Gross Profit Method: Estimation of Flood Loss
On November 21, 2016, a flood at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $9,200. The following information was available from Hodge's accounting records for Product Tex:
Inventory at November 1, 2016 $96,000
Purchases from November 1, 2016, to date of flood 131,000
Net sales from November 1, 2016, to date of flood 250,000
Based on recent history, Hodge had a gross margin (profit) on Product Tex of 30% of net sales.
Required:
1. Prepare a schedule to calculate the estimated loss on the inventory in the flood, using the gross profit method.
HODGE COMPANY
Calculation of Estimated Loss on Inventory
in the Flood Using Gross Margin (Profit) Method
November 21, 2016
$
$
Estimated cost of goods sold
$
$
$
2. The gross profit method may not provide an accurate estimate of ending inventory when:

Answers

Answer 1

Answer:

                                  Hodge Company

            Calculation of Estimated Loss on Inventory  in the

                 Flood Using Gross Margin (Profit) Method

                                   November 21, 2016

Inventory at November 1, 2016                                       $96,000

Purchases from November 1, 2016                                 $131,000

to date of flood  

Cost of goods available for sale                                     $227,000

Estimated cost of goods sold:

Net sales from November 1, 2016          $250,000

to date of flood  

Less: Estimated gross margin                 $75,000          $175,000

(250,000 * 30%)

Estimated cost of inventory at date of flood                   $52,000

Less: Salvage goods                                                         $9,200

Estimated loss on inventory in the flood                       $42,800


Related Questions

The Least used communication
channel in an organization is usually
Select one:
a. Horizontal
b. Downward
c. Diagonal
d. Upward

= Horizontal​

Answers

The answer should be A

What is the purpose of preserving historical data?
A.
legal compliance
B.
recruitment
C.
leave sanctions
D.
payroll

Answers

Answer:

What is the purpose of preserving historical data?

A.legal compliance

Why is a spending plan an important part of financial planning? Choose all that are correct. а b C Helps to manage your money in a positive manner Helps to set and reach goals Tells you what your net worth is Helps to analyze the opportunity costs of your trade-offs to maximize financial well-being Can help to Increase net worth ​

Answers

Answer:

- Helps to manage your money in a positive manner.

- Helps to analyze the opportunity costs of your trade-offs to maximize financial well-being.

- Can help to increase net worth.

Explanation:

Having a Spending plan is very crucial to ensure that you have a sufficient amount of money every time in order to use it in time of need or emergency. It helps in keeping control and management of the money you spend which promotes a managed financial future. This further enhances your net worth as an individual by preventing unnecessary expenses and also assist in attaining financial goals more effectively and efficiently.

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.
Group of answer choices

equity

utilitarianism

validity

righteousness

justice

Answers

Answer: Justice.

Explanation: Justice is a moral principle that leads people to act in the correct way according to established laws. When speaking at the business level, justice seeks that people are paid in a reasonable way according to their functions, that there is no inequality, and that everyone can receive the treatment they deserve.

5) Clark Imports sold a depreciable plant asset for cash of $35,000. The accumulated
depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under
these circumstances, the original cost of the asset must have been:

Answers

Answer:

$110,000

Explanation:

For depreciation, a loss or gain is realized by subtracting the selling price from the book value. Accumulated depreciation is the total amount that has been deducted as depreciation amount.

I.e., profit or loss = selling price - book value

In this case, a loss of $5000 was realized, the selling price was $35,000. The book value must have been $40,000.

$35,000 - $40,000 = - $5,000

The original cost will be the book value + depreciation amount

=$40,000 +$70,000

=$110,000

If an audience doesn't trust you, they won't listen to you. To establish credibility, speakers must earn the audience's trust. What do you think a speaker can do to establish themselves as credibile and trustworthy? What are some things speakers may do that take away from their credibility?

Answers

Answer:

Lies.

Explanation:

If i say i'm a rich and talented speaker I better have the proof to back it up otherwise they'll know "I'm" just a phony and all talk. To make urself trustworthy u have to borrow and the day after return somebody's money, or just always do what u say ur going to.

