Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
1.88 years
Explanation:
Payback period is the time in which a project returns back the initial investment. Initial Investment is recovered within the first two annual Cash inflows.
Payback Period = 1+0.88 = 1.88 years
All the working are made in the MS Excel File attached with this answer, pleas find it.
Answer:
Explanation:
The computation of the amount that is reported as a total current assets is presented below:
Clear Co's
Current assets
Cash $40,000 ($50,000 - $10,000)
Accounts Receivable $20,000
less-Allowance for doubtful debts - $5,000
Deposits from customers $3,000
Merchandise Inventory $7,000
Unearned rent $1,000
Investment in trading debt securities $2,000
Total amount $68,000
Answer:
Question 1
b. $100,000
Question 2
(a) Goods held on consignment from another company.
Explanation:
Question 1
Calculation to determine what the cost of the ending inventory under LIFO is
Using this formula
Cost of the ending inventory =(Inventory, Jan. 1 Units*Cost )+[(Dec 31 Units on hand- Inventory, Jan. 1 Units)*Purchase, June 19 Cost ]
Let plug in the formula
Cost of the ending inventory =(8,000 * $11) + (1,000 *$12)
Cost of the ending inventory =$88,000+$12,000
Cost of the ending inventory =$100,000
Therefore the cost of the ending inventory under LIFO is $100,000
Question 2
GOODS HELD ON CONSIGNMENT FROM ANOTHER COMPANY should NOT be included in the PHYSICAL INVENTORY of a company but rather be included in the inventory of the sender of the goods which is the CONSIGNOR.
