Over the past four years, Hashwari Corporation reported sales revenue and warranty expense as follows. 2014...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Over the past four years, Hashwari Corporation reported sales revenue and warranty expense as follows. 2014 2015 2016 2017 Sales revenue $4,800,000 $5,000,000 $5,182,000 Warranty expense 98,700 97,600 112,000 $5,504,920 101,900 We wish to reformulate the income statement to reflect a constant proportion of warranty expense to sales over the four-year period. What is our warranty expense adjustment for each year? Compute the average warranty expense to sales rate for the past four years. Abbington Inc. issues $350,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the prevailing market rate of interest is: Note: Round your answer to the nearest whole dollar. a. 8% per year compounded semiannually. $ b. 10% per year compounded semiannually. $ Over the past four years, Hashwari Corporation reported sales revenue and warranty expense as follows. 2014 2015 2016 2017 Sales revenue $4,800,000 $5,000,000 $5,182,000 Warranty expense 98,700 97,600 112,000 $5,504,920 101,900 We wish to reformulate the income statement to reflect a constant proportion of warranty expense to sales over the four-year period. What is our warranty expense adjustment for each year? Compute the average warranty expense to sales rate for the past four years. Abbington Inc. issues $350,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the prevailing market rate of interest is: Note: Round your answer to the nearest whole dollar. a. 8% per year compounded semiannually. $ b. 10% per year compounded semiannually. $
Expert Answer:
Answer rating: 100% (QA)
Average warranty expense to sales rate Total warranty expense Total ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
You are told on your monthly statement for your credit card that your outstanding balance is $925.03. Your annual interest rate that you are charged is 16.25%, paid monthly. How long will it take you...
-
In 2015, Winnebago Industries recorded an impairment loss of $462,000 on its corporate plane. We wish to reformulate the companys income statement and balance sheet under the assumption that the...
-
The president of Remo Ltd. (Remo) wants to use hidden reserves to save income for a year when the company isnt performing very well. To accomplish this objective, the president instructed the...
-
Find the limit L. Then use the - definition to prove that the limit is L. lim x4 x
-
We propose to heat a house in the winter with a heat pump. The house is to be maintained at 68 F at all times. When the ambient temperature outside drops to 15 F, the rate at which heat is lost from...
-
Give three concerns that auditors should have in relation to the execution of batch report programs.
-
The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book. Required Answer the following questions: a. How much did Columbia Sportswear's cash...
-
The bookkeeper for Geronimo Company has prepared the following balance sheet as of July 31, 2008. The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and...
-
A stock just paid an annual dividend of $ 2 . 7 . The dividend is expected to grow by 9 % per year for the next 3 years. The growth rate of dividends will then fall steadily ( linearly ) from 9 %...
-
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders equity during its first year of operations....
-
LGP produces computer hardware equipment. The following information was collected for the latest month: Actual market size (units) 42,000 Budgeted market size (units) 63,000 Actual market share 28%...
-
Identify the business continuity problems associated with the following types of crisis events: a. Community-wide crisis events. b. Crisis events that provide no warning. c. Crisis events that...
-
Has transactional selling gone the way of the dinosaur? That is, are there ever any situations in which a transactional approach to selling would be an appropriate approach today? If so, what are...
-
Consider facility, personnel and IT resources. In general, all the resource components identified above are necessary for most organizations. Can you think of organizations that can operate without...
-
Identify the logistical problems associated with using a local IT alternate site location in a heavily fortified buildings during a major community-wide crisis event.
-
Companies talk a lot about being socially responsible. What do you think that means for a company like General Electric or IBM? As a salesperson, would you incorporate your companys social...
-
Shouldthe project be accepted using the IRR and NPV methods? WACC 9% Cost of machine2 million Working capital needed at time 0 is $250,000 none is recovered at projects end Cash flow year 1 $500,000...
-
Three successive resonance frequencies in an organ pipe are 1310, 1834, and 2358 Hz. (a) Is the pipe closed at one end or open at both ends? (b) What is the fundamental frequency? (c) What is the...
-
Selected pension information extracted from the retirement benefits note that appeared in Greens 2014 annual report follows. (These numbers have been modified but are based on the activities of a...
-
In Year 1, MB Inc. is subject to a 40% tax rate. For book purposes, it expenses $1,500 of expenditures. MB intends to deduct these expenditures on its Year 1 tax return despite tax law precedent that...
-
On January 2, 2014, Loch Company established a defined benefit plan covering all employees and contributed $1,000,000 to the plan. At December 31, 2014, Loch determined that the 2014 service and...
-
Classify each of the following costs relative to the cost object customer for a new car dealer: Salesperson wages Dealership manager salary. Depreciation on showroom furniture. Cost of automobiles...
-
Complete the following T-accounts: Materials Inventory ? 20,000 19,900 300 Wages Payable 15,000 Work-in-Process Inventory Finished Goods Inventory 2,000 ? 5,000 ? ? ? ? ? 3,000 32,000 5,000...
-
Benton Engineering Services Company incurred the following during 2019: Calculate prime cost and conversion cost for Benton Engineering Services Company during 2019. Direct labor.. Overhead Selling...
Study smarter with the SolutionInn App