Exercise 12-8 payback period and simple rate of return [lo12-1, lo12-6] [the following information applies to the questions displayed below.] nick’s novelties, inc., is considering the purchase of new electronic games to place in its amusement houses. the games would cost a total of $672,000, have a fifteen-year useful life, and have a total salvage value of $67,200. the company estimates that annual revenues and expenses associated with the games would be as follows: revenues $ 260,000 less operating expenses: commissions to amusement houses $ 90,000 insurance 36,000 depreciation 40,320 maintenance 50,000 216,320 net operating income $ 43,680 exercise 12-8 part 2 2a. compute the simple rate of return promised by the games. 2b. if the company requires a simple rate of return of at least 5%, will the games be purchased?

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?