acct 20
Compute the Cost of an Asset Using the Following Information: The Business purchased Equipment for $100,000. in addition they incurred the following costs; Sales Tax on the Equipment was $10,000 Shipping was $5,000 Monthly Maintenance Supplies for the Equipment was $9,000 Employee Training on using the New Equipment was $11,000.
115,000 135,000 124,000 None of These Choices 100,000 ANSWER: NONE OF THESE 126,000
Compute the Accumulated Depreciation as of DEC-31-2019 Using the Straight Line Method. Our Business purchased a Building for $990,000 on FEB-20-2015 with an estimated useful life of 25 Years. Show your answer as a number ONLY, NO Commas, Dollar Signs or Decimals.
191,400
The Legal Protection for the "Nike Swooosh" is a Trademark.
ANSWER: TRUE
Which Depreciation Method Will Result in the Lowest Income Taxes Due in the First Half of an Assets Life?
DECLINING BALANCE
The Inventory Account is updated after every transaction under a Periodic Inventory System.
FALSE
Assuming a period of Increasing Costs, Net Income will usually be computed the Largest under which Inventory Method ?
FIFO
Which One of the Following is Another Term Used for Property and Equipment ?
Fixed Assets All of These Choices are True Long Lived Assets Capital Assets- last 3 years greater than 2,000 Plant Assets ANSWER: all of the above
WHICH ONE IS TRUE
Intangible Assets are expensed over their Legal Life or Useful life which ever is Shorter.
Select each of the Following that are Inventory Costing Methods:
LIFO FIFO WEIGHTED AVERAGE SPECIFIC UNIT
which one is true?
The FIFO Inventory Costing Method Assumes Ending Inventory Consists of the Oldest Units The Weighted Average Inventory Costing Method Assumes each unit can be specifically identified Correct Answer- The LIFO Inventory Costing Method is the most Advantageous for Tax Savings in a period of Increasing Costs The "Lower of Cost or Market" rule states that Inventory must be shown on the Balance Sheet at Market Value
To Report Asset and Inventory Values Correctly and Accurately and to Keep Income Statements from Being Over Stated, Businesses Must Follow Which "RULE" for Reporting Inventory Values.
The Lower of Cost or Market Rule
Which Depreciation Method will Compute Depreciation Expense that is the Same Amount Every Month ?
answer: straight line
Sales Revenues - ??? = Gross Profit.
cost of goods sold
Which One of the Entries Below, would be included in the Journal Entry to record the Following Transaction? Our Business gives a Discount to a Customer.
debit to sales discount
LIFO Assumes the Oldest Units are Sold First.
false
FIFO is an Acronym for which one of the Following ?
first in first out
Which Inventory Method Assumes the Newest Units are Sold First?
lifo
Name the Inventory System that updates the Inventory Account usually once at the end of the month. Enter your answer as one word, in small case letters only, and spell correctly.
periodic
Name the Inventory System that updates the Inventory Account after Every Transaction. Enter your answer as one word, in small case letters only, and spell correctly.
perpetual
Compute the Amount of Goodwill Recorded. Our Business Purchased the SJ Shark Corp for $230,000 Cash. The Purchase Price included the Following items; Inventory=$33,000, Notes Payable =$88,000, Equipment=$150,000, Receivables=$55,000, Accounts Payable= $22,000. Show your Answer as a Number only, NO Decimals, Dollar Signs or Commas.
purchase price -assets = goodwill 230,000 purchase price 33,000+150,000+5500=238,000 238,000 -110,000=128,000 230,000-128000=102000 88,000+22,00 liabilitis
A FIFO Inventory Costing System assumes that the Most recently purchased units are Kept in Ending Inventory.
true
The Cost of Goods Sold Account is the Largest Expense Account for Most Merchandise and Retail Businesses.
true
Which ONE is True?
