Everest acquired assets and liabilities of Cola for Cola 's book value at the balance sheet date, At that date, Everest's inventory had a book value and market value of P65,000 and P80,000, respectively while Cola's inventory had a book and market value of P25,000 and P25,000, respectively. What amount of inventory would appear on the balance sheet? (do not use comma on the answer, Follow this format: P1 250 000)
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- A company has current assets that total $500,000, has a current ratio of 2.00, and uses the perpetual inventory method. Assume that the following transactions are then completed: (1) sold$12,000 in merchandise on short-term credit for $15,000, (2) declared but did not pay dividendsof $50,000, (3) paid prepaid rent in the amount of $12,000, (4) paid previously declared dividends in the amount of $50,000, (5) collected an account receivable in the amount of $12,000,and (6) reclassified $40,000 of long-term debt as a current liability.Required:Compute the updated current ratio, rounded to two decimal places, after each transaction.Bla Limited sells inventory to its parent, Whi Limited at cost price plus 125% mark-up. • Closing inventories in the records of Whi Limited on 30 June 2022 amount to R157 500. • Net realisable value of inventory on hand in the books of Whi limited amounts to R107 500 on 30 June 2022. Ignore tax implications Required:Clearly illustrate how write-down of inventory will be with regard to the above information, showing inventory at selling price, value according to the group, net realisable value, write-down in Whi Limited’s records, Unrealised profit from the group’s perspective and additional elimination of unrealised profit required through pro forma consolidation journalDungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43 million and current liabilities of $4.90 million. How, if at all, will a $900,000 cash purchase of inventory affect the current ratio? How, if at all, will a $900,000 purchase of inventory on account affect the current ratio?
- Co. A sells inventory for $4,000 that it had purchased for $3,200, under the perpetual inventory system. Which of the following is true for Co. A on the date of sale? CIRCLE ONE: a. Equity will increase by $800; Assets will increase by $800 b. Equity will increase by $4,000; Assets will increase by $4,000 e. Equity will decrease by $3,200; Assets will decrease by $3,200 d. Equity will decrease by $4,000; Assets will decrease by $4,000XYZ Co. is a retail company and its selected financial statements items are given as following. Its Total Assets are 42300 and 39300 respectively for the year 2020 and 2019. Its Total Current Assets are 20200 and 17700 respectively 6 - for the year 2020 and 2019. Its Total Liabilities are 31500 and 29200 respectively for the year 2020 and 2019. Its Total Current Liabilities are 21500 and 18800 respectively for the year 2020 and 2019. Inventory equals to 7500 and 6800 respectively for the year 2020 and 2019. Cash and Cash Equivalents equals to 4000 and 3000 respectively for the year 2020 and 2019. (All numbers are in dollars). What is acid-test ratio of XYZ Co. for the year 2020? a) 49% 013 b) 59% 69% 79%A unit of inventory was purchased for $168 three years ago. Currently, its net realizable value is only $49. At what value should the unit of inventory be recorded on the balance sheet? Type your answer...
- Abacus Ltd undertook the following transactions during May 2022. Purchased $18,480 inventory; terms 1/10, n/30. May. 1 8 Returned $1,980 of the inventory purchased on May 1. 16 Sold inventory on credit for $8,745. Cost of the inventory sold was $5,700. Required: a) Prepare the journal entries to record the transactions using periodic inventory system. GST apply, and assuming that all the prices are GST inclusive. b) Prepare the journal entries to record the 8th and 16th transactions using perpetual inventory system. Ignore GST.XYZ Co. is a retail company and its selected financial statements items are given as following. Its Total Assets are 5- 42300 and 39300 respectively for the year 2020 and 2019. Its Total Current Assets are 20200 and 17700 respectively for the year 2020 and 2019. Its Total Liabilities are 31500 and 29200 respectively for the year 2020 and 2019. Its Total Current Liabilities are 21500 and 18800 respectively for the year 2020 and 2019. Inventory equals to 7500 and 6800 respectively for the year 2020 and 2019. Cash and Cash Equivalents equals to 4000 and 3000 respectively for the year 2020 and 2019. (All numbers are in dollars). What is current ratio of XYZ Co. for the year 2020? a) 74% 01 b) 84% C) 94% d) 99%APOL Company provided the following information related to the ending inventory of its Product X: Historical Cost – P6,800; Replacement cost – P7,000; Selling Price – P10,000; Cost to sell – P1,200; Cost to complete – P1,500. APOL measures its inventory at lower of cost and net realizable value. At what amount should the company’s inventory be reported in its Statement of Financial Position? 7,300 7,000 6,800 5,500
- Below is the net income of New Girl Instrument AG, a private company, computed under the two inventory methods using a periodic system. FIFO Average-Cost 2017 $26,000 $23,000 2018 30,000 25,000 2019 29,000 27,000 2020 34,000 30,000 (ignore tax considerations) Required: a. Assume that in 2020 New Girl decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2020, and show net income reported for 2017, 2018, 2019, and 2020. b. Assume that in 2020 New Girl, which had been using the average-cost method since beginning operations in 2017, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2020, and show net income reported for 2017, 2018, 2019, and 2020.Suppose that Royval Inc has the following data: Gross profit margin on sales: Total assets turnover Days sales outstanding Inventory turnover ratio Fixed assets turnover Current ratio Cash Accounts receivable Inventories Also suppose that Royval Inc has the following balance sheet: Fixed assets Total assets Sales Assets 1.5 36.5 days $500,000 5 4 2 30.00% Balance Sheet Liabilities Current Liabilities Long-term debt Common stock Retained earnings Total Liabilities and equity Cost of goods sold $115,000 $110,000B Limited sells inventory to its parent, W Limited at cost price plus 125% mark-up. • Closing inventories in the records of W Limited on 30 June 2022 amount to R157 500.• Net realisable value of inventory on hand in the books of W limited amounts to R107 500 on 30 June 2022. • Ignore tax implications Clearly illustrate how write-down of inventory will be with regard to the above information, showing inventory at selling price, value according to the group, net realisable value, write-down in W Limited’s records, Unrealised profit from the group’s perspective and additional elimination of unrealised profit required through pro forma consolidation journal.