Bailand Company purchased a building for $210,000 that had an estimated residual value of $10,000 and an estimated service life

Answer: Missionary marketing involves indirect sales techniques where the salesperson provides product information and seeks to sway purchasing decisions.

Explanation: This approach is aimed at persuading individuals who are unfamiliar with the product or have yet to use it. The primary focus is to influence rather than conduct immediate sales. The salesperson is referred to as a Detailer, and Tender Love employs this marketing method in their strategy.

Answer:

The solution and relevant data for the exercise are contained within three images. The maximum profit amounts to 262.500.

Explanation

Please take into account the details provided in the exercise. Should you have any queries, feel free to reach out again. All the exercises are illustrated within three images.

Answer:

1. Create a statement for retained earnings.

Net income = $943,400

Retained earnings as of May 31, 2018 = $3,792,500

2. Construct a balance sheet, assuming a current portion of the note payable is $50,000.

Total Net Assets = Stockholder’s equity = $4,292,500

Explanation:

1. Create a statement for retained earnings.

The first step is preparing the income statement to find the net income as shown below:

Clairemont Co.

Income Statement

for the fiscal year ended May 31, 2018

Details                                                         $            

Sales                                                   11,343,000

Cost of goods sold                           (7,850,000)

Gross Income                                      3,493,000

Selling and Distribution expenses:

Sales salaries expense                        (916,000)

Advertising expense                           (550,000)

Depreciation expense - Store equipment        (140,000)

Miscellaneous selling expense            (38,000)

Administrative expenses:

Office salaries expense                     (650,000)

Rent expense                                        (94,000)

Insurance expense                               (48,000)

Depreciation expense - Office equipment   (50,000)

Office supplies expense                       (28,100)

Miscellaneous administrative expense         (14,500)  

Operating income                                964,400

Interest expense                                   (21,000)

Net income                                          943,400

<phence the="" retained="" earning="" statement="" is="" as="" follows:="">

Clairemont Co.

Retained Earnings Statement

for the fiscal year ended May 31, 2018

Details                                                             $            

Retained earnings at June 1, 2017         2,949,100

Net income for the year                            943,400

Dividends                                                  (100,000)

Retained earnings at May 31, 2018       3,792,500  

2. Construct a balance sheet, assuming a current portion of the note payable is $50,000.

Clairemont Co.

Balance sheet

for the fiscal year ended May 31, 2018

Details                                                     $                         $      

Fixed Assets

Office equipment                             830,000

Accumulated depreciation - office equip   (550,000)            280,000      

Store equipment                            3,600,000

Accumulated depreciation - store equip    (1,820,000)         1,780,000

Net Fixed Assets                                                        2,060,000

Current Assets

Cash                                                    240,000

Accounts receivable                          966,000

Inventory                                           1,690,000

Estimated returns inventory                 22,500

Office supplies                                       13,500

Prepaid insurance                                   8,000  

Total current assets                         2,940,000

Current Liabilities

Accounts payable                               (326,000)

Customer refunds payable                   (40,000)

Salaries payable                                     (41,500)

Note payable                                         (50,000)

Working Capital                                                               2,482,500

Long-term Liability

Note payable (300,000 - 50,000)                                 (250,000)

Net Total Assets                                                            4,292,500

Financed by:

Common stock                                                                 500,000

Retained earnings at May 31, 2018                                 3,792,500  

Stockholder’s Equity                                                     4,292,500

Note:

Since both the Total Net Assets and Stockholder’s equity are equal at $4,292,500, this indicates the financial statement is correctly prepared as both values are meant to coincide.

</phence>

a. Using FIFO, the Cost of Goods Sold (COGS) is $17,640, while the Ending Inventory equals $12,960. b. Under LIFO, COGS totals $19,160, while the Ending Inventory is $11,440. c. The Weighted Average COGS is $18,360, and the Weighted Ending Inventory is $12,240. For Cortez Company, the inventory particulars include initial stock of 100 units from $60/unit amounting to $6,000, first batch purchase of 150 units at $68 each totaling $10,200, and a second batch of 200 units at $72 each totaling $14,400, culminating in a total of 450 units valued at $30,600. Queries about how COGS and Ending Inventory figures manifest under various methods (FIFO, LIFO, and Weighted Average) can be addressed based on those computations.

Response:

Year  Nominal wage  Real wage  Price level  Inflation rate

1                  $7                  $5                140             None

2                 $9                  $6                150               7.14 %

3                 $12                 $7.5             160              6.67 %

Explanation:

Note: A visual representation of the table is also provided.

The price level for Year 1 is calculated as (Nominal wage in year 1/Real wage in year 1) multiplied by 100.

Thus, Price level in Year 1 = ($7.00 / $5.00) * 100

Resulting in Price level in Year 1 = 1.4 times 100

Which gives Price level in Year 1 = 140

To find Real wage in Year 2: (Nominal wage in year 2 / Price level in year 2) multiplied by 100.

Which gives Real wage in Year 2 = ($9.00 / 150.00) * 100

Thus, Real wage in Year 2 = $6

To calculate Nominal wage in Year 3: (Real wage in Year 3 * Price level in Year 3) divided by 100.

<pthis results="" in="" nominal="" wage="" year="">

As a result, Nominal wage in Year 3 = $1,200 / 100

Leading to Nominal wage in Year 3 = $12

To determine Inflation rate in Year 2: (Price level in Year 2 - Price level in Year 1) divided by Price level in Year 1.

<phence inflation="" rate="" in="" year="">

Therefore, Inflation rate in Year 2 = 10 / 140

Giving Inflation rate in Year 2 = 0.0714, or 7.14 %

For Inflation rate in Year 3: (Price level in Year 3 - Price level in Year 2) divided by Price level in Year 2.

<pthis leads="" to="" inflation="" rate="" in="" year=""><pfinally inflation="" rate="" in="" year="" resulting="" or="">

</pfinally></pthis></phence></pthis>