1. A Patent is a property right granted by the US Government to exclude others from using their invention or idea. 2.The Units of Activity Method will Compute Depreciation Expense that is the same every Month and Year 3.A Trademark is a legal protection for authors of original works of authorship such as music 4.Copyright is a symbol, word, phrase or Logo that legally distinguishes a company's products The Gain or L ANSWER: a patent is a property granted
Compute The Net Book Value of Our Equipment as of DEC-31-2019, Using the Straight Line Method of Depreciation. Our Business Purchased a Truck for $120,000 on Sept-12-2017 with an estimated useful life of 5 years and 300,000 Miles.
120,000 purchase price 60 month life 120,000/60= 2,000 28 months 2,000*28= 56,000 120,000-56,000= 64,000
Compute the Depreciation Expense for the year ended Dec-31-2019, Using the Units-of-Production-Activity Method of Depreciation. Our Business Purchased a Truck for $300,000 on May-22-2018 with an estimated useful life of 5 years and 200,000 Miles. The Truck was driven 30,000 miles in 2018 and 60,000 miles during 2019.
135,000 None of These Choices 60,000 30,000 90,000 ANSWER: 300,000 / 200,000 =1.50 mile 90,000*1.50= 135,000
Compute the Gross Profit given; Sales Revenues =$110,000 Operating Expenses =$45,000 Cost of Goods Sold =$34,000 Income Tax Expense =$12,000 Enter your Answer as a number only no symbols, commas, dollar signs, or decimals.
76,000
Compute the Gross Profit Percent: Sales Revenues=$600,000, Accounts Payable=$100,000 Cost of Good Sold =$100,000, Operating Expenses = $100,000 Income Tax Rate =30%
83 PERCENT
Compute the Amount of Goodwill, given the following; Our Business Purchased the Eagle Golf Corp for $900,000 Cash. The Purchase Price included the Following Items; Inventory=$250,000,Equipment=$350,000, Receivables=$100,000, Accounts Payable= $50,000 and Notes Payable=$150,000.
900,000 - 500,000 = 400,000 ANSWER= 400,000
Compute the Days-in-Inventory for the Year End Dec-31-2016, given the Following; Cost of Goods Sold for 12-31-2016 = 150,000Cost of Goods Sold for 12-31-2015 = 200,000Ending Inventory 12-31-2016 = 60,000Ending Inventory 12-31-2015 = 20,000Sales Revenues 12-31-2016 = $750,000Sales Revenues 12-31-2015 =$900,000 Inventory Turnover Ratio = COGS / Average Inventory Days-in-Inventory = 365/ Inventory Turnover Ratio
97 days
which one is false?
A Home Builder would most likely Use a Specific Unit Identification Valuation Method. Correct! The LIFO Inventory Valuation method will produce the Largest Ending Inventory Asset Value assuming Increasing Costs. The FIFO Valuation method will produce the Largest Net Income in times of Increasing Costs. The Weighted Average Inventory Valuation method will provide a middle road approach and Avoid Extreme fluctuations on F/S.
Which One of the Entries Below would be Included in the Journal Entry to Record the Following Business Transaction ;Our Business uses a Perpetual System with a FIFO Method Our Business Provided Goods to a Customer on Account for $500,000. The Gross Profit Percent on the Sale was 30%.
DEBIT TO COGS 350,000
What is the Accounting Term used to record the expense of Intangible Assets?
Depletion Accumulated Depreciation Amortization Depreciation Goodwill ANSWER: Amortization
WHICH ONE IS FALSE
Depreciation Expense and Accumulated Depreciation are the same
Which of the Following are Commonly used Methods for Depreciation of Long Term Assets ?
Double Declining Balance Method Compounding Method Perpetual Method Allowance Method Straight Line Method First-in-First-Out Method Units of Activity Method ANSWERS : 1. STRAIGHT LINE METHOD 2. units of activity method 3. double declining method
The Straight Line Method will Compute more Depreciation Expense in the First Year of An Assets Life than the Double Declining Balance Method.
FALSE
Which Inventory Costing Method Assumes that the Oldest Units are Sold First?
FIFO
Which One is an Intangible Asset ?
FRANCHISE
Which One is Not a Capital Expenditure ?
