Answer:
500,000÷ 200,000 = 2.5
Explanation:
inventory turnover is calculated as
cost of goods sold ÷ Average inventory
From the information of Baxter department store's financial statement, cost of goods sold can be calculated as
Opening inventory + purchases - closing inventory
100,000 + 700,000 - 300,000 = 500,000
cost of goods sold = 500,000
Average stock is calculated as opening inventory + closing inventory ÷ 2
100,000 + 300,000 ÷ 2 = 200,000
Average inventory = 200,000
Therefore inventory turnover = 500,000÷ 200,000 = 2.5
Answer:
is made if it is more likely than not that the liability has been incurred.
Explanation:
When contingent liability is recorded it is recorded by debiting income statement and creating a liability in balance sheet, also it is not accounted for until the amount of liability is pretty certain as without being clear about its occurrence and the amount involved the liability cannot be recorded.
There is no such loss account, there exists only income statement.
Therefore, with the above we can conclude that contingent liability is recorded only if:
is made if it is more likely than not that the liability has been incurred.
Answer and Explanation:
The preparation of the cash budget for the month of March ended is presented below:
Cash Budget
Particulars Amount ($)
Opening Cash Balance 72,000
Add: Cash Receipts from Sales 300,000
Total Cash Available 372,000
Less:
Cash Payments
Purchases 140,000
Salaries 80,000
Cash Expenses 45,000
Repayment of Bank Loan 20,000
Total Payments -285,000
Closing Cash Balance 87,000
We simply deduct the all payments from the total cash available so that the ending balance of cash could come
To meet the target the projected output level for next year required is 712,750.
What is sales budget ?
A sales budget is a financial strategy that projects the entire income of a business over a given time frame. To forecast the performance of the company, it relies on two factors: the volume of products sold and the price at which they are sold.
The calculation of the production level required to accomplish the goals for the following year is presented below:
Ending Inventory (662,000 ÷ 12 × 1.5) 82,750
Sales Budget 662,000
Total inventory required 744,750
Less Beginning Inventory -32,000
Production 712,750
Question:
Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans are being reviewed. You learn that the inventory policy at Waterloo is to hold one and one-half months’ worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 662,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 32,000 units. The capacity of the plant is 702,000 units annually.1. What production level next year will be required to meet the targets? (Do not round intermediate calculations.)
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