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lisov135 [29]
3 years ago
7

Foxtrot Co. started 2021 with $113,000 of merchandise inventory on hand. During 2021, $480,000 in merchandise was purchased on a

ccount with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Foxtrot paid freight charges of $7,900. Merchandise with an invoice amount of $3,600 was returned for credit. Cost of goods sold for the year was $376,000. Foxtrot uses a perpetual inventory system.
What is ending inventory assuming Foxtrot uses the gross method to record purchases?

a. $188,200.
b. $192,600.
c. $179,088.
d. $179,028.
Business
1 answer:
Marina CMI [18]3 years ago
4 0

Answer:

$211,772

Explanation:

The computation of ending inventory is shown below:-

Discount = ($480,000 - $3,600) × 2%

= $9,528

Cost of goods for sale = Beginning inventory + purchases - returns at invoice price - Discounts + Freight - Cost of goods sold

= $113,000 + $480,000 - $3,600 - $9,528 + $7,900

= $587,772

Ending inventory = Cost of goods for sale - Cost of goods sold

= $587,772 - $376,000

= $211,772

So, the right answer is $211,772. Hence the option is not available.

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Prahm Corp. wants to raise $4.4 million via a rights offering. The company currently has 500,000 shares of common stock outstand
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price for selling 3000 share right is $25060.87

Explanation:

Given data:

Total Amount raised=   $4,400,000  

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Per share cost  = $45

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Right price is calculated as

Right price = ((Number of share held * market price) + (Right share *Right price))/( Number of share held + Right share)

plugging all value in above relation

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Right share = $36.65

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6 0
3 years ago
I or 2 sentences describe the labor market
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8 0
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Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband in 10 in
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Answer:

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Explanation:

Given information -

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Carin collected - $17,500 from insurance company

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She is receiving payments in form of annuity, and the amount that should be included in her gross income in the first year should -

$25,000 / $175,000  x  $17,500

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3 years ago
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