Calculate the most reasonable amount of actual damages

Assignment Help Accounting Basics
Reference no: EM132032145

Question - Jones Lumber had an exclusive three-year supply agreement with Wood Construction. The contract called for lumber sales of $4,000,000 per year from Jones Lumber to Wood Construction. After one year, Wood Construction canceled the contract without cause, and in the resulting lawsuit the court found Wood Construction liable for breach of contract.

Jones Lumber had an average gross profit of 40%, and average net income equal to 10% of sales. On average, 70% of Jones Lumber's operating expenses are fixed.

Required: Calculate the most reasonable amount of actual damages suffered by Jones Lumber from the breach of this contract using only the information provided. Be certain to use all of your forensic accounting skills learned in this course and your accounting skills learned in other courses you have taken.

Reference no: EM132032145

Questions Cloud

Would the amount be material to the financial statements : Ceramic Crucibles bought the Durango facility from TW Industries in 1997. Would the amount be material to the financial statements
Find the standard deviation of returns on a stock : What is the percentage rate of return and the standard deviation of returns on a stock if the returns on this stock was 12%, -20%, 28% and 40%.
Find the present value of the perpetuity : A Perpetuity due has annual payments of 10, 15, 20, 25....If i is a nominal rate of interest of 8% compounded quarterly, find the present value.
View a biblical worldview as affecting your desires : Examine some potential pitfalls in your worldview or even the worldview you see upheld around you. How would you propose overcoming it?
Calculate the most reasonable amount of actual damages : Calculate the most reasonable amount of actual damages suffered by Jones Lumber from the breach of this contract using only the information provided
Define the manager role : In this week's class discussion, you will define the manager's role as it relates to various organizational cultures
Listen for the music and tone of the show : Listen for the music and/or tone of the show. Is it overall tense, loud, frightening, overpowering, constant?
Determine the underapplied or overapplied overhead : Additional actual manufacturing overhead costs of $197,000 were incurred. Determine the underapplied or overapplied overhead for the month
Calculate what will the given bond sell for : A perpetual bond pays a coupon of $25 per year. If in year 1 this bond sells for $200, what is its yield to maturity? If interest rates move to 20% next year.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd