Answer:
Net Income $574
Explanation:
Calculation of Nueva's net income if it elects FIFO will be :
Net sales$7,400
Less Cost of goods sold ($4,806)
($5,610 − $804)
Gross profit 2,594
Operating expenses (1,638)
Income before taxes 956
(2,594-1,638)
Income tax 382.4
(40%×956)
Net income $574
(956-382.4)
Therefore the Nueva's net income if it elects FIFO would be $574
Answer:
True
Explanation:
The statement is true, roles and responsibilities are very important in family business. Relatives regularly fill more than one job in the organisation so as to keep it running. Likewise, if the administration covers and family jobs and duties are uncertain to everybody, opposition or even absolute battling is bound to happen in light of the fact that the individuals included know each other well indeed.
Answer:
The correct cost of inventory that Coronado should report is $367300
Explanation:
The goods sent on consignment still belong to the consignor until they are sold off by the consignee. So, the consignor should add the unsold consignment goods in its inventory. Thus we will add the cost of goods sent on consignment to the value of inventory.
Value of inventory = 321000 + 46300 = $367300
The goods purchased by Coronado on 27 December with FOB destination should not be added to the cost of inventory as with FOB destination terms, the goods do not belong to the buyer until they are delivered to their destination by the seller.
Thus, the correct cost of inventory that Coronado should report is $367300
Answer:
the real interest rate is 9.5%
Explanation:
The computation of the real interest rate is shown below:
But before that inflation rate need to be determined
Inflation rate is
= [CPI this year - CPIlast year] ÷ CPI last year
= {(190 - 200) ÷ 200} × 100
= -0.05 × 100
i = -5%
Now the real interest rate is
real interest rate = nominal interest rate - inflation rate
= 4.5% - (- 5%)
= 9.5%
Hence, the real interest rate is 9.5%
Answer:
Following high-profile corporate scandals including Enron and WorldCom, Congress
passed a set of legislations known as the Sarbanes-Oxley Act which requires the
disclosure of the presence or absence of a Code of Ethics for senior financial officers.
Explanation:
The Sarbanes-Oxley Act of 2002 is a federal law that established sweeping auditing and financial regulations for public companies. Lawmakers created the legislation to help protect shareholders, employees and the public from accounting errors and fraudulent financial practices.