FULL TUNE UP ON A VEHICLE Full Tune up Service on a Vehicle Purchase of a New Vehicle Payment for New Transmission in a Vehicle Replacement of a Vehicle's Engine
The Weighted Average Inventory Costing Method Assumes that each Inventory Item can be Specifically Identified.
False
Use the Following Information to Answer the Questions Below Our Business uses a Perpetual FIFO Inventory Valuation System 1. On Jan 1, We received a $300,000 investment of cash from the Owners. 2. On Jan 5, We Bought 800 Golf Clubs for $50 each, total of $40,000 with a check. 3. On Jan 10, We Bought 800 Golf Clubs for $70 each, total of $56,000 on account. 4. On Jan 15, We paid January Rent in the Amount of $20,000 with a Check. 5. On Jan 25, We Sold 1000 Golf Clubs to the Eagle Club for $200 each, total of $200,000 on account. 6. On Jan 30, We recorded January Salaries of $30,000 to be Paid on 10th of Next Month 7. On Jan 31, We The paid Dividends of $10,000 to the Owners.
Compute The Ending Inventory Dollar Balance at Jan 31 42,00 CCompte the Gross Profit for the Month 146,00 Compute the Net Income for the Month 96,000 Compute the Ending Retained Earnings Balance at Jan 31 86,000 Compute the Ending Total Assets none Compute the Ending Total Owners Equity 386,000
Our Business had the Following Information Related to 2019: Revenues 2019 =$4,500,000 and Revenues 2018 =$4,200,000 Net Income 2019 =$90,000 and Net Income 2018=$75,000 End Total Assets 2019 =$2,000,000 and End Total Assets 2018 =$1,000,000 Return on Assets Ratio = Net Income / Average Total Assets Assets Turnover Ratio = Sales Revenues / Average Total Asset
Compute the Asset Turnover Ratio for 2019 1,000,000+2,000,000=3,000,000/2=1,500,000 4,500,000/1,500,000 = 3 Is this a Good or Bad Ratio for Most Retail Businesses no What is the Standard for a Good Asset Turnover Ratio 7
Our Business had the Following Information Related to 2019: Revenues 2019 =$2,400,000 and Revenues 2018 =$2,000,000 Net Income 2019 =$90,000 and Net Income 2018=$75,000 End Total Assets 2019 =$1,400,000 and End Total Assets 2018 =$1,000,000 Return on Assets Ratio = Net Income / Average Total Assets Assets Turnover Ratio = Sales Revenues / Average Total Asset
Compute the Asset Turnover Ratio for 2019 200% Is this a GOOD or BAD Ratio for Most Retail Businesses ? BAD What is the Standard for a Good Asset Turnover Ratio 250%
Which One of the Following is True? A Copyright is a property right granted by the US Government to exclude others from using their invention or idea. Correct! None of These are True. A Trademark is a legal protection for authors of original works of authorship such as music. A Patent is a symbol, word, phrase or Logo that legally distinguishes a company's products, such as the Nike swoosh.
NONE
Income Before Taxes - Income Tax Expense = ??? Enter your Answer as 2 words, with one space between the words, spell correctly, use all small case letters, no capitals.
Net Income
Select all of the Following that are an Intangible Asset.
PATENT FRANCHISE GOODWILL COPYRIGHT TRADEMARK
The Legal Protection for the Creator or Designer of your Mobile Phone is most likely which one of the Following?
Patent Copyright Trademark Franchise Goodwill ANSWER: Patent
Select the Correct Accounting Term for each Income Statement Item.
Sales Revenues - Sales Returns and Discounts = net sales Net Sales - Cost of Goods Sold = GROSS PROFIT Gross Profit - Operating Expenses = INCOME FROM OPERATIONS Operating Income - Other Income and Expenses = INCOME BEFORE TAXES Income Before Taxes - Income Tax Expense = NET INCOME
What Legal Right most likely protects the Unauthorized use of the LOGO of your Favorite Sports Team.
TRADEMARK
Amortization is the Term used for the Expense of Intangible Assets.
TRUE
Depreciation is the Systematic Allocation of the Cost of an Asset to the periods in which the Asset is used.
