Financial Accounting-w/cd-package
3rd Edition
ISBN: 9780131060876
Author: REIMERS
Publisher: PEARSON
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Textbook Question
Chapter 5B, Problem 6PB
Estimate inventory. (LO 9). Carrie’s Cotton Candy Company sells cotton candy to visitors at a traveling county fair. During a drought a fire destroyed the entire inventory in late July. In order to file an insurance claim, Carrie, the owner of the company, must estimate the value of the lost inventory. Records from January 1 through the date of the fire in July indicated that Carrie’s Cotton Candy Company started the year with $4,250 worth of inventory on hand. Purchases for the year amounted to $8,000, and sales up to the date of the fire were $17,500. Gross profit percentage has traditionally been 35%.
Requirements
- 1. How much should Carrie request from the insurance company?
- 2. Suppose that one bag of cotton candy mix was spared by the fire. The cost of that bag was $50. How much was the inventory loss under these conditions?
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Students have asked these similar questions
Omaheke ltd is considering purchasing or investing in a new machine, either machine x or machine y. however, a condition of capital rationing exits in the company (meaning due to avilability of funds they can either invest in machine x or machine y and not both) and hence the need for capital budgeting appraisal.
both machines would have an expected life of five years and would be depreciated on a straight line basis. the following information is availble
machine x
machine y
initial cost
450 000
560 000
residual value
50 000
60 000
accounting profits
Machine x
machine y
year 1
60 000
50 000
year 2
70 000
60 000
year 3
70 000
80 000
year 4
40 000
70 000
year 5
30 000
40 000
better limited cost of capital is 10% per annum for which the discount factors are
year 1 = 0.909
year 2 = 0.826
year 3 = 0.751
year 4 = 0.683
year 5 = 0.621
required
(a) for both machines x and y calculate
(i) the accounting rate of return (based on average capital…
??
The product unit cost for Product X this year is:
Chapter 5B Solutions
Financial Accounting-w/cd-package
Ch. 5B - Suppose Base Company began May with inventory of...Ch. 5B - Estimate inventory. (LO 9). Fantasy Games, Inc.,...Ch. 5B - (Estimate inventory. (LO 9). Knick-Knacks wants to...Ch. 5B - Estimate inventory. (LO 9). The following...Ch. 5B - Estimate inventory. (LO 9). The records of Florida...Ch. 5B - Estimate inventory. (LO 9). Hines Fruit Corp....Ch. 5B - Estimate inventory. (LO 9). Carries Cotton Candy...
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