Answer:
Best estimate for inventory =$70,764.85
Explanation:
The closing inventory value at retail
= (Opening inventory + Purchases - sales) all in retail prices
= $123,000 + $483,000 - 493,000.
= 113000
Closing inventory value at cost
=113,000 × (64,500 + 315,000)/(123,000 + $483,000)
=70,764.85
Best estimate for inventory =$70,764.85
Answer:
<em>The entries are prepared in a tabular form in the explanation section below</em>
Explanation:
<em>From the example, the first step to take is to prepare he entries, if any, on each of the three dates that involved dividends.</em>
<em>Date Account titles and explanation Debit Credit</em>
<em>June 15 Cash Dividends $119,760 </em>
<em> Dividends Payable $119,760</em>
<em>July 10 Dividends Payable $119,760</em>
<em> Cash $119,760</em>
<em>Dec. 15 Cash Dividends $161,300</em>
<em> Dividends Payable $161,300</em>
Answer:
Based on the profitability index method, the investment should not be accepted.
It does not produce enough cash flows to justify the investment.
Explanation:
The profitability index method measures the present value of benefits for by dividing the present value of benefits by the present of initial investments.
The present value of initial investment in this project remains RM400,000. The present value of incremental annual cash flows of RM80,000 after taxes for 5 years will be equal to:
RM80,000 * 3.668 = RM293,440
Then the next step is to divide the present value of benefits by the initial investment as follows:
RM293,440/RM400,000 = 0.7336 = 73.36%
The implication is that the present value of the benefits is less than the initial investment costs. The project should then be rejected.
Answer:
It stands for Nothing But Trouble
Explanation:
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Answer:
scenario 1
owner made no investment in the business and no dividend were paid during the year,<em> there may be no income or net loss incurred by the business. there is no decrease or increase in equity.</em>
scenario 2
owner made no investments in the business but dividend were $700 cash per month, <em>the net income earned during the year equal $700*12 = $8,400.</em> <em>There is no changes in equity</em>
scenario 3
No dividend were paid during the year but owner invested an additional $45,000 cash in exchange for common stock. <em>There will be increase in equity by $45,000 but net income or net loss cannot be determined</em>
scenario 4
Dividend were $700 cash per month and the owner invested additional $35,000 cash in exchange for common stock. <em>The net Income earned will $8,400 while $35,000 will added to equity as additional capital.</em>
Explanation:
