Red Sun Rising just paid a dividend of $2.01 per share. The company said that it will increase the dividend by 25 percent and 20 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.1 percent. If the required return is 10.1 percent, what is the stock price today

Answers

Answer 1

Answer:

$41.40

Explanation:

For computing the stock price for today first we have to do the following calculations

Dividend at year 0 = D0 = $2.01

Dividend at year 1 = D1 = $2.01 × 1.25 = $2.5125

Dividend at year 2 = D2 = $2.5125 × 1.20 = $3.015

Now, we have to determine the price for year 2

P2 = D2 × (1 + growth rate) ÷ (required rate of return - growth rate)

= $3.015 × 1.031 ÷ (0.101-0.031)

= $44.4066

And, finally  

Current price is

= $2.5125 ÷ 1.101 + $3.015 ÷ 1.101^2 + $44.4066 ÷ 1.101^2

= $41.40

Answer 2

The stock price today is $41.40.

As per the given situation, the calculation is as follows:

Dividend at year 0 = D0 = $2.01

Dividend at year 1 = D1 = $2.01 × 1.25 = $2.5125

Dividend at year 2 = D2 = $2.5125 × 1.20 = $3.015

So

We have to calculate the price for year 2 by applying the following formula:

P2 = D2 × (1 + growth rate) ÷ (required rate of return - growth rate)

= $3.015 × 1.031 ÷ (0.101-0.031)

= $44.4066

Now  

Current price is

= $2.5125 ÷ 1.101 + $3.015 ÷ 1.101^2 + $44.4066 ÷ 1.101^2

= $41.40

Therefore we can conclude that the stock price today is $41.40.

Learn more: brainly.com/question/19682087


Related Questions

If a savings account has a nominal interest rate of 2% and compounds quarterly, what is the effective annual interest rate?

Answers

Answer:

To calculate the effective annual interest rate (EAR) from a nominal interest rate with quarterly compounding, you can use the following formula:

EAR = (1 + (r/n))^n - 1

Where:

r is the nominal interest rate (expressed as a decimal), which is 2% in this case (0.02).

n is the number of compounding periods per year, which is 4 (quarterly compounding).

Plugging in the values, we have:

EAR = (1 + (0.02/4)) - 1

= (1 + 0.005) ⁴- 1

= (1.005) 1

≈ 0.0202

Therefore, the effective annual interest rate for a savings account with a nominal interest rate of 2% and quarterly compounding is approximately 2.02%.

What is a bank run?
Select the best answer from the choices provided.
O A when new banks open and give higher interest rates, encouraging customers to rush to the bank and open up savings
accounts
OB. when people, afraid their bank would close, would rush to take their money out of it, causing the bank to collapse
OC when several new banks open in the same region within a short period of time
OD. when multiple banks in the same region all close within a short period of time

Answers

Answer:

OB

Explanation:

A bank run occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future

If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text), and if the profit resulting from the last unit being sold (Cu) is $120 and the loss resulting from that unit if it is not sold (Co.) is $360, which of the following is the probability of the last unit being sold?

Answers

The probability of the last unit being sold is mathematically given as

x Greater than 0.75

What is the probability of the last unit being sold i?

Generally, the equation forthe  Probability  is  mathematically given as

\(P= P\leq C_{u}/(C_{u}+C_{o})\)

Therefore

P = 120/(120+360)

P= 120/480

P=0.25

P represents the likelihood that a unit will not be sold, whereas 1-p represents the likelihood that a unit will be sold.

1-p = 1-0.25 = 0.75

In conclusion,  The likelihood of the last unit selling should be higher than 0.75

Read more about probability

https://brainly.com/question/11234923

#SPJ1


Which of the following statements about capital structure are correct? Select ALL correct answers.

A company needs to consider the current economic climate when making decisions on debt and equity proportions.

A company should always finance its business using as much debt as possible in order to optimize the capital structure.

Having too much equity may dilute earnings and the value of the original investors.

Having too little debt may increase the risk of default in repayment.
?

Answers

Having too much equity may dilute returns and the value of the original investors capital structure are correct.

What is the capital structure?

Capital structure refers to the specific mix of debt and equity used to invest a company's assets and operations. From a corporate perspective, equity denotes a more expensive, permanent source of capital with more significant financial flexibility.

What is capital structure and why is it important?

Capital structure relates to how much money—or capital—is helping a business, financing its assets, and funding its operations. It can also show company investments and capital expenditures that can affect the business's bottom line.

To learn more about Capital structure, refer

https://brainly.com/question/6660014

#SPJ9

Occupations, robots are replacing humans. As it turns out, robots make very good house cleaners, but very poor guidance minants of demand for the two services are roughly similar, you would expect the demand for human guidance counselors to be the demand for human house cleaners. One factor that affects the elasticity of demand for labor is its share of total production costs. The smaller labor's share of production costs, the elasticity of demand for labor. The year is 2033. In many occupations, robots are replacing humans. As it turns out, robots make very good house cleaners, but very poor guidance counselors. Assuming the other determinants of demand for the two services are roughly similar, you would expect the demand for human guidance counselors to be the demand for human cleaners. One factor that affects the elasticity of demand share of total production costs. The smaller labor's share of production costs, the the elasticity of demand for labor.

Answers

As it turns out, robots make very good house cleaners, but very poor guidance minants of demand for the two services are roughly similar, you would expect the demand for human guidance counselors to be less elastic than the demand for human house cleaners.

Robots

The study of robots is known as robotics. Robots are machines that can do tasks. Some robots can do tasks on their own. Other robots must always be instructed on what to do. ROBOTS is a periodical of IEEE Spectrum, the flagship publication of the IEEE, the world's biggest technical professional organization dedicated to technological growth. ROBOTS contributes to IEEE's aim of advancing technology for mankind and the engineering profession, as well as introducing students throughout the world to careers in technology.

To know more about robots visit the link

https://brainly.com/question/25282575

#SPJ4

After making a down payment on a car loan, you can expect to pay back:

A. The principal minus the interest

B. The principal plus interest

C. The down payment plus interest

D. The simple interest but not the
compound interest

Answers

After making a down payment on a car loan, you can expect to pay back B. The principal plus interest.

What is a car loan?

A car or auto loan is a loan that a customer borrows from an auto shop or finance company to pay for a car purchase.  A car loan may allow a down payment, which is a percentage of the list price of the car.

After the down payment, the customer is expected to continue paying interest and principal on the balance.

Thus, after making a down payment on a car loan, you can expect to pay back Option B.

Learn more about car loan payments at https://brainly.com/question/26011426

Answer:

B. The principal plus interest

Explanation:

For this discussion, you should put yourself in the role of a moderator as you:

For this discussion, you should put yourself in the role of a moderator as you:

Answers

Unions are organizations that represent workers in a particular industry or profession. Their primary goal is to protect the rights and interests of workers by negotiating better wages, benefits, and working conditions.

What are the policies of the Union?

Unions are organizations formed by workers to protect their interests and rights in the workplace. They advocate for collective bargaining, fair wages and benefits, workplace safety, non-discrimination, job security, training and education, and political advocacy.

What are the labor laws?

Labor laws are laws that govern the relationship between employers and employees in the workplace. Examples include minimum wage laws, overtime laws, anti-discrimination laws, health and safety laws, leave laws, unionization laws, and employment contract laws. These laws govern the rights of employees to form and join unions and establish the legal requirements for collective bargaining.

To learn more about unions visit:

brainly.com/question/29575170

#SPJ1

What are unions? What are their roles and policies?

Corrs Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below: Cost Lower-of-Cost-or-Market 12/31/19 $ 356,000 $ 327,000 12/31/20 420,000 395,000 (a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used.

Answers

The appropriate journal entries required at December 31, 2019, and December 31, 2020, assuming cost-of-goods-sold method and loss method  is used are:

Corrs Company Journal entries

a) December 31, 2019

Debit Cost of goods sold $29,000

Credit Allowance to reduce inventory to NRV $29,000

($356,000- $327,000)

December 31, 2020

Debit Allowance to reduce inventory to NRV $4,000

Credit Cost of goods sold $4,000

($356,000- $327,000)-($420,000-$395,000)

b)   December 31, 2019

Debit Loss due to decline inventory to NRV $29,000

Credit Allowance to reduce inventory to NRV $29,000

($356,000- $327,000)

December 31, 2020

Debit Allowance to reduce inventory to NRV $4,000

Credit Recovery of Inventory loss $4,000

($356,000- $327,000)-($420,000-$395,000)

c)  The two methods above provides the same  higher net income in each year.

Learn more here:

https://brainly.com/question/15649363


The competitive threat that outsiders will enter a market is weaker when

Answers

The competitive threat that outsiders will enter a market is weaker when the incumbents enjoy substantial cost advantages.

The competitive threat that outsiders will enter a market refers to the possibility that new firms will enter a market to compete against existing firms. It is the degree of competition in a market that is determined by the ability of other companies to enter the same market and offer similar goods or services at a lower cost.

There are certain factors that determine the competitive threat of outsiders, these are:Ease of Entry: When the cost of entering a market is low, the threat of new entrants is high and vice versa.Brand loyalty: In markets where consumers are more loyal to the existing brands, the competitive threat of new entrants is weaker.

Patents: In markets where incumbents hold many patents, the competitive threat of new entrants is weaker.Cost advantage: The competitive threat of outsiders is weaker when incumbents enjoy substantial cost advantages.Cost advantage is the answer to your question.

The competitive threat that outsiders will enter a market is weaker when incumbents enjoy substantial cost advantages.

For more such question on competitive visit:

https://brainly.com/question/28967395

#SPJ8

QUESTION 8 of 10: The function of a financial planner is:
Oa) To share in the profit/loss of your investments
b) To convince you to purchase large-cap stocks
c) To design your personal budget plan
Od) To help you define and reach your financial goals

Answers

The function of a financial planner is to help individuals or organizations define and reach their financial goals through a variety of services, including budget planning. So, correct option is D.

Unlike an investment advisor who is primarily focused on managing investments, a financial planner takes a more holistic approach to a client's financial well-being. They work closely with clients to understand their current financial situation, identify their goals and objectives, and develop a personalized financial plan to achieve those goals.

Financial planners do not share in the profit or loss of their clients' investments, nor do they aim to convince their clients to purchase specific stocks. Instead, they provide unbiased advice and recommendations based on their clients' individual needs and objectives.

Ultimately, the goal of a financial planner is to help clients achieve financial security and success by providing expert guidance, ongoing support, and customized solutions to meet their unique financial needs.

So, correct option is D.

To learn more about financial planner click on,

https://brainly.com/question/29219626

#SPJ1

Instructi on:
• Download one arti cle on any concept related to Human Resource Management .
• Review and prepare a report
• The report should not exceed 4 page with its cover page

Answers

Answer:

ExplanatiRTICLE REVIEW

A ___ is a tax on imported goods. A ___ is a quantitative restriction on imported goods.

Cost,subsidy
Regulation, standard
Tariff,quota

Answers

First blank is quota (as in trade quota), second blank is tariff

while many south asian migrants move to cities seeking education, training, or business opportunities, they likely will not experience:

Answers

While many south asian migrants move to cities seeking education, training, or business opportunities, they likely will not experience B) a lack of any cell phone service, as areas are too crowded for reliable service.

What was the reason why the south asian migrants move to cities ?

The reason why the south asian migrants move to cities are so many depending on individuals, for instance some of them moved to the cities because they wer seeking  a good education foir themseleves as well as for their children, some of them on the other hand moved to the cities so that they  can get some business opportunities so that their financila lives can be imp[roved.

In conclusion, the migration of the south asian to the cities help them not to experience lack of any cell phone servicebecause in the city the network coverage is mich more better with a stable service.

Therefore, option B is correct.

Learn more about migrantion at:

https://brainly.com/question/18259786

#SPJ1

Missing options:

A) a lack of adequate housing, forcing them to live in large, rambling shantytowns.

B) a lack of any cell phone service, as areas are too crowded for reliable service.

C) children working in risky settings, instead of attending schools.

D) women being forced or recruited into sex work to make ends meet.

In a statement of approximately 75 words explain why the economic systems in countries with dictatorships or closed systems of government tend to be less prosperous and do not have healthy economic policies or markets.

Answers

The economy in countries with dictatorships or similar governments is often less prosperous because these countries usually have closed economy systems and this limits the profit from trading, the materials for manufacture, among others.

Most countries with authoritative governments such as dictatorial ones support closed economy systems, this means:

The country does not trade with others.There are no exportations and importations.All the good citizens buy are produced within the borders of the country.

These characteristics have been found to have mainly a negative effect because:

The country cannot obtain profits from trading with others.Manufacture and products are limited by those found inside the nation.Economic crises are difficult to overcome due to a lack of resources or support from other nations.

Learn more in: https://brainly.com/question/23353220

If you deposit Rs.100 in the bank today and it earns interest at a rate of 8% compounded annually, how much will be in the account 50 years from today?

Answers

Answer:

400

Explanation:

(8%×50)×100=

(8/100×50)×100=

(8/2)×100=

4×100=

400

You are about to start your venture in agribusiness, which will be called Consumer's Delight. Create a marketing business plan describing key
aspects of your strategy, such as a mission statement, objectives, marketing mix, promotion techniques, and so on

Answers

Answer:

Amiin Fruits and vegetables

Explanation:

mission statement

we want to satisfy all fruits and vegetables needs in our geographical area by offering low price high quality fresh fruits and vegetables

Answer:

The marketing business plan for Consumer’s Delight will consist of the following aspects:

Mission: Consumer’s Delight’s mission is to provide fresh, high-quality vegetables that exceed consumers’ expectation and become their first choice for vegetable grocery shopping.

Marketing objectives: The marketing objectives of Consumer’s Delight will include the following:

Grow at a steady rate each month and capture nearby local vegetable markets.

Acquire new customers every quarter, targeting local restaurants and eventually hotels.

Generate goodwill and become the first choice for large orders.

Expand into allied segments such as logistics and consultation.

Main products (produce): Iceberg lettuce, broccoli, and spinach

Financial objectives: To achieve a 4 percent growth every year. To reduce the number of middlemen involved for transportation, other logistics, and delivery of the produce by 12 percent in the current year. Consumer’s Delight is expected reach its break-even point toward the end of the fourth quarter.

Target markets: Consumer’s Delight is looking at two sets of target markets, namely, individuals (consumers from the local supermarket) and restaurants.

Individual consumers: Green leafy vegetables are always in demand for salads, sandwiches, soups, and so on. The stock also needs to be fresh, which requires a daily turnover. Through current logistics connections, Consumer’s Delight will ensure that the stocks are delivered daily and in the best condition. Consumer’s Delight will also make use of local farmers at various locations to reach the maximum number of individuals.

Restaurants: Consumer’s Delight will work to contact all of the local restaurants in the vicinity, which total 12 in number. The aim will be to acquire long-term contracts with them.

Positioning: Consumer’s Delight will be positioned as:

fresh and healthy

high quality

dependable

Strategies: Consumer’s Delight primary motive is to become the preferred choice of its target group and to capture the entire market within the next five years. The strategy will initially begin with penetrative marketing strategies, wherein we will aggressively market to the local supermarkets. A Consumer’s Delight counter will be set up within the supermarket to take care of the branding and visibility of the agribusiness. The next stage will be to tap local restaurants once a good amount of brand visibility has been created.

Marketing mix: Consumer’s Delight will use the following marketing mix:

Pricing: Consumer’s Delight will price their produce per pound.

Distribution: Consumer’s Delight will connect with local transportation and logistics dealers and will regularly supply supermarkets. The company will follow a similar plan once the contracts from the restaurants begin to materialize.

Promotion: Because creating brand visibility is of paramount importance, Consumer’s Delight will put up posters and flyers inviting consumers to try out their products in the supermarkets. Consumer's Delight will also advertise in the weekly specials and monthly magazines of select supermarkets according to financial feasibility. Social media will be used to connect to potential restaurant clients.

Customer Service: Consumer’s Delight aims to offer the highest level of customer service to ensure loyalty and long-term contracts. Occasional store discounts will form a part of the customer service strategy.

Management and staffing: Consumer’s Delight will start with a small group of employees, and most of them will be work on a contractual basis. The staff members will mainly consist of analysts, consultants, field workers, store keepers, and others with average salaries.

Explanation:

cuáles son las tres partes de una fracción​

Answers

No Espanol English please?

You are an economics professor teaching large sections of Principles courses this semester. Within the first week of class,
several students have approached you with concerns about exam and homework due dates. They fear they won't do well
because the due dates for your class conflict with the dates for their other classes. You want to allocate exam and homework
due dates to the days most valued by students, but sifting through the opinions of hundreds of students presents a challenge.
The MOST efficient allocation would result if you:
design a predictions market for students to designate when they think the dates will be.
b. create an internal market for students to bid for their preferred dates.
C.
use your centralized power as a professor to assign the dates without student input.
d. determine that you have a knowledge problem when assigning dates

You are an economics professor teaching large sections of Principles courses this semester. Within the

Answers

The MOST efficient allocation of exam and homework due dates for students who have concerns due to conflicting schedules with other classes is to create an internal market for students to bid for their preferred dates.The correct answer is option-b.

A market is the most efficient mechanism for allocating goods and services according to the preferences of consumers. Students who have conflicting schedules can bid for their preferred exam and homework due dates through an internal market.

This method has the advantage of providing the exam and homework due dates to those who are willing to pay the most for them. By using the internal market, the professor can allocate the dates in the most efficient manner without sifting through the opinions of hundreds of students.

This method is also fair as it gives students the opportunity to choose their preferred dates based on their schedule constraints, and it reflects the value that students place on certain exam and homework due dates.

Therefore, the correct answer is option-b.

For more question on market

https://brainly.com/question/30665904

#SPJ8

The language used in texting is acceptable in business writing. True or false

Answers

Answer: The answer is generally false.

1. Aflac Duck
O Trademark
O Patent
O Copyright

Answers

patent is the answer

What is an important premise of Adam Smith’s conclusion about economic prosperity

Answers

An important premise of Adam Smith's conclusion on economic prosperity is that individual freedom is necessary for a society to prosper.

What is Adam Smith's thesis?

The philosopher developed ideals about economic liberalism, that is, the reduction of state intervention in the economy, generating the least control over freedom of thought, work and private property.

For the author, the more individuals are motivated and encouraged to exercise their individual freedom, the more benefits society will have from the innovation and creativity of each citizen.

Therefore, economic liberalism is a similar approach to the free market, an issue that is so much discussed in an increasingly globalized society.

Find out more about free market on:

https://brainly.com/question/24519548

#SPJ1

If the total cost function is given by TC=1500+20Q-3Q^2+Q^3, where Q stands for the
level of output produced so find The level of output that minimize marginal cost?

Answers

Q = 1 is the output level with the lowest marginal cost.

What is Marginal Cost?

The cost of producing an additional unit of output or increasing production by one unit is referred to as marginal cost. It is calculated by dividing the change in output quantity by the change in total costs. To put it another way, it is the price of making one more unit of a good or service. In economics, margin cost is important because it helps businesses decide on production levels and pricing strategies. Firms are able to determine the most profitable production level by comparing the marginal cost to the marginal revenue.

To know more about Marginal Cost, visit:

https://brainly.com/question/7781429

#SPJ1

What are the recommendations for Adidas for Ansoff Matrix?​

Answers

The recommendations for Adidas for Ansoff Matrix include the following:

Market PenetrationMarket DevelopmentProduct DevelopmentDiversification

What informs Ansoff Matrix Analysis of Adidas?

The Ansoff matrix has four matrixes related to the products and customers. Together with the matrixes and their positive implications, exist some negative factors for these matrixes. With this type of matrix, there will be numerous alternatives for the organization to decide what product to sell to which customers.

Therefore, the correct answer is as given above.

learn more about Ansoff Matrix: https://brainly.com/question/2527677

#SPJ1

Which description most accurately describes the FBLA-PBL?
A. It focuses mainly on building communication skills.
B. It focuses only on marketing skills.
C. It promotes careers in the health care field.
D. It focuses on developing business leaders.

Answers

The option that most accurately describes the FBLA-PBL is D. It focuses on developing business leaders.

What is the FBLA-PBL?

The Future Business Leaders of America-Phi Beta Lambda( FBLA - PBL) is an organization that focuses on training students in business leadership, career advice and technical growth.

They help develop business leaders in a variety of ways. One of them is by organizing seminars and conferences. At these seminars, students are able to meet business leaders who train them on how to be their best in whatever business they are in.

Find out more on the FBLA-PBL at https://brainly.com/question/28184786

#SPJ1

Can anyone please write a summery of everything that happened in the Great depression?

Answers

The price of everything in the stock market lost its value, everyone went to the bank to withdraw their money but there wasn’t enough money in the bank so people lost all their savings, and after president hoovers term ended president roosevelt became president to help the banks get back and order and helped americans trust the banks again to store their money in again. (pls mark brainliest)

The following data from the just completed year are taken from the accounting records of Mason Company:
Sales $ 651,000
Direct labor cost $ 84,000
Raw material purchases $ 136,000
Selling expenses $ 103,000
Administrative expenses $ 46,000
Manufacturing overhead applied to work in process $ 205,000
Actual manufacturing overhead costs $ 222,000
Inventories Beginning Ending
Raw materials $ 8,700 $ 10,400
Work in process $ 5,200 $ 20,200
Finished goods $ 75,000 $ 25,100
Required:
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.
Required 1
Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
Mason Company
Schedule of Cost of Goods Manufactured
Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs 0
Cost of goods manufactured Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
Mason Company
Schedule of Cost of Goods Sold
Prepare an income statement.
Mason Company
Income Statement
0
Selling and administrative expenses: 0
$0

Answers

Direct labour and productive labour are the terms used to describe the workers who actually handle and process the various materials, either directly or with the help of machines.

What is meant by direct labor?

Direct labour costs are a part of the wage bill or payroll that can be specifically and consistently linked to or allocated to the production of a commodity, a particular work order, or the provision of a service. The salaries and wages given to workers who are directly involved in the production of a particular good or in rendering a service are referred to as direct labour.

Regular working hours, overtime hours, associated payroll taxes, social welfare, Medicare, unemployment, worker's benefits, retirement plan contributions, medical coverage, and other expenses are all considered to be direct labour costs.

To know more about Direct labour, visit:

https://brainly.com/question/26245657

#SPJ1

The following data from the just completed year are taken from the accounting records of Mason Company:Sales$651,000Direct
The following data from the just completed year are taken from the accounting records of Mason Company:Sales$651,000Direct

Explain why income statement can also be called a profit and loss statement. What exactly does the word balance mean in the title of the balance sheet? Why do we balance the 2 halves?

Answers

An income statement can also be called a profit and loss statement. An income statement determines if a business has profited from their daily operations of if a business has suffered loss. This is what an income statement is asking referred to as a Profit and loss statement.

What was A contract between the government and a private producer.

Answers

Answer:

government contract

Explanation:

Suppose the market demand for cigarettes is given in the following table.

price (per pack) Quantity of demanded (millions of packs per year)
$10 2
9 4
8 6
7 8
6 10
5 12
4 14
3 16
Suppose further that smoking creates external costs valued at $2.00 per pack. Graph the market demand curve, the social demand curve, and answer two questions about the market and socially optimal quantities.

Graph the social and market demand curves.

If cigarettes are priced at $7 a pack,

Instructions: Enter your responses as whole numbers.

a. What is the quantity demanded in the market?

___ million packs per year

b. What is the socially optimal quantity?

____ million packs per year

c. If the government were to intervene and tax cigarettes, how large of a tax is needed per pack to achieve this optimal outcome?

$ ____per pack

Answers

If I did know the answer I would tell you but I don’t know so good luck to you

[The following information applies to the questions displayed below.]

Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2024 operations is as follows:

January 1, 2024, beginning inventory had a cost of $100,000 and a retail value of $150,000.
Purchases during 2024 cost $1,387,500 with an original retail value of $2,000,000.
Freight costs were $10,000 for incoming merchandise.
Net additional markups were $300,000 and net markdowns were $150,000.
Based on prior experience, shrinkage due to shoplifting was estimated to be $15,000 of retail value.
Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separate account at the net selling price. The balance in this account at the end of 2024 is $250,000.
Sales to customers totaled $1,750,000 for the year.
Required:
1. Estimate ending inventory and cost of goods sold using the conventional retail method.

Answers

The ending inventory and the cost of goods sold using the conventional retail method will be $135992, and $1361508 respectively.

How to illustrate the information?

It should be noted that the ending inventory simply means the value of goods that are still available for sale at the end of an accounting period.

From the calculation in the attached document, the goods available for sale was 1497500 and the estimated cost of goods was 1361508. Therefore, the estimated inventory at cost was:

= 1497500 - 1361508

= 135992

The document is attached for further explanation.

Learn more about ending inventory on:

brainly.com/question/25838213

#SPJ1

[The following information applies to the questions displayed below.]Alquist Company uses the retail
Other Questions
-6/2 simplified would be what?????????? a nurse is performing an admission assessment on a client entering a long-term care facility. she notices a broken area of skin that extends into the dermis on the client's coccyx. how should the nurse document this wound? common shareholders have the right to vote on: proposals for fundamental changes affecting the company such as mergers or liquidation. price of stock. when to pay dividends. compensation for the officers. orientation. F(x,y,z)=xizj+yk 5 is the part of the sphere x2+y2+z2=9 in the first octant, with orientation toward the ongin orientation, F(x1,y1z)=x2+y2j+z2k 5 is the boundary of the solld haif-cyinder 0225y2,0x3 What is the answer to 9!= and 12!= Deciding how to get home is considered a routine decision. Please select the best answer from the choices provided. true or false Giving brainiest for anyone that answers in the next 10 minutes so please answerif you dont understand here is a photoMatch each value to what it represents.3^4 = 811. 81 ? base2. 4 ? exponant3. 3 ? power Please help me Ive posted this question 3 different times and no one is helping me i need the answer to 9x5x2=9x please A plane electromagnetic wave of intensity 8 W/m^2 strikes a dark surface of area 51 cm^2 perpendicular to the approaching wave and is completely absorbed. Find the force that the wave exerts on the mirror in picoNewton.Enter an interger. Please help me with this asap ! Find the perimeter! Now Bob knows that he will have $1,516,156 in his inheritance fund, when he will reach age sixty-five. He would like to know how much he could withdraw from the fund in equal installments at the end of each year from the year he reaches age 65 until he reaches age 70, the year he must start withdrawing funds from his individual retirement account (IRA). Bob assumes the funds will continue to earn at a 7.75 percent annual rate. In other words, Bob would like to know the annual year-end payment from a six-year annuity (from age 65 to the year he will be 70), earning 7.75 percent annually on a principal sum of $1,516,156.Round the answer to two decimal places.William North has just inherited $925,000 which he would like to use as part of his retirement nest egg. William would like to know just how much $925,000 will be worth in 13 years, when he will reach age sixty, in case he decides to retire early, assuming the funds can be invested for the entire period at a 10.00 percent annual rate.Round the answer to two decimal places. PLEASE HELP ASAP I WILL MARK BRAINLIEST the nurse is ready to insert an indwelling urinary catheter as seen in the picture. at this point in the procedure, what actions should the nurse take before inserting the catheter? Place the following events in the correct sequence beginning with rising CO22 levels as a result of increased aerobic metabolism.- The pulmonary ventilation rate is increased- The pH falls- CO22 concentrations rise- Peripheral and central chemoreceptors are stimulated- Carbonic acid levels rise Given any real number, there is a real number that is greater. a. Given any real number r, there is __________ s such that s is _______. b. For any _____, ______ such that s > r. Quadration EquationX^2 - 6x - 7 = 0 Why would Texans include funding and land for public bilingual schools among their reforms at the Convention of 1832?Hurry pls What technique is commonly used to switch a viewer's attention between foreground and background within a shot, as in these shots from? The cost of five homes in a certain area is given, $165,000 $173,000 $187,000 $152,000 $1,239,000 List any outlier(s). a. $165,000 b. $165,000 and $1,239,000c. $1,239,000 d. There are no outliers.