Questions 3-5 are with reference to the following information:

ABCorp shows the following sales related figures for its fiscal/calendar year 2020:

Gross Revenues $1800

Credit Sales (Payable in 2021) 400

Costs of Items Sold (All units cost the same amount) 900

Returns (all returns cleaned at a cost of $100, and

restocked for sale in 2021) 200

Defective Units Returned & Destroyed; New Items Sent

to Customers at no Charge (at Cost) 100

Inventory January 1, 2020 1600

Inventory Acquired During 2020 600

Inventory Acquired on Account, Payable in 2021 200

Spoliage During 2020 400

Assuming no other information is available or relevant, what is the DOLLAR VALUE of ABCorpsl:

1. Inventory on December 31, 2020? ________________________

2. Gross Margin for FY 2020? ___________________________

3. Net Cash Flows from Operations for FY 2020? ____________________

Questions 6-9 are with reference to the following information:

Amco, Inc. manufactures stereo turntables in the United States. It reports its financial information on a calendar year basis. For its FY 2015, it shows the following:

Property Plant and Equipment (PP&E) January 1 -0-

Purchases of PP&E on July 1, 2015 $1,100,000

Purchases of Land During FY 2015 1,100,000

Useful Life of PP&E and Land 10 Years

Salvage Value of PP&E 100,000 Salvage Value of Land 100,000

Depreciation Method Used Straight Line

Assuming no other information is available or relevant, what is the DOLLAR VALUE of Amcos

4. Depreciation expense for FY 2020? ___________________________

5. Accumulated Depreciation as of 12/31/2020? ______________________

6. Depreciation Expense for FY 2020, assuming Amco uses the double declining balance method of depreciation? _____________________________

7. Accumulated Depreciation as of 12/31/2020, assuming Amco uses the double declining balance method of depreciation? _____________________________

Questions 10-14 are with reference to the following information:

Amco, Inc. manufactures stereo turntables in the United States. It reports its financial information on a calendar year basis. For its FY 2020 it shows the following per unit information for its turntables:

Inventory January 1 -0-

Components and Materials Purchased FY 2020 $125

Transportation of Components to Amcos Factory 35

Insurance on Components and Materials Pending Delivery 10

Labor to Assemble Components into Finished Turntables 90

Office Overhead Related to Manufacture 30

Marketing Costs 80

Storage of Materials and Work in Process 10

Storage of Finished Goods 10

Security & Insurance for Finished Goods 10

Amcos Target Sales Price 500

Inventory Costing Method Used Specific Identification

There are no sales during FY 2020. There is no work in process as of 12/31/2020.

Assuming no other information is available or relevant, what is the DOLLAR VALUE of Amcos

8. Per unit inventory as of 12/31/2020? __________________________________

11. Assuming the above and that Amco determines as of December 31 there is insufficient demand for its turntables and sets a new target sales price of $310 per unit, what is the DOLLAR VALUE of Amcos per unit inventory as of 12/31/2020? ______________________________

12. Assuming the above and that Amco determines as of December 31 there is insufficient demand for its turntables and sets a new target sales price of $280 per unit, what is the DOLLAR VALUE of Amcos per unit inventory as of 12/31/2020? ____________________________

13. Assuming the above, that Amco has determined as of December 31, 2020 there is insufficient demand for its turntables and sets a new target sales price of $250 per unit, and that during FY 2021, Amco has determined that demand for turntables has increased and sets a new target per unit sales price of $400, what will the likely DOLLAR VALUE of Amcos per unit inventory be as of 12/31/2021? ____________________________

14. What would the answer to Question 13 be (also assuming US dollars and Euros are trading at parity) if Amco were headquartered and operating instead in Hamburg, Germany? ___________________________