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Luden [163]
3 years ago
7

Because of a decline in market price in the second quarter, Petal Co. incurred an inventory loss, but the market price was expec

ted to return to previous levels by the end of the year. At the end of the year, the decline had not reversed. Petal accounts for its inventory using the LIFO method. When should the loss be reported in Petal’s interim income statements?
Business
1 answer:
Sonja [21]3 years ago
5 0

Answer:

In the fourth quarter only.

When the loss is probable and estimable, the expected loss must be recorded in full. This loss becomes such at the end of the fourth quarter. Therefore, the inventory must be valued on the year-end at the lower of cost or market, recognizing the loss at that time.

Explanation:

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3 years ago
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Waylon works for a company that produces temporary tattoos. His company wants to reach a young, highly engaged target market. Hi
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3 0
2 years ago
Select the correct answer. Which part of a speech contains the speaker’s arguments, ideas, examples, and proof? A. the title of
Marina86 [1]

Answer:

Its in the body o

Explanation:

6 0
3 years ago
The most recent financial statements for Xporter, Inc., are shown here:
Diano4ka-milaya [45]

Solution :

Expected sales = current sales x (1 + projected sale next year increase)

                         = 5,700 x (1 + 15%)

                         = $ 6555

Expected cost = current cost x (1 + projected sale next year increase)

                       = 4200 x (1 + 15%)

                       = $ 4830

Taxable income = 1500 x ( 1 + 15%)

                           = $ 1725

Taxes (34%)  = 510 x (1+15%)

                     = $ 586.5

Net income = sales - cost - taxes

                   = 6555 - 4830 - 586.5

                   = $ 1138.5

Calculation of total asset :

Current asset = 3,900 x 1.15

                      = $ 4485

Fixed asset   = 8100 x 1.15

                      = $ 9315

Total asset = 4485 + 9315

                  = $ 13800

Calculation of total liabilities

Current liabilities = 2200 x 1.15

                            = $ 2530

Long term debt = $ 3,750

Equity = $ 6050 + (1138.5 x 0.50 )

          = $ 7189

Total liabilities  = $ 2530 + $ 3,750 + $ 7189

                          = $ 13, 469

Therefore the external financial needed is = $ 13800 - $ 13, 469

                                                                       = $ 331

8 0
3 years ago
Barans Company purchased merchandise on account from a supplier for $12,900, terms 1/10, n/30. Barans Company returned $2,500 of
11Alexandr11 [23.1K]

Answer: See explanation

Explanation:

a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?

The amount of cash required for the payment will be:

Purchases: = $12,900

Less: Returns = $2500

Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104

Cash required for payment = $10296

b. What account is credited by Barans Company to record the return?

Based on the information above, the merchandise inventory will be credited.

3 0
3 years ago
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