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astra-53 [7]
2 years ago
11

During 2020 Came Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2021.

Nolan then used the inventory as collateral to borrow from Norwalk Bank remitting the proceeds to Carne. In 2021 when Carne repurchased the inventory, Nolan used the proceeds to repay its bank loan. On whose books should the cost of the inventory appear at the December 31, 2020 balance sheet date?
A) Came Corporation
B) Nolan Corporation
C) Norwalk Bank
D) Nolan Corporation, with Came making appropriate note disclosure of the transaction
Business
1 answer:
Phoenix [80]2 years ago
5 0

Answer:

A) Came Corporation

Explanation:

This type of transaction is called a product financing arrangement by which one company (Came Corporation) facilitates inventory to another company for the purpose of the second company using it as collateral for a bank loan. Came should include the inventory cost in its balance sheet since it gave it Nolan but promised to repurchase it back.

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Parwin Corporation plans to sell 30,000 units during August. If the company has 11,500 units on hand at the start of the month,
raketka [301]

Answer:

Production = 31000 Units

Explanation:

To calculate the production requirement for the month of August to meet the required sales and desired ending inventory, we will use the following formula,

Sales = Opening Inventory + Production - Closing Inventory

Plugging in the values we have for sales, opening inventory and closing inventory, we calculate the production to be,

30000 = 11500 + Production - 12500

30000 + 12500 - 11500 = Production

Production = 31000 Units

6 0
3 years ago
The _____ stage of the product life cycle is characterized by rapid market expansion as more and more customers, stimulated by m
4vir4ik [10]

Answer:

Growth Stage

Explanation:

The growth stage of the product life cycle is characterized by rapid market expansion as more and more customers, stimulated by mass advertising and word of mouth, make their first, second, and third purchases. In growth stage sales starts rising rapidly, average cost per customer, profits starts rising as well, early adopters buy products, competitors starts increasing in number. Main aim of any firm in this stage is to maximize market share. Brands need to offer product extension. Price needs to be set to penetrate the market.

8 0
3 years ago
Swimmers Co. operates a set of water parks with leisure facilities for families in Aqualandia. During January 20X1, Swimmers acq
ElenaW [278]

The Swimmers Co.'s Boat's value in use (net present value) is Eur 321,221.

Data and Calculations:

Pre-tax discount rate = 5% p.a., excluding inflation

Inflation rate = 2% p.a.

Inflated discount rate = 7% (5% + 2%)

Salvage value = Eur 20,000

<u>Projected cash inflows:</u>

Year           Cash Inflows    Discount Factor     Discounted Cash flows

20X4         Eur 72,000              0.935                     $67,320

20X5        Eur 69,000               0.873                      60,237

20X6        Eur 64,000               0.816                      52,224

20X7        Eur 59,000               0.763                      45,017

20X8       Eur 52,000               0.666                      34,632

20X9       Eur 45,000               0.623                      28,035

20X10     Eur 38,000               0.582                        22,116

20X10     Eur 20,000              0.582                         11,640

Total discounted cash flows                         Eur 321,221

Thus, the Swimmers Co. will calculate the boat's value in use as Eur 321,221, taking into account all the discounted cash inflows.

Learn more: brainly.com/question/17185385

6 0
2 years ago
Commercial banks create money throughmaking loans. facilitating borrowing from the Federal Reserve to the public. printing treas
Butoxors [25]

Answer:

making loans

Explanation:

Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc

Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans

Hence, the first option is correct

7 0
3 years ago
Suppose a gold miner finds a gold nugget and sells the nugget to a mining company for $600. The mining company melts down the go
KIM [24]

Answer:

GDP grew by $2,200

Explanation:

G<em>ross domestic product (GDP) which is the total market value of all the final goods and services produced in a country over a given period of time. The GDP can be calculated using the value added approach.</em>

Here the GPD figure is ascertained by summing the amount of additional value created by each factor of production at each stage of the production process of the final product.

<em>Only the values added are summed, the cost of the inputs or intermediate goods are not included</em>

<em>In this question, the final value of $2200 represents the amount by which the GDP has increased in the period. This also can be verified using the value-added approach as follows</em>

                                                   Value added($)

Gold miner   -                                   600

Mining company : 1000 -600 =      400

Jewerlry maker  :1600 - 1000 =      600

Departmental store :2200 -1600 = <u>600</u>

Total value added                           <u>2,200</u>

8 0
3 years ago
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