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4 years ago

Fifo reports higher gross profit and net income than the lifo method when

1 answer:

4 0

FIFO (First in, First Out) reports higher gross profit and net income than the LIFO (Last In, First Out) method when prices are increasing. The FIFO method refers to an inventory system wherein the first items purchased are thought to be sold while the most recent purchases make up the ending inventory. On the other hand, the LIFO method assumes the opposite. The ones sold are the most recent purchases while the earlier purchases are included in the ending inventory.

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Equipment was acquired on January 1, 2021, for $33,000 with an estimated four-year life and $2,000 residual value. The company u

Lostsunrise [7]

Answer:

Gain= $850

Explanation:

Giving the following information:

Purchase price= $33,000

Useful life= 4 years

Residual value= $2,000

Sale= $10,600.

First, we need to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (33,000 - 2,000)/4= $7,750

Now, we can calculate the accumulated depreciation:

Accumulated depreciation= 7,750*3= $23,250

To calculate the gain or loss, we need to use the following formula:

Gain/loss= selling price - book value

Book value= purchase price - accumulated depreciation

Book value= 33,000 - 23,250= $9,750

Gain/loss= 10,600 - 9,750

Gain= $850

4 0

3 years ago

All of the following are true regarding the guaranteed insurability rider except

docker41 [41]

Answer:

Option (C)

Explanation:

Guaranteed insurability rider is a person who is responsible to sell extra life insurances to the owners who already have life insurance. They visit the clients and attract them to buy a new one. Similarity, the rider usually charge premiums, but if an owner of life insurance is ill or seriously injured only then no additional premium is charged.

7 0

4 years ago

Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the futur

inysia [295]

Answer:

$4,000

Explanation:

P- percent

r-rate

t-time

P: 10000

R:8 but u have to move it two spots so it would be 0.08

T:5 years

10,000(0.08) (5) = 4,000

$4,000

That's how I do it. I hope it helps!

5 0

2 years ago

earned net sales revenue of $62,000,000 in 2016. Cost of goods sold was $41,540,000, and net income reached $9,000,000, the c

Gekata [30.6K]

Answer:

33%

Explanation:

The gross profit percentage is also known as the gross margin which is the ratio of the gross profit to sales. it shows the amount of gross profit earned per $1 of revenue made.

The gross profit is the difference between the sales and the cost of goods sold.

Gross profit for 2016

= $62,000,000 - $41,540,000

= $20,460,000

Gross profit percentage

= $20,460,000 /$62,000,000

= 0.33

= 33%

3 0

3 years ago

When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. Whe

Airida [17]

Answer:

Global strategy; Transnational strategy

Explanations:

Companies should choose a global strategy or transnational strategy

A global strategy is a technique used by a firm to expand and compete in the global market. It is the plans made by a firm to grow beyond it's border.

Global strategy covers three other strategies

1. International strategy

2. Multinational strategy

3. Global strategy

A firm adopt global strategy in order to increase its sales of products and Profit.

Transnational strategy is a technique which allows firms to expand sales of goods and services while taking into consideration the difference in culture of people.

Transnational occurs when a company in China wants to expand to other countries like Nigeria. For China to have a smooth operation, it must first take into cognizance our culture and believe.

6 0

3 years ago