TRUE
The Straight Line Method will Compute the same Total Depreciation Expense over the Full Life of An Asset as the Double Declining Balance Method.
TRUE
Which One is True ? "Terms" of "5/10" means a 5 percent discount is given if payment is made within 10 Days. All of the Choices are True. Freight Charges are paid by the Seller when Terms are "FOB Shipping Point" Discounts Our Business gives to Customers will be recorded with a Credit to the Inventory Account Returns of Merchandise made by Our Business to a Supplier will be recorded with a Credit to the Sales Returns Account.
Terms" of "5/10" means a 5 percent discount is given if payment is made within 10 Days.
Which One is True ? The FIFO Inventory Costing Method assumes that the Ending Inventory Consists of the Oldest Units The Perpetual Inventory System will update the Inventory Account only at the end of Each Accounting Period All of the Choices are True The Periodic Inventory System will update the Inventory Account after every Transaction The LIFO Inventory Costing Method assumes that the Cost of Goods Sold Consists of the Newest units
The LIFO Inventory Costing Method assumes that the Cost of Goods Sold Consists of the Newest unit
Which One of the Following is True?
The Straight Line Method will Compute Depreciation Expense that is based on Time not Use The Activity Method will compute Depreciation based on Time and Not Use. The Straight Line Depreciation Method is The Most advantageous method of Depreciation for Tax Reporting. The Double Declining Balance Method will Compute Depreciation Expense that is greater in the Later Years of An Assets Life Correct! The Straight Line Method will Compute Depreciation Expense that is based on Time not Use
Depreciation is the Systematic Allocation of the Cost of an Asset to the periods in which the Asset is used.
True
The Weighted Average Inventory Costing Method Assumes Each Inventory Unit has the Same Value.
True
Which One of the Following is not one of the 4 Inventory Costing Methods ?
Weighted Average FIFO Correct! -Perpetual LIFO
Under what Circumstances would the "Cost of Goods Sold" be computed to be the same dollar value under all Four "Inventory Costing Methods" ?
When All Inventory is Sold When All Inventory has the same Cost
Which One of the Entries Below would be included in the Journal Entry to record the Following Transaction: Our Business Provided Goods to a Customer for $200,000 on Account. The Cost of the Goods was $150,000, using a Perpetual System.
credit to inventory for 150,000
Which One of the Entries Below would be Included in the Journal Entry to record the Following; Our Business made a Sale of Goods of $100,000 to a Customer for Cash and the Cost of the Goods were $40,000.We gave the Customer a Discount of $2,000. The Customer Paid us Cash Less the Discount.
credit to inventory for 40,000
Which One of the Entries Below would be Included in the Journal Entry to record the Following Business Transactions; Our Business made a Sale of Goods for $100,000 to a Customer for Cash. The Cost of the Goods were $40,000. We gave the Customer a Discount of $2,000. The Customer Paid us Cash Less the Discount.
depit to cash for 98,000
An Inventory Turnover Ratio of 9 times is Good for Most Retailers, such as Target or Wal-Mart.
false
Discounts Our Business will get on the Purchase of Inventory will be recorded as Follows; Debit to Cash and Credit to the Sales Discounts.
false
Gross Profit Less Operating Expenses Equals = Income Before Taxes.
false
If a Sale on Account has Terms of 2/20, That means there will be a 20 percent Discount Allowed if the Payment is made within 2 weeks.
false
In a Perpetual Inventory System the Inventory Account will be updated monthly, only at the end of each month.
false
True or False The Journal Entry to Record the Sale of Goods to a Customer on Account for $800,000 with a Gross Profit Percent of 60%, is Shown Below ? Debit to Accounts Receivable $800,000 Credit to Sales Revenues for $800,000 Debit to COGS for $480,000 Credit to Inventory for $480,000
false
Sales Revenues - Cost of Goods Sold = ???
gross profit
Sales Revenues Less Cost of Goods Sold Equals = ??? Enter your answer as 2 words only with one space in between, spell correctly, use all small case letters.
gross profit
FOB Destination, means that the Seller pays for the Shipping Costs.
true
The Weighted Average Method of Inventory Costing, averages All inventory Costs to obtain a common value per unit.
true
Use the Following Information to Answer the Questions Below: The SF Giants Corp Sells Baseball Hats and they use a Periodic Inventory Costing system 1. On March 1, The SFG Corp Bought 500 Hats at $10 each. 2. On March 10, The SFG Corp Bought 500 Hats at $12 each. 3. On March 15, The SFG Corp Bought 500 Hats at $14 each 4. On March 20, The SFG Corp Bought 600 Hats at $15 each. 5. On March 31, The SFG Corp Counted 900 Hats remaining in Inventory Assume that All Hats that were Sold for $20 Cash Each.
Compute the Cost of Goods Sold using the FIFO Method 13,800 Compute the Ending Inventory Value using the LIFO Method 9,800 Compute the Gross Profit using the Weighted Average Method 8,568 Compute the Gross Profit using the LIFO Method 6,800 Which method would be Best to Reduce Income Taxes in this Problem LIFO
Goodwill will be Recorded when ?
A.When a Business Issues a Franchise B.When a Business gets legal protection for a New Idea C.All of the Above are True D.When a Business Issues Stock to the Public E. When one Business buys another Business Answer : WHEN ONE BUSINESS BUYS ANOTHER BUSINESS
When an Asset is said to be "Capitalized", It is being Recorded How ?
ANSWER: AS AN ASSET
What is the Term for the Calculation for the Use of Property and Equipment from the First Day of Use through a Specific Date ?
ANSWER: Accumulated Depreciation
The Legal Protection for the Creator of your Favorite Movie is most likely which one of the Following?
ANSWER: COPYRIGHT
Which Depreciation Method Will Result in the Lowest Income Taxes Due in the First Half of an Assets Life?
ANSWER: Declining Balance
The Legal Protection for the Creator of your Favorite Sports Logo is most likely which one of the Following?
ANSWER: TRADEMARK
Which One is True of the Multiple Step Income Statement ? Gross Profit - Operating Expenses = Net Income Sales Revenues - Cost of Goods Sold = Net Sales Sales Revenues - Sales Returns and Discounts = Gross Profit Correct! Operating Income +/- Other Income/Expenses = Income Before Taxes
Correct! Operating Income +/- Other Income/Expenses = Income Before Taxes
What 2 Accounts are used to record Transactions for Merchandise Firms Only and NOT for Service Firms?
Cost of Goods Sold and Inventory
Which 2 Accounts are Unique to a Retailer or Merchandise Business ?
COGS & INVENTORY
The Legal Protection for the Creator of your Favorite Song is most likely which one of the Following?
COPYRIGHT
Use the Following Information to Answer the Questions Below.. A. On June 5th, 2014 Our Business Purchased a YACHT for $2,400,000 Cash. B. The YACHT has an estimated Useful Life of 10 years and will be Depreciated using the Straight Line Method of Depreciation. C. On March 31, 2016 The Business Sold the YACHT for $1,000,000 Cash. D. Show all of your Answers as a Number only, NO Dollar Signs, Decimals, or Commas. show any losses inside parens like this (1000). QUESTIONS Compute the Accumulated Depreciation as of Dec-31-2014= Compute the Accumulated Depreciation as of DEC-31-2015= Compute the Depreciation Expense for the Year Ended DEC-31-2015= Compute the Net Book Value as of March-31-2016= Compute the Gain or (Loss) on the Disposal of the Fixed Asset =
20,000 a month 22 months owned Depreciation as of Dec-31-2014= 20,000*7=140,000 Compute the Accumulated Depreciation as of DEC-31-2015= 20,000*19= 380,000 Compute the Depreciation Expense for the Year Ended DEC-31-2015= 12*2000= 240,000 Compute the Net Book Value as of March-31-2016=440,000 2,400,000-440,00= 1,500,060 Compute the Gain or (Loss) on the Disposal of the Fixed Asset = -500,060 or in parenthesis
Compute the Cost of the Following Asset: Our Business purchased some Equipment for $200,000, in addition we had the following costs; Sales Tax on the Equipment was $10,000, Shipping was $4,000, Installation of the Equipment was $6,000, and Supplies for the Equipment were $3,000, and Employee Training on the Equipment was $7,000. Show your Answer as a number ONLY, NO Dollar signs, commas, or Decimals.
