Answer:
the creation of different meanings based on social and cultural context.
Explanation:
In our daily interactions with others, we tend to come across people whose values are different from ours. The difference can be attributed to different cultural and social backgrounds. Culture is a people's way of life. This embraces their beliefs, values, religion.
When people have different values, they tend to see things differently. That can account for the reason why a friend would view an ad as humorous, while another would view it as plain stupid.
Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. and The Hershey Company, is as follows (in thousands): Mondelez Hershey Net property, plant, and equipment $10,010,000 $1,674,071 Current liabilities 14,873,000 1,471,110 Long-term debt 15,574,000 1,530,967 Other long-term liabilities 12,816,000 716,013 Stockholders' equity 32,215,000 1,036,749 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.
Answer:
Please see answer below
Explanation:
a. Determine the ratio of liabilities to stockholder's equity for both companies
Debt to equity ratio = Total liabilities / Shareholder's equity
• Mondelez
Total liabilities = 14,873,000 + 15,574,000 + 12,816,000
= 43,263,000
Shareholder's equity = 32,215,000
Debt to equity ratio = 43,263,000/32,215,000
= 1.34
• Hershey
Total liabilities = 1,471,110 + 1,530,167 + 716,013
= 3,717,290
Shareholder's equity = 1,036,749
Debt to equity ratio = 3,717,290/1,036,749
= 3.59
b. Determine the ratio of fixed assets to long-term liabilities for both companies
•Ratio of fixed assets to long term liabilities = Fixed assets/Longterm liabilities
•Mondelez
Fixed assets = 10,010,000
Long term liabilities = 15,574,000 + 12,816,000
= 10,010,000/28,390,000
= 0.35
• Hershey
Fixed assets = 1,674,071
Long term liabilities = 1,530,167 + 716,013
= 2,246,180
= 1,530,167/2,246,180
= 0.68
The original cost of the truck was $32,000. What would be the journal entry for Combs Co. to record the disposal of the delivery truck
Answer:
Journal Entry for disposal (or) sale of Truck
Explanation:
Truck (asset) sold for cash, bank, or on credit {On loss}Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
P & L ac ... dr
to Truck ac ... 32000
Truck (asset) sold for cash, bank, or on credit {On gain}Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
to Truck ac ... 32000
To P & L ac
You and a partner are considering the purchase of a convenience store.? The store has annual sales of $500,000 and is paying annual payroll of $100,000. The cost of goods sold every year is $150,000. The firm has miscellaneous expenses (taxes, insurance, garbage, electricity, natural gas, security, maintenance, property taxes, training, advertising, accounting fees, bank charges, etc.) of roughly $68,000 per year. If depreciation is equal to $15,000 per year and the tax rate is equal to 38% then what is the net income?
Answer:
the net income is $103,540
Explanation:
The computation of the net income is shown below:
= (Annual sales - annual payroll - cost of goods sold - miscellaneous expenses - depreciation expense) × (1 - tax rate)
= ($500,000 - $100,000 - $150,000 - $68,000 - $15,000) × (1 - 38%)
= $103,540
Hence, the net income is $103,540
We simply applied the above formula
A company wants to analyze the following investment option using its rate of return. They use a MARR of 15% to determine whether something might be a good investment in this category. Calculate the accurate internal rate of return for the given cash flow as precisely as possible, interpolating as necessary. The MARR is a good starting point. Decide if the investment should be made
Remainder Part of Question:
Cash Flow
Initial Costs $365,000
Annual Benefits $90,000
Operation and Maintenance $15,000
Salvage Value $25,000
Lifetime in years 10 Years
Answer:
As the IRR > MARR, hence the investment is financially viable.
Explanation:
Find the attachment below:
4. Give two reasons why GDP is often not seen as the best measure of living standards.
Answer:
Different factors account to it.
Explanation:
Because many factors that contribute to people's happiness are not bought and sold, GDP is a limited tool for measuring standard of living. To understand it's limitations better, let's take a look at several factors that are not accounted for in GDP.
GDP does not account for leisure time. The US GDP per capita is larger than the GDP per capita of Germany, but does this prove that the standard of living in the United States is higher? Not necessarily since it is also true that the average US worker works several hundred hours more per year more than the average German worker. The calculation of GDP does not take German workers extra weeks of vacation into account.
