Answer:
<u>The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962</u>
Explanation:
Wall-to-Wall Records
Cost Retail
Beginning Inventory $ 48,000 $ 70,000
Purchases $ 210,000 $ 390,000
Cost of Goods Available for Sale $ 258,000 $ 460,000
Cost to Retail Ratio
= $ 258,000 ÷ $ 460,000
= 0.5609 = 56.09%
Cost Retail
Cost of Goods Available for Sale $ 258,000 $ 460,000
− Sales $ 280,000
Ending Inventory $ 180,000
× Cost to Retail Ratio 0.5609
<u>Ending Inventory $ 100,962 </u>
Answer:
1. $100,000 and 25%
2. $137,200 and 34.3%
3. $150,000 and 27%
Explanation:
1. It does not expand
a. Net income= $100,000 (as given in the question)
b. Return on equity= (net income)/(shareholder’s equity)
Shareholder’s equity= $400,000
Thus return on equity= 100000/400000 = 0.25 or 25%
2. It expands and issue $160,000 in debt
a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)
= $137,200
b. Return on equity= (net income)/(shareholder’s equity)
= 137200/400000
=0.343 or 34.3%
3. It expands and raises equity of $160000
a. Net Income= $100000 + 50000
= $150000
b. Return on equity= (net income)/(shareholder’s equity)
= 150000/(400000 + 160000)
Where ($560,000) 400000 + 160000 is shareholder’s equity
= 0.27 or 27%
Answer:
see calculation and working below
Explanation:
operating activities section
Net income $ 8,500
Adjust for changes in non- cash items :
Amortization expense $1,500
Adjust for changes in working capital :
Prepaid expenses increase ($ 3,000)
Inventory increase ($500)
Accounts payable decrease ($1,000)
Net Cash Provided by Operating Activities $5,500
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales in units:
January= 3,000
February= 2,000
March= 2,500
April= 2,700
May= 2,900
The required ending inventory is 20% of the next month's sales, and the beginning inventory on January 1 was 600 units.
The production budget for each month is calculated using the following formula:
Production= sales + desired ending inventory - beginning inventory
Production budget:
January:
Sales= 3,000
Ending inventory= (2,000*0.2)= 400
Beginning inventory= (600)
Total= 2,800
February:
Sales= 2,000
Ending inventory= (2,500*0.2)= 500
Beginning inventory= (400)
Total= 2,100
March:
Sales= 2,500
Ending inventory= (2,700*0.2)= 540
Beginning inventory= (500)
Total= 2,540
April:
Sales= 2,700
Ending inventory= (2,900*0.2)= 580
Beginning inventory= (540)
Total= 2,740
