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3 years ago

An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer.)

Business

1 answer:

Virty [35]3 years ago

6 0

Answer:

A) Year 1 cost of goods sold

B) Year 2 cost of goods sold

D) Year 2 beginning inventory

Explanation:

A) Year 1 expense of merchandise sold : The Current year cost of Goods Sold is processed by deducting finishing stock from Opening Inventory and Purchases made during the year. So in the event that the completion stock isn't right, at that point the result of above calculation will not be right so the Year 1 expense of merchandise sold for example (Current year cost of Goods Sold) will be inaccurate.

D) Year 2 starting stock: year 2 starting stock is equivalent to year 1 completion stock. So on the off chance that off-base stock estimation is made at end of earlier year, at that point current year opening worth will be carried on as off-base.

B) Year 2 expense of merchandise sold: The explanation is same as ans q(i.e. Year 1 expense of merchandise sold) as off-base convey forward opening stock worth will bring about wrong calculation of cost of products sold for year 2.

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The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making

Gelneren [198K]

Answer: (a) 6%

(b) 10.61%

(c) Yes

Explanation:

a) After tax cost of debt = Yield (1- tax)

= 8 ( 1 - 0.25)

= 8 × 0.75

= 6%

b) $cost\ of\ preferred\ stock =\frac{dividend}{price-flotation\ cost}$

$cost\ of\ preferred\ stock =\frac{5.20}{52-3}$

$cost\ of\ preferred\ stock =\frac{5.20}{49}$

= 0.1061 or 10.61%

Note: Cost of preferred stock is not tax deductible

c),Yes the treasurer is correct ,The cost of debt is 5% less than cost of preferred stock [10.61 - 6 = 4.61%]

8 0

3 years ago

a. The Gap purchased inventories totaling $10,438 million during fiscal 2015. Use the financial statement effects template to re

BartSMP [9]

Question Completion:

The GAP is a global clothing retailer for men, women, children, and babies. The following information is taken from The Gap's fiscal 2015 annual report.

Selected Balance Sheet Data ($ millions)

2015 2014

Inventories $1,901 $1,861

Accounts Payable 1,140 1,145

Answer:

The Gap

a) Cost of Goods Sold: $10,398

The cost of goods sold increases the Expenses and reduces the Net Income in the Income Statement.

b) The cash paid to suppliers is $10,443.

Explanation:

Data and Calculations:

Accounts Payable

Beginning balance $1,145

Purchases 10,438

Payment 10,443*

Ending balance 1,140

*Payment = Beginning balance Plus Purchases Minus Ending balance.

Cost of Goods Sold:

Beginning Inventories $1,861

Purchases 10,438

Ending Inventories (1,901)

Cost of goods sold $10,398

6 0

3 years ago

On November 3, the spot price for cotton was $0.81/lb., and the February futures price was $0.83/lb. On November 3, Levi Strauss

bezimeni [28]

Answer:

C : $3,000,000

Explanation:

The Levi Strauss has sold futures at the price of $0.83/lb. The spot price for cotton is $0.81/lb. The difference between spot and exchange price is 0.02/lb ($0.83/lb - $0.81/lb). On November 30, The future prices of cotton raised to 0.85/lb. The average spot of the inventory when purchased was 0.58/lb. To record the inventory in balance sheet we will use average spot plus difference of spot and exchange price $0.58/lb + $0.02/lb = $0.60/lb. The total amount which will be reported in balance sheet will be 200 futures contacts * 25,000lbs * $060/lb = $3,000,000.

4 0

3 years ago

Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari (see Question 9). If you believe your m

luda_lava [24]

Answer:

All the options written are the steps involved in solving the problem. The formula that would be used is compounding formula because we have future value which is $150,000 and rate of return which is 10.25%. Furthermore, here n is 10 years time.

The formula is:

Future Value = Present Value * (1 + r)^n

$150,000 = Present Value * (1.1025)^10

$150,000 = Present Value * 2.6524

$150,000 / 2.6524 = Present Value

Present Value = $56553

So the amount that we should deposit in mutual funds today to buy Ferrari is $56553. The difference is due to rounding off.

3 0

3 years ago

Define the "Social Entrepreneurs" and state some examples of "Social Enterprise Obligations" that are important to you and why.

sashaice [31]

Social entrepreneurs is the term that is used to refer to the persons that have businesses that would serve them certain social objectives.

<h3>Who is an entrepreneur?</h3>

This is the term that is used to refer to the person that is a business owner. The entrepreneur is one that is able to open a business and follow up with its establishment for the sake of making profits and other forms of gains.

The social enterprise obligations that are important are fund raising activities, child rights and other forms of rights in the society. some others would be the empowerments for women in the society and other forms of environmental goals.

Read more on entrepreneurship here:brainly.com/question/22477690

#SPJ1

4 0

2 years ago