GDP includes what is spent on environmental protection, healthcare, and education, but it does not include actual levels of environmental cleanliness, health, and learning. GDP includes the cost of buying pollution-control equipment, but it does not address whether the air and water are actually cleaner or dirtier. GDP includes spending on medical care, but it does not address whether life expectancy or infant mortality have risen or fallen. Similarly, GDP counts spending on education, but it does not address directly how much of the population can read, write, or do basic mathematics.
An investment offers $9,200 per year for 17 years, with the first payment occurring 1 year from now. Assume the required return is 12 percent. Requirement 1: What is the value of the investment today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 2: What would the value be if the payments occurred for 42 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 3: What would the value be if the payments occurred for 77 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 4: What would the value be if the payments occurred forever? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $
Answer:
1.
Present value = $65500.60053 rounded off to $65500.60
2.
Present value = $76009.84174 rounded off to $76009.84
3.
Present value = $76654.22671 rounded off to $76654.23
4.
PV of perpetuity = $76666.66667 rounded off to $76666.67
Explanation:
The payments from the investment can be classified as being an ordinary annuity as the payments made by the investment offer are of constant amount and occur at the end of the period, occur after equal intervals of time and are for a defined and finite time period except for the payments made in case of requirement 4. The formula to calculate the present value of annuity that will be used in requirement 1, 2 and 3 is attached.
1.
Present value = 9200 * [(1 - (1 + 0.12)^-17) / 0.12]
Present value = $65500.60053 rounded off to $65500.60
2.
Present value = 9200 * [(1 - (1 + 0.12)^-42) / 0.12]
Present value = $76009.84174 rounded off to $76009.84
3.
Present value = 9200 * [(1 - (1 + 0.12)^-77) / 0.12]
Present value = $76654.22671 rounded off to $76654.23
4.
If the payments occur for an infinite period of time, they can be classified as a perpetuity.
The formula to calculate the present value of perpetuity is as follows,
PV of perpetuity = Cash Flow / r
Where,
r is the required rate of return or discount rate
PV of perpetuity = 9200 / 0.12
PV of perpetuity = $76666.66667 rounded off to $76666.67
Mr. Baxter IV, would like to retire in 26 years. He would like to accumulate $1,500,000 at the time of retirement to live a contented life. He would like set aside equal amount each month to achieve his goal. What is the monthly amount he should save if he can invest them at an interest rate of 11.1% [Annual rate]. [Assume monthly compounding]
Answer:
Monthly deposit= $840.74
Explanation:
Giving the following information:
Number of periods= 26*12= 312 months
Future Value= $1,500,000
Interste rate= 0.11/12= 0.0092
To calculate the monthly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,500,000*0.0092) / [(1.0092^312) - 1]
A= $840.74
A company produces a single product. Variable production costs are $12.90 per unit and variable selling and administrative expenses are $3.90 per unit. Fixed manufacturing overhead totals $45,000 and fixed selling and administration expenses total $49,000. Assuming a beginning inventory of zero, production of 4,900 units and sales of 4,050 units, the dollar value of the ending inventory under variable costing would be:
Answer:
$10,965
Explanation:
Computation for the dollar value of the ending inventory under variable costing
First step is to find the Units in ending inventory
Using this formula
Units in ending inventory = Units in beginning inventory + Units produced−Units sold
Let plug in the formula
Units in ending inventory= 0 units + 4,900 units−4,050 units
Units in ending inventory = 850 units
Last step is to find the Value of ending inventory under variable costing
Using this formula
Value of ending inventory under variable costing = Unit in ending inventory × Variable production cost
Let plug in the formula
Value of ending inventory under variable costing= 850 units × $12.90 per unit
Value of ending inventory under variable costing = $10,965
Therefore the dollar value of the ending inventory under variable costing would be $10,965
Kela Corporation reports net income of $550,000 that includes depreciation expense of $76,000. Also, cash of $53,000 was borrowed on a 4-year note payable. Based on this data, total cash inflows from operating activities are:a) $603,000b) $679,000c) $626,000d) $474,000
Answer:
$626,000
Explanation:
Kela corporation has a net income of $550,000
Depreciation expense is $76,000
Cash is $53,000
Therefore the total cash inflows from operating activities can be calculated as follows
=$550,000 + $76,000
$626,000
Hence the total cash inflow from operating activities is $626,000
Assume you short sell 100 shares of IBM common stock at $125 per share. If the initial margin is 70%, what is the amount that you put in as cash buffer?a) $3750b) $12500c) $5000d) $8750
Answer: d) $8750
Explanation:
The Cash buffer is also the margin of the total value of the stock.
