Answer and Explanation:
Old equipment=2.5 mins per serving bowl
New equipment=1.5 mins per serving bowl
With old equipment, in one hour Eddy Jones can produce 60/2.5= 24 serving bowls
With new equipment, in one hour Eddy Jones can produce 60/1.5= 40 serving bowls
With old equipment, in 8 hours Eddy Jones can produce 24*8=192 serving bowls
With new equipment, in 8 hours Eddy Jones can produce 40*8=320 serving bowls
Therefore in 8 hours with new equipment Eddy Jones will produce 320-192= 128 more serving bowls than with old equipment.
a reward or benefit meant to encourage specific economic behavior is a
Answer:
incentive
Explanation:
XYZ segmented last year's income statement into its ten product lines. The CEO is curious as to what effect dropping one product line at the beginning of last year would have had on overall company profit. What is the best number to look at to determine the effect of this elimination on the net operating income of the company as a whole?
A) the product line's sales dollars.
B) the product line's contribution margin.
C) the product line's segment margin.
D) the product line's segment margin minus an allocated portion of common fixed expenses.
Answer:
Option c: The product line's segment margin
Explanation:
Net Operating Income
This is often regarded as the
adjusted Effective Gross Income (EGI) adjusted for annual operating expense and capital expenditures of a firm/organization
Net Operating Income Equation
(sales - variable expenses) - fixed expenses
Segment margin
The product line segment margin is usually said to be obtainable through the act of deduction of the traceable fixed costs of a segment from the segment's contribution margin. It shows or entails the margin at hand after a segment has covered all of its own costs. Itis the best gauge of the long-run profitability of a segment as it includes only those costs that are caused by the segment.
Segment margin formula
Contribution Margin - Traceable fixed costs
Information related to Kerber Co. is presented below.
1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Wilkes.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Wilkes Company in full.
Collapse question
Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
No. Date Account Titles and Explanation Debit Credit
1. April 5April 6April 7April 8April 15
2. April 5April 6April 7April 8April 15
3. April 5April 6April 7April 8April 15
4. April 5April 6April 7April 8April 15
5. April 5April 6April 7April 8April 15
Answer:
Date Account titles & Explanation Debit Credit
Apr-05 Merchandise Inventory $23,000
Accounts Payable $23,000
Apr-06 Merchandise Inventory $900
Cash $900
Apr-07 Equipment $26,000
Accounts Payable $26,000
Apr-08 Accounts Payable $3,000
Merchandise Inventory $3,000
Apr-15 Accounts Payable $20,000
($23,000-$20,000)
Merchandise Inventory $400
($20,000*2%)
Cash $19.600
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question.
The Purple Tulip Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $790 for six months of advertising. Purple Tulip Law Firm recorded $790 in the Prepaid Advertising account.
If Purple Tulip Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28?
Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $2,100
May 5: Received and paid electricity bill, $90
May 9: Received cash for meals served to customers, $2,520
May 14: Paid cash for kitchen equipment, $3,770
May 23: Served a banquet on account, $1,900
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $2,290
May 31: Recorded depreciation for May on kitchen equipment, $560 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May?
If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May?
Answer:
1. Cash Basis $790
Accrual basis $263
2. Cash method $(3,440)
Accrual method $780
Explanation:
1. Calculation to determine how much advertising expense would they have recorded for the two months ending February 28
UNDER THE CASH BASIS, the Law Firm will record $790 of advertising expense for the two months ending February 28.
UNDER THE ACCRUAL BASIS, the Law Firm will record $263 ($790/6*2) of advertising expense for the two months ending February 28.
Therefore the amount of advertising expense l would they have recorded for the two months ending February 28 is:
Cash Basis $790
Accrual basis $263
2a. Calculation to determine how much net income (loss) would they have recorded for the month of May If Sweet Catering had recorded transactions using the Cash method
Using this formula
Net income (loss) using cash method = Meals served to customer – Rent paid – Electricity bill – Cash paid for kitchen equipment
Let plug in the formula
Net income (loss) using cash method= $2,520 -$2,100-$90-$3,770
Net income (loss) using cash method= $(3,440)
Therefore If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May is $(3,440)
2b. Calculation to determine how much net income (loss) would they have recorded for the month of May If Sweet Catering had recorded transactions using the Accrual method
Using this formula
Net income (loss) using accrual method = Meals served to customer+ Served a banquet on account – Rent expense – Electricity bill – Salary expense – Depreciation
Let plug in the formula
Net income (loss) using accrual method= $2,520+$1,900-($2,100/3)-$90-$2,290-$560
Net income (loss) using accrual method=$2,520+$1,900-$700-$90-$2,290-$560
Net income (loss) using accrual method=$780
Therefore If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May is $780
Mehta Company traded a used welding machine (cost $9,000, accumulated depreciation $3,000) for office equipment with an estimated fair value of $5,000. Mehta also paid $3,000 cash in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.)
Answer:
Debit : Office Equipment at Fair Value $5,000
Debit : Accumulated depreciation - Welding machine $3,000
Debit : Profit and Loss $4,000
Credit : Cash $3,000
Credit : Cost of Welding Machine $9,000
Explanation:
If the exchange has commercial substance, the assets acquired is deemed to have a cost equal to the Fair Value of Asset given up.
Thus Fair Value of Asset given up (Welding Machine) is $5,000. This becomes the Cost of the New Asset - Office Equipment.
The Cost and Accumulated depreciation of the Old Asset are derecognized by Crediting and Debiting the respective Accounts. Also Cash advanced is recognized.
This journal calculates the Profit or Loss on the Exchange as $4,000 (loss).
Information for Pidris Metalworks as of December 31 follows. Prepare (a) the company's schedule of cost of goods manufactured for the year ended December 31; (12 Points).(b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses. (12 Points).
Answer: hello your question is incomplete attached below is the missing data. ( first image )
answer:
Attached below
Explanation:
A) company's schedule of cost of goods manufactured for year ended
attached below is the required schedule ( second Image )
B) Company's income statement
attached below is the company's income statement ( Image 3 and 4 )
Which of the following is an indirect manufacturing cost in a manufacturing company?
a. Indirect Materials
b. Real estate taxes on the factory
c. Salary of production floor manager
d. All of the above would be considered indirect manufacturing costs
Answer:
d
Explanation:
Indirect costs are costs of production that cannot be directly linked to a unit, activity or product.
Indirect manufacturing costs are cost of production that cannot be directly linked to a good that is produced.
Examples of indirect manufacturing cost include :
Indirect Materialsutility machine maintenance Real estate taxes on the factoryDepreciation Salary of production floor managerDue to a turnover, a company hires 400 employees each year, on average. Assume that an average stay of an employee in the company is 5 years. On average, how many employees does the company have?
Answer:
On average, the company has 2000 employees.
Explanation:
Since, due to a turnover, a company hires 400 employees each year, on average; assuming that an average stay of an employee in the company is 5 years, to determine, on average, how many employees does the company have, the following calculation must be performed:
Year 0 = 0
Year 1 = 400 (+400)
Year 2 = 800 (+400)
Year 3 = 1200 (+400)
Year 4 = 1600 (+400)
Year 5 = 2000 (+400)
Year 6 = 2000 (+400 -400)
Year 7 = 2000 (+400 - 400)
Therefore, on average, the company has 2000 employees.
A bank has $132,000 in excess reserves and the required reserve ratio is 11 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves. Group of answer choices $5,000,000; $5,869,000 $1,000,000; $110,000 $4,000,000; $590,000 $4,700,000; $869,000
Answer:
$14,520 in check-able deposit liabilities and $117,480 in total reserves.
Explanation:
The bank has $132,000 in excess reserves and excess reserves ratio is 11%. The bank will have total reserves of $132,000 * 89% = $117,480. The total liabilities will be equivalent to the excess reserves which is $14,520 [$132,000 - $117,480].
