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1 year ago

Why would a company’s manager be concerned about the quantity of its purchases returns if its suppliers allow unlimited returns?

1 answer:

6 0

The company incurs costs in receiving, inspecting, identifying, and returning the merchandise. More returns create more expenses.

Is cost of sales an expense?

Cost of Goods Sold is also known as “cost of sales” or its acronym “COGS.” COGS refers to the cost of goods that are either manufactured or purchased and then sold.

COGS counts as a business expense and affects how much profit a company makes on its products.

What are the depreciation expense?

Depreciation expense is that portion of a fixed asset that has been considered consumed in the current period.

This amount is then charged to expense. The intent of this charge is to gradually reduce the carrying amount of fixed assets as their value is consumed over time.

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MV Corporation has debt with market value of million, common equity with a book value of million, and preferred stock worth mi

kirza4 [7]

Answer:

The Weighted Average cost of capital measures the cost to the company of its current capital structure by using the weights of the various capital measures. WACC usually uses market values so;

Total amount = Debt + Preferred stock + common equity

= 100 million + 20 million + ( 50 * 6 million)

= $420 million

<u>Proportions.</u>

Debt

= 100/420

= 24%

Preferred Stock<u> </u>

= 20/420

= 5%

Common Equity

= 300/420

= 71%

6 0

3 years ago

Problem 20-40 (LO. 3, 8) Citron, a calendar year taxpayer, began business in January 2017. It had a long-term capital gain of $5

Fittoniya [83]

Answer:

Explanation:

A. Provision of long term capital gain as An Individual.

Long-term capital gain of $5,000 in 2017 is taxable in 2017 as a longterm capital gain @15%

And long term capital loss of $10,000 in 2018 is either sett off to the capital gain or capital loss upto $3,000 can be settoff from normal income above this limit can be carry forword for next year.

Three maximum federal income tax rates apply to most types of net long-term

capital gains income in tax year 2018:

1. 0 percent for taxpayers in the 10 percent or 15 percent bracket for ordinary income (under $73,800 for married joint filers)

2. 15 percent for taxpayers above the 15 percent bracket but below the 39.6 percent bracket (from $73,800 to $457,600 for married joint filers)

3. 20 percent for taxpayers in the top 39.6 percent bracket ($457,600 or higher for married joint filers)

B. Provision of long term capital gain as An C corporation.

C corporation deduct capital loss upto theire capital gain.

If in any tax year apital loss exceed capital gain than it can not be deduct from other income of same year.

Therefore loss of $10,000 can be carry forward for next year.

C. Provision of long term capital gain as An S corportation.

S corporations are pass-through entities, which means that the company itself does not pay taxes on the sale of its assets. Rather, the income from the sale of its assets passes through to the shareholder, who is responsible for paying taxes.

8 0

3 years ago

Algebra with pizzazz why are small balloons cheaper than large balloons

Afina-wow [57]

Small balloons are cheaper than large balloons because THERE'S BEEN LESS INFLATION.

I found this answer after answering a series of polynomials that has to be factored. I'm not really that sure, but the formation of the letters made me deduce the answer.

to check, see attachment and answer the polynomials yourself.

Download pdf

7 0

3 years ago

Green Day Corporation has outstanding 411,800 shares of $10 par value common stock. The corporation declares a 10% stock dividen

kramer

Explanation:

The journal entries are shown below:

a. Retained earning A/c Dr $3,047,320

To Paid-in capital in excess of par A/c $2635,520

To Common stock dividend distributable A/c $411,800

(Being the date of declaration is recorded)

It is computed below:

For retained earning

= 411,800 shares × $74 × 10%

= $3,047,320

For common stock, it is

= 411,800 shares × $10 × 10%

= $411,800

b. Common stock dividend distributable A/c Dr $411,800

To Common stock A/c $411,800

(Being the date of distribution is recorded)

7 0

3 years ago

Pharoah Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. Du

Alinara [238K]

Answer:

Pharoah Warehouse

Journal Entries:

June 1: Debit Inventory $2,490

Credit Accounts Payable (Catlin Publishers) $2,490

To record the purchase of inventory on account, terms 2/10, n/30.

June 3: Debit Accounts Receivable (Garfunkel Bookstore) $1,300

Credit Sales Revenue $1,300

To record the sale of goods on account with usual credit terms.

Debit Cost of Goods Sold $900

Credit Inventory $900

To record the cost of goods sold.

June 6: Debit Accounts Payable (Catlin Publishers) $90

Credit Inventory $90

To record the return of inventory.

June 9: Debit Accounts Payable (Catlin Publishers) $2,400

Credit Cash $2,352

Credit Cash Discount $48

To record the payment on account.

June 15: Debit Cash $1,300

Credit Accounts Receivable (Garfunkel Bookstore) $1,300

To record the cash collection on account.

June 17: Debit Accounts Receivable (Bell Tower) $1,700

Credit Sales Revenue $1,700

To record the sale of goods on account.

Debit Cost of Goods Sold $800

Credit Inventory $800

To record the cost of goods sold.

June 20: Debit Inventory $800

Credit Accounts Payable (Priceless Book Publishers) $800

To record the purchase of goods on account, terms 2/15, n/30.

June 24: Debit Cash $1,666

Debit Cash Discounts $34

Credit Accounts Receivable (Bell Tower) $1,700

To record the collection of cash on account.

June 26: Debit Accounts Payable (Priceless Book Publishers) $800

Credit Cash $784

Credit Cash Discounts $16

To record payment on account.

June 28: Debit Accounts Receivable (General Bookstore) $2,650

Credit Sales Revenue $2,650

To record the sale of goods on account.

Debit Cost of Goods Sold $850

Credit Inventory $850

To record the cost of goods sold.

June 30: Debit Sales Returns $260

Credit Accounts Receivable (General Bookstore) $260

To record sales returns on account.

Debit Inventory $90

Credit Cost of Goods Sold $90

To record the cost of goods returned by a customer.

Explanation:

a) Data and Analysis:

Credit terms to all customers = 2/10, n/30. This means that 2% discount is granted to customers who pay within 10 days. Customers are expected to settle their accounts within 30 days after which, interest is charged on their accounts.

b) June 1: Inventory $2,490 Accounts Payable (Catlin Publishers) $2,490, terms 2/10, n/30.

June 3: Accounts Receivable (Garfunkel Bookstore) $1,300 Sales Revenue $1,300

Cost of Goods Sold $900 Inventory $900

June 6: Accounts Payable (Catlin Publishers) $90 Inventory $90

June 9: Accounts Payable (Catlin Publishers) $2,400 Cash $2,352 Cash Discount $48

June 15: Cash $1,300 Accounts Receivable (Garfunkel Bookstore) $1,300

June 17: Accounts Receivable (Bell Tower) $1,700 Sales Revenue $1,700

Cost of Goods Sold $800 Inventory $800

June 20: Inventory $800 Accounts Payable (Priceless Book Publishers) $800, terms 2/15, n/30.

June 24: Cash $1,666 Cash Discounts $34 Accounts Receivable (Bell Tower) $1,700

June 26: Accounts Payable (Priceless Book Publishers) $800 Cash $784 Cash Discounts $16

June 28: Accounts Receivable (General Bookstore) $2,650 Sales Revenue $2,650

Cost of Goods Sold $850 Inventory $850

June 30: Sales Returns $260 Accounts Receivable (General Bookstore) $260

Inventory $90 Cost of Goods Sold $90

6 0

3 years ago