Calculate dont fall down warranty expense

Reference no: EM13827585

Problem:

Dont Fall Down Incorporated manufactures skates and equipment for in-line skating. The company offers a one-year warranty on all products. During 2012, the company recorded net sales of $3,887.4 million. Historically, about 2% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 50% of retail value. Assume that at the start of the year Dont Fall Down's balance sheet included an accrued warranty liability of $16.9 million and at the end of the year, the accrued warranty liability balance was $13.0 million.

1. Calculate Dont Fall Down's warranty expense for 2012.

2. How much did Dont Fall Down pay during the year to repair and or replace goods under warranty?

Summary

These short answer questions belong to Finance. The 1st question is about calculation of warranty expenses for the year 2012. The 2nd question is about the repairing and replacing goods under warranty.

Reference no: EM13827585

Questions Cloud

Compare available records of divorce rates of each emirate : Compare available records of the divorce rates of each Emirate based on the statistics provided by the Civil Registry or Court. Choose a sample of divorce couples , and float a questionnaire to find out the reasons why they divorced

Explain how aims outcomes and procedures are negotiated : The question is from Sociology and it is explain and justifying how aims, outcomes and procedures are negotiated or agreed and the outcomes of negotiations.

Characteristics of contingent liabilities : Contingent Liabilities must have the following criteria - select all that apply.

Explain in a comprehensive manner starting anevent managemet : Explain in a comprehensive manner the prospects of starting an Event Managemen

Calculate dont fall down warranty expense : Calculate Dont Fall Down's warranty expense for 2012. How much did Dont Fall Down pay during the year to repair and or replace goods under warranty?

How esponsibilities and purpose of relationship are clarify : The question is related to Sociology and it is explains about the roles, responsibilities and the purpose of relationship being clarified in social work.

Compute coefficient of correlation between sales and payroll : The Tons of Fun Hobby Company general manager is told she can use sales and payroll data to do an estimated regression equation and forecast sales for next year. Compute the coefficient of correlation between sales and payroll, and what does the r..

Calculation of net operating assets for a company : The 2012 balance sheet of Matlack Inc., Inc. shows total assets of $13,430,622 thousand, operating assets of $12,166,473 thousand, operating liabilities of $4,370,229 thousand, and shareholders' equity of $7,022,213 thousand. Matlack Inc.' 2012 ne..

How can price negotiation be used as a means for effective : How can price negotiation be used as a means for effective customer relationship

User Account

All Pages