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yanalaym [24]
3 years ago
12

Presented below is information for Blossom Company for the month of January 2022. Cost of goods sold $270,000 Rent expense $35,0

00 Freight-out 6,800 Sales discounts 7,800 Insurance expense 13,000 Sales returns and allowances 12,000 Salaries and wages expense 45,000 Sales revenue 431,000. Prepare an incomestatemnt using the multi-step format.
Business
1 answer:
trapecia [35]3 years ago
5 0

Answer and Explanation:

The preparation of the multi-step income statement is shown below:

                                        Blossom Company

                                        Income Statement

                             For the Month January 2022

Revenues  

Sales revenue           $431,000

Less:  

Sales discount -$7,800  

Sales return  -$12,000

                                                 -$19,800

Net Sales                    $411,200

Less: Cost of goods sold -$270,000

Gross Profit                    $141,200

Less: Operating expenses:  

Freight out -$6,800

Insurance expense  -$13,000  

Salaries and wages expense -$45,000

Rent expense  -$35,000

Total Operating expenses -$99,800

Operating Income                  $41,400

We simply deduct the expenses from the gross profit so that the operating income could arrive

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Your firm (an Australian firm) makes a sale to a Japanese customer.  The sale price is 200 million Japanese Yen payable in exact
charle [14.2K]

Answer:

An Australian Firm Selling to a Japanese Customer

a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:

A$ 1 = ¥90

Meaning 1 Australian Dollar = 90 Japanese Yen.

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90

b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:

= Spot Rate x (1 + Japanese Interest Rate) / (1 + Australian Interest Rate) x 360/90

= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90

= ¥351.26214 =A$1

c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.

d) If the spot exchange rate in 3 month's time is:

(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:

Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =

A$ 1,333,333.33333

Hedging outcome minus Forward Exchange outcome

A$2 million - A$ 1,333,333.33333 = A$666,666.66667

(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:

Forward  Exchange outcome =  in Australian Dollars = ¥200 million/ ¥50 =

A$4 million

Hedging outcome minus Forward Exchange outcome

A$2 million - $4 million = -A$2million

Explanation:

a) Currency forwards contracts and future contracts are used to hedge the currency risk. For example, a company expecting to receive  ¥200 million in 90 days, can enter into a forward contract to deliver the  ¥200 million and receive equivalent Australian dollars in 90 days at an exchange rate specified today.

b) If A$ 1 = ¥90

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.

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3 years ago
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The option of becoming less ignorant and much more focused or thoughtful about your grammar.

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3 years ago
A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a l
pav-90 [236]

Answer:

Ending invetory= 200 units

Explanation:

Giving the following information:

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month.

<u>Production - Sales= Ending inventory</u>

350-200= 150

(150 + 350) - 400= 100

(100 + 350) - 250= 200

(200 + 350) - 350= 200 units

Ending invetory= 200 units

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The management at ABC Computers believes that high sales will result in high profit. Together with the company sales force, mana
dimaraw [331]

Answer:

<u><em>Sales</em></u>-Oriented

Explanation:

A Sales-Oriented Company's main focus is on <em>producing a sales team to advertise and market their products or  services.</em>

Generally, such strategies are made through door-to-door sales, telephone conversations,  and other encounters with prospective customers or opportunities.

The sales team is typically the business's greatest resource and the <em>primary driver of its growth and  productivity.</em>

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