Answer:
d. Applying a blanket gross profit rate to merchandise that have wide varying rates of gross profit
Explanation:
To know what problem could arise fro mthis method, we must understand the method:
ending inventory = cost available for sales - sales x (1- gross profit)
being cost available for sales = beginning invnetory + purchases
a) if a portion of inventory is destroyed, then we subtract it from the cost available for sales and we should be okay.
b) the amount of purchase is being considered so it will not produce a distorsion
c) then beginning invnetory equals to zero in the formula of cost availalbe and we are also okay
d) here is the problem, if there is a wide array of gross profit we could do an average but it will lead to distorsion if the sales are not in the expected weight.
Answer: C. Ethel should maintain an appropriate savings balance to cover unforeseen circumstances and should consider investment in a balanced mutual fund, which carries lower risk, higher yields than CDs, and the potential for growth
Explanation:
Given Ethel situation and history, Ethel should maintain an appropriate savings balance to cover unforeseen circumstances.
As a result of her age and due to the fact that she possesses a limited investment experience, there may be too much risk for her if she focuses on large-cap securities
Therefore, she should should consider investment in a balanced mutual fund, which carries lower risk, higher yields than CDs, and the potential for growth.
Answer:
losses from discontinued operations 395,000
Explanation:
From 1/1/20X1 to 8/31/20X1 <u>realized </u>loss 300,000
From 9/1/20X1 to 12/31/20X1 <u>realized </u>loss 200,00
<em><u>EXPECTED </u></em>Profit from 1/1/20X2 to 3/31/20X2 400,000
As the accounting carries the accrued principles Revsine's expectations aer not accrued thus, do not included until realized.
The company has losses for 500,000 with a tax-rate of 21%
This generates a tax-shield of 105,000
net of taxes: 500,000 - 105,000 = 395,000
Green means Go
Explanation:
Green means go
Yellow means You still have time to go but be cautious
Red means Stop
