Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hermi's bumbles is a company that has been in busi

Hermi's Bumbles is a company that has been in business for three years. The company...

90.2K

Verified Solution

Question

Accounting

Hermi's Bumbles is a company that has been in business for three years. The company is a wholesaler of Bumbles. Bumbles are bulbs which grow into beautiful, sweet smelling plant- trees. They are a cross between a hyacinth and a buckeye. They are refrigerated and must be planted within one year of when they are harvested. Hermi buys the bumbles from a grower when they are one month old. Hermi has one location in Columbus, Ohio. It has three refrigerated trucks which deliver the Bumbles throughout Ohio. The financial statements on the previous page summarize Hermi's operations for its first three years. Hermi began operations with individuals investing $120,000 for 12,000 shares of common stock and a small business loan of $200,000 from the bank. The loan carries interest at 12%. Hermi must pay the interest plus $10,000 on the principal on January 1 of each year. Hermi sells using terms of 2/10 n/30. The latest sale of stock between individuals was yesterday at $85.00 per share. There are more shares available from the other investors for this amount. The tax rate is 30%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Question: In a small scale market study investigating brandliking (Y) for product variations with...

Medical Sciences
1.2K views

Particles that enter circulation often accumulate in the liver and spleen. Describe the function of the...

Geometry
1.2K views

19 22 Tangent A Choose the correct trig function Cosine

Accounting
1.2K views

estion 6 yet Which of the following is a part of...

Accounting
1.2K views

Exercise 181 Felter Company produced and sold 50,000 units of product and is operating at...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.) University Car Wash built...

Accounting
1.2K views

Hector Gaming Company Hector Gaming Company (HGC) is an educational gaming company specializing in young...

Accounting
1.2K views

The Wade Division of Geisler Corporation has a current ROI of 20 percent. The company...

Accounting
1.2K views

Should businesses protect their intellectual properties? Why or why not?

Accounting
1.2K views

The LIFO reserve is the amount by which the current years cost of goods sold...

Finance
1.2K views

What are the terms of the credit and interest of CITIBANK? Explain.

Accounting
1.2K views

Crane Companybudgeted manufacturing costs for 30000 tons of steel are: Fixed...