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Ghella [55]
3 years ago
15

On March 15, a fire destroyed Sheridan Company's entire retail inventory. The inventory on hand as of January 1 totaled $5900000

. From January 1 through the time of the fire, the company made purchases of $2032000, incurred freight-in of $242000, and had sales of $4140000. Assuming the rate of gross profit to selling price is 20%, what is the approximate value of the inventory that was destroyed
Business
1 answer:
likoan [24]3 years ago
3 0

Answer:

the approximate value of the inventory that was destroyed is $4,862,000.

Explanation:

Use the Gross Profit percentage to find the value of the inventory that was destroyed.

Sales                                                          $4,140,000

Less Cost of Goods Sold

Opening Inventory          $5,900,000

Add Purchases                $2,032,000

Add Freight In                     $242,000

Available                            $8,174,000

Less Inventory Lost         ($4,862,000)

Cost of Sales                                             (3,312,000)

Gross Profit at 20%                                    $828,000

Conclusion :

The Value of  inventory that was destroyed is $4,862,000.

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Baylor Bank believes the New Zealand dollar will appreciate over the next five days from $.48 to $.50. The following annual inte
Nitella [24]

Answer:

Its dollar profit from speculation over the five-day period will be <u>$208,035.93</u>.

Explanation:

This can be determined as follows:

Assuming Baylor Bank borrow $5,000,000

The borrowing will be converted to New Zealand dollar at the current exchange rate and we will have:

Conversion = $5,000,000 / 0.48 = NZ$10,416,667

The NZ$10,416,667 shall be invested at an annualized based on  New Zealand lending rate of 6.75% over five days. This will produce future value (FV) as follows:

FV of investment = Amount invested * (1 + NZ lending rate)^(5 years / 360 days) = NZ$10,416,667 * (1 + 6.75%)^(5 / 360) = NZ$10,426,121.44

Converting the NZ$10,426,121.44 to dollar at the new rate of $.50 as follows:

New conversion = NZ$10,426,121.44 * $.05 = $5,213,060.72

Amount to repay based on the US borrowing rate = Amount borrowed in USD * (1 + US borrowing rate)^(5 years / 360 days) = $5,000,000 * (1 + 7.5%)^(5 / 360) = $5,000,000 * 1.00100495826555 = $5,005,024.79

Profit = New conversion - Amount to repay = $5,213,060.72 - $5,005,024.79 = $208,035.93

Therefore, its dollar profit from speculation over the five-day period will be <u>$208,035.93</u>.

3 0
3 years ago
Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the re
kiruha [24]

Answer:

c. $175,500

Explanation:

Revenue                                                        $140,000

Training revenue                                          $75,000  

Product Sales                                               <u>$65,000  </u>

Total Revenue                                              $280,000

Variable Expenses

Personal trainer wages expense $70,000

Cost of Product sold                     $35,000

Total Variable Cost                                       (<u>$105,000)</u>

Contribution margin / operating income     $175,000

Fixed Costs

Space rental expense                  $11,000

Depreciation expense                 $6,000

Rental insurance expense           $3,000

Front desk staff wages expense $12,000

Total Fixed cost                                             (<u>$32,000)</u>

Net Income                                                    <u>$143,000</u>

8 0
3 years ago
The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In a
astra-53 [7]

Answer:

Actual Price paid for materials = $4.2136 \times 2,200 = $9,270

Actual price per unit = $4.2136

Explanation:

Provided information,

Standard Material per unit = $4

Total cost = $8,400

Standard Quantity = $8,400/$4 = 2,100 units

Provided Material Price variance = $470 unfavorable = - $470

= (Standard Price - Actual Price) \times Actual Units

Material Quantity Variance = $400 Unfavorable = - $400

= (Standard Quantity - Actual Quantity) \times Standard Rate

Using Material Quantity Variance

- $400 = (2,100 - Actual Quantity) \times $4

-$400/$4 = 2,100 - Actual Quantity

Actual Quantity = 2,100 + 100 = 2,200 units

Now, putting this value in Material Price Variance we have,

- $470 = ($4 - Actual Price) \times 2,200

-$470/2,200 = $4 - Actual Price

- $0.214 = $4 - Actual Price

Actual Price = $4 + $0.2136 = $4.2136

Final Answer

Actual Price paid for materials = $4.2136 \times 2,200 = $9,270

Actual price per unit = $4.2136

8 0
3 years ago
What is the function of a bank examiner?
Allisa [31]

Answer:

Explanation:

A bank examiner is highly trained professional who has the mandate of making sure that financial transactions in a bank, such as issuance of loans and savings are carried out legally and in accordance to the laws and regulations of the government. He/she  has a duty of checking whether the bank has complied with consumer protection laws to ensure the welfare of their customers. With these responsibilities, the examiner needs to be proficient with these laws , procedures and regulations

3 0
2 years ago
Read 2 more answers
________ are certificates that save buyers money while they purchase specified products.
DedPeter [7]
Hey there,
The answer is coupons.

Hope this helps :))

<em>~Top♥</em>
8 0
3 years ago
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