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RideAnS [48]
3 years ago
9

Freeze Corporation uses the lower of cost or net realizable value method to write down inventory. Freeze determines that the inv

entory should be written down by $1,000. The effect on the financial statements is to ______.
Business
1 answer:
erica [24]3 years ago
7 0

Answer:

The journal entry to record the write down is:

Dr Cost of goods sold 1,000

    Cr Inventory 1,000

Since cost of goods sold increases, then net income (income statement) will decrease. A decrease in net income will also result in lower retained earnings (balance sheet).

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What is the purpose of this presentation? to persuade to instruct to inform to entertain
elena-s [515]

To give the audience more information or teach them about something ENTERTAIN. Keeps the audience's attention usually in an enjoyable way INFORM. Gets the audience to believe something or do what they are saying PERSUADE.

What is the purpose of this presentation to persuade?

In a persuasive speech, the goal is to change the attitudes, beliefs, values, or judgments of your audience.

If we look back at the idea of motive, in this speech the prosecuting attorney would try to convince the jury members that the defendant is guilty beyond reasonable doubt.

When an author's purpose is to inform, they usually wish to enlighten their readership about a real-world topic. Often, they will do this by providing lots of facts.

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6 0
2 years ago
Left, right, center,and justify are types of what
forsale [732]

Answer:

Justified Alignment

Explanation:

The type of text alignment that is frequently seen in newspaper,magazines,and books(both the left and the right sides of the paragraph are perfectly straight).I'm sorry if it was wrong.

brainliest plz ;-;

8 0
3 years ago
A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnove
Degger [83]

Answer:

Sustainable Growth Rate: 2.5%

Explanation:

Sustainable growth rate is calculated by multiplying return on equity with retention ratio.

Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.

Growth rate = Retention ratio * return on equity

Retention ratio = 50%

Return on equity = Net profit available for distribution / Opening equity

Return on Equity = (25,000 * 10%) / 50,000

Return on Equity = 5%

Growth Rate = 5% * 50%

Growth Rate = 2.5%

5 0
3 years ago
Required information Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contribute
steposvetlana [31]

Answer: A: $0.None of the members recognize gain because their debt relief was not in excess of their bases in their LLC interest prior to any debt relief.

B: $55,000

C: $285,000

D: $625,000 Albee, LLC takes a $135,000 carryover basis in the assets Kevan contributes and a $490,000 basis in the total cash the other two members contributed.

Explanation: check attached file

3 0
3 years ago
Fashion house uses the retail method to estimate ending inventory in his monthly financial statements the following information
IgorC [24]
If we used the retail method to estimate the ending inventory first we get the given of the problem that can be used in solving.
 Given
  Sales - 200,000
  Goods available for sale - 261,000 (cost) & 450,000 (retail) 

First, we need to get the cost of retail ratio. the formula is 
 Cost to Retail ratio= Cost/ Retail
           261,000
CRR= -------------   =   0.58
           450,000

Next is to get the ending inventory by following this steps
                                                              Cost             Retail
Cost of Goods Available for Sale    $261,000        $450,000
- Sales                                                                        $200,000
                                                                                  ------------------
Ending Inventory                                                        $250,000
x Cost to Retail Ratio                                                           .58
                                                                                  ------------------
Ending Inventory                                                       $145,000

So, the estimated ending inventory for the month of July is $145,000. 
4 0
3 years ago
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