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3 years ago

13

Under the equity method, the receipt of cash dividends on an investment in common stock of vallerio corporation is accounted for

as a debit to cash and a credit to

1 answer:

patriot [66]3 years ago

6 0

Investment in Vallerio

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The common stock of Sweet Treats is selling for $50.15 per share. The company is expected to have an annual dividend increase of

mote1985 [20]

Answer:

11.2%

Explanation:

Here, we want to calculate the total return on the stock.

From the question, Price = $50.15

Mathematically;

P = D1/Ke-g

D1 = $3.80

g = 3.60%

So let’s calculate Ke-g

50.15 = 3.8/ke-g

Ke-g = 3.8/50.15

Ke-g = 7.6%

but g = 3.6%

Total return Ke = 3.6% + g = 3.6% + 7.6% = 11.2%

4 0

3 years ago

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Flura [38]

Answer:

Warnerwoods Company

Perpetual Inventory System:

1. Cost of Goods Available for Sale and Units Available for Sale:

Mar. 1 Beginning inventory 60 units $50.20 per unit $3,012

Mar. 5 Purchase 205 units $55.20 per unit 11,316

Mar. 18 Purchase 65 units $60.20 per unit 3,913

Mar. 25 Purchase 110 units $62.20 per unit 6,842

Available for Sale 440 units Cost = $25,083

2. The number of units in ending inventory:

Units Available for Sale 440

Subtract units sold 310

Ending Inventory 130 units

3. The Cost assigned to ending inventory using:

a) FIFO: Ending Inventory

20 units at $60.20 per unit = $1,204

110 units at $62.20 per unit = 6,842

Ending Inventory $8,046

b) LIFO: Ending Inventory

Mar. 1 Beginning Inventory 45 units $50.20 per unit = $2,259

Mar. 18 Purchase 65 units $60.20 per unit = 3,913

Mar. 25 Purchase 20 units $62.20 per unit = 1,244

Ending Inventory 130 units Cost = $7,416

c) Weighted Average: Ending Inventory

Cost of Goods Available for Sale divided by units available for sale

= $25,083/440 = $57 per unit

Ending Inventory = $57 x 130 = $7,410

d) Specific Identification: Ending Inventory

This cannot be answered from the information provided in the question:

4. Gross Profit for each costing method:

FIFO LIFO WEIGHTED SPECIFIC

AVERAGE IDENTIFICATION

Sales $27,312 $27,312 $27,312 $27,312

Cost of Sales 17,037 17,667 17,670

Gross Profit $10,275 $9,645 $9,642

Explanation:

a) Sales:

Mar. 9 Sales 220 units $85.20 per unit = $18,744

Mar. 29 Sales 90 units $95.20 units = 8,568

Total = $27,312

b) Cost of Sales:

i) FIFO

Mar 1. Beginning inventory 60 units $50.20 per unit = $3,012

Mar. 5 Purchase 205 units $55.20 per unit = 11,316

Mar. 18 Purchase 45 units $60.20 = 2,709

Cost of Sales = $17,037

ii) LIFO:

Mar. 1 Beginning inventory 15 units $50.20 per unit = $753

Mar. 5 Purchase 205 units $55.20 per unit = $11,316

Mar. 25 Purchase 90 units $62.20 per unit = $5,598

Cost of Sales = $17,667

iii) Weighted Average:

Cost of Sales = $57 x 310 = $17,670

c) Calculations under the specific identification cannot be made because of the figures given under this method.

5 0

4 years ago

Bob and Suzie are both signing a contract where Bob agrees to remove a beehive and Suzie agrees to pay Bob $120. 0. What is the

ipn [44]

The contract is defined as an agreement enforceable by law. Consideration is the promise made by the other party. The promise of one party is the consideration for the other party. Both the parties promise each other to perform their obligation in exchange for the consideration.

<h3>What is an agreement?</h3><h3 />

Agreement is every set of promises which results in the formation of consideration for each other. Their are always two parties to a contract and every party must perform its obligation which is the consideration for the other party.

Bob agreed to remove beehive , him removing the beehive is the consideration for Suzie. Suzie promised to pay $120 for removal of beehive is the consideration for Bob.

Therefore, the consideration in this example will be "Both the removal of a beehive and the payment of $120.00" OPTION C is correct regarding the problem.

Learn more about agreement here:

brainly.com/question/7494619

8 0

2 years ago

Why did Maggie not have flood insurance? Check all that apply.

romanna [79]

CDE are the answers to this question.

7 0

4 years ago

Read 2 more answers

During 2021, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000.

Wittaler [7]

Answer:

Explanation:

The journal entries are shown below:

1. Sales revenue A/c Dr $128,000

To Sales return and Allowances $128,000

(Being return sales is recorded)

The computation is shown below:

= Recorded sales × estimated returned percentage - experienced returns

= $10,600,000 × 8% - $720,000

= $848,000 - $720,000

= $128,000

2. Inventory A/c Dr $76,800 ($128,000 × 60%)

To Cost of goods sold $76,800

(Being returned cost of goods sold recorded)

7 0

3 years ago