You are given the following information regarding sales and inventory levels over time for your firm: Year Inventory Sales 2019 $7,869 $12,502 2020 $7,297 $13,456 2021 $9,263 $17,845 2022 $7,135 $15,326 2023 $7,749 $14,464 Given this information, determine the level of safety stocks that the firm holds. $1,727 $3,755 $1,268 $2,531 O $3,131
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- 21- According to the information below, what is the cost of goods sold for a business that monitors its stocks using the perpetual inventory method ? TL Stock at the Beginning of the Period Buying During the Period Buying Returns Purchase Expenses Purchase Discounts End of Period Inventory 44,000 65,000 4,000 4,000 1,000 30,000 a) 98,000 TL B) 64,000 TL NS) 92.000 TL D) 96,000 TL TO) 78,000 TLThe data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…
- The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…Please find: Days' sales in inventory, Receivables Turnover, Equity Multipli Use information from the balance sheet and income statement to calculate the following financial ratios and the market value added (MVA). (Whenever balance sheet numbers are used to calculate financial ratios, please ensure that you use the average of the 2019 and 2020 numbers in your calculation. To calculate MVA, you can assume that the average book value number for common stock and paid-in-surplus is the amount that the shareholders initially invested in the company.)Concord Corporation had January 1 inventory of $305000 when it adopted dollar-value LIFO. During the year, purchases were $1820000 and sales were $2990000. December 31 inventory at year-end prices was $429000, and the price index was 110. What is Concord Corporation’s gross profit?
- The comparative inventory balances for December 31, end of the year, for a company are provided below. 20Y6 20Y5 Inventory $100,000 $110,000 Based on this information, what is the percentage of increase or decrease that would be shown in a balance sheet with horizontal analysis?1. The following information is provided in the 2011 annual report toshareholders of The Biz Store:December 31, 2011 December 31, 2010Accounts Receivable Y $ 6 millionInventory $ 25 million $ 20 millionTotal assets $ 250 million XTotal Stockholders Equity W $ 130 millionNet Sales $ 115 millionCost of goods sold ZNet Income UAverage Collection Period 22.2 daysAverage days in inventory 104 DaysEquity multiplier 1.9Return on stockholder Equity 16.0 %Profit Margin on sales 17.4 %ROA VRequired: Compute U-Z in the tableabove. 2. Shown below is the activity for one of the products of Random Creations:January 1 balance, 80 units @ $50 $4,000Purchases:January 18: 40 Units @ $51January 28: 40 Units @ $52Sales:January 12: 30 UnitsJanuary 22: 30 UnitsJanuary 31:45 Units2a. Compute the ending inventory and cost of goods sold assuming RandomCreations uses FIFO.2b. Compute the ending inventory and cost of goods sold assuming RandomCreations uses LIFO and perpetual inventory system.2c. Compute the…Total Stock Administration costa under EOQ model is the sum of: a.Ordering costs and Carrying costs b.Carrying costs and Reoder level costs c.Storage and carrying costs d. Minimum stock costs and reorder quantity 2. The following information pertains to inventory item Zl47 Reorder level 3150 units Reorder quantity 3250 units Minimum Lead time 11 days Maximum Lead time 15 days Minimum demand 90 units per day Maximum demand 260 units per day The minimum stock level is ______ 975 750 2,160 875 3. Annual demand- 2000 units Unit cost- $625 Carrying cost per unit per year – 2% of unit purchase price Odering Cost - $5 What is the highest quantity that should be ordered at any one time? a. 2000units b. 1600 units c. 40units d. 167 units 4. The EOQ for a particular model of laptop is 40units and the annual demand is 2000 units. If the ordering cost is $5, what is the unit carrying cost? a. $0.08 b. $12.50 c. $1,600 d. $20,000 5. Annual demand…
- How to compute this problem? Problem:The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets…Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: UnitsUnit PriceTotal CostJanuary 1Beginning inventory800$11.00$8,800March 51st purchase60012.007,200April 162nd purchase50012.506,250June 33rd purchase70014.009,800August 184th purchase80015.0012,000September 135th purchase90017.0015,300November 146th purchase40018.007,200December 37th purchase50020.3010,150 5,200 $76,700 There are 1,100 units of inventory on hand on December 31.Required:1.Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:(a)FIFO(b)LIFO(c)Weighted-average (round calculations to two decimal places)2.Assume that the market price per unit (cost to replace) of Hall’s inventory on December 31 was $16. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:(a)FIFO lower-of-cost-or-market(b)Weighted-average…Presented below are selected account balances for Johnson Co. as of December 31, 2020. Inventory 12/31/20 $60,050 Cost of Goods Sold $229,610 Common Stock 74,370 Selling Expenses 15,940 Retained Earnings 45,010 Administrative Expenses 37,625 Dividends 17,920 Income Tax Expense 29,930 Sales Returns and Allowances 12,116 Sales Discounts 14,740 Sales Revenue 410,200 Prepare closing entries for Johnson Co. on December 31, 2020.