227000
Compute the Depreciation Expense for the Year Ended DEC-31-2019, Using the Straight Line Method: Our Business purchased a Truck for $120,000 on July-04-2018 with an estimated useful life of 5 years and 250,000 Miles. The Truck was driven 20,000 miles in 2018 and 60,000 miles during 2019. Show your answer as a Number ONLY, NO commas, Dollar Signs, or Decimals.
24,000
Compute the Average Days-in-Inventory for 2016: Sales Revenues for 2016 = $900,000 COGS for 2016 = $600,000 COGS for 2015 = $500,000 End Inventory for 2016 = $70,000 End inventory for 2015 = $30,000. Average Days-in-Inventory = 365 / Inventory Turnover Ratio Inventory Turnover Ratio = COGS / Avg Inventory Balance Show your answer as a Number Only, no decimals or other symbols and round to the nearest Day.
30 days
Compute the Accumulated Depreciation as of 12-31-2019, Using the Straight Line method of Depreciation. Our Business Purchased a Truck for $300,000 on May-20-2018 with an estimated useful life of 5 years and 200,000 Miles.
30,000 95,000 90,000 60,000 35,000 300,000/60=5,000 a month 7 months +12=19 5000*19= ANSWER: 95,000
Compute The Net Book Value of a Building as of DEC-31-2019, Using the Straight Line Method. Our Business Purchased a Building for $810,000 on April-10th-2013 with an estimated useful Life of 25 years. Show your Answer as a number only, no Decimals, Dollar Signs or Commas.
300 months life 810,000/300= 2,700 81 months *2,700=218,700 810,000-218,700= 591,300
Compute The Net Book Value of the Truck at DEC-31-2019, Using the Straight Line Method. Our Business Purchased a Truck for $60,000 on Sept-25-2017 with an estimated useful life of 5 years and 250,000 Miles. Show your Answer as a Number only Do Not include commas, decimals, or dollar signs.
33,000
Compute the Accumulated Depreciation as of DEC-31-2019 Using the Units of Production Activity Method. Our Business purchased a Truck for $120,000 on July-04-2018 with an estimated useful life of 5 years and 250,000 Miles. The Truck was driven 20,000 miles in 2018 and 60,000 miles during 2019. Show your Answer as a number ONLY, NO commas, decimals or Dollar Signs.
38,400
Compute the Gain or Loss on the Disposal of a Fixed Asset given the Following;jThe Asset was purchased for $42,000 on April-12-2016.The Asset has a Useful Life of 7 Years.The Asset is Depreciated Using the Straight Line Method.The Asset was Sold for $20,000 on May-5-2019.Show your Answer as a number only, NO Decimals, Dollar Signs or Commas. If your Answer is a Loss show your Answer with Parens, as follows (100) if needed.
42,000/7*12= 500 37 months *500= 18,500 42,000-18500= 23,500 loss of 3,500
Compute the Average Days-in-Inventory for 2015; Sales Revenues for 2015 = $600,000 COGS for 2015 = $500,000 COGS for 2014 = $400,000 End Inventory for 2015 = $110,000 End inventory for 2014 = $50,000. Average Days-in-Inventory = 365 / Inventory Turnover Ratio Inventory Turnover Ratio = COGS / Avg Inventory Balance Show your answer as a Number Only, no decimals or other symbols and round to the nearest Day.
58
Compute the amount of Goodwill; Our Business Purchased the Eagle Golf Corp for $1,100,000 Cash. The Purchase Price included the following Items: Inventory=$300,000, Notes Payable =$100,000 Property and Equipment=$400,000 Receivables=$100,000, Accounts Payable= $200,000. Show your answer as a Number only, NO commas, decimals, or dollar signs.
