Answer:
Avondale Lumber
Rebasing the Inventory at year-end using the dollar-value LIFO inventory method:
Year Ended Inventory year Cost index Inventory Amount
December 31 end costs (relative to base year) at year-end
2021 $340,000 1.02 $333,333
2022 350,000 1.06 $330,189
2023 400,000 1.07 $373,832
2024 430,000 1.10 $390,909
Explanation:
a) Data:
Year Ended Inventory year Cost index
December 31 end costs (relative to base year)
2021 $340,000 1.02
2022 350,000 1.06
2023 400,000 1.07
2024 430,000 1.10
b) The inventory at year-end costs is rebased using the cost index that is relative to the base year, by dividing the inventory costs by the cost index.
Suppose you are the agent for a baseball pitcher. Suppose he is offered the following contract by the New York Yankees: a signing bonus of $3,000,000 (to be received immediately), a first year’s salary of $6,000,000 (to be received one year from today), a second year’s salary of $7,000,000 (to be received two years from today), and a third year’s salary of $8,000,000 (to be received three years from today). Suppose he is offered the following contracts by the San Francisco Giants: a signing bonus of $6,000,000, a first year’s salary of $5,500,000, a second year’s salary of $6,000,000, and a third year’s salary of $6,000,000.
If you believe the interest rate is 10%, which offer would you advise the pitcher to accept?
Would your advice change if you believed the interest rate were 5%?
Answer:
Results are below.
Explanation:
Giving the following information:
New York Yankees:
Signing bonus= $3,000,000
Cf1= $6,000,000
Cf2= $7,000,000
Cf3= $8,000,000
San Francisco Giants:
Signing bonus= $6,000,000
Cf1= $5,500,000
Cf2= $6,000,000
Cf3= $6,000,000
The best option is the one with the higher Present Value.
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf/(1+i)^n
a) New York Yankees:
Cf0=3,000,000
Cf1= 6,000,000/1.1= 5,454,545.45
Cf2= 7,000,000/1.1^2= 5,785,123.97
Cf3= 8,000,000/1.1^3= 6,010,518.41
Total PV= $20,250,187.83
San Francisco Giants:
Cf0= 6,000,000
Cf1= 5,500,000/1.1= 5,000,000
Cf2= 6,000,000/1.1^2= 4,958,677.69
Cf3= 6,000,000/1.1^3= 4,507,888.81
Total PV= $20,466,566.5
At an interest rate of 10%, the contract of San Francisco Giants is the more profitable.
b) i= 5%
New York Yankees:
Cf0=3,000,000
Cf1= 6,000,000/1.05= 5,714,285.71
Cf2= 7,000,000/1.05^2= 6,349,206.35
Cf3= 8,000,000/1.05^3= 6,910,700.79
Total PV= $21,974,192.85
San Francisco Giants:
Cf0= 6,000,000
Cf1= 5,500,000/1.05= 5,238,095.24
Cf2= 6,000,000/1.05^2= 5,442,176.87
Cf3= 6,000,000/1.05^3= 5,183,025.59
Total PV= $21,863,297.7
At an interest rate of 5%, the contract of New York Yankees is the more profitable.
Which of the following values should be inserted to correctly balance the ledger shown below?
Date Description Deposit Withdrawal Balance
8-13-18 Balance $120.74
8-14-18 Automatic Deposit – Paycheck $343.52
8-14-18 City payment – Water, Trash (Monthly) $53.90
8-14-18 Internet payment (Monthly) $86.40
$222.78
$323.96
$410.36
$464.26
What are some range of “needs, wants, and demands” that chocolate buyers have ?
Answer:Taste, packaging levels of sugar, and what ingredients the chocolate has, if it's from a eco company like fair trade or from normal production in factories etc.
Explanation:
The amount of ingredients and the effect on the enviroment as a whole.
Answer:
i wish i was smart tho dang
What is probability and non probability sampling?
Explanation:
I hope this will help you.
Company Co. has 1,000 employees and it decides to grant each of the employees 200 share
options as part of its new rewards plan. The options are exercisable over 5 years and subject only
to the condition that the company's stock price must be at least 30% higher than its original issue
price. Company Co.'s share-based payments are subject to:
Service and market performance conditions
Service condition
Non-vesting condition
Non-market performance conditions
Company Co's share-based payments are subject to Non-vesting conditions. Hence, Option C is the correct statement.
What are share-based payments?Share-based payment agreements are transactions wherein a third party is entitled to acquire equity instruments of the entity (or any other institution entity) or cash amounts primarily based totally on the cost of such equity instruments in exchange for items or services.
Hence, Company Co's share-based payments are subject to Non-vesting conditions. Option C is the correct statement.
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On the 24th, a shooting incident occurred at a high school in St. Louis, Missouri, my country. A 19-year-old gunman opened fire on the campus, causing 2 deaths and 7 injuries, and was eventually shot dead by the police.
On October 25, St. Louis Mayor Tishaura Jones said that gun violence continues to take the lives of children and children in our country, and its severity is enough to become a "national emergency" and the government should take action. Police said at a news conference that day that the gunman was Orlando Harris, a 19-year-old male who just graduated from the high school last year.
The deaths at the high school in St. Louis, Missouri, United States show that an argument can indeed be made for tighter gun controls in the country.
Should there be tighter gun controls in the United States?The most recent tragedy that resulted from gun violence in the United States, was the killing of two people at the Central Visual and Performing Arts High School, St. Louis, Missouri, by a previous student of the school.
Over the years, there have been other instances of gun violence in American schools including the shooting at Uvalde, Texas that led to the deaths of 19 children.
The United States has the highest rates of gun ownership in the entire world as well as one of the highest rates for mass shooting. This means that there must be a correlation between the two. Nations that have tighter gun controls have lower rates of mass shooting.
There is therefore a good enough argument that the United States should introduce stricter and tighter gun controls in order to reduce the incidence of mass shootings, especially at schools.
The rest of the question is:
Does this shooting add more evidence for the argument for tighter gun control or less?
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What will produce more accurate results when giving a survey?
A. Using the word "frequently" in a question
B. Creating face-to-face interviews
C. Adding boxes to check for answers
D. Creating an open questions
Answer:
Option B; Creating face-to-face interviews
Explanation:
Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.
Will give brainlyest
Match the business plan component to its description.
Includes a budget, a 12-month profit and loss projection, cash flow statements, a breakeven analysis, and capital requirements to show investors how their money will be spent.
Provides an overview of the employees and others that are part of a business.
Determines the size of a market with marketing analysis and describes potential customers to provide a customized plan to reach them.
Summarizes what one wants to accomplish with a business, the products and services one sells, financial outlook, the funding needed, one's goals, and one's achievements.
1.
Executive Summary
2.
Organizational structure/management bios
3.
Financial plan
4.
Marketing plan
First description is financial plan
second is organizational structure
3rd is marketing plan
4th is executive summary
Which of the following is true of managers?
O A. They are part of the informal structure.
B. They are not involved in planning.
C. They don't need to control employees.
D. They maintain organizational stability.
Answer:
The answer is D
Explanation:
All the other answers would get them fired LOL
An investor sells 150 shares of Amazon (AMZN) stock at $35.00 and pays a $7 commission. What is the total amount of money received by the investor ?
$5,243
$5,250
$5,520
Please help me answer it correctly
Answer:$5,257 well....thats not an option so im sorry....if i were to guess based on answer opitons i would pick $5,243
Explanation:
:)
Employer's expense for stock options is typically recognized earlier for book than tax purposes.
TRUE OR FALSE
True, Employer's expense for stock options is typically recognized earlier for book than tax purposes.
An agreement between two parties known as a stock option grants the buyer the right to buy or sell the underlying stocks at a predetermined price and within a given time frame. An option writer is a person who sells stock options and is compensated with a premium from the contract that the buyer purchases.
Employee stock options (ESOs), which practically equate to call options, are a sort of equity remuneration that corporations grant to some employees or executives. These are distinct from listed equity options on publicly traded stocks in that they can only be granted to the personnel of the issuing corporation.
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a. If the interest on a note is $1,500, the interest rate is 5%, and the time is 90 days, what is the principal? (Assume 360 days in a year)
Answer:
$120,000
Explanation:
Interest = $ 1500
Time of Interest = 90 days
Interest rate = 5%
Principal = ?
Interest for 360 days = ($1500 / 90) x 360
= $6000
Principal Amount = Interest / Interest rate
= $6000 / 5%
=$6000 / 0.05
=$120,000
Hence, the Principal is $120,000
According to the 2021 “Development Cost Survey” published by HVS International, the AVERAGE reported development cost for a LUXURY hotel was over $800,000 per key (guest room). Group of answer choices
It is a true statement that the AVERAGE reported development cost for a LUXURY hotel was over $800,000 per key in 2021.
What is a Development costs?This refers to the costs that a business incurs from researching and introducing a new service.
The U.S. Hotel Development Cost Survey 2021-22 shows that the AVERAGE reported development cost for a LUXURY hotel was over $800,000 per key in 2021.
Therefore, the statement is a true statement.
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You decide to decrease the price of your product to increase total sales revenue, because you believe your product's demand is
A) perfectly inelastic
B) unit elastic
C) price elastic
D) price inelastic
Answer:
C) price elastic.
Explanation:
Using skills, tools, and techniques to help you accomplish goals within a certain amount of time is called:
A. a mental goal
B. a long-term goal
C. a short-term goal
D. time management
D. Time management refers to the process of using skills, tools, and techniques to help individuals or organizations accomplish their goals within a certain timeframe. It involves planning, organizing, prioritizing, and allocating time effectively and efficiently.
Time management is crucial for both personal and professional success. It enables individuals to make the most of their available time, increase productivity, and reduce stress. By setting specific goals and breaking them down into manageable tasks, individuals can create a roadmap for their actions.
Tools and techniques such as creating schedules, using calendars, setting deadlines, and employing productivity apps can further enhance time management efforts.
Effective time management involves analyzing priorities, eliminating time-wasting activities, delegating tasks when possible, and maintaining focus on the most important objectives. It requires self-discipline, effective decision-making, and the ability to adapt and adjust plans as needed.
By mastering time management skills, individuals can achieve their short-term and long-term goals efficiently while maintaining a healthy work-life balance. So, the correct option is D.
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Blue Llama Mining Company is analyzing a project that requires an initial investment of $3,225,000. The project’s expected cash flows are: Year Cash Flow Year 1 $300,000 Year 2 –100,000 Year 3 425,000 Year 4 450,000 Blue Llama Mining Company’s WACC is 10%, and the project has the same risk as the firm’s average project. Calculate this project’s modified internal rate of return (MIRR):
Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1
= ($11,75,000 /-$3,304,400) (1/5) - 1
= -0.35558x -0.8
= 0.28446
MIRR = 28.46.
The modified internal rate of return (MIRR) presupposes that initial investments are funded at the firm's financing cost and that positive cash flows are reinvested at the firm's cost of capital.
The MIRR is calculated as:
Future Value of positive cash flows:
1 $300,000
3 $425,000
4 $450,000
Total $1,175,000
Present value of negative cash flows:
0 -$3,225,000
2 -$79400 )$100,000 x 0.794)
Total -$3,304,400
The Modified Internal Rate of Return for Blue Llama Mining Company is greater than its Weighted Average Cost of Capital. Therefore, the project should be accepted.
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Business Scenario
An employee realized that he gave a shortchange to
a customer who already left the store premises. The
right change is 694 pesos, but he only gave 194
pesos. Discuss what business ethics issues present
on this situation. What can be done?
Answer:
a misscommunication, to be prevented they can be different ways of settling.
Explanation:
Which of the following is NOT a benefit of investing in a mutual fund?