When the Jones were shopping for their present home, the asking price from the previous owner was $375,000.00. The Jones had decided they would pay no more than $365,000.00 for the house. After negotiations, the Jones actually purchased the house for $350,000.00. They, therefore, enjoyed a consumer surplus of
Answer:
$15,000
Explanation:
Calculation to determine the consumer surplus
Consumer surplus=$365,000.00-$350,000.00
Consumer surplus=$15,000
They, therefore, enjoyed a consumer surplus of $15,000
A tractor acquired at a cost of $420,000 has an estimated residual value of $30,000, has an estimated useful life of 25,000 hours, and was operated 1,850 hours during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost $fill in the blank 1 (b) The depreciation rate $fill in the blank 2 per hour (c) The units-of-output depreciation for the year
Answer:
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Answer:
Currently, the income statement for company reflects a total period cost for depreciation of $7,876,000
On December 31, 2020, Marin Company borrowed $67,653 from Paris Bank, signing a 5-year, $114,000 zero-interest-bearing note. The note was issued to yield 11% interest. Unfortunately, during 2022, Marin began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would receive back only $85,500 at maturity. The market rate of interest on loans of this nature is now 12%.
Prepare the entry, if any, to record the impairment of the loan on December 31, 2022, by Paris Bank.
Answer:
Journal Entries
December 31, 2020
Dr. Note Receivables $114,000
Cr. Discount on bond $46,347
Cr. Cash $67,653
December 31, 2020
Dr. Impairment loss $20,839
Cr. Allowance for Impairment $20,839
Explanation:
Calculate the discount on the bond as follow
Discount on the bond = Face value of Note - Borrowed Amount = $114,000 - $67,653 = $46,347
On December 31, 2020 calculate the present value of face value of note and recoverable value
Present value of Note = Face value x Discount factor at 11% for 3 years = $114,000 x 1/( 1 + 11%)^3 = $83,355.82
Present value of recoverable value of note = Recoverable value of note x Discount factor at 11% for 3 years = $85,500 x 1/( 1 + 11%)^3 = $62,516.86
Now calculate the impairment loss as follow
Impairment loss = Present value of Note - Present value of recoverable value of note = $83,355.82 - $62,516.86 = $20,838.96 = $20,839
A flexible expense and a periodic expense are basically the same thing. True or false
the answer of the question is true
Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are made to:______.
a. Common Stock, $22,000, and Retained Earnings, $15,000
b. Common Stock, $22,000
c. Common Stock, $15,000, and Paid-In Capital in Excess of Par, $7,000
d. Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000
Answer: C. Common Stock, $15,000, and Paid-In Capital in Excess of Par $7,000
Explanation:
The journal entry that will be made for this transaction include:
Debit Cash $22,000
Credit Common Stock $15,000
Credit Paid-In Capital in Excess of Par $7,000
Therefore, the correct option is C
Fong Corporation sold $2,000,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017 and pay interest on January 1. The company uses straight-line amortization on bond premiums or discounts.
Required:
Prepare all necessary journal entries to record the issuance of the bonds and bond interest expense for 2017.
Answer:
Jan 1
Dr Cash 2,040,000
Cr Bonds payable 2,000,000
Cr Premium on bonds payable 40,000
Dec 31
Dr Interest expense 100,000
Dr premium on bonds payable 40,000
Cr Interest payable 140,000
Explanation:
Preparation of the journal entries to record the issuance of the bonds and bond interest expense for 2017.
