Answer:
The correct answer is D. When the product is sold and delivered to a customer.
Explanation:
It is recognized at the time of the sale, because the company receives an income as a result of the recovery of its cost plus the established profit margin. When the sale has not been made, it remains within the product inventories until the sale occurs and becomes an operational income.
Answer:
(1) $2,720
(2) $2,220
Explanation:
Given the following sequence:
300 units at $6, 400 units at $7 and 200 units at $8
(1) FIFO method
Ending inventory = 360 units
Cost of ending Inventory:
= 200 units at $8 + 160 units at $7
= 200 × $8 + 160 × $7
= 1,600 + 1,120
= $2,720
(2) LIFO method
Cost of ending Inventory:
= 300 units at $6 + 60 units at $7
= 300 × $6 + 60 × $7
= 1,800 + 420
= $2,220
<span>In order to assess who is correct the exact nature of the tire needs to be seen in more detail. If the tire has been damaged by driving, a crash or some other method, than Technician B would be correct because the tire would need to repaired. However, if tires is moving funny as a result of a bump or some other impact to it, then it could be that the weights have become mis-aligned and then Technician A would be correct in that re-balancing solves the problem.</span>
Answer:
Results are below.
Explanation:
Giving the following information:
Years - Interest Rate - Future Value
9 7% $18,828
1 12% 43,017
13 15% 805,382
18 14% 662,816
To calculate the present value, we need to use the following formula:
PV= FV/(1+i)^n
1: PV= 18,828/(1.07^9)= $10,241.18
2: PV= 43,017/(1.12)= $38,408.04
3: PV= 805,382/(1.15^13)= $130,897.1
4: PV= 662,816/(1.14^18)= $62,676.63
Answer and Explanation:
As per the data given in the question,
3 of the above items will appear as a cash inflow from investing activities.
These are as follows :
1. Collection of loan receivable.
2. Cash sale of delivery truck at book value.
3. Sale of a security held as an available-for-sale investment.
Any gain or loss on sale of long term asset is an operating activity although any purchase or sale of a long term asset is come under the investing activities.
Loan receivable is an asset too therefore, it will be shown under investing activities.
