Doggies grooming income statement month ended april

This preview shows page 220 - 223 out of 354 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Marketing 2018
The document you are viewing contains questions related to this textbook.
Chapter 20 / Exercise 5
Marketing 2018
Ferrell/Pride
Expert Verified
Doggie's Grooming Income Statement Month Ended April 30 Revenues:
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Marketing 2018
The document you are viewing contains questions related to this textbook.
Chapter 20 / Exercise 5
Marketing 2018
Ferrell/Pride
Expert Verified
Service Revenue $15,600 Expenses: Wages Expense $4,421 Grooming Supplies Expense 1,595 Building Rent Expense 900 Utilities Expense 295 Depreciation Expense—Equipment 85 Total Expenses 7,296 Net Income (Loss) $ 8,304 Requirement 2. What is the cost of service to groom one dog? Knowing the cost per service, in this case grooming a dog, helps managers set the price of each service. To determine this unit cost we must divide total operating expenses (from the income statement in Requirement 1) by the total number of dogs groomed for the period. Go ahead and determine the cost to groom one dog (the unit cost). (Round your answer to the nearest cent.) Total operating expenses / Total number of dogs groomed = Unit cost $7,296 / 640 = $11.40 E16-25 Snyder Brush Company sells standard hair brushes. The following information summarizes Snyder's operating activities for 2016: Selling and Administrative Expenses $37,422 Purchases 56,700 Sales Revenue 113,400 Merchandise Inventory, January 1, 2016 10,080 Merchandise Inventory, December 31, 2016 7,812 Requirement 1. Calculate the operating income for 2016 . Snyder Brush Company Income Statement Year Ended December 31, 2016 Revenue: Sales Revenue $113,400 Cost of Goods Sold: Beginning Merchandise Inventory $10,080 Purchases 56,700 Cost of Goods Available for Sale 66,780 Ending Merchandise Inventory (7,812) Cost of Goods Sold 58,968 Gross Profit 54,432
Selling and Administrative Expenses 37,422 Operating Income $ 17,010 Requirement 2. Snyder sold 6 comma 300 brushes in 2016 . Compute the unit cost for one brush. (Round your answer to the nearest cent.) Cost per brush = $9.36 P16-28A Below are data for two companies: Company A Company B Beginning balances: Merchandise Inventory $10,800 Finished Goods Inventory $16,000 Ending balances: Merchandise Inventory 13,300 Finished Goods Inventory 11,700 Net Purchases 155,500 Cost of Goods Manufactured 209,500 Requirement 1. Define the three business types: service, merchandising, and manufacturing. Service companies sell their time, skills, and knowledge. Examples include accounting firms, phone companies, and cleaning services. As with other types of businesses, service companies seek to provide services that are high quality with reasonable prices and timely delivery. Merchandising companies resell products they buy from suppliers. Merchandisers keep an inventory of products, and managers are accountable for the purchasing, storage, and sale of the products. Manufacturing companies use labor, equipment, supplies, and facilities to convert raw materials into finished products. Managers in manufacturing companies must use these resources to create a product that customers want at a price customers are willing to pay. Managers are responsible for generating profits and maintaining positive cash flows. Requirement 2. Based on the data given for the two companies, determine the business type of each one.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture