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
Answer:
Ke 0.09787234 = 9.787234%
Explanation:
D1 $1.575 (we need to calculate this year dividends so we multiply previous year by the growth rate) 1.50 * ( 1+ 0.05) = 1.575
P $35
f 0.06
g 0.05
Ke 0.09787234
A tradeoff is a balance achieved between two desirable but incompatible feature. So the reasonable answer would be B
Answer:
The answers are $20,000 and $17,500.
Explanation:
Straight Line Depreciation is a calculation made to find the amount that an asset's value has reduced over a certain period of time.
The formula for it is 
.
The cost of the asset is $200,000 but for the first year there are also the freight, wiring and installation costs which apply just once and they come up to $25,000 in total.
So the depreciation for year one is going to be 
which is $20000.
The depreciation for year two is going to be 
which is $17,500.
I hope this answer helps.
Answer:
b. project A; because its NPV is about $4,900 more than the NPV of project B
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Mutually exclusive projects are those projects where only one project is selected for investment after analysis. NPV is the most preferred method in the evaluation of mutually exclusive projects for capital budgeting. That project is accepted which has higher positive NPV.
Net present value of Project A =$13,157.24
Net present value of Project A =$8,256.98
Difference = $13,157.24 - $8,256.98 = $4,900.26
Net Present value working is made in MS Excel File which is attached with this answer, please find it.
