creditor for this loan impairment ? The present value of $ 1 two years hence at 6 % is . 89 , and at 2 % is . 961 .
Question 12
Hutch , Inc . uses the conventional retail inventory method to account for inventory . The following information relates to 2004 operations : What amount should be reported as cost of sales for 2004 ?
Question 13
Trans Co . uses a periodic inventory system . The following are inventory transactions for the month of January : Trans uses the average pricing method to determine the value of its inventory . What amount should Trans report as cost of goods sold on its income statement for the month of January ?
Question 14
At December 31 , 2004 , Kale Co . had the following balances in the accounts it maintains at First State Bank : Kale classifies investments with original maturities of three months or less as cash equivalents . In its December 31 , 2004 balance sheet , what amount should Kale report as cash and cash equivalents ?
Question 15
Gar Co . factored its receivables without recourse with Ross Bank . Gar received cash as a result of this transaction , which is best described as a
Question 16