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Alik [6]
3 years ago
12

Assume that Jack, Hal, and Sophia enter into a valid contract for the sale of the restaurant and for a covenant not to compete.

The contract calls for Hal and Sophia to pay $300,000 now and 10% of the gross sales of the restaurant and frozen food to Jack for the next ten years. There is a clause in the contract that states if the revenue dips below $50,000 per year, that Jack would then get back the rights to sell the frozen food himself. This clause is:
A. a concurrent condition.
B. a condition subsequent.
C. a condition precedent.
Business
1 answer:
Iteru [2.4K]3 years ago
4 0

Answer: Option (B)

Explanation:

Condition subsequent clause is referred to as an exit clause from the existing contract. This agreement in between the parties tends to include languages that loosens or frees one of individuals from the agreement or the deal. This tends to mostly occur when the conditional outcome or result takes place. The conditional subsequent relieves an individual or a party from all the obligations.

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Ayayai Corp. had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1, 2022 Purchase 102 $42 Mar. 14,
Dominik [7]

Answer:

Income after tax = $1666

Explanation:

LIFO (Last-In-First-Out) is a method of inventory valuation where the goods that are received last are used first. In other words, the latest stock is used first. This is common for bulky inventory, stacked one on top of another.

In order to obtain the after-tax income, both the gross profit and income before tax are required. To obtain gross profit, we require the cost of goods sold information. The inventory information is as follows:

Feb 1 : Purchases : 102 units x $42 = $4284

Mar 14 : Purchases : 175 units x $44 = $7700

May 1 : Purchases : 124 units x $46 = $5704

288 units were sold

The COGS would be:

124 x $46 = $5704

164 x $44 = $7216

Thus COGS : $5704 + $7216 = $12920

Gross profit : Sales - COGS

Sales : $59 x 288 = $16992

Gross Profit = $16992 - $12920 = $4072

Income before tax : Gross Profit - Expenses

Operating expenses : $1692

Income before tax = $4072 - $1692 = $2380

Income after tax : Income before tax - (tax rate x income before tax)

Tax rate : 30%

Income after tax = $2380 - ($2380 x 30%) = $1666

7 0
3 years ago
A golf course is mostly likely to be closed on what day of the week?
nikklg [1K]
Hi!

The day of the week a golf course is mostly likely to be closed on is Monday. =)
8 0
3 years ago
In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20
alekssr [168]

Answer:

Entry to record adjustment:

COGS Dr $9.4m

         Inventory Cr $9.4m

Explanation:

The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.

The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:

Entry:

COGS Dr $9.4m

         Inventory Cr $9.4m

8 0
3 years ago
Weiss Company purchased two identical inventory items. The first purchase cost $30 and the second cost $32. When the Company sol
zhuklara [117]

Answer:

a) FIFO

Explanation:

FIFO means first in, first out. It is an inventory system where the first purchased inventory is the first to be sold . The cost of goods sold is $30 which is equal to the price of the first purchased inventory . Therefore, the FIFO inventory system was used.

LIFO means last in, first out. It is an inventory system where the last purchased inventory is the first to be sold.

Weighted average is when the weighted price of inventory is used as the cost of goods sold.

I hope my answer helps you.

3 0
3 years ago
Cost behavior refers to the methods used to estimate costs for use in managerial decision making. True False
bazaltina [42]

Answer:

True

Explanation:

It's A.A because it makes more sense then b Falsehood

8 0
2 years ago
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