$400 invested with compound interest at a rate of 3% per year for 2 years. Formula: M = P(1+ i)n

Answers

Answer:

$424.36

Explanation:

The applicable formula =M= P ( 1+ r)^2

Where M is the amount after two years

P = principal amount: $400

r = interest rate: 3% or 0.03

n =number of period :2

M= $400 x ( 1+ 0.03) ^ 2

M=$400 x 1.0609

M= $424.36

Real and nominal income is calculated respectively at----

Select one:
a. Current price and current price
b. Constant price and Constant price
c. Current price and Constant Price
d. Constant price and Current price

= Constant price and Current price​

Answers

Answer: Constant price and Current price

Explanation:

Real income and nominal income is calculated respectively at the constant price and the current price.

The constant prices has to do with the real values that has taken inflation into consideration. They are typically in real value.

The current prices are the prices of goods and services at a particular point in time. Current prices are typically in nominal value.

Therefore, the answer is option D.

What is my GPA if you have 5 A's and 1 F

Answers

Answer:

Honesly I don't really now but I could probobly find out

3.3 would be your gpa

During the year, the Senbet Discount Tire Company had gross sales of $1.14 million. The firm’s cost of goods sold and selling expenses were $533,000 and $223,000, respectively. The firm also had notes payable of $880,000. These notes carried an interest rate of 7 percent. Depreciation was $138,000. The firm’s tax rate was 35 percent.
What was the firm’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Answers

Answer:

$319,460

Explanation:

Calculation for the firm’s operating cash flow

First step is to calculate EBIT and Taxes

Sales $1,140,000

Less Cost of goods sold 533,000

Less Selling costs 223,000

Less Depreciation 138,000

EBIT $246,000

Interest 61,600

(7%*$880,000)

Taxable income $184,400

(246,000-61,600)

TAXES 64,540

(35%*$184,400)

Now let calculate the firm’s operating cash flow using this formula

Operating cash flow = EBIT + Depreciation - Taxes

Let plug in the formula

Operating cash flow = $246,000 + $138,000 - $64,540

Operating cash flow = $319,460

Therefore the firm’s operating cash flow is $319,460

. Explain the puropose of the project charter ? Explain 3 tools and techniques that can be used to develop it

Answers

Answer:

It provides a preliminary delineation of roles and responsibilities, outlines the project's key goals, identifies the main stakeholders, and defines the authority of the project manager. A project charter should: Contain the essence of the project. Provide a shared understanding of the project

Explanation:

Develop a Project Charter - Tools and Techniques

Expert Judgment: A crucial step in executing the project by taking opinions from subject matter experts, garnering valuable inputs and understanding the business case complexity related to the project. ...

Data Gathering. ...

Interpersonal and Team Skills. ...

Meetings.

Rodriguez Corporation issues 8,000 shares of its common stock for $208,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.

a. The stock has a $14 par value.
b. The stock has neither par nor stated value.
c. The stock has a $7 stated value.

Answers

Answer:

A. Dr Cash $208,800

Cr Common stock, $14 par value $112,000

Cr Paid-in capital in excess of par value,common stock $96,800

B. Dr Cash $208,800

Cr Common stock, no-par value $208,800

C. Dr Cash $208,800

Cr Common stock, $7stated value $56,000

Cr Paid-in capital in excess of statedvalue, common stock$152,800

Explanation:

Preparation of Journal entries

a. The stock has a $14 par value.

Dr Cash $208,800

Cr Common stock, $14 par value $112,000

($14 par value*8,000 shares)

Cr Paid-in capital in excess of par value,common stock $96,800

($208,800-$112,000)

b. The stock has neither par nor stated value.

Dr Cash $208,800

Cr Common stock, no-par value $208,800

c. The stock has a $7 stated value.

Dr Cash $208,800

Cr Common stock, $7stated value $56,000

($7 par value*8,000 shares)

Cr Paid-in capital in excess of statedvalue, common stock$152,800

($208,800-$56,000)

Congratulations! You just graduated with a degree in management. As you reflect on your school experience, you make a list of the reasons you were so efficient with your studies. Which of the following statements relate specifically to your efficiency?

a. Last year, you reviewed the course schedule to ensure you knew when to enroll in certain electives that are offered per year.
b. When registration opened for each term, you immediately registered for the classes you needed, especially the quickly.
c. Throughout your time in you chose electives that would provide you with a education, and based on easy you heard classes were.
d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date.

