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
KATRIN_1 [288]
3 years ago
5

Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. Hint: Not all

information may be necessary. b. Use the above information from a service company and from a merchandiser to compute net income.Kleiner Merchandising CompanyAccumulated depreciation $ 700Beginning inventory 10,000Ending Inventory 6,000Expenses 1,950Net Purchases 11,900Net Sales 19,500Krug Service CompanyExpenses $ 8,400Revenues 24,000Cash 650Prepaid rent 660Accounts payable 200Equipment 2,200
Business
1 answer:
vivado [14]3 years ago
8 0

Answer:

A.

a. Good Available For Sale $21,900

b. Cost of goods sold $15,900

c. Gross profit $3,600

B. Net income for merchandise company $1650

Net income for service company $15600

Explanation:

A.Compution for gross profit, the goods available for sale, and the cost of goods sold for the merchandiser.

a. Good Available For Sale

Using this formula

Good available fro sale = Beginning inventory + Net purchase

Let plug in the formula

Good available fro sale = $10,000 + $11,900

Good available fro sale = $21,900

b. COST OF GOODS SOLD

Using this formula

Cost of goods sold = Goods available for sale - Ending inventory

Let plug in the formula

Cost of goods sold= $21,900 - $6000 =

Cost of goods sold= $15,900

c. GROSS PROFIT

Using this formula

Gross profit= Sales - COGS

Let plug in the formula

Gross profit = $19,500 - $15,900

Gross profit= $3,600

b.Computation for net income

Net income for merchandise company = Gross profit - Expenses = $3,600 - $1,950 = $1,650

Net income for service company = Revenue - Expenses = $24,000 - $8,400 = $15,600

You might be interested in
Which of the following is NOT one of the 5 typical sources of competitive pressures? Select one: a. The power and influence of i
allochka39001 [22]

Answer:

a. The power and influence of industry driving forces

Explanation:

As per Michael Porter, there exist five competitive forces that influence competition in an industry. The five forces as per Porter are:

  • Potential entrants
  • Industry competitors
  • Customers
  • Substitutes
  • Suppliers

Potential entrants refers to the risk of new entrants in the market.

Industry competitors refers to the extent of rivalry and competition between existing firms.

Customers relate to the negotiating or bargaining power of the customers and to what extent they exercise such power.

Substitutes refer to the emergence of substitute products in the market which may drive down a firm's sales.

Suppliers relate to the bargaining power exercised by suppliers with respect to inputs.

7 0
3 years ago
Repurchase by the company of its own common stock $ 41,000 Sale of long-term investment $ 60,000 Interest paid to lenders $ 15,5
EleoNora [17]

Answer:

The net cash provided by investing activities on the statement of cash flows will be $106,000

Explanation:

Investing activities include all the cash transactions incurred for the fixed asset of the company.

The net cash provided by (used in) investing activities can be calculated as follows

Net cash provided by (used in) investing activities = Sale of long-term investment + Collection by McCorey of a loan made to another company

Where

Sale of long-term investment = $60,000 ( Cash inflow )

Collection by McCorey of a loan made to another company = $46,000 ( Cash Inflow )

Placing values in the fomrula

Net cash provided by investing activities = $60,000 + $46,000 = $106,000

6 0
3 years ago
Buffalo Corporation is authorized to issue 45,000 shares of $5 par value common stock. During 2020, Buffalo took part in the fol
Nookie1986 [14]

Answer:

A

Dr Cash $209,700

Cr Paid-In-Capital in excess of par-common stock $187,200

Cr Common Stock $22,500

B. Dr Land $53,900

Cr Common Stock $5,500

Cr Paid-In-Capital in excess of par-common stock $48,400

C. Dr Treasury Stock $24,380

Cr Cash $24,380

Explanation:

A. Preparation of the journal entry to record item1

Dr Cash (4,500*$48-6,300) $209,700

Cr Paid-In-Capital in excess of par-common stock $187,200

($209,700-$22,500)

Cr Common Stock $22,500

(4,500*$5)

(Being to record common stock issued)

B. Preparation of the journal entry to record item 2

Dr Land (1,100*$49) $53,900

Cr Common Stock $5,500

(1,100*$5)

Cr Paid-In-Capital in excess of par-common stock $48,400

($53,900-$5,500)

(Being to record land puchased in exchange for common stock)

C. Preparation of the journal entry to record item 3 using the cost method

Dr Treasury Stock $24,380

(530*$46)

Cr Cash $24,380

(Being to record purchase of treasury stock)

5 0
3 years ago
which strategy for merging two distinct cultures is most effective when the two companies have relatively weak cultureswith over
nata0808 [166]

Answer:              

integration strategy                      

Explanation:

In simple words, integration strategy can be defined as a set of activities that are implemented by organisations for combining the activities and operations of the business without making any conflict or chaos during the merger.

In such a strategy both the companies that are merging their business tries to control several different aspects both quantitative and qualitative for example integrating the sully chain management and taking care of work place ethics and codes that run in both the organisations.

7 0
3 years ago
Diana likes Anakia, a tent-making company. When she saw the latest ad for its tents, she could recall how sturdy and easy to use
grigory [225]

i think it is D.Information overload

7 0
3 years ago
Other questions:
  • Suppose there is a policy debate over whether the United States should impose trade restrictions on imported ball bearings:_____
    11·1 answer
  • With a(n) _______ financial statement, the accountant has put the information into the required format and performed a limited r
    7·1 answer
  • Larry manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of
    9·1 answer
  • When you are in a conflict that you are not passionate about, it is seen as gracious to sometimes ______.
    5·2 answers
  • Which of the following best illustrates the unit of account function of money"?
    7·2 answers
  • The most complex level of culture is the culture trait.
    5·1 answer
  • Jackson ​Company, which uses the​ high-low method to analyze cost​ behavior, has determined that machine hours best predict the​
    5·1 answer
  • Pharoah Company had the following two transactions related to its delivery truck. 1. Paid $280 for an oil change. 2. Paid $600 t
    7·1 answer
  • Fullerton Waste Management purchased land and a warehouse for $610,000. In addition to the purchase price, Fullerton made the fo
    9·1 answer
  • one markeitng action that can be taken to sell a single product or service to muylpele market segments is to
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!