You are given the following information relating to Boy Band Trading: Gross profit rate based on sales- 20% Accounts Receivable, Dec. 31, 2020 - P1,200,000 Collections on accounts receivable during 2021 - P4,450,000 Cost of goods available for sale during 2021 - P6,700,000 Merchandise Inventory, Dec. 31, 2021 - P1,500,000 Of the total sales during the year, seventy-five percent (75%) were made on account. What was the company’s Accounts Receivable balance at December 31, 2021?

Q: Income Statement For the Year Ended April 30, 2020 $7,700,000 Sales revenue Cost of goods sold…

A: Cashflow statement prepared using the indirect method adjust  net income to calculate the cashflow…

Q: Following are data for December 31,2021: $5,365,000 Net sales Cost of sales, and related buying…

A: The ratio analysis helps to analyze the financial statements if the business.

Q: Compute for the net sales that would be reported in LIVA company's Income Statement. You are to be…

A: Calculation of Gross Sales Gross Sales = Goods available for Sale at retail – Ending Inventory at…

Q: Paco Ltd had the following for the year ended 2020: Ending inventory =$400,00 Opening inventory =$…

A: Cost of sales can be computed by adding the opening Inventory with the purchases made and the total…

Q: Prepare a multi-step income statement for Prestige Traders and General Merchandise for the year…

A: Income statement means the statement which show the cost of goods sold and selling price and give…

Q: GANDA Co. has a recent gross profit history of 40% of net sales. These data are taken from the…

A: Cost of goods sold = Beginning inventory + Net purchases + Freight in - Ending inventory

Q: Following are data foE Net sales $5,365,000 Cost of sales, and related buying costs Accounts…

A: The ratio analysis helps to analyze the financial statements of the business.

Q: Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented…

A: Profit margin is a ratio which indicated that how much profit has been generated for each dollar of…

Q: Hola Corporation’s shipments to and from its Manila branch are billed at 125% of cost. On December…

A: Generally, the head office sends goods to a branch at a price above the cost that is at a markup.…

Q: On January 1, 2020, the merchandise inventory of Shoesmith Corp. was $600,000. During 2020,…

A: Sales Revenue in the business is made up of cost of goods sold and gross profit.  Sales Revenue =…

Q: Assume the following are for Bubba Co. for 2019: Sales $980,000; Merchandise inventory January 1,…

A: Sales less Cost of goods sold is gross profit: Gross profit = Sales - Cost of goods sold. First,…

Q: The June 30, 2021, year-end trial balance for Askew company contained the following information:…

A: Cost of goods sold statement shows all costs that is incurred for manufacturing and selling of…

Q: Gross profit rate based on sales- 20% Accounts Receivable, Dec. 31, 2020 - P1,200,000 Collections on…

A: Solution: Cost of goods sold = Cost of goods available for sale - Ending inventory = 6700000 -…

Q: The following information is available for Splish Brothers Inc. for three recent fiscal years.…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of…

A:

Q: Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000…

A: Cost of goods sold means the cost incurred on the goods which has been sold out. For calculating…

Q: Old Rose Company's pricing structure has been established to yield a gross margin of 30%. The…

A: Trading account is prepared to find out gross profit or loss during the specified period. All…

Q: First question/ you have the following data about Basra Trading Company for its first year ending on…

A: Financial Statements are the end products of the accounting process. They provide information about…

Q: Assume figures were presented for the past 5 years on merchandise sold at Chicago department and…

A: Trend analysis means where data and information of last few year has been taken in to consideration…

Q: The following information pertains to ABC Company for 2021: Inventory at December 31, 2021 P16,000…

A: Inventory (beginning) = Cost of goods sold - Purchases + Inventory Dec 31=80,000-72,000+16000=24,000

Q: Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: The following information is available for cullumber company for three recent fiscal years.…

A: Solution:- Calculation of Inventory turnover ratio as follows under:-

Q: On January 1, 2019, the merchandise inventory of Gulf, Inc. was $800,000. During 2019 Gulf purchased…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The following data were extracted from the accounting records of Harkins Company for the year ended…

A: a.Calculate the cost of goods sold of Company H.

