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3 years ago

Which of the following items does not result in an adjustment in the merchandiseinventory account under a perpetual system?

Business

1 answer:

pychu [463]3 years ago

3 0

Answer:

c.Payment of freight costs for goods shipped to a customer

Explanation:

In the inventory account management using the perpetual system, whenever there is an event that may result in a change in the carrying value of inventory, the quantity of the change is immediately determined and adjusting entries are posted.

Examples of such events include purchase of merchandise inventory, return of merchandise inventory to the supplier, .Payment of freight costs for goods received from a supplier (this forms part of the cost of inventory).

From the options given, the only entry that will not result in an adjustment to inventory is c.Payment of freight costs for goods shipped to a customer. This will form part of the selling and distribution cost under operating expenses.

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Last year if 97 percent of the revenues of a company came from domestic sources and the remaining revenues, totaling $450,000, c

serg [7]

If 97% came from domestic sources then 3% came from foreign sources. This means that $450,000 is 3/100 of the total amount. You need to divide 450,000 by 3 to get 1/100 (1%) of the total amount, then multiply that number by 100 to give you the sum of 100/100 (100%) of the company's revenues:
450,000/3=150,000×100= $15,000,000
So, the company made $15,000,000 last year

7 0

3 years ago

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has

Vilka [71]

Answer:

a.$700,000

b.$400,000

c.$650,000

Explanation:

Net Income = (Sales - Operating expense - Depreciation - Interest expense) x (1 - tax rate)

Sales is $5,000,000

operating expense is $3,500,000

depreciation is $1,000,000

interest expense is $1,000,000

tax rate is 40%=0.40

net income=(5000,000-3500,000-1,000,000-1000,000)*(1-0.4)

net income=-$300,000

Cash flow =net income +depreciation

cash flow=-$300,000+$1000,000

cash flow=$700,000

if the project cannibalize at $500,000 net income would be:

net income=(5000,000-3500,000-1,000,000-1000,000-500,000)*(1-0.4)

net income=-$600,000

cash flow=-$600,000+$1,000,000

cash flow is $400,000

Ignoring part b, a reduction in tax to 30% would impact thus:

net income=(5000,000-3500,000-1,000,000-1000,000)*(1-0.3)

net income=-$350,000

Cash flow =-$350,000+$1000,000

cash flow is $650,000

4 0

3 years ago

Explain and give an example of any three of the following: good, service, free good, nuisance good, economic good, economic serv

Lapatulllka [165]

Answer: The answer is as follows:

Explanation:

1. Good : Goods refers to an item or material that can be used by the consumer to satisfy their wants and it is tangible in nature. For example; mobile phone, pen, pencil, etc.

2. Service: Service is intangible in nature. Service is provided by the other person which includes medical services by doctors, travelling services, etc.

3. Free good: A free good is a good that is available at a zero price and a good that is not scarce in quantity. For example; ideas, web page, sunlight, etc.

4 0

4 years ago

Dove, Inc., had additions to retained earnings for the year just ended of $486,000. The firm paid out $175,000 in cash dividends

irinina [24]

Answer:

(A) $1.97 per share

(B) $0.52 per share

(C) $20.37 per share

(D) 2.26 times

(E) 23.35 times

(F) 1.00

Explanation:

The computation is shown below:

(A) Earning per share = (Net income) ÷ (Number of shares)

where,

Net income = Retained earnings + dividend paid

= $486,000 + $175,000

= $661,000

And, the number of shares are 335,000 shares

Now put these values to the above formula

So, the value would equal to

= ($661,000) ÷ (335,000 shares)

= $1.97 per share

(B) Dividend per share = (Total dividend) ÷ (number of shares)

= ($175,000) ÷ (335,000 shares)

= $0.52 per share

(C) Book value per share = (Total equity) ÷ (number of shares)

= ($6,825,000) ÷ (335,000 shares)

= $20.37 per share

(D) Market to book ratio = (Market price per share) ÷ (book value per share)

= $46 ÷ $20.37

= 2.26 times

(E) Price-earnings ratio = (Market price per share) ÷ (Earning per share)

= $46 ÷ $1.97

= 23.35 times

(F) Price sales ratio = (Market price per share) ÷ (Total sales per share)

where,

Total sales per share = (total sales) ÷ (Number of shares)

= (154,00,000) ÷ (335,000 shares)

= $45.97 per share

So, the price sales ratio = $46 ÷ $45.97 = 1.00

6 0

4 years ago

Using the following data, prepare a statement of revenues, expenditures, and changes in fund balance for the General Fund of Jas

SpyIntel [72]

Answer:

Fund balance at ending of year is $3,230,000.

Explanation:

This can be prepared as follows:

Jasmin City

General Fund

Statement of Revenues, Expenditures, And Changes in Fund Balance

For the Year Ended December 31, 2019

Details $ $

Revenues:

Miscellaneous revenues 180,000

Licenses and permits revenues 1,000,000

Property tax revenues 7,000,000

State and federal grants 2,000,000

Total revenues 10,180,00

Expenditures:

Education program expenditures (2,000,000)

Public safety expenditures (4,000,000)

Parks program expenditures (750,000)

Highways program expenditures (900,000)

Total expenditures  (7,650,000) 

Excess of revenues over exp. 2,530,000

Other Financing Sources (Uses):

Transfers to other funds (1,500,000)

Transfers from other funds 700,000

Total other financing sources (uses) 800,000

Net change in fund balance 1,730,000

Fund balance at beginning of year 1,500,000

Fund balance at ending of year  3,230,000 

3 0

3 years ago