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3 years ago

Here are incomplete financial statements for BLOSSOM, Inc. Calculate the missing amounts

Business

1 answer:

Otrada [13]3 years ago

5 0

Answer:

(A) net income: 20,000

(B) COGS = 55,000

Explanation:

(A) with the RE statemtn we sovle for RE

net income = ending RE - beginning RE + dividends

net income = 27,000 - 12,000 + 5,000 = 20,000

(B) With the net income we solve for COGS

COGS= revenues - net income - salaries and wages

COGS = 85,000 - 20,000 - 10,000 = 55,000

liab + equity = total liab and stockholders equity

account payable + common stock + RE = total liab and stockholders equity

5,000 + CS + 27,000 = 62,000

CS = 62,000 - 27,000 - 5,000 = 30,000

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Which is not a method of fiscal policy? government purchases of goods and services changing tax rates changes in the money suppl

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<span>The answer is changes in the money supply</span>

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3 years ago

Each of the following factors affects the weighted average cost of capital (WACC) equation. Which of the following factors are o

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Answer: The correct answers are "The general level of stock prices" and "The effect of the tax rate on the cost of debt in the weighted average cost of capital equation".

Explanation: The general level of stock prices and the effect of the tax rate on the cost of debt in the weighted average cost of capital equation are outside from firm's control because although companies have knowledge of the market, the general level of stock prices is not controlled by them, but by the market. And the effect of the tax rate is not controlled by companies because the tax rate is set by the state.

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3 years ago

Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area?

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Answer:

An area with younger people will have a higher demand for rentals and a lower demand for buying.

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3 years ago

Read 2 more answers

Southern Hydraulic Supply is undertaking a review of their inventory policies. A typical product is a small hydraulic fitting. C

zheka24 [161]

Answer:

$418,550

Explanation:

Steps are shown below:

a. The computation of the economic order quantity is shown below:

= $\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

= $\sqrt{\frac{2\times \text{52,000}\times \text{\$50}}{\text{\$1.25}}}$

= 2,040 units

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $52,000 ÷ 2,040 units

= 25.49 orders

c. The average inventory would equal to

= Economic order quantity ÷ 2

= 2040 units ÷ 2

= 1,020 units

d. The total cost of ordering cost and carrying cost equals to

Ordering cost = Number of orders × ordering cost per order

= 25.49 orders × $50

= $1,275

Carrying cost = average inventory × carrying cost per unit

= 1,020 units × $1.25

= $1,275

So, the total annual cost would be

= Purchase cost + ordering cost + carrying cost

= $416,000 + $1,275 + $1,275

= $418,550

Purchase cost = Annual demand × cost per unit

= 52,000 × $8

= $416,000

6 0

3 years ago

Super Saver Groceries purchased store equipment for $44,500. Super Saver estimates that at the end of its 10-year service life,

lions [1.4K]

Answer:

1) Using straight line method , depreciation for first year is $4,000

2) Using double declining balance , depreciation for first year is $8,900

3) Using activity based method, depreciation for first year is $5,600

Explanation:

Given:

Cost = $44,500

Useful life = 10 years

Salvage value = $4,500

Useful life in hours = 10,000 hours

Super Saver used the equipment for 1,400 hours the first year.

1) Straight line method

Depreciation for first year = (cost - salvage value) ÷ useful life

= $(44,500 - 4,500) ÷ 10

= $4,000 per year

2) Double declining balance

Depreciation rate = (100 ÷ useful life) × 2

= (100 ÷ 10) × 2

= 20%

Depreciation for first year = $44,500 × 20%

= $8,900

3) Activity based

Rate = cost - salvage value ÷ useful life in hours

= ($44,500 - $4,500) ÷ 10,000

= 4 per hour

Depreciation for first year = 1,400 × 4

= $5,600

4 0

3 years ago