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3 years ago

Opera Corp. uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows:

Business

1 answer:

Mandarinka [93]3 years ago

4 0

Answer:

(A) $390,000

Explanation:

Under LIFO method as the name suggests "Last In First Out"

the goods purchased in Last that is latest are sold first, that is goods purchased in 2015 will be sold first, therefore in the given case at the end of 2014 using LIFO we have,

Balance = $390,000

Because balance of goods purchased in 2014 i.e. $756,000 is sold first in 2014 remaining inventory at year end will be of 2013

Correct option is

(A) $390,000

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Enron and Tyco failed primarily because they______.

faltersainse [42]

The correct answer is D. manipulated accounting Procedures.

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2 years ago

Mike’s Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. I

Stolb23 [73]

Answer:

Mike's Motors Corp.

Cash Budget for July, August, and September:

July August September Total

Beginning balance $32,000 $30,000 $30,000 $32,000

Cash receipts 83,000 109,000 148,000 340,000

Bank borrowings 26,000 0 0 26,000

Total receipts 141,000 139,000 178,000 $398,000

Cash Payments 111,000 97,900 125,400 334,300.00

Interest 520 308.40 828.40

Loan repayment 10,580 15,420 26,000.00

Total payments 111,000 109,000 141,128.40 361,128.40

Minimum cash balance 30,000 30,000 36,871.60 36,871.60

Explanation:

a) Data and Calculations:

Cash Receipts Cash Payments

July $ 83,000 $ 111,000

August 109,000 97,900

September 148,000 125,400

Minimum cash balance = $30,000

Interest on borrowings = 2% per month

July ending:

Borrowing to maintain minimum cash balance = $26,000

Interest for August = $520 ($26,000 * 2%)

August ending:

Loan balance = $15,420 ($26,000 - $10,580)

Interest for September = $308.40 ($15,420 * 2%)

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3 years ago

On December 30, 2019, Whitney sold a piece of property for $85,000. Her basis in the property was $40,000, and she incurred $1,2

vlabodo [156]

Answer:

Under the installment sales method, the total contract price is $85,000

gain on the sale is $58,800 ( 85,000 + 15,000 - 40,000 - 1,200)

and the amount of gain reported in 2018 is $3,459.

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3 years ago

Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 27,000 units.

harkovskaia [24]

Answer:

Walker Company

a. Merchandise Purchases Budget for the months of July, August, and September:

July August September

Sales units 210,000 290,000 290,000

Ending inventory 43,500 43,500 27,000

Goods available 253,500 333,500 317,000

Beginning inventory 31,500 43,500 43,500

Purchases 222,000 290,000 273,500

b. The ratio of ending inventory to the next month's sales = 15% (Ending Inventory/Sales next month * 100)

c. The units budgeted for sale in October = 180,000 units.

Explanation:

a) Data and Calculations:

September ending inventory = 27,000 units

Ending inventory always equal to 15% of budgeted sales for the following month.

Sales (Units) Purchases (Units)

July 210,000 222,000

August 290,000 290,000

September 290,000 273,500

October 180,000

July August September October

Sales units 210,000 290,000 290,000 180,000

Ending inventory 43,500 43,500 27,000

Goods available 253,500 333,500 317,000

Beginning inventory 31,500 43,500 43,500 27,000

Purchases 222,000 290,000 273,500

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2 years ago

There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real G

Komok [63]

'There are two common measures of economic growth: increases in real GDP over some period of time and increases in real GDP per capita over some time period.

This statement is True.

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GDP measures the monetary value of the final goods and services produced in a country (that is, purchased by final consumers) over a specified period of time (such as a quarter or a year). Counts all electricity generated within a country's borders.

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1 year ago