HOMEWORK HELP

Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value.

MAVERICK [17]

Answer:

A. Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

B. Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

Explanation:

A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method

COST-OF-GOODS-SOLD METHOD

Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

B.Preparation of the necessary December 31 entry under the Loss method

LOSS METHOD

Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

7 0

3 years ago

As a result of their influence on the quantity, variety, and quality of products, trade barriers ________ domestic consumers.

likoan [24]

The answer in the space provided is hurt. It is because of their influence in the following factors such as the variety, quantity and the quality of products, the trade barriers will most likely hurt the domestic consumers involved in it.

5 0

3 years ago

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total

Stels [109]

Answer:

Net Operating Income rises by $10,000 when Fashion Boots is discontinued.

Explanation:

Current operating profit for Boots Plus = $45,000

that is $65,000 profit from Hiking and $20,000 losses from Fashion

In case if Fashion boots is discontinued, then fixed cost eliminated = $30,000

In that case Total fixed cost of fashion boots non eliminated = $40,000 - $30,000 = $10,000

Which will be loss from Fashion as no other operating activity will be there.

Net operating profit of the company will be

Profit from Hiking Boots = $65,000

Less: Loss from Fashion Sales = $10,000 (Fixed Cost not eliminated)

Net Operating profit = $65,000 - $10,000 = $55,000

Net Operating Income rises by $10,000 when Fashion Boots is discontinued.

8 0

3 years ago

Read 2 more answers

B. if winston had kracker's number of days' sales in inventory, how much additional cash flow would have been generated from the

zloy xaker [14]

<span>If winston only needed to hold 35.7 days of inventory than it would only need an average inventory per year of 3378.29 (Avg inv/avg COGS = avg daily inventory held which is 3378.29/94.6 = 35.7). It currently holds 4025 inventory on average throughout the year so it's holding 647 million dollars of inventory more than it would if it lowered its ratio to 35.7.</span>

8 0

3 years ago

If the information content, or signaling, hypothesis is correct, then a change in a firm's dividend policy can have an important

Pachacha [2.7K]

Answer:

True

Explanation:

The Stock price changes after dividend increase or decrease do not demostrate a prefference for Dividend over retained earnnings .Rather price changes simply indicates that dividend announcement have information,or signaling ,content about future earnings.

5 0

3 years ago