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Goryan [66]
4 years ago
11

Barbara operates a sporting goods store. She uses the cash method and treats inventory as nonincidental supplies. At the beginni

ng of the year, she had inventory of $26,000. She purchased $470,000 of goods during the year. Her ending inventory was $42,000. She makes sure to pay all of her suppliers by the last day of her tax year. What is Barbara's inventory deduction for the year
Business
1 answer:
hoa [83]4 years ago
5 0

Answer:

$454,000

Explanation:

Ending inventory is the value of the inventory in the store at the end of the year.

Goods are purchased and added to the the beginning inventory, the sale for the period is deducted from it. the residual value is the value of ending Inventory.

In This question it is assumed that there is $26,000 of beginning inventory of the goods. $470,000 of the purchases were made and at the end of the year there was $42,000 balance of inventory.

We can calculate the deduction value as follow

Ending Inventory = Beginning Inventory + Purchases - deduction

$42000 = $26,000 + $470,000 - deduction

$42000 = $496,000 - deduction

Deduction = $496,000 - $42,000 = $454,000

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LUCKY_DIMON [66]

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6 0
2 years ago
When using horizontal differentiation, a firm divides itself into subunits based on function, type of business, or Multiple Choi
Alex777 [14]

Answer:

Geographical area

Explanation:

Product differentiation which is based upon different functionality is referred to as Horizontal differentiation.

Product differentiation refers to a mechanism whereby a manufacturer makes his product unique and slightly different from similar products offered in the market by competitors. Such an attribute helps a customer in product identification.

Product differentiation can be achieved by different packaging, changing product appearance, product quality or added functionality.

Horizontal differentiation takes place when products which belong at the same level differ slightly based upon different functions or uses they offer.

While a firm uses horizontal differentiation for it's products, it divides itself into subunits based upon functions , type of business and geographical area. It means each subunit focuses on it's own functions i.e the kind of differentiated products the sub unit shall produce, serving the requirements of a specific geographical area.

3 0
3 years ago
A dispute is:
maw [93]
Hey :)

I would say it’s b) Claim or argument that an error was made

Hope this helps!
3 0
3 years ago
On January 1, 2019, Providence, Inc., Issues $1,000,000 of 10 percent, 5-year bonds at par value. Complete the necessary journal
loris [4]

Answer:

01-Jan-19

Dr Cash $1,000,000

Cr Bonds Payable $1,000,000

Explanation:

Preparation of the Journal entry for Providence, Inc

Based on the information given we were told that the company issues the amount of $1,000,000 of 10% which include 5-year bonds at par value on January 1, 2019, this means that the Journal entry will be recorded as:

01-Jan-19

Dr Cash $1,000,000

Cr Bonds Payable $1,000,000

(To record bonds at par value)

3 0
4 years ago
You are considering purchasing a stock that currently sells for $50. The expected price of the stock in a year is $45, and durin
Verizon [17]

Answer:

The holding period return of the stock is - 6 %  or - 6.0%

Explanation:

Solution

Given that:

You are thinking of purchasing a stock that currently sells for= $50

The expected price of the stock =$45

Dividend expected to be paid =$2

Risk free rate = 5%

Market return = 10%

Stock (beta) = 0.85

We will now find the holding period return of the stock which is given below:

The formula for calculating the holding period return of a stock is  given as,

= The Expected price in a year + Dividend earned during the year – Purchase Price  / Purchase Price

We recall that:

The Purchase Price = $ 50  

Expected price in a year = $ 45

Dividend earned during the year = $ 2

Now,

By Applying the above values in the formula we have the holding period return of the stock as :

=  [45 + 2 – 50] / 50

= - 3 / 50

= - 0.0600 = - 6.00 %

= - 6.0 % ( when rounded off to one decimal place )

Therefore, the Holding period return of the stock is - 6 %  or - 6.0%

8 0
3 years ago
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