Nantucket marine supply is a wholesaler for a large variety of boating and fishing equipment. the company’s controller, alan denney, has recently completed a cost study of the firm’s material-handling department. the activity measure (independent variable) used in the study was hundreds of pounds of equipment loaded or unloaded at the company’s loading dock. denney compiled the following data.

units of activity
month (hundreds of pounds of
equipment loaded or unloaded) material-handling
department costs
january 1,800 $ 11,700
february 1,600 11,300
march 1,300 11,250
april 1,000 10,200
may 2,200 11,100
june 2,400 12,550
july 2,000 12,000
august 1,800 11,400
september 2,600 12,120
october 1,100 11,050
november 1,200 11,350
december 1,400 11,350

required:
5.
estimate the material-handling department’s cost behavior using the high-low method. use an equation to express the results of this estimation method. (round coefficient of x to 2 decimal places.)

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z

Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.