Herc co.’s inventory at december 31, year 1, was $1.5 million based on a physical count priced at cost, and before any necessary adjustment for the following: merchandise costing $90,000 was shipped fob shipping point from a vendor on december 30, year 1, and was received and recorded on january 5, year 2. goods in the shipping area were excluded from inventory although shipment was not made until january 4, year 2. the goods, billed to the customer fob shipping point on december 30, year 1, had a cost of $120,000. what amount should herc report as inventory in its december 31, year 1, balance sheet? a. $1,500,000
b. $1,590,000
c. $1,620,000
d. $1,710,000

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.

What role do business cycles play in a market economy