Terry owns an RV repair shop. Sue works in the office and also orders any parts needed to repair RVs.

On September 1, 2021, American Metals Distribution (AMD) has an inventory of 10,000 pounds of copper that it plans to sell on th

Anon25 [30]

Answer and Explanation:

a. The Journal entry is shown below:-

1. Hedge charges Dr, $150

To Cash Account $150

(Being bank charges is recorded)

2. Hedge Instrument - Financial Asset Dr, $600

To Profit and Loss A/c $600

(Being financial assets is recorded)

3. Profit and Loss A/c Dr, $600

To Inventory Account - Copper $600

(Being profit and loss account is recorded)

4. Bank A/c Dr, $22,400

To Sales $22,400

(Being bank account is recorded)

2. The computation of the gross margin and locked with the put option and actual reported gross margin is shown below:-

Particulars Rate Pounds Amount Gross Margin Gross Margin

Cost Price $2.15 10,000 $21,500

Strike Price $2.3 10,000 $23,000 $1,500 6.98%

Cost after hedge

loss of $0.6 2.09 10,000 $20,900

Selling Rate $2.24 10,000 $22,400 $1,500 7.18%

Gross margin locked with the put option: 6.98%

Actual reported gross margin: 7.18%

The two amounts are different, since the carrying value of the inventory has changed and the same has been reduced. As a result the total gross margin of 1,500 yielded another percentage as the base value (inventory carrying value) was adjusted.

5 0

3 years ago

The chief financial officer of a company is responsible for managing cash, accounts receivable, and inventory.

zaharov [31]

Answer:

True

Explanation:

Chief financial officer is one of the key positions at any company or firm. Chief financial officer plays a critical role in managing cash, account receivable and inventory management. He/She is responsible for handling the cash and managing the cash in such a way to remove chances of bankruptcy and shortages. Overall, it is an important post to complete all the tasks related to cash handling and inventory.

7 0

3 years ago

The increase in unemployment that occurs during recessions and depressions is called Group of answer choices normal unemployment

belka [17]

Answer:

cyclical unemployment.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Cyclical unemployment rate (CU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Natural Rate of Unemployment (NU).

A cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.

Mathematically, cyclical unemployment rate can be calculated using the formula;

$Cyclical \; unemployment \; rate \; (CU) = Actual \; unemployment \; rate \; (AU) - Natural \;unemployment \; rate \; (NU)$

Hence, the increase in unemployment that occurs during recessions and depressions is called cyclical unemployment

7 0

3 years ago

The definition of input , out put and processing please

goldfiish [28.3K]

The best definitions of input, output and processing are as follows:

Input refers to the resources that are used up in production to create further value, finished goods, or more input for further processing.

Processing is the intervening activity that changes the input to output.

Output is the product of processing input or resources. Output is typically the finished outcome from a processing activity.

<h3>What is the relationship between input, output, and processing?</h3>

Processing is at the center of input and output.

Processing involves changing, manipulating, or transforming input resources into output or finished products.

Thus, the definitions of input, output and processing are as given above.

Learn more about input, output, and processing at brainly.com/question/25250720

5 0

2 years ago

Which of the following taxpayers may not be able to claim full benefits for some common itemized deductions?

Readme [11.4K]

nswer:a

Explanation:

7 0

3 years ago