Answer:
The answer is LIFO
Explanation:
LIFO is Last in First out. It means the Inventory that was purchased last goes out first.
In periods LIFO, cost of sales reflects the cost of goods purchased recently and the ending Inventory reflects the older goods.
In periods of falling prices, the costs of ending inventory are high, cost of sales are low and the gross profit are high.
Answer:
We have to discount these payments to find the present value
500,000
500,000/1.1
500,000/1.1^2
500,000/1.1^3
We keep on doing this until we reach 500,000/1.1^19
After that we add all the payments and get the value. A less time consuming way of doing it is using a financial calculator
Pv=?
N=19
FV=0
PMT=500,000
=4,182,460.05 we add 500,000 to this because the first payment was not discounted=4,682,460.05= Present Value.
Explanation:
Answer:
Total liabilities to be reported in Consolidated Financial statement = $550,000
Explanation:
Whenever there is a holding of more than 50% then we follow equity method under which entire liabilities and assets are combined of the holding and subsidiary, here King Inc. holds 70% of Simmon Co's outstanding stock.
Therefore All the liabilities of Simmon will be added to liabilities of King Inc. consolidated financial statements.
But in case where there is a liability or an asset to pay or receive from holding or subsidiary it is eliminated.
Note payable by Simmon to King is a liability in the books of Simmon and asset in the books of King Inc
Therefore it will be eliminated total assets of King will be shown after deducting this asset value, and total of liabilities will also be shown after deducting this value of liabilities from Consolidated financial statements.
Therefore total liabilities = $450,000 of King Inc + $200,000 liabilities of Simmon Co - $100,000 note payable inter group eliminated = $550,000.
