Answer:
The CVP income statement would report a contribution margin $220000.
Explanation:
CVP income statement
sales $480000
total variable cost ($260000)
contribution margin $220000
total fixed expenses ($150000)
operating income $70000
Therefore, The CVP income statement would report a contribution margin $220000.
I think the answer is false
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Answer:
Income +/- inventory adjustment
2015: 138,000 - 23,000 = 115,000
2016: 254,000 + 61,000 = 315,000
2017: 168,000 + 17,000 = 185,000
Explanation:
<u>Inventory Identity:</u>
Beginning + Purchases = Ending + COGS
As the mistake is on the right side it compensates by the other component which is COGS
<u><em>When the inventory is overstated</em></u> this means COGS is understated.
We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.
<u><em>When the inventory is understated</em></u> this means COGS is overstated.
We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.
Answer:
The question is not complete:
On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥104.91/$) and purchase a six-month forward contract ($0.0095320/¥1) to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? (Round your answer to 2 decimal places. (e.g., 32.16))
The sum of $650,001.38 would be received in six months
Explanation:
In the first place by buying the yen in the spot market on July 15 ,2016, the amount of yen is computed thus:
$650,000 was at (¥104.91/$) ,which implies that each $ was exchanged for ¥104.91
yen received =$650,000*104.91/1
= ¥ 68,191,500.00
The six month forward contract outcome is as follows:
($0.0095320/¥1)
each Yen was exchanged $0.0095320
dollars received= ¥ 68,191,500.00 *0.0095320/1
=$650,001.38
