When considering taking out a loan, what are the most important things that should go into your decision?

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows

IgorLugansk [536]

Answer:

$36,750

Explanation:

Calculation to estimate the ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method

LIFO retail method

($) Cost ($) Retail

Beginning inventory $33,210 $43,000

Add purchases $249,510 $470,000

Freight in $26,500 $0

Less: purchase returns ($6,300) ($22,000)

Purchase discount ($4,800) $0

Add net marks up $0 23,000

Less: net mark downs $0 ($22,000)

Goods available for sale (excluding beginning inventory) $264,910 $449,000

(298,120 -33,210=264,910)

(492,000-43,000=449,000)

Goods available for sale (Including beginning inventory) $298,120 $492,000

Cost to retail ratio 59%

[(264,910/449,000) *100]

Less: net sales

Sales $446,500 $0

Sales return $8,000 ($438,500)

($446,500-$438,500=$8,000)

Employee discount $0 ($4,500)

Estimated ending inventory at retail $0 $49,000

Estimated ending inventory at cost $36,750

[ 33,210 +(49,000 -43,000)*59%]

Therefore the Estimated ending inventory at cost is $36,750

7 0

3 years ago

A ____ is an amount of money. Usually, has a specific purpose and is stored in one place, such as a bank account.

Leviafan [203]

Accounting is the answer

8 0

4 years ago

What are two types of strategies businesses use to directly influence the environment

Katarina [22]

Produce goods and services that are not environmentally friendly and increase the affect of manufacturing goods and services

6 0

3 years ago

Read 2 more answers

You are analyzing ABC Company, a computer manufacturer. You notice that inventory turnover this year is significantly lower than

nexus9112 [7]

Answer:

ABC Company

1. Observation: Current year's inventory turnover is significantly lower than those of previous years.

Explanations:

1. Lower inventory turnover implies weaker sales for the current period than those of previous years.

2. Lower inventory turnover results from excessive inventory, which increases storage costs and interest expenses.

3. The ratio may also indicate that the demand for the product is declining rapidly. Many reasons can be adduced for this situation. Little marketing efforts, bad product, and lack of product competitiveness.

a) The formula for computing the inventory turnover equals Cost of goods sold/Average Inventory. The ratio shows the number of times goods are sold in a period. When goods are sold more frequently, sales activities increase, including revenue and profit.

2. Observation: Also current year's accounts receivable turnover is significantly lower than in previous years.

Explanations:

1. Billing inefficiency can contribute to lower accounts receivable turnover.

2. Poor credit policy may give rise to inefficient collection process, excessive bad debts, long credit days, bad customers, and lack of incentives to customers to settle their invoices.

3. Lastly, lower accounts receivable turnover may point to declining demand of the product by customers.

b) The formula for calculating the accounts receivable turnover is Net Credit Sales divided by Average receivables. The ratio determines the effectiveness of the company's credit policy.

6 0

3 years ago

Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vice president of human resources. Jackson Phar

Nata [24]

Answer:

Employees frequently complain about the inconsistent assistance they receive from the HR department due to its large size.

Explanation:

Having a specialized, embedded HR unit is beneficial to each, specific unit, as HR would cater to every department and its special needs. On the contrary, centralized HR tends to give inconsistent help, as they always assign a different person or team when a problem arises.

So, if the employees complained that they cannot receive adequate help from the centralized HR, it would be wise to do what Roberta suggested.

8 0

3 years ago