Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

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Answer 1

Question

Chapter 5, Problem 1SBA

1.

To determine

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

2.

To determine

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

3.

To determine

Describe the effect that the inventory adjustment would have on cash flow during the year.

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Students have asked these similar questions

Sam prepared a draft statement of profit or loss for the business as follows: $ $ Sales 256,800 Cost of sales Opening inventory 13,400 Purchases 145,000 Closing inventory (14,200) ––––––– (144,200) –––––––– Gross profit 112,600 Expenses (76,000) –––––––– Net profit 36,600 –––––––– Sam has not yet recorded the following items: • Carriage in of $2,300 • Discounts received of $3,900 • Carriage out of $1,950 After these amounts are recorded, what are the revised values for gross and net profit of Sam’s business?

Determine the return on total assets of this financial accounting question

Harbor Groceries began the current month with inventory costing $28,750, then purchased inventory at a cost of $70,560. The perpetual inventory system indicates that inventory costing $76,400 was sold during the month for $81,300. If an inventory count shows that inventory costing $21,600 is actually on hand at month-end, what amount of shrinkage occurred during the month?

Answer 2

Question

Chapter 5, Problem 1SBA

1.

To determine

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

2.

To determine

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

3.

To determine

Describe the effect that the inventory adjustment would have on cash flow during the year.

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Answer 3

Question

Chapter 5, Problem 1SBA

1.

To determine

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

2.

To determine

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

3.

To determine

Describe the effect that the inventory adjustment would have on cash flow during the year.

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Answer 4

Question

Chapter 5, Problem 1SBA

1.

To determine

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

2.

To determine

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

3.

To determine

Describe the effect that the inventory adjustment would have on cash flow during the year.

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Answer 5

Chapter 5, Problem 1SBA

1.

To determine

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

2.

To determine

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

3.

To determine

Describe the effect that the inventory adjustment would have on cash flow during the year.

Answer 6

Chapter 5, Problem 1SBA

1.

To determine

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

Answer 7

Chapter 5, Problem 1SBA

1.

To determine

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

Answer 8

2.

To determine

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

Answer 9

2.

To determine

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

Answer 10

3.

To determine

Describe the effect that the inventory adjustment would have on cash flow during the year.

Answer 11

3.

To determine

Describe the effect that the inventory adjustment would have on cash flow during the year.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 5 - Prob. 1DQ Ch. 5 - How are the financial statements of a manufacturer...Ch. 5 - What is a cost-flow assumption? Why is a cost-flow...Ch. 5 - If a company had two units that cost 1 each in its...Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Prob. 10DQ

Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

Solution Summary: The author analyzes the effect of the required inventory adjustments on the banker's net income, and explains how they would affect cash flow.

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Calculate the effect that the required inventory adjustments will have on the net income for the year. Also describe whether the banker would be happy or not so happy when once the financial statements are presented to him after these adjustments.

Describe whether the adjustments which are made for inventory shrinkage of $10,000 last year would cause any concern for the amount of adjustment this year.

Describe the effect that the inventory adjustment would have on cash flow during the year.

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Chapter 5 Solutions