The correct answer is "ending inventory of one period is the beginning inventory of the next period."
An inventory error not only affects the current year's cost of goods sold, gross profit, net income, current assets, and equity, but also the next period's statements because ending inventory of one period is the beginning inventory of the next period.
That is why the manager has to be strict regarding the inventory of a company. Inventory has a cost that can be translated into money. So accountants have to be perfect regarding the inventory. So yes, ann error in keeping the inventory affects the company in that the ending inventory of one period is the beginning inventory of the next period. An internal audit can reveal the mistakes in accurately keeping the inventory. So it is better to put extra attention in the process so nothing wrong would be revealed after the audit.
Answer:
The corporation's tax liability is $ 228,820.
Explanation:
To calculate tax liability we first have to find net profit. Detail calculation is given below.
<u><em>Net profit Calculation</em></u>
Sales $ 3,130,000
cost of goods sold and the operating expenses ($ 2,080,000)
Interest expense ( $ 377,000)
Net profit $ 673,000
<u><em>Tax liability Calculation</em></u>
Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.
Tax liabilty = 673,000 * 34% = $ 228,820
Answer:
transaction costs is your answer
Explanation:
Answer:
Tells us we need to download something, sorry mate.
Explanation:
Answer:
Explanation:
D = 60 bags
cost = 80 / bag
s = 20 / order
h = 40% of cost
0.4 * 80 / 100
h= 32 unit/year
D = d * 12 months
D = 60 * 12
D = 720 bags / year
EOQ = 
EOQ = 
EOQ = 30 bags
Total cost = Total holding cost + total ordering cost
Total holding cost = (Q/2 * H) = (30/2 * 32) = 480
Total ordering cost = (D/Q * 20) = (720/30 *20) = 480
Total cost = 480 + 480 = 960
Total purchasing cost = cost * D = 80 * 720 = 57.600
Percentage= total cost / total purchasing cost * 100
960 / 57.600 * 100
1.67 %