Q: Old Rose Company's pricing structure has been established to yield a gross margin of 30%. The…

A: Answer: Explanation: Freight outward is not included in the above calculation as it is an indirect…

Q: Old Rose Company's pricing structure has been established to yield a gross margin of 30%. The…

A: Inventory: Inventory refers to the goods available for sales and raw materials which is used to…

Q: a. The inventory at January 1, 2019, had a retail value of $51,000 and a cost of $38,060 based on…

A: The cost-to-retail ratio, also known as the cost-to-retail percentage, reveals what proportion of…

Q: Rowland company reported the following balances at December 31,2020 sales return abd allowance 5000…

A: Gross profit = Net sales - Cost of goods sold where, Net sales = Gross sales - sales return and…

Q: 1. For the year ended December 31, 2020, PAMA Company reported the following amounts: Inventory,…

A: Net sales = Operating expenses / 10% = 150000 / 10% = P1500000

Q: The Tabuan Jaya Berhad has prepared the data as per above. In December 2020, Tabuan Jaya Berhad paid…

A: An income statement determines the net income of a business for a particular time period. It deducts…

Q: Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your…

A: The solution are as follows

Q: PRETTY Co. has a recent gross profit history of 40% of net sales. These data are taken from the…

A: Gross profit=Net sale×Rate=P 4,500,000×40%=P 1,800,000

Q: Prepare a multi-step income statement for Prestige Traders and General Merchandise for the yearended…

A: Multi step income statement shows all incomes and expenses at multiple steps and at the end it shows…

Q: Staley Watch Company reported the following income statement data for a 2 year period:   2019…

A: We know that, Gross profit = Net Sales Revenue - Cost of Goods sold  The formula to calculate the…

Q: Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented…

A: Accounts receivable turnover = Net Sales / average accounts receivable

Q: Apollo reported the following in its 2021 financial statements: 2021 Sales P420,000 Cost of goods…

A: formula used: Inventory turnover = Cost of goods sold / Average inventory

Q: In 2020, RM Co. started operations with an inventory costing P200,000. For the 15 quarter of 20, the…

A: Equation for inventory at the end (Ending or Closing Inventory): Ending Inventory = Opening…

Q: Wickes Ltd has the following figures at December 2020 £ Revenue(90% credit sales) 1,936,000 Opening…

A: Wickes Ltd has the following figures at December 2020 £ Revenue(90% credit sales) 1,936,000 Opening…

Q: ABC company's records included the following, assume 365 days in a year: Accounts Receivable,…

A: Ratio analysis is a technique that is used by the users of the financial statement in order to know…

Q: On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method.…

A:

Q: Anpanman, Inc. reported the following information for the year 2020: • Beginning Inventory-…

A: Gross profit= Sales x Gross profit ratio Cost of goods sold = Sales - Gross profit

Q: ABC company's records included the following, assume 365 days in a year: Accounts Receivable,…

A: Given, Cost of sales during 2020 = 5,950,000 Merchandise inventory, 12/31/20 = 900,000 Merchandise…

Q: 0   What amount should YELLOW report as cost of goods sold in its 2020 income statement?   a.…

A: The inventory management will include ordering of goods, storing/holding of goods, work in progress…

Q: On January 1, 2020, the merchandise inventory of Minaj, Inc. was $1,760,000. During 2020 Minaj…

A: Ending Inventory=Beginning Inventory+Purchases-Cost of Goods Sold

Q: Aston Company reported the following balances at September 30, 2020: Sales Revenue $280,000 Sales…

A: Net sales of the business means sales revenue of the business after all the sales returns and…

Q: In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020,…

A: Inventory turnover is an accounting turnover ratio that determines the number of times inventory is…

Q: Use these figues to answer questions 26-29 Wickes Ltd has the following figures at December 2020…

A: Ratio analysis is a type of technique that is used by the users of the financial statement to gain…

Q: Campbell Corporation uses the retail method to value its inventory. The following information is…

A: The cost to retail ratio is calculated as goods available for sale at cost divided by goods…

Q: Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1…

A: Gross sales are the sales which are computed by adding gross profit to the cost of goods sold. When…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.