gwoodbyrne

Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:

Answers: 3

Show answers

Answers

Answer from: reneebrown017

Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file file for the complete question.

The explanation of the answer is now provided as follows:

Operating income refers to the amount of profit that a business realized from its operations after operating expenses have been deducted.

Operating expenses are cost incurred by a business in its normal business operations.

The following two mistakes are prominent in the income statement in this question:

1. Gain on sale of equipment is included as part of Total Revenue instead of including under Other Income.

2. Interest Expense is included as part of operating expenses instead of including it under Interest income (expenses).

To correct this mistake, the income statement is prepared again appropriately using a Multi-step income statement format that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income.

Note: See the attached excel file for the new multi-step income statement that shows Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes.

In the attached excel file, Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0 (see red color).

Answer from: Quest

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

Answer from: Quest

Ithink the answers would be a and c and e!

Another question on Business

Business, 22.06.2019 12:50

Kyle and alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters jane and jill, respectively, to attend the university of california. jane is a sophomore and jill is a freshman. kyle and alyssa's agi is $135,000 and they file a joint return. what is their allowable american opportunity tax credit after the credit phase-out based on agi is taken into account?

Answers: 1

Answer

Business, 22.06.2019 16:50

Atrough in the business cycle occurs when

Answers: 1

Answer

Business, 23.06.2019 00:30

Environmentalists are concerned about emissions of sulfur dioxide into the air. the average number of days per year in which sulfur dioxide levels exceed 150 milligrams per cubic meter in milan, italy, is 29. the number of days per year in which emission limits are exceeded is normally distributed with a standard deviation of 4.0 days. what percentage of the years would exceed 37 days?

Answers: 2

Answer

Business, 23.06.2019 03:20

Georgia orchards produced a good crop of peaches this year. after preparing the following income statement, the company is concerned about the net loss on its no. 3 peaches. georgia orchards income statement for year ended december 31, 2017 no. 1 no. 2 no. 3 combined sales (by grade) no. 1: 300,000 ibs. @ $1.50/lb $ 450,000 no. 2: 300,000 ibs. @ $1.00/lb $ 300,000 no. 3: 750,000 ibs. @ $0.25/lb $ 187,500 total sales $ 937,500 costs tree pruning and care @ $0.30/ib 90,000 90,000 225,000 405,000 picking, sorting, and grading @ $0.15/ib 45,000 45,000 112,500 202,500 delivery costs 15,000 15,000 37,500 67,500 total costs 150,000 150,000 375,000 675,000 net income (loss) $ 300,000 $ 150,000 $ (187,500 ) $ 262,500 in preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. the company’s delivery cost records show that $30,000 of the $67,500 relates to crating the no. 1 and no. 2 peaches and hauling them to the buyer. the remaining $37,500 of delivery costs is for crating the no. 3 peaches and hauling them to the cannery. required: 1. prepare reports showing cost allocations on a sales value basis to the three grades of peaches. separate the delivery costs into the amounts directly identifiable with each grade. then allocate any shared delivery costs on the basis of the relative sales value of each grade. (do not round intermediate calculations.)

Answers: 1

Answer

You know the right answer?

Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Cor...

Questions