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2 years ago

Splish Brothers Inc. uses a perpetual inventory system. Data for product E2-D2 include the following purchases.

Business

1 answer:

harkovskaia [24]2 years ago

8 0

Answer:

Splish Brothers Inc.

Perpetual Inventory Schedule using moving average costs:

Date Description Number Average Cost Total Cost Cost

of Units Balance

May 7 Purchase 105 $7 $735 $735

June 1 Sales (55) $7 385 350

July 28 Purchase 63 $18 1,134 1,484

August 27 Sales (84) $13.1327 1,103 381

Explanation:

a) Data and Calculations:

Date Number of Units Unit Price Total Costs

May 7 Purchase 105 $7 $735

June 1 Sales (55) $7 385

July 28 Purchase 63 $18 1,134

August 27 Sales (84) $13.1327 1,103

Cost of goods sold = $1,488 ($385 + $1,103)

Ending inventory = $381

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On January 1, Year 2, Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowanc

Sonja [21]

Answer:

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

= $97,000.

Explanation:

a) Data and Calculations:

Accounts Receivable balance on January 1, Year 2 = $16,000

Allowance for Doubtful Accounts balance on January 1, Year 2 = $0

Service Revenue on credit during Year 2 = $104,000

Cash collected from Accounts Receivable = $97,000

Accounts Receivable balance on December 31, Year 2 = $23,000

Allowance for Doubtful Accounts balance on December 31, Year 2 = $2,080 ($104,000 * 2%)

Net Accounts Receivable balance on December 31, Year 2 = $20,920 ($23,000 - $2,080)

b) The $97,000 is the actual cash inflow received from customers during Year 2. It increases the cash inflows and forms part of the operating activities section of the Statement of Cash Flows for Year 2 under the direct method.

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3 years ago

List one tip someone should follow before investing their money and explain.

jok3333 [9.3K]

You should invest your money to save for future projects or maybe you need it for a life emergency.

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3 years ago

Cost of Debt KatyDid Clothes has a $150 million (face value) 30-year bond issue selling for 104 percent of par that carries a co

Ivahew [28]

Answer:

the annual pre-tax cost of debt is 10.56%

Explanation:

the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.

We solve for the rate which makes the coupon and maturity 104

with excel or a financial calculator

PV of the coupon payment

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 5.500 (100 x 11%/2)

time 60 (30 years x 2 payment per year)

rate 0.052787474

$5.5 \times \frac{1-(1+0.0527874736258532)^{-60} }{0.0527874736258532} = PV\\$

PV $99.4338

PV of the maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 100.00

time 60.00

rate 0.052787474

$\frac{100}{(1 + 0.0527874736258532)^{60} } = PV$

PV 4.57

Adding both we should get 104 which is the amount the bonds is selling:

PV coupon $99.4338 + PV maturity $4.5662 = $104.0000

The rate is generated using goal seek or wiht a financial calculator.

This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:

0.052787474 x 2 = 0.105574947

The cost of debt for the firm is 10.56%

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2 years ago

a psychologist gives the same test to a client twice. the tests are separated by six days. if the test results are quite dissim

Lena [83]

a) Internal consistency

Explanation:

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3 years ago

True or False. Since grant proposals need to be short, budget and personnel information should not be included.

Fittoniya [83]

False because is not to be included

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2 years ago