Controllable costs

The net income reported on the income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balance of the current asset and current liability accounts at the beginning and end of the year are as follows:                                                                              End of Year        Beginning of Year Cash                                                                      $ 65,000                   $ 70,000 Accounts receivable                                                100,000                     90,000 Inventories                                                               145,000                   150,000 Prepaid expenses                                                       7,500                        8,000 Accounts payable (trade)                                          51,000                      58,000  The total amount reported for cash flows from operating activities in the statement of cash flows, using the indirect method is:

One machine costing $1,000 produces total cash inflows of $1,400 over 4 years. Determine the payback period given the following cash flows:                                                                            After-Tax                Cumulative                                                            Year     Cash Flows            Cash Flows                                                              1              $400                         $ 400                                                             2                300                           700                                                             3                500                         1,200                                                              4                200                         1,400

If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

This Company had net income of $210,000. Depreciation expense is $27,000. During the year, Accounts Receivable and Inventory increased $17,000 and $42,000, respectively. Prepaid Expenses and Accounts Payable decreased $5,000 and $6,000, respectively. There was also a loss on the sale of equipment of $2,000. How much cash was provided by operating activities?

  Saira, Inc. has the following income statement (in millions):                                                         SAIRA, INC.                                                   Income Statement                                   For the Year Ended December 31, 2017                    Net Sales                                  $300 Cost of Goods Sold             180 Gross Profit                         120 Operating Expenses             45 Net Income                         $75  Using vertical analysis, what percentage is assigned to Net Income?

In a make-or-buy decision, which costs can be considered relevant?

Discussion Question 1 – (15 Points) :   Steve Meadows works in the Cost Accounting area of Carnes and Jones Company. Steve is just beginning to learn about the potential of Activity Based Costing systems. Steve suggests that the Company discontinue its existing Process Cost system and replace it with a new Activity Based Costing system.   Required: You are the Controller of Carnes and Jones Company. How would you respond to Steve’s suggestion? Make sure to include a discussion of the benefits and limitations of Activity Based Costing in your answer.

The least exact method for separating fixed and variable costs is:

The factory is operating at less than 100% capacity. Potential additional business will not use up the remainder of the plant capacity. Given the following list of costs, which one should be ignored in a decision to produce additional units of product?