O diversification
O skilled investors
O affordability
O lower potential gains
Lower potential gains is not a benefit of investing in a mutual fund
What are mutual funds?
A mutual fund is a type of financial instrument that combines investor capital with a single investing goal. Depending on the goals of the scheme, it subsequently invests the funds in different asset classes including equities and bonds. In general, mutual funds are considered to be a secure investment and an excellent way enabling investors to invest with little risk. A mutual fund may not always be the best option for a market participant, particularly when it comes to costs.
Reasons for high costs
The Charges.market ambiguityThe Managers of Funds.The type of fund.Size of the Fund.Taxation Associated With Your Mutual FundFor a variety of reasons, such as large inflows or to retain exclusivity, mutual funds and hedge funds may decide to close to new participants. When a fund is winding down, funds may also close to new investors because of subpar performance.
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what type of economic system does cubs have
Answer:
the economy of cuba is a mixed command dominated by state-run enterprises most of the labor force is employed by the state.
If you were designing a recreational facility, describe how you would account for safety and risk management address strategies that you have observed in the facility that we have visit the semester
Designing a recreational facility requires careful consideration of safety and risk management to ensure the well-being of the visitors. By incorporating effective strategies, we can create an environment that promotes enjoyment while minimizing potential hazards.
One of the key strategies I observed during our visit to the facility this semester was the implementation of comprehensive safety protocols. These protocols included visible signage throughout the facility, clearly indicating safety guidelines and emergency procedures. By having such signage prominently displayed, visitors are constantly reminded of the safety measures in place.
Additionally, the facility had a well-trained staff that actively monitored and enforced safety rules. Staff members were easily identifiable through their uniforms or badges, and they were positioned strategically across the facility to provide assistance and respond to any safety concerns promptly.
Another important aspect I noticed was the presence of well-maintained equipment and facilities. Regular inspections and maintenance routines were visibly conducted to ensure that all equipment met safety standards. This proactive approach minimizes the risk of accidents caused by faulty equipment.
To further enhance safety, the facility provided proper training and orientation for visitors. This included mandatory safety briefings or orientations before engaging in activities that involved potential risks. By educating visitors about potential hazards and how to mitigate them, the facility promotes a culture of safety and risk awareness.
In conclusion, designing a recreational facility with safety and risk management in mind involves implementing comprehensive safety protocols, maintaining well-trained staff, ensuring the proper maintenance of equipment, and providing visitor education and orientation. By incorporating these strategies, we can create a recreational facility that prioritizes safety while offering an enjoyable experience for visitors.
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A successful data-driven market segmentation program depends on each of the following except:
a.
the rejection of tradiitional marketing research techniques
b.
the use of transactional and event data
c.
a common definition of market segments across all areas of the business
d.
developing a centralized and accessible CRM (Customer Relationship Management) database
A successful data-driven market segmentation program depends on the "use of transactional and event data", "a common definition of market segments", "and the development of a centralized CRM database" but it does not depend on "the rejection of tradiitional marketing research techniques".
The correct option to the given question is option a.
Traditional marketing research techniques, such as surveys, focus groups, and interviews, have long been used to gather insights about consumer behavior and preferences. While these techniques may have limitations, they still play a valuable role in understanding customer motivations and attitudes. Data-driven market segmentation programs can benefit from a combination of both traditional and data-driven research approaches. The use of transactional and event data is crucial for a data-driven market segmentation program. This type of data provides valuable information about customer behaviors, purchase patterns, and interactions with the business.
Having a common definition of market segments across all areas of the business ensures consistency and alignment in marketing efforts. This allows for targeted and personalized messaging that resonates with each segment. It also facilitates coordination between different departments, such as marketing, sales, and customer service, leading to a more cohesive and effective customer experience.
Finally, developing a centralized and accessible CRM database is essential for managing and analyzing customer data. It enables the integration of data from various sources, such as transactions, interactions, and demographic information, into a single platform. This centralized database provides a comprehensive view of customers, enabling more accurate segmentation and personalized marketing initiatives.
