Answer:SID THE SCIENCE KID
Explanation:
Answer: Option (b) is correct.
Explanation:
Given that,
Revenues = $300,000
Merchandise it purchased = $75,000
Salaries paid = $14,000
Owners invested = $23,000
Borrowed on a five-year note = $23,000
Interest paid = $3,000
Paid for a two-year insurance policy = $6,800
Income tax rate = 9%
Gross Margin = Revenues - Cost of Goods Sold
= $300,000 - $75,000
= $225,000
Profit before tax = Gross Margin - Salaries - Insurance payment - Interest
= $225,000 - 14,000 - 3,400 - 3,000
= $204,600
Net Income = Profit before tax - Tax at 9%
= $204,600 - 18,414
= $186,186
Answer:
If effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.
Explanation:
A price floor can be described as a price control in which the minimum price to be charged for goods and services is imposed by a government or a group.
For a price floor to be effective and binding, it has to be set above the market or equilibrium price. This is because a price floor will neither be effective nor nonbinding when it set below the equilibrium price.
Any price above the equilibrium or market price creates or leads to excess supply. Excess supply is a situation whereby quantiy of commodity supplied is more than the quantity demanded of the commodity.
Based on the above explanation, if effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.
Answer:
$24,779
Explanation:
In order to calculating the ending inventory using the conventional retail inventory method. we required to do the following computations which are shown below:
Using cost method
Goods available for sale:
= Beginning inventory + Purchases
= $11,700 + $130,016
= $141,716
Using retail method
Ending inventory
= Beginning inventory + Purchases + Net markups - Net markdowns - sales revenue
= $19,700 + $169,800 + $101,00 - $6,800 - $157,900
= $34,900
Now
Cost to retail ratio = $141,716 ÷ ($19,700 + $169,800 + $101,00)
= $141,716 ÷ $199,600
= 0.71
So,
Estimated ending inventory at cost:
= Estimated ending inventory at retail × Cost to retail ratio
= $34,900 × 0.71
= $24,779
