Question
1. Calculate the present value of the following: $40,000 received at the end of each of the next six years at 5%. 2. Assume that
1. Calculate the present value of the following: $40,000 received at the end of each of the next six years at 5%.
2.
Assume that at the beginning of 2020, Disney Cruises launches its newest ship with a construction cost of $600,000,000 on its maiden voyage. Disney Cruises expects the ship to remain useful for 10 years and to have a residual value of $80,000,000.
Required:
Compute Disney Cruises' fifth-year depreciation on the ship using the double diminishing balance method.
3.
Suppose Walmart's $44.4 billion cost of ending inventory at December 31, 2020 was understated by $.2 billion (or $200,000,000 million).
Required:
Drag and drop to indicate whether each of the following accounts would be overstated, understated, or unchanged?
Cost of sales | blank |
---|---|
Gross profit | blank |
Net sales | blank |
Opening inventory, January 1, 2021 | blank |
Understated Unchanged Overstated
4.
Bitter End Brew Co. reports the following inventory transactions for its beverages for the month of August. The company uses a perpetual inventory system.
Date | Description | Units | Unit Cost | Total Cost |
---|---|---|---|---|
Aug 1 | Beginning inventory | 30 | $55 | $1,650 |
Aug 6 | Purchases | 15 | $45 | $675 |
Aug 9 | Sales | (35) | ||
Aug 14 | Purchases | 20 | $40 | $800 |
Aug 20 | Sales | (25) | ||
Aug 28 | Purchases | 20 | $35 | $700 |
Required:
Determine the cost of goods sold using the weighted average cost method. Use unrounded numbers in your interim calculations but round to the nearest cent (2 decimal places) for your final answer.
5.
Brainiac Toys Inc. uses a perpetual inventory system. Brainiac has the following account balances at December 31, 2020, prior to making any year-end adjustments:
At the end of December 31, 2019, the net realizable value of Brainiac's ending inventory was $17,000 which exceeded its cost of $14,700. Brainiac has determined that the net realizable value of its ending inventory at December 31, 2020, is $15,200.
Required:
Calculate Brainiac Toys Inc.'s gross profit for the year ended December 31, 2020.
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