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A 2015 New York Times article described Amazon as “a soulless, dystopian workplace where no fun is had and no laughter heard” (Cook 2015 n.p.). Employees themselves came to the company’s defense (Ciubotariu 2015). Does this reputation continue to haunt Amazon, or has it been addressed?
The negative impact of HIV/AIDS in the workplace
HIV/AIDS has a significant negative impact on the workplace in several ways. Firstly, the illness can lead to absenteeism and decreased productivity as employees take time off work to receive treatment and care for their condition.
This can be particularly damaging in industries where staffing levels are critical, such as healthcare or emergency services. Additionally, the stigma associated with HIV/AIDS can result in discrimination against affected employees, which can lead to further absenteeism and decreased productivity. This discrimination can also result in the loss of skilled employees who are forced to leave their jobs due to discrimination.
Furthermore, the cost of providing medical and disability benefits to affected employees can be high, leading to financial strain on companies. This can also lead to increased healthcare costs and insurance premiums for other employees. Finally, the negative impact of HIV/AIDS on workplace morale and relationships cannot be overlooked.
Fear, misunderstanding, and discrimination can lead to a toxic workplace environment, which can impact the mental health and well-being of all employees. It is important for employers to prioritize education, prevention, and support for affected employees in order to mitigate the negative impact of HIV/AIDS in the workplace.
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The following trial balance of Joy McDowell Tutoring Service at May 31, 2018, does not balance:
JOY MCDOWELL TUTORING SERVICE
Trial Balance
31-May-18
Balance
Account Debit Credit
Cash $ 3,000
Accounts receivable 2,000
Supplies 600
Computer equipment 25,800
Accounts payable 11,400
McDowell, capital 11,600
Service revenue 9,800
Salary expense
Rent expense 1,700
700
Utilities expense 500
Total 34,300 32,800
Investigation of the accounting records reveals that the bookkeeper:
a. Recorded a $500 cash revenue transaction by debiting Accounts receivable. The credit entry was correct.
b. Posted a $1,000 credit to Accounts payable as $100.
c. Did not record utilities expense or the related account payable in the amount of $400.
d. Understated McDowell, capital by $600.
Requirement
Prepare the corrected trial balance at May 31, 2018, complete with a heading;
journal entries are not required.
Answer:
Total debit $ 34,700
Total Credit $ 34700
Explanation:
JOY MCDOWELL TUTORING SERVICE
Trial Balance
31-May-18
Balance
Account Debit Credit
Cash $ 3,500
Accounts receivable 1500
Supplies 600
Computer equipment 25,800
Accounts payable 12,700
McDowell, capital 12,200
Service revenue 9,800
Salary expense 1,700
Rent expense 700
Utilities expense 900
Total 34,700 34700
a. We change the cash balance to $ 3500 and A/R balance to 1500
b. We add $ 900 in the accounts Payable and change it to 12,700
c. We add $ 400 to utilities and change it to 900.
d. Increase McDowell, capital by $600 and change it to 12,200.
So we get the corrected trial balance having equal debit and credit balance of $ 34,700
With total reserves of $50,000 and a required
reserve ratio of 10 percent, potential
deposit creation for the banking
system is equal to :
O $20,000
O $50,000
O $80,000
O $300,000
With total reserves of $50,000 and a required reserve ratio of 10 percent, potential deposit creation for the banking system is equal to $300,000. The correct option is d.
It required reserves = transaction deposits * required reserve ratio
=200000*0.1=20000
Excess reserves =total reserves -required reserves =50000-20000
=30000
Money multiplier =1/required reserve ratio =1/0.1=10
Potential deposit creation =excess reserves * multiplier =30000*10=300000
It is $300,000.
The reserve ratio is the percentage of reservable liabilities the advertisement banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio. The reserve requirement is the minimum amount of reserves which a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
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What do you think are the most important trends that will influence marketing in domestic and international markets?
The most important international and domestic marketing trends are growing emerging markets, innovation, informed buyers, and business competition.
