1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
enot [183]
3 years ago
10

Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay 1/3 of the sales price of a jet ski whe

n they initially purchase the ski, and then pay another 1/3 each year for the next two years. Because Lake has little information about collectibility of these receivables, they use the installment method for revenue recognition. In 2010 Lake began operations and sold jet skis with a total price of $900,000 that cost Lake $450,000. Lake collected $300,000 in 2010, $300,000 in 2011, and $300,000 in 2012 associated with those sales. In 2011 Lake sold jet skis with a total price of $1,500,000 that cost Lake $900,000. Lake collected $500,000 in 2011, $400,000 in 2012, and $400,000 in 2013 associated with those sales. In 2013 Lake also repossessed $200,000 of jet skis that were sold in 2011. Those jet skis had a fair value of $75,000 at the time they were repossessed.
A) In 2010, Lake would recognize realized gross profit of?
a.$ 0
b. $450,000
c. $300,000
d $150,000
B) In 2012, Lake would recgonize a realized gross profit of?
a. $700,000
b. $310,000
c. $450,000
d. $0
C) In 2013, Lake would record a lost on repossessions of?
a. $80,000
b. $45,000
c. $200,000
d. $120,000
D) In its December 31, 2011, balance sheet, Lake would report?
a. deferred gross profit of $700,000
b. installement receivables (net) of $900,000
c. installment receivables (net) of $750,000
d. deferred gross profit of $1,500,000
Business
1 answer:
vladimir1956 [14]3 years ago
7 0

Answer:

1) In 2010, Lake would recognize realized gross profit of:______.

a) $0.

Revenue for calculating gross profit is only recognized when the cost of goods sold (COGS) has been fully recovered.

2) In 2012, Lake would recognize a realized gross profit of:_______.

c) $450,000.

gross profit related to 2010 sales = $900,000 - $450,000 (remaining COGS) = $450,000

gross profit related to 2011 sales = $900,000 - $900,000 = $0

3) In 2013, Lake would record a lost on repossessions of:______.

c) $200,000.

4) In its December 31, 2011, balance sheet, Lake would report:_______.

b) installment receivables (net) of $900,000.

total installments receivables = $300,000 + $1,000,000 = $1,300,000

remaining COGS from 2011 sales = $400,000

installment receivables (net) = $1,300,000 - $400,000 = $900,000

You might be interested in
What factors in society have promoted careers in early childhood?
Elena L [17]
The factors in society are all around us and them.
As corny as it might sound but the early promoted careers all are because the parents and the teachers and the community.
6 0
3 years ago
Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowe
UNO [17]

Answer:

Since 2019, the deduction limit for interest expense deductions on qualified higher education loans is $2,500. In order to qualify for this deduction, the taxpayer's adjusted AGI must be less than $85,000 for single filers (Lionel's income is below the threshold).

So Lionel will be able to deduct $1,650 as interest expense (above the line deduction).

Lionel can also deduct $2,500 form the American Opportunity Tax Credit for higher education expenses.

7 0
3 years ago
While an attribute is an inherent quality or characteristic of a product or service, a(n) _____________ is a result or outcome a
o-na [289]

Answer:

benefit

Explanation:

The characteristics define what a product is for, the benefits define the difference that our product has versus the competitive product and the motivators define how the characteristics and benefits of these products will help each individual customer. To say that the product will help a specific and unique customer is to show the real motivator of the purchase, that is, that specific benefit that by itself will make the customer buy the product. It reaches the end that the customer buys products for different benefits for which the product has been created. For example, a chair is used to sit, but at the same time it can be purchased as a decoration item (chair in the middle of a hallway) or used as a staircase in the kitchen.

4 0
3 years ago
Decision Point: Your Final Meeting: RC Helicopter Piloting Radio controlled helicopter Your next client is Alan, who runs a high
hoa [83]

Answer:

Leave the price alone. Although it may lack some of the features that competitors’ models have, the Boss brand is well-recognized and well-respected in the market

Explanation:

You chose to lower the price to $359.That was the best choice.During the maturity stage of the product life cycle, increased competition eventually forces price cutting, and market share leadership may outweigh profit as a pricing objective, so this is a good option. However, it would take some research to determine whether the company can still make a profit at this price.

8 0
3 years ago
The main reason there are fewer production industries than distribution or service industries is that a. there are few things pr
Assoli18 [71]

Answer:

c. production industries need a large initial investment.

Explanation:

The main reason there are fewer production industries than distribution or service industries is that production industries need a large initial investment. Production companies such as energy companies can be partitioned into gas, oil as well as coal generators, the corporations that explore, regain and clarify energy sources as well as power companies that produce effectiveness to corporations as well as individuals. Both sectors of the energy enterprise perform frequently substantial money investments. Similarly power companies, telecommunications companies need continuous investments in support in enhancement to analysis and advancement as well as product manufacturing.

8 0
3 years ago
Other questions:
  • If company managers want to pursue cost-saving actions that can potentially result in their company achieving a sustainable cost
    12·1 answer
  • 1. Frank’s electric bill has a cycle day of the 3rd and a due date 8 days later with a one day grace period. What happens if Fra
    5·2 answers
  • Multinat is a large corporate with its headquarters in Asia. It wants to open new divisions in Africa and Australia. The company
    5·1 answer
  • Vertical integration is a strategy in which a company expands backwards into an industry that provides outputs for its products.
    11·1 answer
  • Sales $ 1,000,000 Net income $ 45,000 Current Assets $ 50,000 Fixed Assets $ 200,000 Total Assets $ 250,000 Current Liabilities
    13·1 answer
  • Bok advises campus officials (and students) simply to "ignore" offensive words, flags, and so forth (para. 13). Do you agree wit
    6·1 answer
  • Good salespeople:_______. A. Help customers buy.B. Are never the only link between the firm and its customers.C. Are not part of
    14·1 answer
  • A career will be most productive, comfortable, and enjoyable when it fits well into one’s lifestyle. Which is the best definitio
    7·2 answers
  • My question is how much do you love Jesus
    11·1 answer
  • Which of the following is a reason the government can’t completely control the business cycle
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!