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Komok [63]
3 years ago
14

Marcy's, Inc., operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2016 third-quarter

repoi the company reported Cost of Goods Sold of $2,900 million, ending inventory for the third quarter of $4,600 million, and ending inventory for the previous quarter of $4,100 million. Estimate merchandise purchases for the third quarter. (Enter your answer in millions.) Merchandise Purchases million
Business
1 answer:
marysya [2.9K]3 years ago
8 0

Answer:

Purchases is $3400  million

Explanation:

Cost of goods formula comes readily helpful in this case.

Cost of goods sold=beginning inventory+purchases-ending inventory

by arranging the formula,the purchases formula is given thus:

Purchases=cost of goods sold-beginning inventory+ending inventory

cost of goods sold is $2,900 million

ending inventory is $4,600 million

beginning inventory is $4,100 million

purchases=($2,900-$4,100+$4,600) million

purchases=3400  million

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Brady recently graduated from SUNY–New Paltz with his bachelor’s degree. He works for Makarov & Company CPAs. The firm pays
klemol [59]

Answer:$4,750

Explanation:

Taxable amount is given as  = Tuition benefits - Excludable amount

where,

Tuition fees benefits by company  = $10,000

Employer Tuition Assistance = $5,250 exclusion from income per student Tuition for oneself  (Employee) based on  graduate or doctoral classes  taxed on the dollar amount over and above the first $5,250.00 of tuition benefits paid per calendar year.  (source https://www.irs.gov/newsroom/tax-benefits-for-education-information-center)

therefore, Taxable amount = $10000-$5250

Taxable amount = $ 4750

Brady need to include$ 4750 in gross income.

4 0
3 years ago
Read 2 more answers
WACC and Optimal Capital Structure F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently ha
den301095 [7]

Answer:

The firm's optimal capital structure is 80% Debt and 20% Equity.

The WACC at this optimal capital structure is 10.28%.

Explanation:

Note: See the attached excel file the computation of the weighted average cost of capital (WACC) at the optimal capital structure. Also note that the data in the question are merged together but they are sorted in the attached excel file before answering the question.

The optimal capital structure of a firm can be described as a combination of debt and equity financing that is the beat in which market value of the firm is maximized while its cost of capital is minimized.

Using the weighted average cost of capital (WACC), the optimal capital cost capital structure occurs at a point where the WACC is the lowest.

From the attached excel file, the lowest WACC is 0.1028, or 10.28%.  At this firm Market Debt- to-Value Ratio (wd) which is debt is 0.80 (i.e. 80%), and Market Equity-to-Value Ratio (ws) which is equity is 0.20 (i.e. 20%).

Therefore, the firm's optimal capital structure is 80% Debt and 20% Equity.

The WACC at this optimal capital structure is 10.28%.

Download xlsx
5 0
2 years ago
Donna and Matthew share an office. Donna was balancing her checkbook when she was called
umka21 [38]

Answer:

yess

Explanation:

8 0
2 years ago
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A U.S. automobile company sells many of its cars in countries that have lower taxes on corporate profits than the U.S. Why might
stira [4]

Answer:

It will be more profitable to vertically integrate because the company will be able to further reduce its costs.

Explanation:

Profit = Sales - Cost

The lower the cost, the higher the profit (if sales remains the same).

A Vertical integration strategy requires a company to <u>own or control its suppliers (backward integration) or its distributors or retailers (forward integration)</u>, and therefore, gain more control over its value chain.

<em>If the U.S. automobile company chooses to vertically integrate into the car retailing business in countries where it sells most of its cars, then it would cut out certain costs, such as the cost of contracting with independent car dealers, which would further improve profitability.</em>

Also, such forward integration into retailing means the company will develop processes along its value chain that will increase the efficiency of its operations.

4 0
3 years ago
n May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010.
Alenkinab [10]

Answer:

c. A credit to Earned Fees for $1,000.

Explanation:

As for the information provided, we know

Unearned income is an income account, and therefore, will be credited at the time of recording.

Further, it is told that as on 31 December, 2009 out of the total unearned income of $1,500, $1,000 is earned.

Since it is earned it has to be accounted in current year, for this earned income will be credited and unearned income will be reversed for the amount of earned income that is for $1,000.

8 0
3 years ago
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