Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help please 23. In 2021, Bumble Bee Boutique (a retail clothing company) sold 285,000 units of its product at an average price of

image text in transcribedi need help please

23. In 2021, Bumble Bee Boutique (a retail clothing company) sold 285,000 units of its product at an average price of $44.00 per unit. The company reported estimated returns and allowances in 2021 of 2.5 percent of gross revenue. Bumble Bee Boutique actually purchased 252,000 units of its product from its manufacturer in 2021 at an average cost of $25.00 per unit. Bumble Bee Boutique began 2021 with 62,000 units of its product in inventory (carried at an average cost of $25.00 per unit). Operating expenses (excluding depreciation) for Bumble Bee Boutique in 2021 were $1,861,000 and depreciation expense was $100,000. Bumble Bee Boutique had $3,400,000 in debt outstanding throughout all of 2021. This debt carried an average interest rate of 6.8 percent. Finally, Bumble Bee Boutique's tax rate was 30 percent. Bumble Bee Boutique's fiscal 1 year runs from January 1 through December 31. Given this information, compute net income for Bumble Bee Boutique for 2021. 24. Referring back to the previous problem, compute Bumble Bee Boutique's ending inventory balance for 2021 (that is, what did Bumble Bee Boutique report as inventory on its December 31, 2021 balance sheet)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Prasanna Chandra

11th Edition

9355322208, 978-9355322203

More Books

Students also viewed these Finance questions

Question

3. Write an analytical memo.

Answered: 1 week ago