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3 years ago

Gato Inc. had the following inventory situations to consider at January 31, its year-end.

Business

1 answer:

Leokris [45]3 years ago

5 0

Answer:

The answers are:

Explanation:

A) Not included in merchandise inventory, belongs to the consignor

B) Included in merchandise inventory

C) Included in merchandise inventory

D) Not included in merchandise inventory , they were already sold so they should be included as COGS

E) Not included in merchandise inventory, belongs to the seller

F) Included in merchandise inventory

G) Not included in merchandise inventory , office supplies on hand are usually considered minor expenses

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Sage Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the

valina [46]

Question:

Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,400,000 on March 1, $3,600,000 on June 1, and $9,000,000 on December 31. Riverbed Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $6,000,000 note payable and an 11%, 4-year, $10,500,000 note payable. Compute avoidable interest for Riverbed Company. Use the weighted-average interest rate for interest capitalization purposes.

Answer:

The total avoidable interest is $743,040.00

Explanation:

Here we have

Date Expenditure Period Portion

Mar-01 $5,400,000.00 10/12 $4,500,000.00

Jun-01 $3,600,000 7/12 $2,100,000

Dec-31 $9,000,000 0/12 $0

Total $6,600,000.00

The weighted average expenditure is $6,600,000.00

The weighted average rate using the notes payable loan is found by the following calculation

Type of loan Amount Interest rate Interest incurred

Loan $6,000,000 10% $600,000.0

Loan $10,500,000 11% $1,155,000.00

Total $16,500,000 $1,755,000.0

Weighted average rate = Total interest incurred / Total loans

Weighted average = 1755000/16500000 = 0.10636 = 10.64%

The general interest is found by subtracting the specific loan from the weighted average expenditure

General = Weighted average expenditure - Specific loan

General = $6,600,000.00 - $3,000,000 = $3,600,000.00

The avoidable interest is found by summing the specific interest to the weighted average interest as follows

Type of loan Amount Interest rate Interest incurred

Specific $3,000,000 12% $360,000.00

General $3,600,000 10.64% $383,040.0000

Total $743,040.00

The total avoidable interest = $743,040.00

5 0

3 years ago

Project managers are ultimately responsible for quality management on their projects.

vovikov84 [41]

A. true

unless you have quality control, present in bigger corperations

5 0

4 years ago

Diane, a police officer, stops Tim's car for a traffic offense. While talking to Tim, she shines a flashlight into the passenger

kati45 [8]

Answer:

Diane may search the passenger compartment of the car and any place else in the car, including the trunk, without Tim's consent. ⇒ TRUE

Explanation:

The Fourth Amendment of the Constitution protects people against illegal searches, seizures and warrants, but there are exceptions to this amendment:

consensual searches: if the person is OK with the police officer searching his/her belongings
brief investigatory stops: when the police officer is suspicious about a crime being committed
searches incident to a valid arrest: if the police officer is arresting someone, he/she is allowed to search him
seizures of items in plain view: if property is in plain view, the police officer does not need a warrant. ⇒ this exception applies to this case.

4 0

4 years ago

Which action best reflects the influence of John Maynard Keynes? O A. A business lobbies a government to reduce its overall tax

Sidana [21]

Answer:

Which action best reflects the influence of John Maynard Keynes?

B. A government gives jobs to workers during an economic recession.

Explanation:

John Maynard Keynes was a The British economist who strongly and vehemently advocated for "increased government expenditures, lower taxes, government offering full employment, and government intervention in economic activities" in order to stimulate demand, pull the economy out of recession, and kickstart it from slump. He is known as the father of Keynesian Economics.

8 0

3 years ago

The most important fundamental component of an entity's internal control is:

rosijanka [135]

Answer:

b) People who operate and function within the control system.

Explanation:

Internal controls are the process and mechanisms that an organization puts in place to ensure the integrity of its accounting and financial information. Internal control helps a business achieve operational efficiency and effectiveness. It ensures that a company financial reporting complies with the relevant laws, policies, and regulations.

The people working in internal control determines whether the mechanisms will succeed or fail. Employees assigned in internal control must be of high integrity and be able to discharge their duties without fear or favor. Internal control protects company resources from theft, wastage, or misuse. For internal control to achieve its purpose, the Individuals in that department must not comprise in any situation.

6 0

3 years ago