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the end of the 8 years, Alan withdraws the accumulated amount of
money.
Guillen, Inc. began work on a $7,000,000 contract in 2014 to construct
an office building. Guillen uses the completed-contract method. At
December 31, 2014, the balances in certain accounts were
Construction in Process $1,715,000; Accounts Receivable $240,000;
and Billings on Construction in Process $1,000,000.
Lazaro Inc. sells goods on the installment basis and uses the
installment-sales method. Due to a customer default, Lazaro
repossessed merchandise that was originally sold for $800, resulting in
a gross profit rate of 40%. At the time of repossession, the uncollected
balance is $520, and the fair value of the repossessed merchandise is
$275
Morlan Corporation is preparing its December 31, 2014, financial
statements. Two events that occurred between December 31, 2014, and
March 10, 2015, when the statements were issued, are described below.
Foley Corporation has seven industry segments with total revenues as
follows.
Operating profits and losses for the seven industry segments of Foley
Corporation are:
Heartland Company’s budgeted sales and budgeted cost of goods sold
for the coming year are $144,000,000 and $99,000,000, respectively.
Short-term interest rates are expected to average 10%. If Heartland
can increase inventory turnover from its present level of 9 times a year
to a level of 12 times per year.
The payout ratio is calculated by dividing
Presented below are four segments that have been identified by Haley
Productions: