Find how much profit did gcc make

Assignment Help Financial Accounting
Reference no: EM132578412

Question 1: Gretta Cat Co. (GCC) has assets at January 1, 20X4, which consist of $8,000 in inventory. It did not have any liabilities at that date. During the year ended December 31, 20X4, GCC sold the inventory for $10,000 cash and distributed $1,000 to the owners by way of dividends. GCC replaced the inventory on December 31, 20X4, at a cost of $8,300. It did not have any other transactions during the year. The inflation rate during 20X4 was 5%. How much profit did GCC make according to the physical (productive capacity) concept of capital maintenance?

a) $1,000

b) $1,600

c) $1,700

d) $2,000

Reference no: EM132578412

Questions Cloud

Every strategy consists of three essential elements : Every strategy consists of three essential elements, can you help me define them?
Determine what is the net cash flow at time zero : What are the incremental cash flows in years (i) 1; (ii) 2; (iii) 3? (Do not round intermediate calculations. Enter your answer in millions rounded)
Specify the preferred medium used in process : Develop two processes (step-by-step, the use of a chart is recommended):
Prepare the journal entries for January and July : Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Bonita Company records straight-line amortization semiannually
Find how much profit did gcc make : The inflation rate during 20X4 was 5%. How much profit did GCC make according to the physical (productive capacity) concept of capital maintenance?
Describe the conflict process : Workplace conflicts occur almost daily. We experience them in our individual and group interactions at meetings, training
Reflection topic-intrinsic versus extrinsic motivation : Describe an example of when you were extrinsically motivated by something. What was your goal, and what motivated you?
Determine what is balance in spector inc retained earnings : Determine What is the balance in Spector Inc.'s retained earnings account as at December 31, 20X7? Retained earnings as at January 1, 20X7, were $50,000.
Explain activity-based costing : Explain operating gearing and its relationship to contribution. Explain, whether you think 'limited liability' is a good thing. Explain activity-based costing

Reviews

Write a Review

Financial Accounting Questions & Answers

  The vendor receives payment for the goods

List the GL entries (debit and credit) for the following items - list debit/credit by date for each date listed. On February 2, 2015, the agency receives the goods – the goods are considered expenses, and are not considered personal or real property ..

  What is the book value of assets

Fast Cars is considering a project that requires $138,000 of fixed assets that are classified as 5-year property for MACRS. What is the book value of these assets at the end of year 3? The MACRS allowance percentages are as follows, commencing with y..

  Calculation of total variable cost and contribution income

calculation of total variable cost and contribution income statement.during 2007 the company manufactured 120000 units

  Prepare a multiple-step income statement for the year

Prepare a multiple-step income statement for the year ended December 31. Save-the-Earth Co. reports the following income statement

  Evaluate smiths tax expense for the year ending

Evaluate smith's tax expense for the year ending 31 st December, 2012? Evaluate smith's tax liability for the year ending 31 st December, 2012?

  Illustrate what is the difference between optimistic project

Illustrate what is the difference between optimistic projection and stretching the truth? Illustrate what kinds of checks and balances could you put into place to insure ethical behavior and accountability for both yourself and your employees?

  Calculation of balloon payment for a term loan

What is the ?fth-year balloon payment? Calculation of balloon payment for a term loan. In March, the Cross National Bank agreed ton?nance the purchase

  Expenses are not usually separated into variable and fixed

When finished goods inventory decreases during a period, a manufacturing company's absorption costing net operating income for that period will usually be greater than its variable costing net operating income.

  Why the controller may have ordered this action

The company uses LIFO for all its domestic inventories. Describe another, less legitimate reason why the controller may have ordered this action?

  How much is total overhead costs at this level of activity

Trepid then prepared a flexible budget at 38,000 labor hours. How much is total overhead costs at this level of activity?

  Data set with the mean and median close to begin equal

A data set with the mean and median close to begin equal will have a shape that is roughly symmetrical. Outliers are numbers that fall in the middle of the data set within one standard deviation of the mean. Variation is one of the most important con..

  Demonstrate how to prepare appropriate general journal entry

Vixen Ltd owns all the share capital,Demonstrate how to prepare the appropriate general journal entries for the consolidation worksheet at 30 June 2020.

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