= Initial margin * Investment value
= 70% * (125 * 100)
= 70% * 12,500
= $8,750
list essential preparations when communicating to inform, to persuade, and
to argue
Explanation:
Some of the essential preparations when communicating to inform, persuade, and argue includes;
Determine what you know about the subject.Be mindful of what your audience already know about the subject and avoiding stating mainly what they know already; so they will be more interested in what you have to say.Use appropriate language and terms that your audience can easily understand.Make references to respectable outside sources that back your claim. Respectfully present your speech to your audience, and avoid been judgmental because of their differing views.The essentials that should be done when communicating with the aim to inform, persuade and argue includes:
You have to use your knowledge and also think about the knowledge of your audience You have to be straightforward and avoid the use of big and unnecessary language,You should remember to give due credit to the sources you got your speech from Remember the use of ethics in your presentation of information.If you are to use the media, use the one that is able to communicate your thoughts well to the audience.Read more on https://brainly.com/question/15169159?referrer=searchResults
Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority
Answer:
Chain of command.
Explanation:
Chain of command is been used in the description of operation flow pattern in companies, government, universities and in many organisations which aid in a better reporting relationship. This report is said to set records straight and also puts every individual in a category in this chart organization. Also a chain of command is established so that everyone knows whom they should report to and what responsibilities are expected at their level. A chain of command enforces responsibility and accountability.
Let us imagine that there is a country which displays the following statistics. C (Consumption) is one-half of GDP, and I (Investment) is one-sixth of GDP. G (Government expenditure) is $2000 larger than investment. The country has a trade deficit of $700. What is the country's GDP
Answer: $3903
Explanation:
The gross domestic product for a country is simply used to know the value of the goods and the services that are being produced in that particular country. It should be noted that the formula for calculating GDP = C+I+G+(X-M)
Based on the information given in the question, the answer is $3903.
Check the attachment for further explanation.
Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 2006, at a discount of $150,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund. On December 18, 2020, the company issued its 11%, 20-year debenture bonds in the principal amount of $4,000,000 at 102, and the proceeds were used to redeem the 9%, 25-year mortgage bonds on January 2, 2021. The indenture securing the new issue did not provide for any sinking fund or for redemption before maturity.
(a) Prepare journal entries to record the issuance of (1) the 11% bonds and (2) the redemption of the 9% bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Date Account Titles and Explanation Debit Credit
(1) December 18, 2020
(2) January 2, 2021
(b) Indicate the income statement treatment of the gain or loss from redemption.
The _____ is reported as ______.
Answer:
A. December 18, 2020
Dr Cash 4,080,000
Cr 11% Bond payable (Face value) 4,000,000
Cr Premium on issue of Bond payable 80,000
January 2, 2021
Dr 9% Bonds Payable ( Face value) 3,000,000
Dr Loss on redemption of Bond 180,000
Cr Discount on Bond payable 60,000
Cr Cash 3,120,000
B. The LOSS is reported as an ORDINARY INCOME
Explanation:
A. Preparation of Journal entries
December 18, 2020
Dr Cash 4,080,000
($4,000,000/100)*102
Cr 11% Bond payable (Face value) 4,000,000
Cr Premium on issue of Bond payable 80,000
(4,080,000-4,000,000)
January 2, 2021
Dr 9% Bonds Payable ( Face value) 3,000,000
Dr Loss on redemption of Bond 180,000
[3,00,0000-(3,120,000+60,000)]
Cr Discount on Bond payable 60,000
($150,000/25)*10
Cr Cash 3,120,000
(3,000,000*104%)
B. Indication of the income statement treatment of the gain or loss from redemption.
The LOSS is reported as an ORDINARY INCOME
Hunter is the founder and CEO of a Web site development firm. Clients are typically small to midsized companies that are seeking an offbeat, innovative approach to their online design, as well as functionality that offers customers surprising ways to interact with the site. What is the more appropriate style of leadership, given the type of work Hunter wants his Web site designers to do
Answer:
The right solution would be "Transformational ".
