Answer:
Shandra Corporation
The amount which Shandra Corporation will report as foreign exchange gain in net income for the quarter ended June 30 is:
$5,240
Explanation:
Price of goods = 131,000 pounds
Delivery and payment date = April 20
On February 20, the spot rate for call option on 131,000 pounds = $1.37
Cost of the option = $1,310
The spot rate on April 20 = $1.42
The foreign exchange gain or loss to be reported in net income for the quarter ended June 30 = $0.05 ($1.42 - $1.37
Total gain = ($0.05 * 131,000) - $1,310
= $6,550 - $1,310
= $5,240
b) With this call option, which gives Shandra the right to buy the underlying asset, Shandra hedges his contract to purchase goods from a foreign supplier, and therefore, profits when the spot rate increases from $1.37 on February 20 to $1.42 on April 20. The profit made is reduced by the cost of the call option.
Answer:
year beginning interest payment total ending
balance payment payment balance
<em>1 150000 0 50000 50000 150000</em>
<em>2 100000 10500 50000 60500 100000</em>
3 50000 7000 50000 57000 50000
4. 0 3500 50000 53500 0
b. The balance of the lease liability reported would be $ 150000
Interest payable would be $150000*0.07 = 10500
Explanation:
the opening balance is without the $50000 paid at the beginning of every year.
interest for the previous year is paid on the beginning of the current along with the payment for the year at the beginning.
Answer:
$187,750
Explanation:
Computation for operating income for the West Division.
OPERATING INCOME FOR THE WEST DIVISION
Sales $450,000
Less Cost of goods sold ($155,000)
Gross profit $295,000
($450,000-155,000)
Less: Salary Expense ($51,000)
Allocated rent ($56,250)
($90,000 * 11250/18,000)
West Division income $187,750
Total area of both division = 11,250 + 6,750 = 18,000 square feet
Therefore operating income for the West Division is $187,750
Answer:
The company's net working capital is $2123612
Explanation:
Working Capital
Current Assets:
Cash & marketable securities worth $335,485
Inventory of $1,651,599
Accounts receivables $1,488,121
Other current assets <u>$121,427</u>
Total Current Asset $3,596,632
Less:
Current Liabilities:
Accounts payable worth $1,159,357
Short-term notes payable worth $313,663
Total Current Liabilities <u>$1,473,020</u>
Net Working Capital <u>$2,123,612</u>
Answer:
The amount in September would Excom debit Product Warranty Expense is $805
Explanation:
According to the given data In order to calculate the amount in September would Excom debit Product Warranty Expense we would have to make the following calculation:
Product warranty expense
= 700 radios * 5% * cost per radio $23
Product warranty expense
=35*$23
Product warranty expense
=$805
The amount in September would Excom debit Product Warranty Expense is $805