What are the influential trends in domestic and international marketing?1. Growing marketing trends:
As they get closer to the developed world's living standards, developing countries will witness the most economic growth.
Consider selling into one of these emerging markets if you want your company to flourish quickly.
Language, financial stability, the economy, and local cultural characteristics can all have an impact on which markets you should invest in.
2. Speed of Innovation
As more new businesses emerge, the rate of innovation accelerates, resulting in new products and improved versions of old favorites.
Western corporations can no longer expect to be at the forefront of technological progress by default, and this trend will only accelerate as more enterprises in developing countries obtain the skills necessary to innovate successfully.
3. More Informed Buyers
Customers everywhere may buy things created anywhere in the world and get information about what to buy thanks to more intensive and faster communications.
Businesses will lose pricing power if pricing and quality information become available across all markets, particularly the ability to set different prices in different marketplaces.
4. Increased Business Competition
Western corporations will face growing rivalry as more businesses enter international markets.
Because developing-market companies frequently have lower labor costs, Western corporations must stay up with faster and more effective innovation, as well as a high degree of automation.
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How vape advertisers target teens and children?
Answer:
Explanation:
children or teens who see other people having vapes at there age they might want one too.
what are multiple ways a company can hold a competitive advantage over another company like apple or samsung.
Answer: here you go
Explanation:
There are multiple ways a company can hold a competitive advantage over other companies like Apple or Samsung. Here are some common strategies:
Product Differentiation: Offering unique features, designs, or functionalities in products or services that differentiate the company from competitors. This can include innovative technology, superior quality, or exclusive features.
Branding and Reputation: Building a strong brand identity and reputation in the market. A positive brand image can attract customers and create a sense of trust and loyalty.
Cost Leadership: Implementing efficient processes, economies of scale, and cost-effective operations to offer products or services at a lower price than competitors. This strategy aims to attract price-conscious customers.
Customer Service and Support: Providing exceptional customer service, timely support, and personalized experiences to enhance customer satisfaction. Building strong customer relationships can result in customer loyalty and repeat business.
Innovation and Research & Development: Investing in continuous research and development efforts to bring new and improved products or services to the market. Staying ahead of the competition through innovation can create a significant competitive advantage.
Supply Chain Management: Developing efficient supply chain networks to ensure timely delivery, cost-effective sourcing, and quality control. Streamlining the supply chain can result in cost savings and faster response times.
Marketing and Advertising: Implementing effective marketing and advertising strategies to create brand awareness, reach target audiences, and influence customer purchasing decisions.
Intellectual Property and Patents: Owning valuable intellectual property rights, such as patents, copyrights, or trademarks, that provide legal protection and prevent competitors from copying or replicating products or technologies.
Strategic Alliances and Partnerships: Collaborating with other companies, suppliers, or distributors to leverage complementary strengths, expand market reach, or gain access to new technologies or resources.
Talent and Human Resources: Attracting and retaining top talent, fostering a culture of innovation and excellence, and providing opportunities for employee growth and development. Skilled and motivated employees can contribute to a competitive advantage.
It's important to note that competitive advantages may vary depending on the industry, market dynamics, and specific business strategies. Companies often employ a combination of these strategies to differentiate themselves and gain an edge over their competitors.
Answer:
Explanation:
some information on how a company can hold a competitive advantage over another company like Apple or Samsung.
Innovation: Companies that are innovative and constantly come up with new products and services have a competitive advantage over their competitors. Apple, for example, is known for its innovative products like the iPhone and iPad.
Branding: A strong brand image can give a company a competitive advantage. Apple and Samsung are both well-known brands that have a loyal customer base.
Cost leadership: Companies that can produce goods at a lower cost than their competitors can offer lower prices to customers, giving them a competitive advantage. This is a strategy that companies like Walmart and Amazon use.
Customer service: Companies that provide excellent customer service can differentiate themselves from their competitors. This is an area where companies like Zappos and Nordstrom excel.
