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2 years ago

Grants Corporation prepared the following two income statements (simplified for illustrative purposes):

Business

1 answer:

SOVA2 [1]2 years ago

4 0

Corrected income statement for each quarter

Particulars First Quarter Second Quarter

Sales Revenue 12200 18800

Cost of goods sold

Beginning inventory 4100 4030

Purchases 3100 12700

Goods available for sale 7200 16730

Ending inventory 4030 9000

Cost of goods sold 3170 7730

Gross profit 9030 11070

Operating expenses 4800 5700

Pretax income 4230 5370

The income statement is one of the most common and important financial statements. The income statement, also known as the income statement (P&L), summarizes all income and expenses over a period of time, including the cumulative impact of income, profits, expenses, and loss transactions. The basic formula for the income statement is Income - Expenses = Net Income.

Learn more about Income statements at

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During a certain year, the nominal interest rate was 7 percent, the real interest rate was 4 percent, and the CPI was 198.3 at t

Dima020 [189]

Answer:

CPI at the beginning of the year = 192.52

Explanation:

given data

nominal interest rate = 7 percent

real interest rate = 4 percent

CPI = 198.3

to find out

CPI at the beginning of the year

solution

we know that according to fisher equation

1 + r = $\frac{1+n}{1+i}$ ....................1

and for smaller values is equivalent to r

r = n - i .....................2

here r is real interest rate and n is nominal interest rate and i is inflation rate

so from equation 2

4 = 7 - inflation rate

inflation rate = 3 percent

Rate of inflation = (CPI at the end of the year - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

put here value

3% = (198.3 - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

CPI at the beginning of the year = $\frac{19830}{103}$

CPI at the beginning of the year = 192.52

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2 years ago

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to

kicyunya [14]

Answer:

<em>Explained below !</em>

Explanation:

<em>The major cause for the failure of the product was</em> its absence of a product protocol that directly explains the way through which it will satisfy the customers needs and wants.

The company should have re-checked the product before it was globalized all over, the mistake that was made by the company stood up as a reason of the products failure.

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2 years ago

The distinction between a current asset and other assets: A. is based on the ability to determine the current fair value of the

Scorpion4ik [409]

Answer: is based on when the asset is expected to be converted to cash, or used to benefit the entity.

Explanation:

Also known as a Short-Term asset, a current asset is an item of value that a company can either use or sale within a period to gain cash to clear current liabilities. Current assets can easily be converted to cash by sales or use.

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3 years ago

Suppose Kendall's had cost of goods sold during the year of $ 260 comma 000. Beginning merchandise inventory was $ 20 comma 000

kiruha [24]

Answer:

Inventory turnover = 9.45

Explanation:

Inventory turnover is defined as the ratio between Cost of good sold and average inventory.

Average inventory is defined as follows, where BI = Beginning merchandise inventory and EI = Ending merchandise inventory:

$Average Inventory = \frac{BI + EI}{2}$

$Average Inventory=\frac{20000+35000}{2}=27500$

then:

$Turnover = \frac{260000}{27500} \\Turnover = 9.45$

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2 years ago

Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabricatio

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Answer:

b. $1,500

Explanation:

The computation of the total amount of manufacturing overhead is shown below:

= Assembly department + Fabrication department

where,

Assembly department equals to

= $30 × 40 machine hours

= $1,200

Fabrication department would be

= $12 × 25 direct labor hour

= $300

So, the total manufacturing overhead would be

= $1,200 + $300

= $1,500

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2 years ago