QUESTION 1 In addition to continuing its store sales, the Primeau...

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QUESTION 1
In addition to continuing its store sales, the Primeau Merchandising Company is considering expanding sales in June by selling through catalogs. The company expects to make catalog sales of $36,000 in June. The company expects its cost of goods sold to continue to average 55% of sales. Catalog operating expenses, other than uncollectible accounts expense, are expected to be 18% of catalog sales. The company’s income taxes rate is expected to continue to average 35% of income before taxes. Although the company collects all its accounts receivable resulting from store sales, it expects to collect only 94% of catalog sales. Determine the expected cost of goods sold for the company’s June $36,000 catalog sales
a. $239,800
b. $36,000
c. $236,200
d. $19,800
e. $16,200

QUESTION 2
The company expects to make catalog sales of $36,000 in June. The company expects its cost of goods sold to continue to average 55% of sales. Catalog operating expenses, other than uncollectible accounts expense, are expected to be 18% of catalog sales. The company’s income taxes rate is expected to continue to average 35% of income before taxes. Although the company collects all its accounts receivable resulting from store sales, it expects to collect only 94% of catalog sales. Determine the expected gross profit for the company’s June $36,000 catalog sales.
a. $36,000
b. $199,800
c . $16,200
d. $19,800
e. $196,200

QUESTION 3
The company expects to make catalog sales of $36,000 in June. The company expects its cost of goods sold to continue to average 55% of sales. Catalog operating expenses, other than uncollectible accounts expense, are expected to be 18% of catalog sales. The company’s income taxes rate is expected to continue to average 35% of income before taxes. Although the company collects all its accounts receivable resulting from store sales, it expects to collect only 94% of catalog sales. Determine the expected uncollectible accounts expense for the company’s June $36,000 catalog sales
a. $26,160
b. $2,160
c. $216
d. $972
e. $0

QUESTION 4
The company expects to make catalog sales of $36,000 in June. The company expects its cost of goods sold to continue to average 55% of sales. Catalog operating expenses, other than uncollectible accounts expense, are expected to be 18% of catalog sales. The company’s income taxes rate is expected to continue to average 35% of income before taxes. Although the company collects all its accounts receivable resulting from store sales, it expects to collect only 94% of catalog sales. Determine the expected total operating expenses for the company’s June $36,000 catalog sales.
a. $8,640
b. $6,480
c. $28,440
d. $108,640
e. $3,888

QUESTION 5
The company expects to make catalog sales of $36,000 in June. The company expects its cost of goods sold to continue to average 55% of sales. Catalog operating expenses, other than uncollectible accounts expense, are expected to be 18% of catalog sales. The company’s income taxes rate is expected to continue to average 35% of income before taxes. Although the company collects all its accounts receivable resulting from store sales, it expects to collect only 94% of catalog sales. Determine the expected income before taxes for the company’s June $36,000 catalog sales.
a. $11,160
b. $9,720
c. $87,560
d. $27,360
e. $7,560

QUESTION 6
The company expects to make catalog sales of $36,000 in June. The company expects its cost of goods sold to continue to average 55% of sales. Catalog operating expenses, other than uncollectible accounts expense, are expected to be 18% of catalog sales. The company’s income taxes rate is expected to continue to average 35% of income before taxes. Although the company collects all its accounts receivable resulting from store sales, it expects to collect only 94% of catalog sales. Determine the expected income taxes expense for the company’s June $36,000 catalog sales.
a. $12,600
b. $2,646
c. $3,906
d. $3,402
e. $30,646

QUESTION 7
The company expects to make catalog sales of $36,000 in June. The company expects its cost of goods sold to continue to average 55% of sales. Catalog operating expenses, other than uncollectible accounts expense, are expected to be 18% of catalog sales. The company’s income taxes rate is expected to continue to average 35% of income before taxes. Although the company collects all its accounts receivable resulting from store sales, it expects to collect only 94% of catalog sales. Determine the expected net income for the company’s June $36,000 catalog sales
a. $6,318
b. $56,914
c. $16,200
d. $4,914
e. $7,254

QUESTION 8
The Primeau Merchandising Company’s July 31 balance sheet contained the following information. If the Primeau Merchandising Company were to send invoices to its July 31 customers, what is the total dollar amount of invoices the company would send?
Assets
Current Assets
Cash $17,000
Accounts Receivable $38,000
Allowance for Uncollectible Accounts $2,800 $35,200
Merchandise Inventory $62,000
Supplies $3,700
Prepaid Insurance $2,500
a. $38,000
b. $2,800
c. $35,200
d. $17,000
e. $0

QUESTION 9
The Primeau Merchandising Company’s July 31 balance sheet contained the following information. If the Primeau Merchandising Company were to predict the dollar amount of cash it would receive from collecting its July 31 accounts receivable, what is the total dollar amount of cash the company would predict it would receive?
Assets
Current Assets
Cash $17,000
Accounts Receivable $38,000
Allowance for Uncollectible Accounts $2,800 $35,200
Merchandise Inventory $62,000
Supplies $3,700
Prepaid Insurance $2,500
a. $38,000
b. $2,800
c. $35,200
d. $17,000
e. $0

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1. The answer is option D
2. The answer is option C
...

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