What amount would fox report as gross profit

Assignment Help Accounting Basics
Reference no: EM131804879

Question - Several of Fox Inc.'s customers are having cash flow problems. Information pertaining to these customers for the years ended March 31, 1998 and 1999, follows:

3/31/98 3/31/99

Sales $10,000 $15,000

Cost of Sales 8,000 9,000

Cash Collections

On 1998 Sales 7,000 3,000

On 1999 Sales - 12,000

If the cost-recovery method is used, what amount would Fox report as gross profit from sales to these customers for the year ended March 31, 1999?

a. $2,000

b. $3,000

c. $5,000

d. $15,000

Reference no: EM131804879

Questions Cloud

Review the information for using a power : You are required to review the information for using a power/interest grid. Find at least two articles that describe this grid or a similar one to help
Calculate the amount of the credit : calculate the amount of the credit, assuming that the credit is not limited by their tax liability
Product design and service design : Research 3 of the following topics related to product design and service design:
What controls were in place at the time the crisis occurred : In your opinion, did the situation develop as a result of poor leadership, weak management, or unfortunate circumstances.
What amount would fox report as gross profit : If the cost-recovery method is used, what amount would Fox report as gross profit from sales to these customers for the year ended March 31, 1999
Research the inventor of automated teller machine : Research the inventor of Automated teller machine (ATM). Observe, scrutinize, and evaluate ATM?
Identify the asset to be evaluated : CARVER is a methodology first used by the Department of Defense Special Forces to rank targets so that their resources could be used efficiently.
Example of descriptive and causal research designs : Compare, contrast, and provide an example of descriptive and causal research designs. Which design do you think is more useful for companies
Outline how company collects analyses relevant information : Provide an outline and explanation of the main information your organisation needs to plan, take decisions, control, and influence behaviour

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss krab corporation purchases specialty software

Krab Corporation purchases specialty software from a software development firm for use in its business as of January 1 of the current year

  Determine the issue price

On 1 July 2018 Rankin Ltd issues $1 million in 10-year debentures that pay interest each six months at a coupon rate of 10 per cent. Determine the issue price

  Prepare a retained earnings statement for the fiscal year

Dynamic Leaders Inc. reported the following results for the yearending July 31, 2008. Prepare a retained earnings statement for the fiscal year endingJuly 31, 2008

  Prepare the entry to record the mortgage loan

Prepare the entry to record the mortgage loan on December 31, 2017, and the first installment payment on December 31, 2018

  What is the maximum price you should be willing to pay

If you require a 7 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond

  Wernett corporations net income for the most recent year

wernett corporations net income for the most recent year was 1509000. a total of 200000 shares of common stock and

  How much values can be positive or negative the answer

cash dividends totalling 5000 were declared and paid to stockholders on march 31.tell what accounts are affected in

  Discuss anticipated cost of purchases and beginning

Anticipated cost of purchases and beginning and ending inventory of direct materials

  What existing provisions in the act

Review the provisions of the Sarbanes-Oxley Act which was created in 2002 to address the accounting scandals in the late 90s early 00s (Enron, WorldCom, etc.). Identify the provisions that you feel made the biggest impact.

  Discuss expense recognition wont affect cash flow

there's a $5k balance in accrued salaries payable acct C the 12/31 year 1 expense recognition won't affect cash flow

  Prepare the journal entries to record the exchange

Prepare the journal entries to record the exchange, The equipment has been purchased for $95,000 ten years ago and has since been fully depreciated

  Create a monthly sales budget

Nygaard sports single product is purchased for $30 per unit and resold for $53 per unit. the expected inventory level of 4750 units on december 31, 2009, is more than the managements desired level for 2010, which is 20% of the next month's expecte..

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