Using the City Bicycle example, suppose the cycling store uses the FIFO cost-flow assumption. The cost of goods sold is _____, and the ending inventory is _____
a. $2,900; $5,500
b. $2,500; $5,900
c. $3,000; $5,400
d. $2,800; $5,600
e. cannot be determined with the information given
B
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During 2018, Dragon Company determined, based on new information, that equipment previously depreciated using a ten-year life and a salvage value of $100,000 had a total estimated life of only six years and a salvage value of $50,000. The equipment was acquired on January 1, 2016 at a cost of $600,000, and was depreciated using the straight-line method. Dragon made an accounting change in 2018 to
reflect this additional information, and the change was approved by the IRS. Dragon has an income tax rate of 30%. Dragon's income before depreciation, before income taxes, and before any retroactive effect of the accounting change (if any) for the year ended December 31, 2018, was $180,000. What is the amount of Dragon's net income for 2018? A) $80,000 B) $67,500 C) $56,000 D) $47,250
After analyzing information gathered from prospects who did not buy from the company, it becomes apparent that prospects felt that the sales representatives did not know about the full line of products they carried or understand their uses
The prospects most likely did not buy because they could not: A) ensure that the company's billing process was ethical B) understand what their business objectives were C) pay the high prices the company was charging D) store the chemicals once they were delivered E) trust the sales reps to sell them the correct products
Flannery and Gustavo agree while talking on the phone to form a partner-ship—The Home Source—to deal in transfers of real property. To be enforceable, their agreement must
a. be filed in the appropriate state office. b. be in writing. c. involve the exchange of valid consideration. d. not involve a third party.
Consider the data on Inventory of Widgets Over a 10-Day Period. Any time that ending inventory falls to 15 or below, an order is placed for 20 units of the product. The lead time for delivery varies and is shown in the column under Lead Time. If the cost of holding inventory amounts to $10 per widget per day, what are the total inventory costs during the 10-day period?
a. $805
b. $1,150
c. $7
d. $122