Question 9 of 10

A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following:

wel

Answer:

$1,040,000

Explanation:

The calculation of cost of the inventory is shown below:-

Cost of Goods available for sale = Inventory balance + Purchase to date + Freight In

= $2,000,000 + $5,900,000 + $500,000

= $8,400,000

Cost of Goods Sold = Sales to date - (Sales to date × Gross profits)

= $9,200,000 - ($9,200,000 × 20%)

= $9,200,000 - $1,840,000

= $7,360,000

Estimated loss from fire = Cost of Goods available for sale - Cost of Goods Sold

= $8,400,000 - $7,360,000

= $1,040,000

For computing the estimated loss from fire we simply applied the above formula.

3 0

3 years ago

What is the expected value when a $1 lottery ticket is bought in which the purchaser wins exactly $10 million if the ticket cont

Nadusha1986 [10]

We expect to lose $0.37 per lottery ticket

Explanation:

six winning numbers from = { 1, 2, 3, ....., 50}

So, the probability of winning:

$P(win) = \frac{ no of favorable outcomes}{no of possible outcomes}$

$P(win) = \frac{1}{^5^0C_6} \\\\P (win) = \frac{6! X (50 - 6)!}{50!} \\\\P(win) = \frac{6! X 44!}{50!} \\\\P(win) = \frac{1}{15,890,700}$

The probability of losing would be:

P(loss) = 1 - P(win)

$P(loss) = 1 - \frac{1}{15,890,700} \\\\P(loss) = \frac{15,890,699}{15,890,700}$

According to the question,

When we win, then we gain $10 million and lose the cost of the lottery ticket.

So,

$10,000,000 - 1 = $9,999,999

When we lose, then we lose the cost of the lottery ticket = $1

The expected value is the sum of the product of each possibility x with its probability P(x):

E(x) = ∑ xP(x)

$= 9,999,999 X \frac{1}{15,890,700} + ( -1 ) X \frac{15,890,699}{15,890,700} \\\\=- \frac{5,890,700}{15,890,700} \\\\= - \frac{58,907}{158,907} \\\\= - 0.37$

Thus, we expect to lose $0.37 per lottery ticket

7 0

3 years ago

Pharoah Company reported net income of $1.30 million in 2022. Depreciation for the year was $208,000, accounts receivable decrea

Jet001 [13]

Answer:

Net cash flow from operating activities

$1,599,000

Explanation:

Pharoah Company

Cash flow from operating activities :

Net income $1,300,000

Net Cash flow from operating activities:

Add depreciation $208,000

Add accounts receivable decreased $455,000

Less accounts payable decreased ($364,000)

Net cash flow from operating activities $1,599,000

7 0

2 years ago

Which of the following is not correct? Select one: a. Taxes levied on sellers and taxes levied on buyers are not equivalent. b.

liq [111]

Answer:

The correct answer is option a.

Explanation:

Taxes levied on either buyers or sellers are equivalent. In both cases, the tax creates a wedge. This wedge is the difference between the price that the buyers have to pay and the price that the sellers receive.

The price that the buyers have to pay increases while the price that the sellers receive decreases. But this tax wedge does not depend on whom the tax is levied, it depends on the elasticity of demand and supply. So whether the tax is levied on buyers or sellers, the tax wedge will remain the same.

The tax burden will be shared between both buyers and sellers. So it is incorrect to say that the taxes levied on sellers and taxes levied on buyers are not equivalent.

8 0

2 years ago

etermining Gross Profit During the current year, merchandise is sold for $990,000. The cost of the merchandise sold is $693,000.

otez555 [7]

Answer:

Results are below.

Explanation:

A: To calculate the gross profit, we need to use the following formula:

Gross profit= sales - cost of goods sold

Gross profit= 990,000 - 693,000

Gross profit= $297,000

B: Now, the gross profit percentage:

Gross profit percentage= (gross profit / sales)*100

Gross profit percentage= (297,000 / 990,000)*100

Gross profit percentage= 30%

C: Finally, a net income is reported in the income statement at the moment of the sale. It doesn't matter if the sale was paid or not.

6 0

2 years ago