At the beginning of 2015, Mila Inc has an inventory of $300,000. Because sales growth was strong during 2015, the owner wants to increase inventory on hand to $450,000 at Dec. 31. If net sales for 2015 are expected to be $2,600,000 and the gross profit rate is expected to be 35%, computre the cost of the merchandise the owner should expect to purchase during 2015. Options are:

$750,000

$1,240,000

$1,690,000 and

$1,840,000

Part b.

Micharl uses a periodic inventory system and the following information is available:

Sales = $43,400

Inventory Beginning = $11,200

Inventory ending = $9,800

Purchases $32,200

Based on this information, what is the cost of goods sold? Options are:

$9,800

$33,600

$32,200 and

$43,400

Part c.

Toolings reports net sales of $325,000, gross profit of $175,000 and net income of $15,000. The company has a cost of goods sold of:

$135,000

$140,000

$150,000 or

$125,000

Part d.

Bent Inc. had credit sales of $675,000 for March. Accounts receivable of $6,000 were determined to be worthless and were written off during March. Accounts receivable total $575,000 at March. 31. Management feels that based on past experience, approx. 2% of net credit sales will prove to be uncollectable.

Assuming they use the direct write off methos of accounting for uncollectable accounts, uncollectible accounts expense for March is:

$13,5000

$6,000

$11,500 or

$17,500

Part e.

As of december 31, Valley Co. has $16,920 cash in its checking account as well as the following:

credit card slips signed by customers......... $1,400

money market fund balance.........................$10,000

investment in US Treasury bills, maturing in 90 days....... $40,000

cusomer checks recieved but not yet deposite............. $1,800

Invest in ATT 10% bonds, maturing in June 2016........... $60,000

what should be shown on the December 31, 2015 balance sheet as "cash and cash equvalents"?

$53,200

$70,120

$130,120 or

$113,200

Part f.

On april 30, 2014 Titan purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value.

Based on this, in the year 2020, Titan sells the machinery for $4,500. At the date of sale, the machinery had been depreciated by Titan to its estimated residual value of $8k. This sale results in....

a. $3,5000 loss on both the companys financial statements and income tax return

b. no gain or loss in either the financial statements or income tax return

c. a $3,500 loss in the financial statements and a $3,500 gain in the income tax return

d. A 3,500 loss in the financial statemets but no loss or gain on the tax return

Part g.

Early in the year, Amazon purchased River mine for $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are done. During that year, 115,000 tons of ore were removed. At the year-end, the book value of the mine is which of the following?

a. 22,500,000

b. 6,468,750

c. 23,532,250 or

d. 30,000,000

and which of the following would NOT be amortized?

Goodwill

Copyright

Franchise fee

Patent