Explanation:
The required leadership style throughout this situation, considering the sort of job Hunter requires his application or website developers or designers to be doing, is Transformative. The objective was to design or create an unexpected as well as creative approach is to develop or construct various websites.If a firm's sales are $250,000 and its variable costs are $190,000, the contribution margin in dollars is:_______.
a. $440,000
b. $60,000
c. $190,000
d. $250,000
Answer:
b. $60,000
Explanation:
Given the following data;
Sales price = $250,000
Variable cost = $190,000
Contribution margin can be defined as the subtraction of variable cost from the sales price.
Mathematically, it given by the formula;
[tex] Contribution \; margin = sales \; price - variable \;cost[/tex]
[tex] Contribution \; margin = 250000 - 190000[/tex]
Contribution margin = 60,000
Therefore, the contribution margin in dollars is $60,000.
You lose your job and as a result, you buy fewer mystery books. This shows that you consider mystery books to be a/an a. inferior good. b. complementary good c. luxury good d. normal good.
Answer:
You lose your job and as a result, you buy fewer mystery books. This shows that you consider mystery books to be a/an
c. luxury good
Explanation:
The demand for a luxury good increases with increasing income. A higher proportion of the income is spent on the good than under normal circumstances. An inferior good is one whose demand, on the other hand, drops when income rises. A normal good is a necessity unlike a luxury good. A complementary good is demanded with its complement because the two goods go together. Bread and butter are complementary goods.
The firm has just declared a dividend of $1.09 per share for the current fiscal year. The firm has earnings per share of $2.11, and 225,000 shares outstanding with a market price of $31.17 per share prior to the ex-dividend day. Ignore taxes. As a result of this dividend, the: A) the current dividend yield is 51.66% B) retained earnings will increase by $245,250. C) the current dividend payout ratio is 3.497% D) earnings per share will increase to $3.20. E) price-earnings ratio will be 14.26 ex-dividend.
Answer: E) price-earnings ratio will be 14.26 ex-dividend.
Explanation:
Stock prices generally decrease in price by the price of the dividend on ex-dividend date.
This means that this stock will reduce to:
= 31.17 - 1.09
= $30.08
Price to Earnings ratio = Stock price/ Earnings per share
= 30.08/2.11
= $14.26
Option E is correct.
7. The theory of efficiency wages Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply. Paying higher wages encourages workers to be more productive. Higher wages cause workers to shirk more of their responsibilities. Paying higher wages can reduce a firm's training costs. Higher wages attract a more competent pool of workers.
Answer:
Paying higher wages encourages workers to be more productive.
Explanation:
Firms pay workers a wage above the market equilibrium even in the presence of surplus labor to encourage the workers to work hard. Increasing a workers wage is known to be an effective method to motivating which later brings about efficiency in output from the workers. It is also use to appreciate the efforts of employees by showing them that company cares for their basic requirement.
Answer:
paying higher wages encourages workers to be more productive
Paying higher wages can reduce a firm's training costs.
Higher wages attract a more competent pool of workers.
Explanation:
Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity.
When a firm pays high wages, it attracts a better pool of workers to apply for its jobs and thereby increases the quality of its workforce
Workers who are shirking their responsibilities are fired
Malco Enterprises issued $14,000 of common stock when the company was started. In addition, Malco borrowed $44,000 from a local bank on July 1, 2018. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $76,500 of revenue on account in 2018 and $90,000 of revenue on account in 2019. Cash collections of accounts receivable were $62,900 in 2018 and $73,100 in 2019. Malco paid $43,000 of other operating expenses in 2018 and $49,000 of other operating expenses in 2019. Malco repaid the loan and interest at the maturity date.
