1 - Mason Corporation had $650,000 in invested assets, sales of $700,000, income
ID: 2474898 • Letter: 1
Question
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Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%.
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3 - The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31
What is the net income for Block Corporation?
Select the correct answer.
4 - The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31
What is the net income from operations for the Software Division?
Select the correct answer.
5 - The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31
What is the gross profit for the Software Division?
Select the correct answer.
Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%.
Explanation / Answer
Profit margin = Income from operations / Sales
It is calculated as a % to net sales
Assets 650000 Sales 700000 Income from operations 99000 1)Profit margin = Income from operations / Sales
It is calculated as a % to net sales
= 99000 / 700000 14.14% answer is option c = 14.1 % 2) Manufacturing department does not fall under category of service department answer is option c ) manufacturing department 3) Software division Hardware division Consolidated Net Sales 99791 65636 165427 Less: Cost of Goods sold 45492 31423 76915 Less: Direct operating expense 27157 21101 48258 Less: Interest expense 2586 Less: General Overhead 18193 Less ; Income Tax 4311 Net Income 15164 Answer is option 1 ) 15164 Net Income is the amount which left with company after payment of all expenses and taxes 4) Software division Net Sales 92541 Less: Cost of Goods sold 46632 Less: Direct operating expense 27716 Net Income from operations 18193 Answer is option b) 18193 as we are considering only software division so no other expense will be considered. Net income from operations is amount left after deducting all expenses 5) Software division Net Sales 98305 Less: Cost of Goods sold 46176 Gross Profit 52129 Answer is option c) 52129 Gross profit is profit left with division after deducting all direct expenses linked with production of GoodsRelated Questions
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