On april 12, after the close of business, singh & sons had a devastating fire that destroyed the company’s work-in-process and finished-goods inventories. fortunately, all raw materials escaped damage because materials owned by the firm were stored in another warehouse. the following information is available: sales revenue through april 12 $ 330,000 income before taxes through april 12 68,000 direct labor through april 12 120,000 cost of goods available for sale, april 12 275,000 work-in-process inventory, january 1 21,000 finished-goods inventory, january 1 37,000 gross margin 30 % of sales the firm’s accountants determined that the cost of direct materials used normally averages 25 percent of prime costs (i. e., direct material + direct labor). in addition, manufacturing overhead is 50 percent of the

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business. true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.