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Nonamiya [84]
3 years ago
7

Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attem

pt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 25% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $105,000 to Ski Outfit. By the end of the year, $80,000 of the merchandise has been sold to customers for a total of $111,000. What amount of inventory will Mogul report at year end
Business
1 answer:
Bezzdna [24]3 years ago
7 0

Answer:

$25,000

Explanation:

The value of inventory at the end of the end of the period will be equal to

Value of inventory = Cost of goods sent less the cost of goods already sold.

<em>Remember the arrangement  is that of agency, hence the goods are not deemed to be sold except the agent has been able to exchange them for revenue in a sales contract with his own buyers.</em>

Also the sales commission would be reported under a separated ledger which will be reported as part of the operating expenses.

Amount of inventory = $105,000 - $80,000

                                  = $25,000

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The terms of trade must be higher (graphically to the right) of a nation's own production __________________
Zepler [3.9K]

Answer: cost ratio

Explanation: The terms of trade must be higher (graphically to the right) of a nation's own production cost ratio. The production cost ratio allows small-scale manufacturers to determine their cost more accurately as well as control known cost parameters and is a method that can be adapted and applied to any business.

In a multi-product manufacturing firm, the production cost ratio is necessary for accurate compilation and allocation of production costs to each category of product especially when both the Production Time and the Production Runs are not the same and/or when fixed labor, overhead and other costs are drawn from the same pool. When the ratio is not applied results in a skewed allocation of production costs. This in turn can affect the business as it becomes difficult to ascertain the products whose production are more profitable to the business.

3 0
3 years ago
Mark Crane purchased a $1,000 corporate bond five years ago for $1,055. The bond paid 7.0 percent annual interest. Five years la
lys-0071 [83]

Answer:

Mr Crane's total return on the bond investment was 5.35%

Explanation:

The return on a bond is also known as it yield to maturity (YTM). In order to find a bonds YTM we need to know its present value, future value, coupon payments and number of years. In this case the bond's present value is 1,055 because it was bought at this price, it's future value is 980 because it was sold for 980, its number of years was 5 as it was held for 5 years and its coupon payment was  (0.07*1000)=70. Now in order to compute return or ytm we need to put all these values in a financial calculator and compute I

PV= -1055

FV= 980

PMT= 70

N=5

Compute I=5.35

The return on the bond investment was 5.35%

6 0
3 years ago
Why might Business classification and behavior change?
Anika [276]
To be more professional in a business sense. If I am the president of a bank I want to be classical and professional. I change with my title.
4 0
3 years ago
The more conservative a firm's management is, the higher its total debt to total capital ratio [measured as (Short-term debt Lon
PtichkaEL [24]

Answer:

False

Explanation:

The conservative approach is that the firm has greater level of working capital investment than the competitor or industry average. So to fund the higher level of working capital the company has a set of policy and targets related to the level of debt level which means the company will not be willing to borrow further money if their borrowing exceeds the set limit or benchmark. They might use the equity instruments (Preferred stock or Common equity) to fund the higher level of working capital.

So their no absolute argument whether the denominator will increase or the nominator will increase in the Total debt to capital ratio. Hence the statement is false.

8 0
3 years ago
As the President of a local trade company, Kristin is faced with leadership, ethical, and operational decisions on a daily basis
ivanzaharov [21]

Answer:

B. Information management

Explanation:

Information management refers to managing the sources of information that a company uses, and distributing the information received to the internal users. It involves identifying information needs, developing information services, and distributing and using that information.

3 0
3 years ago
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