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Olin [163]
2 years ago
15

The inventory of Cullumber Company was destroyed by fire on March 1. From an examination of the accounting records, the followin

g data for the first 2 months of the year are obtained:
Sales Revenue $51,000.
Sales Returns and Allowances $1,100.
Purchases $31,000.
Freight-In $1,200, and Purchase Returns and Allowances $1,500.
Required:
Determine the merchandise lost by fire, assuming:
1. A beginning inventory of $20,000 and a gross profit rate of 40% on net sales.
2. A beginning inventory of $30,000 and a gross profit rate of 30% on net sales.
Business
1 answer:
maria [59]2 years ago
5 0

Answer:

a. Merchandise lost by fire value  = $20,760

b. Merchandise lost by fire value  = $25,770

Explanation:

Net sales = $51,000 - $1,100

= $49,900

Net purchase cost = $31,000 + 1,200 - $1,500

= $30,700

a. Gross profit = $49,900 × 40%

= $19,960

Cost of goods sold = $49,900 - $19,960

= $29,940

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $29,940 = $20,000 + $30,700 -  ending inventory

Ending inventory = $20,760

Merchandise lost by fire value  = $20,760

b. Gross profit = $49,900 × 30%

= $14,970

Cost of goods sold = $49,900 - $14,970

= $34,930

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $34,930 = $30,000 + $30,700 - ending inventory

ending inventory = $25,770

Merchandise lost by fire value  = $25,770

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To complete the above question, please see below:

Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) 

<span>WACC 10.0% </span>
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5 0
3 years ago
You are going to deposit $24,500 today. You will earn an annual rate of 5.5 percent for 8 years, and then earn an annual rate of
NeTakaya

Answer:

Future value at the end of 19 years =$63,637.94

Explanation:

<em>The Future value (FV) of an investment is the total amount (principal plus interest) that will accumulate in the future where interest is paid and compounded at a particular rate per period for a certain number of periods.</em>

This can be done using the formula below

FV = PV × (1+r)^(n)

FV- Future Value

PV- amount invested, n- number of years, r - interest rate

The amount due after 19 years would be determined in two steps

Step 1: FV of 24,500 at 5.5% for 8 years

FV = 24,500× (1+0.055)^8 =37,599.819

Step 2 : FV of 37599.81962  invested for 11 years at 4.9% p.a

FV = ?  P=37,599.81,  n- 11, r- 4.9%

FV = 37,599.81 × (1.049)^11= 63,637.94

Future value at the end of 19 years =$63,637.94

7 0
3 years ago
The next 5 questions use the same below information. Company C had the following investment. Help them determine the financial s
valentinak56 [21]

Answer:

$143,600

Explanation:

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Using this formula

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Let plug in the formula

Net income for 20X1 = $1,670,200 - $1,536,600 + $10,000

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7 0
2 years ago
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Answer:

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Answer:

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