Answers

Answer: After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation

Explanation:

Efficiency has to do with one's ability to achieve a particular goal while avoiding wastage. One who does something efficiently, does that particular thing sufficiently.

The option that relates to efficiency is option D "After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date".

This brings about efficiency as one is on track to achieving a goal.

Loggers are much __________ likely to supply wood to the market if property rights are not enforced.

Classify the source of market failure in each case listed.

a. A house party plays music at a very high volume, disturbing other residents in the neighborhood.
b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity.

Answers

Answer:

Loggers are much more likely to supply wood to the market if property rights are not enforced.

When property rights are not well enforced, ownership of the resource is not well defined either. This will lead to more people taking advantage of the resource like the loggers above. They will supply more wood because the ownership of their resource source is not well defined.

Options for the 2 questions below are Market Failure or Externality.

a. A house party plays music at a very high volume, disturbing other residents in the neighborhood. EXTERNALITY.

This is a negative externality. Negative externalities are when third parties suffer negative consequences as a result of transactions that they are not a party to. The neighbors are not playing music but it is disturbing them.

b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity. MARKET POWER.

The Utility company is not facing competition in this state and so can set the price it wants. This can lead to market failure simply because the company would have too much market power.

Sample
is the number of people questioned for a survey.

Answers

Answer: could you add the picture of the survey

Explanation:

Using the following routing information and a From-To Chart, determine the total flow efficiency of the parts assuming an alphabetical order. Give your results in terms of percentage, not as a decimal value, i.e., 54.3 as opposed to .543.
Part Order Relative Weighted Value
1 R E B D C A S 4
2 R A B C D E S 2
3 R C B D A E S 3

Answers

Answer:

hello your question is incomplete attached below is the complete question

answer: 28.12%

Explanation:

The first table is the allotting of relative weighted value in from to chart and also finding the Total.

The second table is found by multiplying 1-times cell distance in the upper 2-times with cell distance in lower triangular values.

Hence Flow efficiency = (Total / penalty ) * 100

                         = ( 36 / 128 ) * 100 = 28.12%

The difference between indirect tax and subsidy is known as:

Select one:
a. Net Indirect Tax
b. Depreciation
c. Capital consumption allowances
d. Net Factor Income from Abroad

= Net Indirect Tax​

Answers

Answer:

A. Net Indirect Tax

Explanation:

Net Indirect Tax is the difference between the Indirect tax and subsidy. To find out Market Prices (MP), indirect taxes are added and subsidies are subtracted from Factor Cost (FC) as explained above. In short, MP includes net indirect tax whereas FC does not.

Answer:

Net indirect tax is the difference

The Oklahoma Department of Transportation (ODOT) is looking at the purchase of a new technology for asphalt paving of major highways. The new machine will cost $1,000,000 and is expected to provide a net revenue of $150,000 per year for 9 years. There is no salvage value for this machine. If MARR=10% per year, what is the exact IRR for this project?
A. 15.15%
B. 13.68%
C. 6.47%
D. 2.14%

Answers

Answer:

Option C (6.47%) is the right answer.

Explanation:

The given values are:

New machine's cost,

= $1,000,000

Net revenue,

= $150,000

Time,

= 9 years

MAAR,

= 10% per year

Now,

On taking, i = 5%

⇒ PW(5%) = [tex]-1,000,000 + 150,000(\frac{P}{A} , 5 \ percent, 9)[/tex]

                 = [tex]-1,000,000 + 1,066,200[/tex]

                 = [tex]66,200[/tex]

On taking, i = 10%

⇒ PW(10%) = [tex]-1,000,000 + 150,000(\frac{P}{A} , 10 \ percent, 9)[/tex]

                  = [tex]-1,000,000 + 863,85 0[/tex]

                  = [tex]-136,150[/tex]

By interpolation, we get

⇒ [tex]i=5 \ percent + [\frac{66,220-0}{(66,200-(-136,150)} ]\times (10 \ percent - 5 \ percent)[/tex]

