Answer:
$16,335.90622
Explanation:
The computation of the additional income earned is shown below:
For 40 years
Future value = Present value × (1 + rate of interest)^number of years
= $1,500 × (1 + 0.065)^40
= $18,624.1118
For 50 years
Future value = Present value × (1 + rate of interest)^number of years
= $1,500 × (1 + 0.065)^50
= $34,960.01802
Now the additional amount is
= $34,960.01802 - $18,624.1118
= $16,335.90622
Answer:
a. Cash paid to suppliers of merchandise during the reporting period: $44.1 million
b. A summary entry that represents the net effect of merchandise purchases during the reporting period as below:
Dr Cost of goods sold 44,000,000
Dr Inventory 6,700,000
Cr Account Payable 6,600,00
Cr Cash 44,100,000
Explanation:
We have the total amount goods buying from the supplier in the period = Cost of good sold in the period + Difference in the inventory balance of the period = $44 million + $6.7 million = $50.7 million
Thus, the additional amount owed supplier in the period is $50.7 million.
Account Payable increased by 6.6 million, it means that only 44.1 million ( that is, 50.7 million - 6.6 million) is paid during the period.
Thus, the summary will represents: Increase in COGS 44 million ( given); Increase in Inventory 6.7 million (given); Increase in account payable 6.6 million ( given) and Decrease in Cash 44.1 million ( calculated above).
Preparing questions about the company
Answer: Costs of units started and completed: you will take the equivalent units calculated for units started and completed x the cost per equivalent unit for materials, labor and overhead (or conversion). The sum of these 3 will be the cost of units completed and transferred which is also known as cost of goods manufactured
Explanation:
