Problem 1, The following data pertain to a single department for the month of October for ABC Company.

A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350

nydimaria [60]

Answer:

The costs assigned to ending inventory based on the LIFO method under periodic inventory system are:

= $450.

Explanation:

a) Data and Calculations:

On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31.

Units Unit Cost Total Cost

Beginning inventory on January 1 320 $ 3.00 $960

Purchase on January 9 80 3.20 256

Purchase on January 25 100 3.34 334

Tota units available for sale 500 $1,550

Sales on January 26 350 $1,100

Ending inventory at January 31 150 $3.00 $450

8 0

3 years ago

Exercise 4-20 (Algo) Statement of cash flows; indirect method [LO4-8] Presented below is the 2021 income statement and comparati

dedylja [7]

Answer and Explanation:

The preparation of the cash flow statement is presented below:

TIGER ENTERPRISES

Cash flow statement

Cash flow from operating activities

Net income $3,324

Adjustment made

Add: Depreciation expenses $410

Add: Decrease in account receivable $165 ($835 - $1,000)

Less: Increase in inventory -$55($825 - $770)

Less: Increase in prepaid insurance -$100 ($140 - $40)

Less: Decrease in account payable -$145 ($385 - $530)

Less: Decrease in accrued liabilities -$185 ($385 - $570)

Add: Increase in income taxes payable $45 ($365 - $320)

Net cash provided by operating activities $3,459

Cash flow from investing activities

Purchase of equipment -$650 ($3,300 - $2,650)

Net cash used by investing activities -$650

Cash flow from financing activities

Issuance of the note payable $300 ($1,100 - $800)

Issuance of the common stock $150 ($1,120 - $970)

Dividend paid -$2,989 ($870 + $3,324 - $1,205)

Net cash used by financing activities -$2,539

Increase in cash $270

Add: Beginning cash balance $370

Ending cash balance $670

The items which shown in a positive sign reflects the cash inflow and the items which shown in a negative sign reflects the cash outflow ,

4 0

3 years ago

Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at t

Zolol [24]

Answer:

the question is incomplete, so I looked for a similar one:

Statement #1: Green Caterpillar’s pool of relatively liquid assets, which are available to support the company’s current and future sales, decreased from Year 1 to Year 2.

This statement is FALSE, because:

Green Caterpillar’s total current asset balance actually increased from $15,750 million to $19,687 million between Year 1 and Year 2

Statement #2: On December 31 of Year 2, Green Caterpillar Garden Supplies Inc. had $8,072 million of actual money that it could have spent immediately.

This statement is TRUE, because:

The funds recorded in Green Caterpillar’s cash and equivalents account represents funds that are either cash or can be converted into cash almost immediately

Statement #3: If Green Caterpillar ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders.

This statement is INCORRECT, because:

Common shareholders are treated as residual investors

Based on your understanding of the different items reported on the balance sheet and the information they provide, if everything else remains the same, then the cash and equivalents item on the current balance sheet is likely to INCREASE if the firm issues $3 million of new common stock.

If common stocks are issued, then the journal entry should be:

Dr Cash 3,000,000

Cr Common stock 3,000,000

4 0

3 years ago

Butler Automotive developed a new diagnostic testing procedure that is expected to increase sales by $10,000 per month. As more

Bas_tet [7]

Answer:

A

Explanation:

Working capital are the components of the current assets that represents liquidity , readily available for day to day business operation.

It is made up of cash , receivable , payable , inventory balance .

Due to the new development in the business of Butler automotive , there is an upsurge in the demand for oil which has led to the increase in the oil inventory to the tune of $5,000

This means that the required working capital of Butler also has to increase to meet up with the demand.

6 0

3 years ago

Which of the following statements is true? Group of answer choices An explicit cost is an actual cost; an implicit cost is a the

professor190 [17]

Answer:

Economic costs include both explicit costs and implicit costs.

Explanation:

In economics, costs can be in the form of explicit and implicit as implicit costs are opportunity costs and are opportunities for engaging in business. While the explicit costs are accounting costs which are involved in the production of raw matter, wages etc.

7 0

3 years ago