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3 years ago

Cost of Goods Sold Section, Multiple-Step Income Statement

Business

1 answer:

Katen [24]3 years ago

8 0

Answer and Explanation:

The preparation of the cost of goods sold section of a multiple-step income statement is presented below:

<u>Cost of goods section</u>

<u>Multiple-income statement</u>

Opening inventory $37,000

Estimated return inventory $1,000

Purchase $102,000

Less purchase returns -$4,200

Less: Purchase discount -$2,040

Add: Freight in $800

Less: closing inventory -$30,500

Less: estimated return inventory -$1,500

Cost of goods sold $102,560

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You put aside $300 a month in an account that returns 9% a year, compounded monthly. How long do you need to contribute to save

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Answer:

36 years 4 months and 2 days

Explanation:

Data provided in the question:

Monthly payment = $300

Rate of return, i = 9% = 0.09

Future value = $1,000,000

Now,

we know

Future value = Monthly payments × $\left[ \frac{(1+i)^{n}-1}{i} \right]$

1000000 = $300 × $\left[ \frac{(1+0.0075)^{ }-1}{ 0.0075 }$

$\frac{ 1000000}{ 300} &= \frac{ 1.0075^{n} - 1}{ 0.0075}$

$3333.33333 &= \frac{ 1.0075^{n} - 1}{ 0.0075}$

$1.0075^{n} - 1 &= 3333.33333 \times0.0075$

1.0075ⁿ - 1 = 25

1.0075ⁿ = 26

ln( 1.0075ⁿ) = ln(26)

n × ln( 1.0075 ) = ln(26)

n = [tex]\frac{ \ln (26) }{ \ln( 1.0075 ) }[tex]

n = 436.04 months

n = 36 years 4 months and 2 days

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4 years ago

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Answer:

A. $41,120.

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