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prohojiy [21]
3 years ago
15

RF Company had January 1 inventory of $150,000 when it adopted dollar-value LIFO. During the year, purchases were $900,000 and s

ales were $1,500,000. December 31 inventory at year-end prices was $215,040, and the price index was 112. What is RF Company's gross profit?
A. $642,000
B. $647,040
C. $1,302,960
D. $665,190
Business
1 answer:
lorasvet [3.4K]3 years ago
8 0

Answer:

Gross profit = $647,040

so correct option is B. $647,040

Explanation:

given data

inventory = $150,000

purchases = $900,000

sales = $1,500,000

inventory end prices = $215,040

price index = 112

to find out

RF Company's gross profit

solution

at 31st December  base year inventory prices will be  

base year inventory prices = \frac{215040}{1.12}

base year inventory prices = $192,000

and

now Changes in inventory from beginning will be here as

Changes in inventory from beginning = $192000- $150000

Changes in inventory from beginning = $42,000

so as that 31st December as LIFO

inventory at dollar value is  = $150000 × 100% + $42000 × 112%

inventory at dollar value  = $150000 + 47040

inventory at dollar value  = $197,040

so

Cost of goods sold will be here as

Cost of goods sold = beginning inventory + purchases - ending inventory    .........................1

put here value

Cost of goods sold = $150,000 + $900,000 - $197,040

Cost of goods sold =  $852,960

so Gross profit  will be here

Gross profit = sales - cost of goods sold .........................2

put here value

Gross profit = $1500000 - $852960

Gross profit = $647,040

so correct option is B. $647,040

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She should put this into a chart or graph. This is a graphical illustration of data, in which "the data is characterized by symbols.” By organizing data, it can be more effortlessly understand what has been perceived. Subsequently, most of the data is quantitative, data tables and charts are typically used to consolidate the information. Graphs are shaped from those data tables.

6 0
3 years ago
Sunland Company has outstanding 500000 shares of $2 par common stock and 150000 shares of no-par 7% preferred stock with a state
olga nikolaevna [1]

Answer:

Total dividend paid = $340,000

Preferred dividend = 7% x $4 x 150,000 x 3 years = $126,000

Dividend paid to common stock holders

= $340,000 - $126,000

= $214,000

The correct answer is C

Explanation:

There is need to calculate the preferred dividend for 3 years, which is a function of dividend rate, current market price, number of preferred stocks outstanding  and number of years. The current market price of the preferred stock is used for the computation because the preferred stock has no par value. Then, the amount of dividend paid to common stock holders is the difference between the total dividend paid and preferred dividend.

5 0
3 years ago
Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answe
GaryK [48]

Answer:

Option 1 and 2

Explanation:

Complete Question

Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers?

CHECK ALL THAT APPLY.

  1. High school athletes stop shopping there.
  2. The inventory of sports socks goes unsold.
  3. Publicity for the store declines.
  4. Profits decline because dress shoes cost less than sneakers

Solution

Sole Sister Shoe Store chooses to sell dress shoes over sneakers because  the customers of sneakers stopped shopping from the store. Sneakers are mainly purchased by the high school athletes over any other footwear. Now, they stopped shopping and hence  Sole Sister Shoe Store started selling dress shoes

Also, sports socks' inventory is unsold indicating the reduction in sale of sneakers and hence the Sole Sister Shoe Store started selling dress shoes

7 0
2 years ago
First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest
stiv31 [10]

Answer:

You will have $10,306 more

Explanation:

In this question, we are asked to calculate the difference in the amount of money we will earn if the same deposit amount is made in two different banks with different interest payment scheme

Firstly, Calculate the amount in the account as follows:

Future value = Interest + Amount = (Am ount x Period x Rate) + Amount = ($54,000 x 10 x 6%) + $54, 000 = $32,400 + $54,000 = $86,400

Therefore, the future value is

$86,400

Now, we calculate the amount by using the compounding as follows:

Future value = Amount x (1+ Rate)^n =

$54,000 * (1+0.06)^10

= $54,000 * 1.791 = $96,706

Therefore, the compound future value is

$96,706

The difference in amount is calculated as follows:

Difference in amount = $96,706 - $86,400 = $10,306

5 0
3 years ago
Which formula should be used to correctly calculate the<br> monthly mortgage payment?
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