Answer:
The planned purchases are given as $34,500 while the value of OTB is $28,900
Explanation:
The Planned purchases is given as
Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases
So here the planned sales are 25000
The planned Reductions are 1500
The End of Month inventory is 88000
The Beginning of Month Inventory is 80000 So the value is given as
25000+1500+88000-80000= Planned Purchases
Planned Purchases =34500
The OTB is given as
OTB=Planned Purchases-Commitment
OTB=34500-5600
OTB=28900
Fred will either have to pay more than he proposed or Barney would be able to open his business in the same city
It was very good I lead them army of students at a football team
Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