600,000
Compute the Gross Profit given; Sales Revenues =$110,000 Cost of Goods Sold =$45,000 Operating Expenses =$34,000 Income Tax Expense =$12,000 Enter your Answer as number only no symbols, commas, dollar signs, or decimals.
65,000
Use the Following Information to Answer the Questions Below The SF Giant Corp Sells Hats Using a Periodic Inventory Costing system 1. On March 1, The SFG Corp Bought 600 Hats at $10 each. 2. On March 10, The SFG Corp Bought 400 Hats at $12 each. 3. On March 15, The SFG Corp Bought 400 Hats at $15 each 4. On March 20, The SFG Corp Bought 600 Hats at $16 each. 5. On March 31, The SFG Corp Counted 500 Hats remaining in Inventory 6. Assume that All Hats that were Sold, Sold for $40 Each for Cash.
Compute the Dollar Value of the Cost of Goods Sold using the FIFO Method A: 18,400 Compute the Dollar Value of the Cost of Goods Sold using the Weighted Average Method A: 19,800 Compute the Dollar Value of the Ending Inventory using the LIFO Method A: 5,000 Compute the Dollar Value of the Ending Inventory using the FIFO Method A: 8,000 compute the Gross Profit Using the FIFO Method A:41,600 Compute the Gross Profit Using the Weighted Average Method none Which Method Would be the Best to Use to Obtain a Loan with the Bank, Using the Info from this Problem fifo
Use the Following Information to Answer the Questions Our Business uses a Perpetual LIFO Inventory Valuation System 1. On Jan 1 Our Business received a $300,000 investment of cash in exchange for Common Stock. 2. On Jan 11 Our Business Bought 500 Golf Clubs for $60 each, total of $30,000 with a check. 3. On Jan 16 Our Business Bought 600 Golf Clubs for $70 each, total of $42,000 on account. 4. On Jan 30 Our Business Sold 800 Golf Clubs to the Coyote Creek Club for $100 each, total of $80,000 on account. 5. On Jan 30 Our Business paid Jan Operating Expenses of $12,000 with a check. 6. On Jan 31 Our Business Paid the Owners of the Business $6,000 with Checks.
Compute the Gross Profit =26000 Compute the Net Income 14,000 Compute the Ending Inventory Dollar Value 18,000 Compute the Ending Retained Earnings Balance 8,000 Compute the Ending Total Assets 350,000 Compute the Ending Total Liabilities 42,000 Compute the Ending Total Owners Equity 308,000
Use the Following Information to Compute the Ratios BelowCost of Goods Sold for 12-31-2014 = 750,000Cost of Goods Sold for 12-31-2013 = 900,000Ending Inventory 12-31-2014 = 75,000Ending Inventory 12-31-2013 = 25,000Sales Revenues 12-31-2014 = $1,000,000Sales Revenues 12-31-2013 =$1,500,000 Inventory Turnover Ratio = COGS / Average Inventory Days-in-Inventory = 365/ Inventory Turnover Ratio
Compute the Inventory Turnover Ratio for Year Ended 12-31-2014 15 times Correct! Compute the Days In Inventory for the Year Ended 12-31-2014 24 days
Our Business had the Following Information Related to 2019: Revenues 2019 =$4,500,000 and Revenues 2018 =$4,200,000 Net Income 2019 =$90,000 and Net Income 2018=$75,000 End Total Assets 2019 =$2,000,000 and End Total Assets 2018 =$1,000,000 Return on Assets Ratio = Net Income / Average Total Assets Assets Turnover Ratio = Sales Revenues / Average Total Asset
Compute the Return on Assets Ratio for 2019 Is this a Good or Bad Ratio for Most Retail Businesses ? good What is the Standard for a Good Return on Assets Ratio
Which One would be considered a Capital Expenditure ?
Cost of an Oil change on a Vehicle None of these Choices Cost of a New Engine in a Vehicle Cost to Purchase a New Tire for a Vehicle Cost of Replacing a Battery in a Vehicle ANSWER: cost of a new engine in a vehicle greater than 2000 and last long
