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Serjik [45]
2 years ago
14

Garnett Co. shipped inventory on consignment to Hart Co. that originally cost $50,000. Hart paid $1,200 for advertising that was

reimbursable from Garnett. At the end of the year, 40% of the inventory was sold for $32,000. The agreement stated that a commission of 10% will be provided to Hart for all sales. What amount should Garnett report as net income for the year?
Business
1 answer:
Yuki888 [10]2 years ago
8 0

Answer:

The answer is: Garnett Co.'s net income is $7,600

Explanation:

To determine the net income we must first calculate the cost of goods sold and the commissions paid:

  • COGS = $50,000 x 40% = $20,000
  • Commissions = $32,000 x 10% = $3,200

Now we can elaborate the following income statement for Garnett Co.

Total sales                     $32,000

COGS                             ($20,000)

Commissions                 ($3,200)

<u>Advertising expense     ($1,200)    </u>

Net income                    $7,600

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Trumbull Company budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Collection exp
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Answer:

Total cash receipts              194,760

Explanation:

We will calculate base on the budget number provided.

We will multiply the month sales revenue by the amount expected to be colelcted on september

The receipts from account receivable on september:

<u>60% of previous month:</u>

60% of August: 198,000  =  118,800

<u>36% from the second month:</u>

36% of July: 211,000        = <u>  75,960  </u>

Total cash receipts              194,760

5 0
3 years ago
The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the
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Answer: Control Systems

Explanation:

Control systems in business are procedures designed to evaluate, monitor, regulate, supervise and ascertain whether organisational strategies, plans and structures are working efficiently and effectively. It also ensure assets and resources are checked and well documented to avoid things going missing.

7 0
3 years ago
Suppose the government wants to help the coffee industry, where many producers earn relatively little. It is considering two pos
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Answer:

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4 0
2 years ago
quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $52,
trapecia [35]

Answer:

The total cost of quality is $ 313200

Explanation:

First we need to distinguish the costs and allocate them to the correct category for the cost of quality report.

We have verifying credit card information of $52200

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The 4 categories of cost of quality report are Prevention Costs, Appraisal Costs, Internal Failure costs and external failure costs.

Conforming Costs

Customer service training - prevention costs. - $104400       1,53% of total sales

Verifying credit card information - appraisal cost - $52200   0,76% of total

Non-conforming costs

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External Failure costs

Discounting room rates due to poor service $ 156600          2,3% of total sales

Total cost of quality                                          $ 313200         4,6%  of total sales

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3 years ago
Green Cleaners Inc., a U.S.-based company that specializes in environmentally-friendly cleaning supplies, has production facilit
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Answer: MULTINATIONAL

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Companies like Green Cleaners Inc., a U.S. company which has expanded to Spain and Poland are multinationals. Multinational organizations or enterprises have huge capital base through which they are able to acquire properties abroad.

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3 years ago
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