Required
a. Organize the information in accounts under an accounting equation.
b. What amount of net cash flow from operating activities would be reported on the 2018 cash flow statement?
c. What amount of interest expense would be reported on the 2018 income statement?
d. What amount of total liabilities would be reported on the December 31, 2018, balance sheet?
e. What amount of retained earnings would be reported on the December 31, 2018, balance sheet?
f. What amount of cash flow from financing activities would be reported on the 2018 statement of cash flows?
g. What amount of interest expense would be reported on the 2019 income statement?
h. What amount of cash flows from operating activities would be reported on the 2019 cash flow statement?
i. What amount of assets would be reported on the December 31, 2019, balance sheet?
Answer:
a) I used an excel spreadsheet since there is not enough room here.
b) $21,220 (net income + increase in interests payable)
c) $1,320
d) $45,320
e) $32,180
f) $58,000
g) $1,320
h) $21,460
i) $85,860
You are a business owner of a firm that services trucks. A customer would like to rent a truck from you for one week, while you service his truck. You must decide whether or not to rent him a truck. You have an extra truck that you will not use for any other purpose during this week. This truck is leased for a full year from another company for $300/ week plus $.50 for every mile driven. You also have paid an annual insurance premium, which costs $50/ week to insure the truck. The truck has a full 100-gallon fuel tank. The customer has offered you $600 to rent the truck for a week. The price includes the 100 gallons of fuel that is in the tank. It also includes the 100 gallons of fuel that is in the tank. It also includes up to 500 miles of driving. The customer will pay $.50 for each additional mile that he drives above the 500 miles. You anticipate that the customer will bring back the truck with an empty fuel tank and will have driven more than 500 miles. You sell fuel to truckers at a retail price $4.00/gallon. Any fuel you sell or use can be replaced at a wholesale price of $3.25/gallon. The customer will rent a truck from another company if you do not accept the proposed deal. In either case, you will service his truck. You know the customer and are confident that he will pay all charges incurred under the agreement.
1. Should you accept or reject the proposed deal? Why, or why not? Show calculations.
2. Would your answer change if your fuel supplier limited the amount of fuel that you could purchase from him at the wholesale price? Explain.
Explanation:Given data:
Yearly lease from the company = $300/weekly +$.50 for every driven mile.
Annual insurance = $50/weekly.
Customer offer = $600 for a week ( 100 gallons of fuel in the truck inclusive).
Customer pays and additional $.50 for mile driven above 500.
Solution:
Cost of fuel in the truck
= 100 * $3.25
= $325.
Insurance cost = $50.
Total cost = $375.
Customer offer – total cost
= $600 – $375.
= $225.
1.The proposal should be accepted because even after deductions of the cost of running the truck, you are still left with $225 which doesn’t include the cost the customer would incite for driving above 500 miles.
2.No, as that would only have a little effect on the cost of running the truck. So my answer would still be same.
The current assets of Margo Company are $300,000. The current liabilities are $100,000.The current ratio expressed as a proportion is:___________.
a. 300%.
b. 3.0 : 1
c. .33 : 1
d. $300,000 ÷ $100,000.
Answer:
b. 3.0 : 1
Explanation:
Current ratio is used to measure a company's financial ability to pay short-term obligations or those due within one year. It is measure by Current asset/Current liability
The Current ratio = $300,000 / $100,000 = 3.0 : 1
Note: The higher the quick ratio, the better the company's liquidity position.
Bean Brewers, Inc., a manufacturer of coffee makers, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) hours Account billing (lines) lines Account verification (accounts) accounts Correspondence (letters) letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) hours hours Account billing (lines) lines lines Account verification (accounts) accounts accounts Correspondence (letters) letters letters How much of the correspondence cost will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
Answer: B. $438
Explanation:
Correspondence Cost = Number of letters * Predetermined cost of correspondence
Predetermined cost of correspondence = Allocated cost/ Allocated base
= 14,000/1,600 letters
= $8.75 per letter
Northeast Office used 50 letters for correspondence.
