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Ad libitum [116K]
3 years ago
11

Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina

ncial statements required by its bank. Inventory on hand at the end of October was $58400. The following information for the month of November was available from company records:
Purchases of $114000

Freight-in of $3900

Sales of $188000

Sales Returns of $5200

Purchase Returns of $4300

In addition, the controller is aware of $8600 of inventory that was stolen during November from one of the company's warehouses.

Required:

1. Using the template below, calculate the estimated inventory at the end of November, assuming a gross profit ratio of 37%.

Beginning Inventory 58400
Plus: Net purchases ??
Freight-in 3900
Cost of Goods Available for Sale ??
Less: Cost of Goods Sold
Net Sales ??
Less Estimated Gross Profit ??
Estimated Cost of Goods Sold ??
Estimated Inventory before Theft ??
Less: Stolen Inventory 8600
Estimated Ending Inventory ??
2. Using the template below, calculate the estimated inventory at the end of November, assuming a markup on cost of 100%.

Beginning Inventory 58400
Plus: Net purchases ??
Freight-in 3900
Cost of Goods Available for Sale ??
Less: Cost of Goods Sold
Net Sales ??
Less Estimated Gross Profit ??
Estimated Cost of Goods Sold ??
Estimated Inventory before Theft ??
Less: Stolen Inventory 8600
Estimated Ending Inventory ??

1. Net Purchases

1. Cost of Goods Available for Sale

1. Net Sales

1. Estimated Gross Profit

1. Estimated Cost of Goods Sold

1. Estimated Inventory before Theft

1. Estimated Ending Inventory

2. Net Purchases

2. Cost of Goods Available for Sale

2. Net Sales

2. Estimated Gross Profit

2. Estimated Cost of Goods Sold

2. Estimated Inventory before Theft

2. Estimated Ending Inventory

Business
1 answer:
NISA [10]3 years ago
4 0

1)The estimated ending inventory is $48,236

2)The estimated ending inventory is $72,000

Explanation:

1)For the given values the beginning inventory,net purchases, freight-in, cost of goods available for sale , cost of goods sold, net sales, less estimated gross profit, estimated inventory before theft, stolen inventory and estimated ending inventory are calculated in the given system.

The estimated ending inventory is $48,236

2)

For the given values the beginning inventory,net purchases, freight-in, cost of goods available for sale , cost of goods sold, net sales, less estimated gross profit, estimated inventory before theft, stolen inventory and estimated ending inventory are calculated in the given system.

The estimated ending inventory is $72,000

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Sales of mobile phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak
m_a_m_a [10]

Answer:

maturity

Explanation:

Based on the scenario being described within the question it can be said that the mobile phones are in the maturity stage of the product life cycle. This stage is classified as having past the drastic growth phase in which sales begin to slow down until full maturity is met and sales ultimately begin to die down. Leading to the decline stage.

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3 years ago
Read 2 more answers
8) walter co. and sandburg industries report the following information at december 31: walter sandburg accounts receivable $41,0
True [87]

Walter Co. is a manufacturer because it uses raw materials, and has a stock of merchandise inventory, work-in-progress inventory, and finished goods inventory. The current assets of Walter Co. will be:

Current Assets:

Cash                                                          6,000

Inventories

Raw materials inventory       21,000

Work in progress inventory  40,000

Finished goods inventory      25,000

Merchandise inventory           48,000

Total inventory                                      1,34,000

Other assets

Accounts receivable                               41,000

Prepaid expenses                                     1,000

Current assets                                                               2,22,000

A manufacturing company is a company that takes in raw materials processes the raw materials and then sells the finished goods manufactured in the market. So the current assets section of the balance sheet of Walter Co. is given which will be written on the right side of the balance sheet.

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1 year ago
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has us
Phantasy [73]

Answer:

$763,057

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1-6 =  $89,000

Cash flow in year 7 = 79,000

Cash flow in year 8 = 69,000

Cash flow in year 9=  59,000

Cash flow in year 10 =  49,000 +  $790,000 = 839,000

I = 11%

Present value = $763,057

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

8 0
3 years ago
Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he a
d1i1m1o1n [39]

Answer:

Authority - Responsibility Balance & Incentive Development.

Explanation:

Authority refers to the power to command, give orders to somebody. And enjoying the position of having right to get it obeyed.

Responsibility refers to being in a position of accountability, answerability for an allocated task or job & its performance.

For Eg : A manager  given responsibility to complete a task of production targets achievement, is also given authority to command the entire staff at the production site.

Joe had problem while working for someone else that :- he had responsibility to complete employers allocated task, but may be not given enough authority to do so, thats why he felt he is being 'commanded by, working for' someone else. Also, he doesn't owe the rewards of his acts, so lacks incentive.

Being an entrepreneur will entitle him with managerial responsibilities, but at the same time will also give him higher authority to take his own independent decisions. And, he is himself responsible for his acts, will bear losses or enjoy profits for himself. So, it also incentivises him to work for himself.

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Global Commerce Corporation purchased trading debt investments for $136,000 on December​ 31, 2018. There is a decrease of $3,400
stellarik [79]

Answer:

A. Unrealized Holding  Loss - Trading 3,400

Fair Value  Adjustment - Trading 3,400

Explanation:

Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:

Dr Unrealized loss on trading security 3,400

     Cr Debt investments 3,400

This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.

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