⇒   [tex]=0.05 + (\frac{66,220}{202,350} )\times 0.05[/tex]

⇒   [tex]=0.0663[/tex]

i.e.,

⇒   [tex]= 6.63 \ percen t[/tex]

If the equipment account has a balance of INR. 22,50,000 and the accumulated depreciation
account has a balance of INR. 14,00,000, the book value of the equipment is
Select one:
O a. 8,50,000
O b. 17,00,000
O c. 14,00,000
O d. 36,50,000

Answers

Answer:

a. 8,50,000

Explanation:

Account balance INR, 22, 50,000

Accumulated depreciation INR. 14,00,000

The book value is the difference between the account balance and the accumulated depreciation

= INR, 22,50,000 - INR. 14,00,000

=INR, 8,50,000

what are the similarities between scientific theory and bureaucratic theory?

Answers

Answer:

The Scientific Theory is based on using data and human strengths to increase output, while the Bureaucratic management style focuses on hierarchies and tight job roles. Regardless of the organization, the goals remain the same across the board. Every organization strives to minimize costs, while maximizing output.

The job satisfaction of an employee
is depending on the
Select one:
a. Behaviour
b. Attitude
c. Employer
d. Personality

= Attitude ​

Answers

Answer:

Job satisfaction depends on several different factors such as satisfaction with pay, promotion opportunities, fringe benefits, job security, relationship with co-workers and supervisors, etc. ... Factors affecting the level of job satisfaction are; Working Environment.

ATTITUDE

Job satisfaction and also organizational responsibility are two key attitudes that are considered applicable to important outcomes. The Correct option is 'B'.

What is Job Satisfaction?

Job Satisfaction is the essential segment of employee motivation and motivation towards more satisfactory interpretation.

Many people have determined job satisfaction and memorialized that most employees have issues with their leader who is not presenting them the consideration they deserve.

Supervisors also conduct harsh behaviors toward workers due to which they are not satisfied sharing good and creative ideas with their leaders.

Job satisfaction relies on several different elements such as satisfaction with pay, fringe benefits, promotion opportunities, relationship with co-workers job security, supervisors, etc.

Elements affecting the status of job satisfaction are; Working Environment.

Therefore, The correct option is 'B' ATTITUDE.

Find more information about Job Satisfaction here:

https://brainly.com/question/3292050

Equivalent units for the molding department totaled 18,600 during January for conversion costs. Fifteen thousand units were transferred out to the finishing department. If the items remaining in ending inventory are 40% complete as to conversion costs and 80% complete as to materials, how many physical units are in ending inventory?

Answers

Answer:

9,000 units

Explanation:

The 15,000 units transferred to the finishing department were 100% complete with respect to material and conversion cost. The balance 18,600 - 15,000 = 3,600 equivalent units are there at the ending inventory with respect to conversion cost. The ending inventory is 40% complete with respect to conversion cost. These equivalent units have been calculated as below:

=> Physical units in ending inventory * Degree of completion with respect to conversion cost = Equivalent units

Physical units * 40% = 3,600

Physical units = 3,600 / 40%

Physical units = 9,000 units

So, the Physical units in ending inventory is 9,000 units

Which of the following is NOT a factor in selecting a pricing method?

Auditory preferences

Costs

Competition

Perceived value

Answers

Answer:

perceived value

Explanation:

goodluck

if quantity demamded is completely unresponsive to changes in price ,demand is what?​

Answers

Answer:

If quantity demanded is completely unresponsive to changes in price, demand is Perfectly inelastic.

Explanation:

Perfectly inelastic demand means that quantity demanded remains the same when price increases or decreases. Consumers are completely unresponsive to changes in price.