Cost = 8.75 * 50
= $437.50
= $438
Exercise 6-4A Calculate inventory amounts when costs are rising (LO6-3) [The following information applies to the questions displayed below.] During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 45 $ 37 $ 1,665 Apr. 7 Purchase 125 39 4,875 Jul. 16 Purchase 195 42 8,190 Oct. 6 Purchase 105 43 4,515 470 $ 19,245
Answer:
1. Ending inventory = $2,408; Cost of goods sold = $16,837; Sales revenue = $22,770; and Gross profit = $5,933.
2. Ending inventory = $2,094; Cost of goods sold = $17,151; Sales revenue = $22,770; and Gross profit = $5,619.
3. Ending inventory = $2,293; Cost of goods sold = $16,952; Sales revenue = $22,770; and Gross profit = $5,818.
Explanation:
Note: This question is not complete. The complete question is therefore presented before answering the question. See the attached pdf file for the complete question.
Explanation to the answer is now presented as follows:
1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Note: See part 1 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using FIFO.
First In, First Out (FIFO) refers to an inventory accounting method in which inventory items purchased first are sold first, while the one that are purchased last are sold last.
In the attached excel file, since the inventory purchased on Oct. 6 is purchased last, the number of unit of inventory purchased on Oct. 6 sold is calculated by deducting the sum of the beginning inventory and inventory purchased before Oct. 6 from the total inventory sold as follows:
Number of unit of inventory purchased on Oct. 6 that are sold = Number of units sold - (Beginning inventory + Apr. 7 Purchases + Jul. 16 Purchases) = 414 - (45 + 125 + 195) = 49
Therefore, the number of ending inventory is obtained as follows:
Number of unit of ending inventory = Number of inventory purchased on Oct. 6 - Number of inventory purchased on Oct. 6 sold = 105 – 49 = 56
Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770
From the attached excel file, we have:
Cost of goods sold = $16,837
Ending inventory = $2,408
Therefore, we have:
Gross profit = Sales revenue - Cost of goods sold = $22,770 - $16,837 = $5,933
2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Note: See part 2 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using LIFO.
Last In, First Out (LIFO) refers to an inventory accounting method in which inventory items purchased last are sold first, while the one that are purchased first are sold last.
In the attached excel file, the number of unit of inventory purchased on April 7 that are sold and the ones remaining that are NOT sold that forms part of ending inventory are calculated as follows:
Number of unit of inventory purchased on April 7 that are sold = 414 – (195 + 105) = 114
Number of unit of inventory purchased on April 7 that are NOT sold = Number of unit of inventory purchased on April 7 - Number of unit of inventory purchased on April 7 that are sold = 125 – 114 = 11
Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770
From the attached excel file, we have:
Cost of goods sold = $17,151
Ending inventory = $2,094
Therefore, we have:
Gross profit = Sales revenue - Cost of goods sold = $22,770 - $17,151 = $5,619
3. Using weighted average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 4 decimal places and all other answers to the nearest whole number.)
Note: See part 3 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using weighted average cost.
Weighted average cost method refers to a method of costing inventory in which the total cost of the goods available for sale is divided by the total number of units available for sales in order to obtain weighted average cost per unit.
In the attached excel file, weighted average cost per unit is therefore calculated and rounded to 4 decimal places as follows:
Weighted average cost per unit = $19,245 / 470 = $40.9468
Number of unit of ending inventory = Total number of units available for sales – Number of unit sold = 470 – 414 = 56
Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770
From the attached excel file, we have:
Cost of goods sold = $16,952
Ending inventory = $2,293
Therefore, we have:
Gross profit = Sales revenue - Cost of goods sold = $22,770 - $16,952 = $5,818
The category that is generally considered to be the best measure of a company's ability to continue as a going concern is A. cash flows from financing activities. B. cash flows from investing activities. C. usually different from year to year. D. cash flows from operating activities.
Answer:
D. cash flows from operating activities
Explanation:
Operating activities include the functions of a business with respect to providing its goods and services to the market. Operating activities for a company include sales, manufacturing, marketing activities and advertising. The category that is generally considered to be the best measure of a company's ability to continue as a going concern is cash flows from operating activities.
What's the present value, when interest rates are 7.5 percent, of a $170 payment made every year forever
Answer:
The present value of the perpetual annuity is $2,266.67.
