Answer:
Gross Profit is $9552
Explanation:
Given data
sold = $12000
cost of goods = $3840
returns = $4800
to find out
gross profit
solution
we apply here gross profit formula that is
Cost of goods = Cost of goods - ( Return amount × Cost of goods sold / sale ) .....................1
Cost of goods = 3840 - ( 4800 × 3480/ 12000)
Cost of goods = 2448
gross profit
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = 12000 - 2448
Gross Profit is $9552
Answer:
This securities investment classifies as unrealized gains, as it has to be reported in the balance sheet under shareholder equity in the Accumulated Other Comprehensive Income account.
Explanation:
Unrealized gains (or losses) only exit on paper, since the company cannot recognize the gains until it sells the securities. It is an estimate of the profits that the company can make when it sells the securities, but until it does, they cannot be included in the income statement.
Answer:
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Flying Car
Cash flow in year 0 = -$200,000
Cash flow in year 1 = 50,000
Cash flow in year 2 = 50,000
Cash flow in year 3 =80,000
Cash flow in year 4 =100,000
IRR = 13%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
Accrued Loss on Purchase Commitments $2,000,000
Explanation:
December 31, (recognition of loss on purchase commitments)
- Dr Loss on Purchase Commitments account 2,000,000
- Cr Accrued Loss on Purchase Commitments account 2,000,000
Since the price of raw materials lowered by 2,000,000, the company lost money on its purchase commitments:
Purchase commitments loss = contracted price - market value = $5,000,000 - $3,000,000 = $2,000,000
The loss on purchase commitments is an expense, and accrued loss on purchase commitments is a liability.