Distribution channels: Companies that have efficient distribution channels can get their products to customers faster and more efficiently than their competitors. Amazon, for example, has a vast distribution network that allows it to offer fast and reliable shipping to customers.
Overall, there are many ways a company can hold a competitive advantage over another company. It often comes down to finding a unique value proposition that sets them apart from their competitors.
Brainliest pls
The following are the Profit & Loss A/c of H, Ltd, & S, Ltd for the year ended March 31st 2011
Particulars
H Ltd
S Ltd
Particulars
H Ltd
S Ltd
Shs
Shs.
Shs
Shs.
To Opening Stock
200,000
100,000
By Sales
1,980,000
1,400,000
To Purchases
1,200,000
750,000
By Closing Stock
210,000
60,000
To Carriage
20,000
10,000
To Wages
210,000
80,000
To Gross Profit c/d
560,000
520,000
2,190,000
2,190,000
1,460,000
To Salaries
95,000
45,000
By Gross Profit b/d
560,000
520,000
To Rent
40,000
25,000
By Commission
100,000
To Commission
-
50,000
By Debenture Interest S. Ltd
10,000
To Sundry Expenses
65,000
25,000
By Rent
40,000
To Debentures Interest
-
25,000
To Provision for Taxation
190,000
110,000
To Net Profit c/d
320,000
240,000
710,000
520,000
710,000
520,000
To Preference Dividend
-
40,000
By Balance b/d
100,000
40,000
To Proposed Dividend
90,000
60,000
By Net Profit b/fd
320,000
240,000
To Corporate Dividend Tax
15,021
16,690
To Balance carried to Balance Sheet
314,979
163,310
420,000
280,000
420,000
280,000
You are given following additional information:
H. Ltd. Acquired 3000 Equity shares in S. Ltd. On 1st October 2010 of 4000 Equity shares of S. Ltd. However Debentures were acquired on 1st April 2009.
During the year H. Ltd. Sold goods to S Ltd costing Shs. 60,000 for Shs. 80,000. One fourth of the goods remained unsold on March 31st 2011. It is included in closing stock at cost to S. Ltd.
Commission, Rent credited to profit & Loss A/c of H. Ltd. Include Shs. 40,000, Shs. 10,000 received from S. Ltd,
After accounting for all the given information, H Ltd had a balance of Shs. 314,979 carried to the balance sheet, while S Ltd had a balance of Shs. 163,310 carried to the balance sheet.
How to solveBased on the given Profit & Loss accounts, H Ltd has a gross profit of Shs. 560,000 and a net profit of Shs. 320,000, while S Ltd has a gross profit of Shs. 520,000 and a net profit of Shs. 240,000.
H Ltd acquired 3000 equity shares in S Ltd on October 1st, 2010, and sold goods to S Ltd costing Shs. 60,000 for Shs. 80,000 during the year, with one fourth of the goods remaining unsold on March 31st, 2011, and included in S Ltd's closing stock at cost.
H Ltd's commission and rent credited to the profit & loss account includes Shs. 40,000 and Shs. 10,000 received from S Ltd, respectively.
It is also known that H Ltd acquired debentures on April 1st, 2009, but no further information is given.
The Profit & Loss accounts also show that H Ltd proposed a dividend of Shs. 90,000, while S Ltd paid a preference dividend of Shs. 40,000.
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At December 31, DePaul Corporation had the following cumulative temporary differences associated with its operations:
a. Estimated warranty expense, $24 million temporary difference: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty).
b. Depreciation expense, $104 million temporary difference: straight-line in the income statement; MACRS on the tax return. Income from installment sales of properties, $80 million temporary difference: income recorded in the year of the sale; taxable when received equally over the next five years.
c. Rent revenue collected in advance, $24 million temporary difference; taxable in the year collected; recorded as income when the performance obligation is satisfied in the following year.
Required:
Assuming DePaul will show a single noncurrent net amount in its December 31 balance sheet, indicate that amount and whether it is a net deferred tax asset or liability. The tax rate is 25%.