1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andru [333]
3 years ago
9

On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati

on is available:Sales, January 1 through July 8 $700,000 Inventory, January 1 130,000 Purchases, January 1 through July 8 640,000 Gross profit ratio 30% What is the estimated inventory on July 8 immediately prior to the fire? a. $192,000. b. $490,000. c. $510,000. d. $280,000. e. None of the above.
Business
1 answer:
riadik2000 [5.3K]3 years ago
7 0

Answer:

estimated inventory on July 8 = $280000

so correct option is d. $280,000

Explanation:

given data

sale = $700,000

Inventory = $130,000

Purchase = $640,000

to find out

estimated inventory on July 8

solution

first we get here total available inventory for sales that is

Total Available inventory for sales = Inventory + Purchase   ...........1

put here value

Total Available inventory for sales =  $130,000 + $640,000

Total Available inventory for sales = $770,000

so now we get Inventory sols that is

Inventory = (Sales - 30% of sales)     ....................2

Inventory =  $700000 - ( 0.30 × $700000 )

Inventory = $490,000

so now we get here estimated inventory on July 8 that is express as

estimated inventory = Total Available inventory for sales - Inventory   .........3

estimated inventory =  $770,000 - $490,000

estimated inventory = $280000

so correct option is d. $280,000

You might be interested in
The expense recognition (matching) principle requires that expenses (expenses/assets/liabilities) be recorded in the same accoun
Tju [1.3M]

Answer:

Expenses ; revenues ; adjusting

Explanation:

According to the expense recognition or matching principle, the expenses that are incurred in a particular period should be matched with the revenues that are earned in that particular period.

This principle major part is of the adjustments so that the adjustment entries are passed so that the financial statements represents the true and fair view to the users of the accounting information

8 0
3 years ago
"The link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time. This lin
Aleksandr-060686 [28]

Answer:

ethical climate

Explanation:

We were informed that the link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time.

In this this case is most evident in firms that have a strong ethical climate. Strong ethical climate in finance reffered to the degree of ethics been utilized by an organization, it involves the morals and improve employee morale when they experience ethical climate such as caring, independence and other ethical factors.

.

4 0
3 years ago
Which of the following describes the management function that includes determining which tasks will be done, who will do them, h
ololo11 [35]

Answer:

Planning management function

Explanation:

Planning is a management procedure which aims to identify objectives for the long term future of an organization and to determine the tasks and resources required in achieving these objectives. Managers should create a business plan or a marketing plan for achieving objectives.

4 0
3 years ago
What is the impact on the total asset turnover ratio if sales increase significantly while there is no change in any of the othe
Ostrovityanka [42]

Answer:

The total turnover increases

Explanation:

Asset Turnover Ratio is a measure of how efficient the assets of a company is when compared with the company's sales or revenue. To calculate Asset turnover ration, the<u> net sales is set as a percentage of the company's total assets. </u>

The higher the turnover of the asset based on the calculation then the higher the chances that organisation is generating revenue efficiently from its assets.  A lower turnover however is the implication that the company is not efficiently using its assets and it could imply some internal issues.

Therefore, the higher the sales without any change in assets means the Asset Turnover will increase or be higher and it will indicate higher efficiency

4 0
3 years ago
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning
otez555 [7]

Answer:

Explanation:

1. The computation of the balance in retained earnings is shown below:

= Beginning retained earning balance + adjusted net income

where,

Beginning retained earning balance is $780,000

And, the adjusted net income is = Inventory × ( 1 - tax rate)

= $60,000 × (1 - 40%)

= $36,000

Now put these values to the above formula  

So, the value would equal to

= $780,000 + $36,000

= $816,000

2. The journal entry is shown below:

Inventory A/c Dr $60,000

   To Retained earning A/c $36,000

   To Tax payable A/c          $24,000

(Being inventory is adjusted and the remaining balance is credited to tax payable account)

4 0
3 years ago
Other questions:
  • Riverwalk Corporation is liquidated, with Juan receiving $5,000 in money, other property having a $6,000 FMV, and a $1,000 mortg
    12·2 answers
  • A computerized spreadsheet programs is useful for
    12·1 answer
  • Select which is NOT a component of a standard housing lease. APurchasing homeowner's insurance. BWhat repairs are the renter's r
    14·1 answer
  • 18. Information gained by applying someone else's survey information to your business is called A. potential customer sourcing.
    14·2 answers
  • Sheffield Corp. compiled the following financial information as of December 31, 2017:
    9·1 answer
  • Zachary Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the compan
    13·2 answers
  • Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitabilit
    10·1 answer
  • Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1
    11·1 answer
  • Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments
    12·1 answer
  • Taxpayers have a choice of deducting the standard deduction or their itemized deductions. therefore, blank______ agi deductions
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!