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Goryan [66]
2 years ago
12

Herc Co.’s inventory at December 31, Year 1, was $1.5 million based on a physical count priced at cost, and before any necessary

adjustment for the following: Merchandise costing $90,000 was shipped FOB shipping point from a vendor on December 30, Year 1, and was received and recorded on January 5, Year 2. Goods in the shipping area were excluded from inventory although shipment was not made until January 4, Year 2. The goods, billed to the customer FOB shipping point on December 30, Year 1, had a cost of $120,000. What amount should Herc report as inventory in its December 31, Year 1, balance sheet?a. $1,500,000
b. $1,590,000
c. $1,620,000
d. $1,710,000
Business
1 answer:
tensa zangetsu [6.8K]2 years ago
7 0

Answer:

D) $1,710,000

Explanation:

Before adjustments, the inventory balance was $1,500,000; you must add merchandise purchased FOB shipping point (title passes at the moment merchandise is shipped) and the merchandise that was located in the shipping area:

adjusted final inventory = $1,500,000 + $90,000 + $120,000 = $1,710,000

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Current Forecast is 2500 units, current 1st shift capacity is 1300 units. Market growth rate is 10%. How much capacity do you ne
Afina-wow [57]

Answer:

250 units

Explanation:

Calculation to determine How much capacity do you need to buy for next round

Using this formula

Next round capacity needed=Current Forecast*Market growth rate

Let plug in the formula

Next round capacity needed=2500 units*10%

Next round capacity needed=250 units

Therefore How much capacity do you need to buy for next round is 250 units

3 0
3 years ago
Normal profit is the return to the entrepreneur when economic profits are zero. determined by subtracting implicit costs from to
diamong [38]

Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.

<h3>When the business earns normal profits?</h3>

A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.

Hence, Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. The correct statement is Option A.

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5 0
1 year ago
The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges
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Answer:

Both will charge $6,904 when they transport 16 tons of sugar.

Explanation:

The amount of sugar to be transported is S, since we need to calculate at which amount of sugar both truck companies charge the same total price, we need to solve the following:

first company charges $4,500 + $150.25 S

second company charges $3,696 + $200.50 S

since both companies will charge the same total amount, then

$4,500 + $150.25 S = $3,696 + $200.50 S

$4,500 - $3,696 = $200.50 S - $150.25 S

$804 = $50.25 S

$804 / $50.25 = S

S = 16

$4,500 + ($150.25 x 16) = $4,500 + $2,404 = $6,904

5 0
3 years ago
Having in mind the pandemic, should a company reduce its leverage in order to add value to its shareholders? and why?
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Answer:

No, taking into account the pandemic, companies should not reduce their leverage, as this would make it very difficult for small and medium investors to invest in a context of lack of income and shortage of available circulating money.

Therefore, leverage implies the possibility for investors to access the necessary funds to be able to invest their money, without the need to dispose of their savings or the money they use for essential activities.

8 0
3 years ago
In Crane Company, land decreased $154000 because of a cash sale for $154000, the equipment account increased $55000 as a result
Naya [18.7K]

Option (B) The net cash provided by investing activities is $99000 is correct.

<h3>What is net cash?</h3>
  • On a company's financial statements, net cash is a sum that is given.
  • It is determined by deducting a company's total cash from its total liabilities.
  • When assessing the cash flows of a corporation, the net cash figure is frequently utilized.
<h3>What is cash flow?</h3>
  • The net balance of money coming into and going out of a business at a particular period is referred to as cash flow.
  • A firm constantly receives and expends cash.
  • For instance, when a retailer buys merchandise, money leaves the company and goes to its suppliers.
<h3>Calculation of Net cash provided by investing activities:</h3>

Net cash provided by investing activities = land ($154000 cash inflow) - equipment purchase ($55000 cash outflow) = $99000

Hence, The net cash provided by investing activities is $99000.

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5 0
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