Explanation:
Giving the following information:
Interest rate (i)= 7.5% = 0.075
Cash flows= $170
To calculate the present value (PV) of this perpetual annuity, we need to use the following formula:
PV= Cf/ (i)
PV= 170 / 0.075
PV= $2,266.67
The present value of the perpetual annuity is $2,266.67.
Two common subgroups for liabilities on a classified balance sheet are: Multiple Choice Current liabilities and intangible liabilities. Present liabilities and operating liabilities. General liabilities and specific liabilities. Intangible liabilities and long-term liabilities. Current liabilities and long-term liabilities.
Answer: Current liabilities and long term liabilities
Explanation:
Liability is simply referred to as what is owed by a business or a company. e.g unpaid salaries, etc. Liabilities can be classified as either current liabilities and long term liabilities.
Current liabilities are the liabilities which are for a short period of time and usually paid in that particular year. e.g short term debt.
Long term liabilities are the liabilities which are for a longer period of time which are typically more than a year e.g mortgage payment, car payment etc.
"The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $40,000 each year?"
Answer:
The question is missing the amount that Debbie's fund has, so I looked for similar questions and the number I found was $368,882.
we can use the present value of an annuity due formula to determine how long it will take Debbie to empty her account.
present value of annuity due = (payment / i) x {1 - [1 / (1 + i)ⁿ]} x (1 + i)
368,882 = (40,000 / 0.03) x {1 - [1 / (1 + 0.03)ⁿ]} x (1 + 0.03)
368,882 = 1,333,333.33 x 1.03 x {1 - [1 / (1 + 0.03)ⁿ]}
368,882 = 1,373,333.33 x {1 - [1 / (1 + 0.03)ⁿ]}
1 - [1 / (1.03)ⁿ] = 368,882 / 1,373,333.33 = 0.268603398
1 - 0.268603398 = [1 / (1.03)ⁿ]
0.731396601 = 1 / (1.03)ⁿ
1.03ⁿ = 1 / 0.731396601 = 1.367247261
n = log 1.367247261 / log 1.03 = 0.135847062 / 0.012837224 = 10.58 years
Debbie will exhaust the fund in 10.58 years. That means that Debbie will be able to withdraw $40,000 for 10 years, and then the last withdrawal will be lower.
Explanation:
You are thinking of opening a Broadway play, I Love You, You’re Mediocre, Now Get Better! It will cost $5 million to develop the show. There are 8 shows per week, and you project the show will run for 100 weeks. It costs $1000 to open the theater each night. Tickets sell for $50.00, and you earn an average of $1.50 profit per ticket holder from concessions. The theater holds 800, and you expect 80% of the seats to be full. a. Given your other assumptions, how many weeks will the play have to run for you to earn a 100%
Answer:
39 weeks
Explanation:
initial investment = $5 million
Your goal is to a better person and get rich by doubling your development costs. You want to earn $10 million in profits, so you will need to sell a lot of seats.
8 shows per week x 100 weeks = 800 shows
revenue per ticket = $50 + $1.50 = $51.50
tickets sold per show = 800 x 80% = 640
total revenue per show = 640 x $51.50 = $32,960
variable cost per show (assuming 7 nights per week) = $7,000 / 8 = $875
contribution margin per show = $32,960 - $875 = $32,085
number of shows needed to earn $10 million in profits = $10,000,000 / $32,085 = 311.67 shows
number of weeks = 311.67 / 8 = 38.96 ≈ 39 weeks
As a financial manager you must choose between three alternative investments. Each investment is expected to provide cash inflows for the next four years as described below. Based on the goal of shareholder wealth maximization, you would ________. Year Investment A Investment B Investment C 1 $25,000 $17,500 $10,000 2 $20,000 $17,500 $15,000 3 $15,000 $17,500 $20,000 4 $10,000 $17,500 $25,000 Total $70,000 $70,000 $70,000
Full question attached
Answer:
B. Choose investment A
Explanation:
Looking at the investment cash flows for the four years, investment A maximises the shareholders wealth mostly because it covers cost of investment quicker than other investments B, C and D. It begins with the highest cash flow return, for first and second year therefore pay back period is lower with investment A. Also net present value is higher.
