The Following Data Is Available for the Janitorial Services Department

question 94

Essay

The following data is available for the Janitorial Services Department of Glitterol Co.
$$\begin{array} { l | l } \text { Revenues } & \$ 216,000 \\\hline \text { Cost of Sales } & 168,000 \\\hline \text { Expenses: } & \\\hline \text { Supplies-Direct } & 12,000 \\\hline \text { Salaries-Indirect Allocated } & 34,000 \\\hline \text { Rent-Direct } & 8,000 \\\hline \text { Rent-Indirect Allocated } & 4,500\end{array}$$ Required: Calculate departmental contribution to overhead for the Janitorial Services Department,
including the department's contribution as a percentage of revenues.

Analyze the impact of capital expenditures and cash dividends on cash flow.

Calculate a company's free cash flow.

Recognize the effects of transactions involving property, plant, and equipment on cash flows.

Understand how changes in balance sheet accounts affect the cash flow statement.

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Definitions:

JIT Suppliers

Suppliers that adhere to Just-In-Time manufacturing principles, delivering materials and components exactly when needed, minimizing inventory costs.

Holding Cost

The cost associated with keeping inventory in storage, including expenses such as warehousing, insurance, and spoilage.

Product Storage

The act of keeping goods or materials in a designated space until they are needed for usage or sale.

Waste

Unwanted or unusable materials, substances, or by-products produced through human activity or industrial processes.