1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gizmo_the_mogwai [7]
3 years ago
5

On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati

on is available: Sales, January 1 through July 8 $690,000 Inventory, January 1 140,000 Purchases, January 1 through July 8 655,000 Gross profit ratio 20%What is the estimated inventory on July 8 immediately prior to the fire?
Business
1 answer:
BlackZzzverrR [31]3 years ago
6 0

Answer:

The answer is $243,000

Explanation:

The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.

To find this closing inventory, we need to find the gross profit first and then cost of sales.

To find gross profit:

Gross profit margin=gross profit ÷sales.

Gross profit margin is 20% or 0.2

Sales is $690,000

Therefore, gross profit is:

0.2 x $690,000

=$138,000

To find cost of sales:

Gross profit = sales - cost of sales.

Gross profit is $138,000

Sales is $690,000

Therefore, cost of sales is

$690,000 - $138,000

=$552,000.

And finally to get closing inventory:

Cost of sales = opening inventory + purchases - closing inventory.

Cost of sales = $552,000

Opening inventory = $140,000

Purchases = $655,000

Closing inventory = $140,000+$655,000-$552,000

=$243,000.

You might be interested in
Why do corporations merge into conglomerates
GarryVolchara [31]
To create rapid growth 

8 0
3 years ago
In a dealer market, some dealers hold a certain inventory of specific securities and create a liquid market by purchasing and se
UNO [17]

Answer:

Dealers profit comes from the spread primarily. Spread is the differential amount between buying and selling.

Explanation:

Let us assume the price of security X is USD 100 (last trade price)

A dealer will purchase this security at discounted price from the investor say USD 99 and will sell the same security in the market at USD 100, thus earning spread.

Further being market markers, dealers often use multiple strategies to prop up the price of  particular security and earn gains on inventory held.

4 0
3 years ago
If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, whi
Volgvan

Answer:

option (B) 100

Explanation:

Data provided in the question:

Number of days supplier takes to deliver an order once it has been placed i.e the lead time = 25 days

Standard deviation of daily demand = 20

Now,

Standard deviation of usage during lead time

= Standard deviation of daily demand × √(Lead time)

= 20 × √25

= 20 × 5

= 100

Hence,

The answer is option (B) 100

7 0
3 years ago
QS 11-9 Recording warranty repairs LO P4 On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty
prisoha [69]

Answer:

<em>On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts</em>

<u>Recording of revenue:</u>

Cash $490 (debit)

Revenue $490 (credit)

<u>Recording of Warranty granted :</u>

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00  (credit)

$490 × 10% = $49.00

<em>On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory</em>

<u>When warranty is subsequently received:</u>

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Explanation:

<em>On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts</em>

<u>Recording of revenue:</u>

Cash $490 (debit)

Revenue $490 (credit)

<em>We Recognise Revenue to depict transfer of control of mower</em>

<u>Recording of Warranty granted :</u>

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00  (credit)

$490 × 10% = $49.00

<em>There is no option for customer to take the warranty or not, so this is a service warranty.The warranty is measured at the best estimate of expenditure required to settle the obligation that is at 10% of sales.</em>

<em>On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory</em>

<u>When warranty is subsequently received:</u>

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

<em>Utilise the Warranty Provision when the warranty claim is subsequently received</em>

<em></em>

7 0
3 years ago
7.) Geometry: Which set of ordered pairs can be connected in order to
TiliK225 [7]

Answer:

C. (2,2), (2,-2), (-2,-2), (-2,2)

sorry if it's wrong

brainiest please

4 0
3 years ago
Other questions:
  • Which of the following is an entrepreneur?
    15·1 answer
  • Assume you invest money in a bond that will pay you $250,000 in four years. the bond has an annual interest rate of 5%. you do n
    5·1 answer
  • Starbucks Corporation is the premier​ roaster, marketer, and retailer of specialty coffee in the​ world, operating in 68 countri
    10·1 answer
  • Which pricing strategy is characterized by the setting of a low introductory price to help drive consumer awareness and create a
    9·1 answer
  • Carla Vista Chemicals management identified the following cash flows as significant in its year-end meeting with analysts: Durin
    11·2 answers
  • A division of IBM works out of 360 locations in 64 countries, tracking more than 1.5 million assets for both IBM and its clients
    10·1 answer
  • Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its doll
    11·1 answer
  • On June 30, 2017, Wisconsin, Inc., issued $200,200 in debt and 19,300 new shares of its $10 par value stock to Badger Company ow
    14·1 answer
  • Seating Galore sells high-end desk chairs. The variable expense per chair is $85.05 and the chairs sell for $189.00 each. The va
    9·1 answer
  • Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,00
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!