Which type of account typically has very high liquidity, low or no interest, and low minimum balance?

Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco

nydimaria [60]

Answer:

c) $20,000.

Explanation:

The computation of the estimated ending inventory is shown below:

We know that

Cost of goods sold = Beginning inventory + purchase made - ending inventory

And, the

Sales - gross profit = Cost of goods sold

$100,000 - $100,000 × 30% = Cost of goods sold

So, cost of goods sold would be

= $100,000 - $30,000

= $70,000

Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

$70,000 = $90,000 - ending inventory

So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0

3 years ago

On August 1, Batson Company issued a 60-day note with a face amount of $58,800 to Jergens Company for merchandise inventory. (As

Trava [24]

Answer:

a. $58,800

b. $57,820

Explanation:

Generally, notes are issued on the discounted or face value. It is face value when the price of the note is the same as the face value while it is discounted when the price of the note is lower than the face or par value.

a. Since the note is issued on the face value of $58,800 , it means that the proceed is the same amount. The proceeds from a note that is issued, is that price at which the note is issued.

b. Discount value

= $58,800 × 10% × 60/360

= $980

Proceeds

= Face/par value of the note - Discount value of the note

= $58,800 - $980

= $57,820

5 0

3 years ago

Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $98,700. Today, that lot has a market value of $128

a_sh-v [17]

Answer:

The $623,100 is the amount which should be used as the initial cash flow for this project

Explanation:

The computation of the initial cash flow is shown below:

= Estimated cost of a new facility on the site + market value of a lot

= $494,200 + $128,900

= $623,100

The asset value should be recorded in the market value so we took the estimated cost and the market value in the calculation part.

The other cost which is given in the question is irrelevant. Thus, it is not considered in the computation part.

4 0

3 years ago

A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 3

Monica [59]

The inventory indicates that the cost of goods sold will be $25000.

<h3>How to calculate the cost of goods sold</h3>

It should be noted that the cost of goods sold ic calculated through the formula:

= Opening inventory + Purchases - Closing inventory

= $10000 + $20000 - $5000

= $25000

Therefore, the cost of goods sold is $25000.

Learn more about inventory on:

brainly.com/question/24868116

7 0

3 years ago

Kiley Electronics is considering a project that has the following cash flow data. What is the project's IRR? Note that a project

lisov135 [29]

Answer:

d. 13.31%

Explanation:

IRR is the rate at which NPV = 0

IRR 13.31%

Year 0 1 2 3

Cash flow stream -1100.000 450.000 470.000 490.000

Discounting factor 1.000 1.133 1.284 1.455

Discounted cash flows project -1100.000 397.136 366.060 336.804

NPV = Sum of discounted cash flows

NPV Project = 0.000

Where

Discounting factor = (1 + discount rate)^(Corresponding period in years)

Discounted Cashflow = Cash flow stream/discounting factor

IRR = 13.31%

Therefore, The project's IRR is 13.31%

5 0

3 years ago