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3 years ago

In a periodic inventory system, the cost of purchases is debited to: Inventory. Purchases. Cost of goods sold. Accounts payable.

Business

1 answer:

Advocard [28]3 years ago

5 0

Answer:

Inventory

Explanation:

A periodic inventory system is an efficient method to record the sale and purchase of inventory. It is a method which instantly using accounting software to record an entry. In the periodic inventory system, the cost of purchases is debited to an inventory account. The reason is that the purchase of goods increases the inventory, which is why the cost of purchases is debited to an inventory account.

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Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $18

Fantom [35]

Answer:

Levered, Inc. and Unlevered, Inc.

Equity shares in the Levered, Inc. represents a better value.

Explanation:

a) Data and Calculations:

Levered, Inc. Unlevered, Inc.

Debts at 8% 65 million $0

Outstanding shares 1.9 million 3.8 million

Market price per share $98 $71

Equity value $186.2 million $269.8 million

Expected EBIT $18 million $18 million

Interest ($65 million * 8%) $5.2 million $0

Net income $12.8 million $18 million

Earnings per share $6.74 $4.74

Dividends per share $6.74 $4.74

b) The value of the equity shares in the Levered Inc. would have increased more if both firms pay taxes because of the tax advantage gained by deducting interest expense from the earnings before taxes. This shows that financial leverage increases the value of equity shares.

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3 years ago

The key to success in the "prisoner's dilemma" game is to always be competitive. withdraw when one's partner chooses a competiti

Amiraneli [1.4K]

The key to success in the "prisoner's dilemma" game is to

c) trust one's partner.

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3 years ago

Read 2 more answers

Seaside Developments Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common

Yakvenalex [24]

Answer:

$8,000

Explanation:

The computation of the amount of dividend received by the preferred shareholders in year 2 is shown below:

Annual preferred dividend = Par value of preferred stock × Dividend rate on preferred stock

= 200,000 × 4%

= $8,000

By multiplying the par value with the dividend rate we can get the amount of dividend received and the same is shown above

6 0

3 years ago

Hazelwood Company had beginning inventory of $54,000. During the period the company purchased $109,800 of merchandise. At the en

Ilia_Sergeevich [38]

Answer:

$207000 is the sales revenue for the year.

Explanation:

The given situation is:

Sales Revenue 100%

Cost Of Goods sold <u> 60% </u>

Profit Margin 40%

Now we neither have sales revenue figure nor the profit margin figures but we can calculate cost of goods sold from the following formula:

Cost Of Goods Sold = Opening Inventory + Purchases - Closing Inventory

By putting values we have:

Cost Of Goods Sold = $54,000 + $109,800 - $39,600

Cost Of Goods Sold = $124,200

Now cost of goods sold is 60% which means if we want to go at 100% we will divide with the percentage at which we are standing (60%) and multiply with the percentage which we want to calculate (Sales is 100%).

Sales revenue = Cost of goods sold * 100% / 60%

Sales revenue = $124200 * 100% / 60% = $207,000

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3 years ago

What term means an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of u

kirill115 [55]

Answer:

hyperinflation

Explanation:

Hyperinflation is a term in economics that denotes an out-of-control, rise in prices of goods and services . When the inflation rate is rapidly rising, say by more than 50% per month, then it is a case of hyperinflation.

Hence, hyperinflation is an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use.

8 0

3 years ago