Answer:
Part A
Cost of Goods Sold reported in the company's year-end income statement is $11000000
Part B
Merchandise Inventory reported in the company's year-end balance sheet is $84000000
Part C
The balance of the Cost of Goods Sold account Immediately prior to recording inventory shrinkage is $ 10000000
The balance of the Merchandise Inventory account Immediately prior to recording inventory shrinkage is $85000000
Explanation:
Cost of Goods Sold
Ranns Supply use the perpetual inventory system. This means that cost of goods sold is calculated after every sale agreement.
In this case Cost of Sales figure reported at company`s year end can be calculated using missing figure approach in the Income Statement
Calculation of the Cost of Sales figure is as follows:
Net Sales $2600000 - Gross Profit $15000000 = $1100000
Merchandise
The merchandise account records assets of inventory in hand during the year.
The Merchandise used during the year should match with the cost of sales figure.But if the figure is lower than the cost of sales figure, then inventory was written down to its replacement value in terms of IAS 2.
Calculation of Merchandise in Hand is as follows:
Purchase of Merchandise $9500000 - Shrinkage During the year $10000000 - Write down of Inventory $1000000 = $ 84000000
Explanation:
Capital: The most important city or town of a country or region.
Capital goods: Goods that are used in producing other goods, rather than being bought by consumers
Answer:
Valley Technology
Statement of Cash Flows (in thousands):
Investing activities:
Other Adjustments from Investing Activities $900
Financing activities:
Decrease in Debt of ($1,000)
Dividends Paid of ($200)
Other Adjustments from Financing Activities of $100
Net cash flow from financing activities (1,100)
Net cash flows ($200)
Explanation:
a) Data and Calculations:
Decrease in Debt of $1,000,000
Dividends Paid of $200,000
Purchases of Property, Plant, & Equipment of $5,700,000
Other Adjustments from Financing Activities of $100,000
Other Adjustments from Investing Activities of $900,000
