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Gre4nikov [31]
2 years ago
5

Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 108 $45 Mar.

14, 2017 Purchase 186 $47 May 1, 2017 Purchase 132 $49 The company sold 306 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1800, what is the company's after-tax income using LIFO
Business
1 answer:
kirill [66]2 years ago
5 0

Answer: $1,982.40

Explanation:

The company's after-tax income using LIFO will be:

Sales = 306 × $63 = $19,278

Less: Cost of Goods Sold

132 × $49 = $6,468

174 × $47 = $8,178

Coat if goods sold = $14,646

Gross Profit = $19,278 - $14,646 = $4,632

Less: Operating Expense = $1,800

Income Before Tax = $2,832

Less: Tax = 30% × $2832 = $849.60

Income after Tax = $1,982.40

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The Creamery is analyzing a project with expected sales of3,800 units, give or take 5 percent. The expected variable cost per un
vaieri [72.5K]

Answer:

operation cash flow ( OCF ) is  $98800

Explanation:

given data

number of units = 3800 units

variable cost = $185 per unit

fixed costs = $364,000

depreciation expense = $104,000

sales price = $305 per unit

tax rate = 35 %

fix cost = $360,000

to find out

what is the OCF given this analysis

solution

we know operation cash flow ( OCF ) is express as

OCF = [ { selling - variable cost ) × no of units } - fixed cost ] × [ tax rate ] + [ deprecation × tax rate ]      ..............................1

put here all these value

OCF = [ { 305 - 185 ) × 3800 } - 360000 ] × [ 35% of income before tax ] + [ 104,000 × 0.35 ]

OCF = 96000 - 0.35×96000 + 36400

OCF = 62400 + 36400

OCF = $98800

4 0
3 years ago
Lakshmi has had a checking account for over twenty years and has always gotten money from her bank by cashing checks. She would
goldenfox [79]
Lakshmi should get a debit card.
8 0
3 years ago
Read 2 more answers
Which is not an example of a risk management strategy?.
OlgaM077 [116]

Buying a new car is not an example of a risk management strategy.

<h3>What do you mean by risk management strategy?</h3>

A risk management strategy is a systematic and consistent approach to identifying, assessing, and managing risk.

Travel insurance is an example of this. We do not accept the risks of a lost suitcase or an accident abroad, as well as the associated costs; instead, we pay a travel insurance company, so that they bear the financial consequences.

Thus, Buying a new car is not an example of a risk management strategy.

learn more about risk management strategy refer:

brainly.com/question/14455706

#SPJ1

8 0
2 years ago
On July 1 of the current calendar year, Olive Company paid $8,200 cash for management services to be performed over a two-year p
Andrew [12]

Based on the amount paid by Olive Company for the two year period, the adjusting entry on December 31 would be a debit to an expense and a credit to prepaid expense for $2,050.

<h3>What would be the adjusting entry?</h3>

Based on the accrual method, only costs for the year can be recorded as expenses.

If any costs are for other periods, those costs would be credited to prepaid expenses.

The expense for this year for management services would be:

= Number of months from July to December x Amount paid / number of months in contract

= 6 months x 8,200 / 24 months

= $2,050

In conclusion, expenses will be debited $2,050.

Find out more on prepaid expenses at brainly.com/question/9270086.

4 0
2 years ago
A profit center is evaluated by the rate of return earned on the investment allocated to the center. referred to as a loss cente
aliina [53]

Answer:

a responsibility center that incurs costs and generates revenues.

Explanation:

We know that

The profit = Sales revenue - cost

After selling the product and incurred expenses, the amount which is left is shown as a profit. The remaining amount is termed as a profit that a firm has earned during a particular year.

It is the responsibility center at which we know about the total cost incurred and total revenues earned so that it becomes easy to compute how much the firm has earned the profit in a year.

6 0
3 years ago
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