Answer:
Sarah inventory $ 123.75
Luke inventory  $  125.00
Explanation:
<u>Sarah</u>
125 dollars x 1% discount = 1.25 dollars
Inventory:
125 nominal - 1.25 discount = 123.75
Sarah will enter the inventory for the price it paid to acquire it which is 123.75
<u>Luke</u>
As look paid after the discount period the inventory will be valued at nominal:
125 dollars nominal
<u>the charge is considered interest expense</u> it will not be capitalize through inventory.
 
        
             
        
        
        
Answer:
The amount of overhead debited to Work in Process Inventory should be: a. $182,00
Explanation:
The Overheads are Applied in the Manufacturing Costs as:
Budgeted Rate × Actual Activity for the Month
At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)
In our Case,  the predetermined overhead rate is 70% of direct labor cost
<em>Thus we need to find the Direct Labor Cost first</em>:
Total Labor Costs               $360,000
<em>Less </em>Indirect Labor Costs<em>  </em>$100,000
Direct Labor Cost              $260,000
<em>Therefore Overheads applied would be determined as:</em>
= $260,000 × 70%
= $182,000
 
        
                    
             
        
        
        
Answer:
The amount of sales that will be necessary to earn the desired profit is 16000 units
Explanation:
To get the amount of sales to earn $10000, we make the following equation. 
Profit =Sales -variable cost-fixed cost
Profit=10000
Sales=$5.00x
Variable cost= $2.50x
Fixed cost=$30,000
Replacing, 
10000=5x-2.5x-30000
10000+30000=2.5x
x=40000/2.5
x=16000
 
        
             
        
        
        
The equity multiplier is obtained by adding one to the debt ratio.
Therefore, the equity multiplier of XYZ inc is given by 1 + 0.62 = 1.62
        
             
        
        
        
Answer:
Cash flow to creditors in 2018 is −$85,000
Explanation:
2017 balance sheet of Kerber’s Tennis Shop, Inc is recorded as
Interest paid............................................................................$255,000
Less:
long-term debt in 2018.........................................................$2.21 million
Less: long-term debt brought forward from 2017..........$1.87 million
Total (taken as net new borrowing)...................................$340,000
Cash flow to creditors = 2018 Interest expense less net new borrowing
= $255,000 - $340,000
= −$85,000