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3 years ago

The following information pertains to Company A's Year 1 inventory activities:

Business

1 answer:

NikAS [45]3 years ago

8 0

Answer:

1 & 5) FIFO Ending Inventory $ 10,800

2) moving average: $ 10,400

3) weighted average $ 9,520

4) LIFO $ 8,800

Explanation:

January 1 Beg Inv 90 $40 subtotal: $ 3,600

May 15 Purchase 160 $65 subtotal: $ 10,400

units: 250 total: $ 14,000

April 11 Sale 50 $70

July 25 Sale 30 $75

Total sales 80 units

Ending Inventory: 250 - 80 = 170 units

FIFO the ending inventory is compose of the last nits

As it follows a crhonological order is the same under periodic and perpetual:

We start from the top

May 15th 160 at 65$ $10,400

170 - 160 units = 10 units

January 1 Beg Inv 10 units at $40 = $ 400

Total ending inventory: $ 10,800

Moving average:

the average is calculate based on the aailable good at hand before eahc purchase:

At April 11th the company's available goods are the beginning invenory thus the COGS is

50 units x 40 dollars each = 2,000

Then, at July 25th the inventory available is:

40 units at $40 dollars = 1,600

and 160 units at 65 dollars = 10,400

total 200 units at 12,000

Average: $12,000 / 200 units = $60 per unit

COGS: 30 units x $60 = 1,800

Total cost: 2,000 + 1,600 = 3,600

Ending inventory: 14,000 - 3,600 = 10,400

Weighted average:

we divide total goods available over the total units purchased:

14,000 / 250 = 56 dollar per unit

ending inventory 170 units x 56 per unit = $ 9,520

LIFO:

the last units are sold while the first are ending inventory we start from the top part :

January 1 Beg Inv 90 $40 subtotal: $ 3,600

170 units - 90 units = 80 units

May 15 Purchase 80 $65 subtotal: $ 5,200

Total $ 8,800

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The 2018 income statement of Adrian Express reports sales of $20,510,000, cost of goods sold of $12,550,000, and net income of $

In-s [12.5K]

Answer:

1. Gross profit ratio= Gross Profit/ Sales *100

-Sales $ 20510,000

-Gross Profit = Sales - Cost of Goods Sold =20,510,000 - 12,550,000 = 7,960,000

Gross Profit Ratio= 7,960,000 / 20,510,000 * 100

= 38.81%

2.Return on Assets= Net income after tax / Average Total assets

Where Average Total assets= (9,800,000+8,160,000) / 2= 8,980,000

Where Net income after tax= 1,940,000

Return on Assets = 1,940,000 / 8,980,000 * 100 = 21.60%

3.Profit Margin= Net income/ Sales *100

=1,940,000 /20,510,000 *100

= 9.46%

4. Total Assets turnover= Sales / Average assets

=20,510,000 / 8,980,000

=2.28 times

5 Return on Equity: Net income after tax/ Average stockholder's equity

Where Average Stockholder's equity: (2,050,000 +3,190,000 + 1990000 + 1766000) / 2 = $4498,000

Return on Equity: 1940000/4498,000 *100

= 43.13%

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3 years ago

Ue or false: increasing the number of stocks in a portfolio reduces market risk.

Triss [41]

False. It does not reduce market risk.

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3 years ago

Al files for bankruptcy. Al has been making loan payments to his company's credit union through payroll deductions. After being

kramer

Answer:

A. Is in violation of the bankruptcy code.

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Which of the following is not a function of prices in a market system? Group of answer choices Prices send signals to buyers and

Sedaia [141]

Answer:

Prices ensure an equal distribution of goods and services among consumers.

Explanation:

The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.

Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.

For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.

Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.

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3 years ago

Why might a bank be willing to borrow funds from other banks at a higher rate than the rate at which it can borrow from the fed?

liberstina [14]

Because when a bank borrows money from the Fed it has to out toward collateral. Central banks in turn will want extra regulation, depending on the banks rep. As well as banks borrow too frequently from the Fed, resulting in the Fed restricting the ability to borrow in the future.
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3 years ago