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RideAnS [48]
3 years ago
10

On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the i

nstallment sales method of accounting for this transaction. Terms called for a down payment of $490,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end. In 2019, Rigsby would recognize realized gross profit of:
Business
1 answer:
xxTIMURxx [149]3 years ago
5 0

Answer:

$127,400

Explanation:

Gross profit ratio = [(sale - cost) ÷ sale price] × 100

                           = [($5,000,000 - $3,700,000) ÷ $5,000,000] × 100

                          = 0.26 × 100

                          = 26%.

Gross profit on down payment is recognized in 2019:

= Down payment × Gross profit ratio

= $490,000 × 26%

= $127,400

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3 years ago
Read 2 more answers
A proposed new project has projected sales of $175,000, costs of $93,000, and depreciation of $24,800. The tax rate is 23 percen
allochka39001 [22]

Answer and Explanation:

Sales                            = $175,000

Less: Cost                    = $93,000

Gross Profit                  = $82,000

Less: Depreciation       = $24,800

EBT                                = $57,200

Less: Tax [email protected]%    = $13,156

EAT                                 = $44,044

a). OCF = EBIT + Depreciation - Taxes

             = $57,200 + $24,800 - $13,156

             = $68,844

b). OCF = [(sales - costs - Depreciation) * (1 - T)] + Depreciation

             = [($175,000 - $93,000 - $24,800) * (1 - 0.23)] + $24,800

             = $68,844

c). OCF = [(sales - costs) * (1 - T)] + [Depreciation * T]

             = [($175,000 - $93,000) * (1 - 0.23)] + [$24,800 * 0.23]

             =  $68,844

d). OCF = Net income + depreciation

             = $44,044 + $24,800

             = $68,844

6 0
3 years ago
When a dividend is not declared on preferred stock, and the common share­holders cannot receive a dividend until all past and cu
Lady_Fox [76]

Answer:

cumulative.

Explanation:

Cumulative preferred stock is defined as a type of stock that states that if any dividend payments have been missed the first payment of the owed dividends must be done to cumulative preferred shareholders in first instance

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3 years ago
In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of ________ will have a production possibil
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Answer:

The answer to this question is  (c) Labour, Labour intensive

In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of labour will have a production possibility frontier that is biased toward production of the labour intensive good

Explanation:

The Heckscher-Ohlin model is an economic theory that proposes that countries export what they can most efficiently and plentifully produce.  

The model emphasizes the export of goods requiring factors of production that a country has in abundance. It also emphasizes the import of goods that a nation cannot produce as efficiently. It takes the position that countries should ideally export materials and resources of which they have an excess, while proportionately importing those resources they need.

Therefore in regard to the question above,

In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of labour will have a production possibility frontier that is biased toward production of the labour intensive good  

Hence the answer is the third option, Labour, Labour intensive

5 0
3 years ago
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Vedmedyk [2.9K]

Answer:C. Damage to completed cars held on a storage lot

Explanation:

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An example of operational risk for a company that manufactures automobiles would be damage to completed cars held on a storage lot.

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