Answer:
$3,475.75
Explanation:
the journal entries required to record the purchases are:
Dr Inventory 5,500
Cr Accounts payable 5,500
Dr Inventory 360
Cr Cash 360
Dr Accounts payable 2,475
Cr Inventory 2,475
Dr Accounts payable 3,025
Cr Cash 2,934.25
Cr Purchase discounts 90.75
Cost of inventory = $5,500 + $360 - $2,475 - $90.75 = $3,475.75
Answer:
PE ratio is 1
Explanation:
Price earning ratio determines the ratio of price of a share by the earning per share . It measures the times value which a investor pays for each $1 earning of the shares.
To calculate the price earning ratio at the end of the year, we will use the price of the share at the end of the year.
Price Earning Ratio = Market Price / Earning Per share
Price Earning Ratio = $5 / $5
Price Earning Ratio = 1 times
Answer:
C) a manufacturer who creates tools such as bolts, latches, door handles etc. for left-handed individuals
Explanation:
A niche market is a segment of a market that has a specific target group of consumers, usually due to a highly specific need or interest of those people. On the contrary, mainstream providers cater to the needs of the mass market, a customer base that is not specific and is largely diverse.
Therefore, large-scale manufacturers that have a large range of standardized products are <u>not</u> considered as niche.
In this example, the company producing miscellaneous things tailored for left-handed individuals is highly niche by nature.
Answer:
D. The minimum of the range
Explanation:
First, it is essential to note the accrual of loss contingency is accruable only if the amount is estimable to a reasonable extent and the loss is also probable. Wyatt Co's loss is actually both probable and reasonably estimated so it meets the two criteria.
Furthermore, since it is reasonable within a rang of outcomes, Accounting Standards Codification Topic 450 (of the Financial Accounting Standard Board) dictates the amount to be accrued should be the better estimate of all amounts within the range.
The standard further states that in a situation where a better estimate can not be determined among the other amounts within the range then the amount accrued should be the one at the range's low end or the minimum amount of the range.
All these criteria shows that Wyatt CO's loss should accrue the minimum amount in the range