I hope it's helpful

An economist will consider the sunk cost of a product line before recommending an improvement to the product. True or false

Answers

Answer:

false

Explanation:

Beth, a recent college graduate, recognizes that she has lots of nice "stuff," largely thanks to her family buying it for her. Beth also recognizes that she has a lot of debt, thanks to her student loans. When Beth considers the difference between the monetary value of her possessions and other financial assets and her debt, she is best described as pondering her:______

a. income.
b. class position.
c. prestige.
d. wealth

Answers

Answer:

D

Explanation:

Wealth is the value of all the assets a person owns

Beth is pondering on the value of all her assets less her debt. So, she is pondering on her wealth

During 2021, its first year of operations, American Laminating Corporation reported an operating loss of $120 million for financial reporting and tax purposes. The enacted tax rate is 25%. In 2019, American reported a pretax accounting income of $40 million and applies a net operating loss carryforward up to 80% of taxable income. Which of the following is incorrect?

a. Income tax payable in 2018 is zero.
b. Net loss in 2018 is $79 million.
c. The deferred tax asset balance at the end of 2018 is $21 million.
d. The deferred tax asset balance decreases in 2019.
e. Income tax expense in 2019 is zero.

Answers

Answer: e. Income tax expense in 2019 is zero.

Explanation:

There will still be an income tax in 2019 so the above statement is incorrect.

American applies net operating loss carryforward up to 80% of taxable income which means that their taxable income is:

= 40,000,000 * ( 1 - 80%)

= $8,000,000

Income tax expense for 2019:

= 25% * 8,000,000

= $2,000,000

At the beginning of 2018, Artichoke Academy reported a balance in common stock of $151,000 and a balance in retained earnings of $51,000. During the year, the company issued additional shares of stock for $41,000, earned a net income of $31,000, and paid dividends of $10,100. In addition, the company reported balances for the following assets and liabilities on December 31.
Assets Liabilities
Cash $ 52,700 Accounts Payable $ 7,100
Suppies 11,000 Utilities Payable 2,600
Prepaid Rent 24,500 Salaries payable 3.600
Land 205,000 Notes payable 16,000
Required:
Prepare a statement of stockholders' equity.

Answers

Answer:

$261,900

Explanation:

Preparation of a statement of stockholders' equity

Statement of stockholders' equity:

Beginning balance Jan1 $200,000

($151,000+$51,000)

Add Issuance of common stock $41,000

Add Net income $31,000

Less Dividend ($10,100)

Statement of stockholders' equity $261,900

Therefore the stockholders' equity will be $261,900

Which of the following situations generally exists when disinflation occurs?

Select one:
a. the rate of inflation is falling from 5% to 3%
b. the rate of inflation falling from 3% to -2%
c. 3% decrease in inflation and 2% fall in unemployment rate
d. 5% increase in inflation and 3%
increase in unemployment rate

= the rate of inflation is falling from 5% to 3%

Answers

Answer:

d. 5% increase in inflation and 3% increase in unemployment rate

Explanation:

Disinflation is a term that describes the slowing down of the rate of inflation. Disinflation will occur when inflation was rising at a high rate, and then it starts to rise at a decreasing rate.  Disinflation may be a result of contractionary measures.

Disinflation is a positive situation in the economy because it represents a corrective measure. Inflation was rising at a high rate but has since started to slow down. Disinflation is different from deflation, which is a negative inflation rate. Inflation slowing from 5% to 3% is disinflation.

Suppose you are conducting an analysis of the financial performance of Green Caterpillar Garden Supplies Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company's relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios.
Ratios Calculated
Year 1 Year 2 Year 3
Price-to-cash-flow 6.20 8.06 9.03
Inventory turnover 12.40 14.88 16.67
Debt-to-equity 0.30 0.32 0.38
Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report?
A. The company's creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time.
B. The market value of Green Caterpillar Garden Supplies Inc.'s common shares declined over the three years.
C. A plausible reason why Green Caterpillar Garden Supplies Inc.'s price-to-cash-flow ratio has increased is that investors expect higher cash flow per share in the future.
. An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better inventory management.

Answers

Answer:

The answer "Option C and Option D".

Explanation:

In Option A, This statement doesn't apply because its rise throughout the debt ratio contributes to a reduction in financial health. In Option B,  This statement doesn't apply because the industry value of the stock could not be assumed to decrease.  In Option C, This statement applies because the price-to-cash flows increase might be due to shareholders anticipating additional cash flow for each stock. In Option D,  This statement is applicable because its increasing inventory selling ratio reflects the enhanced inventory control.
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