Jan 1
Dr Cash 2,040,000
Cr Bonds payable2,000,000
Cr Premium on bonds payable40,000
Dec 31
Dr Interest expense100,000
Dr premium on bonds payable40,000
Cr Interest payable140,000
(7%*$2,000,000)
The following information is available for the Johnson Corporation:
Beginning inventory $27,000
Inventory purchases (on account) 157,000
Merchandise purchases (on account) 157,000
Freight charges on purchases (paid in cash) 12,000
Merchandise returned to supplier (for credit) 14,000
Ending inventory 32,000
Sales (on account) 252,000
Cost of merchandise sold 150,000
Required:
Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
Answer:
Perpetual Inventory System:
1) Dr Inventory 157,000
Cr Accounts Payable 157,000
2) Dr Inventory 12,000
Cr Cash 12,000
3)Dr Accounts Payable 14,000
Cr Inventory 14,000
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
5) Dr Cost of Goods Sold 150,000
Cr Inventory 150,000
6) No entry
Periodic Inventory System:
1)Dr Purchases 157,000
Cr Accounts Payable 157,000
2) Dr Freight - in 12,000
Cr Cash 12,000
3) Dr Accounts Payable 14,000
Cr Purchase Returns 14,000
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
5) No entry
6) Dr Cost of Goods Sold 150,000
Dr Ending Inventory 32,000
Dr Purchase Returns 14,000
Cr Beginning Inventory $27,000
Cr Purchases 157,000
Cr Freight - in $12,000
Explanation:
Preparation of the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
PERPETUAL INVENTORY SYSTEM:
1) Dr Inventory 157,000
Cr Accounts Payable 157,000
(To record the purchase of inventory on account)
2) Dr Inventory 12,000
Cr Cash 12,000
(To record the payment of freight charges by cash)
3)Dr Accounts Payable 14,000
Cr Inventory 14,000
(To record the return of inventory purchased on account)
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
(To record the sales made on account)
5) Dr Cost of Goods Sold 150,000
Cr Inventory 150,000
(To record the cost of goods sold)
6) No entry
PERIODIC INVENTORY SYSTEM:
1)Dr Purchases 157,000
Cr Accounts Payable 157,000
(To record the purchase of inventory on account)
2) Dr Freight - in 12,000
Cr Cash 12,000
(To record the payment of freight charges by cash)
3) Dr Accounts Payable 14,000
Cr Purchase Returns 14,000
(To record the return of inventory purchased on account)
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
(To record the sales made on account)
5) No entry
6) Dr Cost of Goods Sold 150,000
Dr Ending Inventory 32,000
Dr Purchase Returns 14,000
Cr Beginning Inventory $27,000
Cr Purchases 157,000
Cr Freight - in $12,000
(To record the adjusting entry for inventory)
Xlon Co budgets a seling price of $ 86 per unit , varlable costs of $ 34 per unit , and total fixed costs of $ 286,000 . During June , the company produced and sold 12,400 units and incurred actual variable costs of $ 367,000 and actual fixed costs of $ 301,000 . Actual sales for June were $ 1,100,000 . Prepare a flexible budget report showing variances between budgeted and actual results . List variable and fixed expenses separately . ( Indicate the effect of each variance by selecting for favorable , unfavorable , and no variance )
Answer and Explanation:
The preparation of the flexible budget report is presented below;
Particulars Flexible budget Actual sales Variance fav or unfav
Sales $1,066,400 $1,100,000 $33,600 favorable
Less:
Variable expense $421,600 $367,000 $54,600 favorable
Contribution margin $644,800 $733,000 $88,200 favorable
Less:
Fixed expense $286,000 $301,000 $15,000 unfavorable
Net operating income $358,800 $432,000 $73,200 favorable
$1,000 par value zero-coupon bonds (ignore liquidity premiums) Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50% C 3 7.99% D 4 8.49% E 5 10.70% One year from now bond C should sell for ________ (to the nearest dollar).
Answer:
$842
Explanation:
The computation of the One year from now bond C should sell is shown below;
But before that we have to determined the expected yield to maturity for bond C in one year :
So,
1.0799^3 = 1.06 x (1 + r)^2
1.188 = (1 + r)^2
√1.188 = √(1 + r)^2
1.08999 = 1 + r
r = 0.08999
= 9%
Now
the yield to maturity = (future value ÷ present value)^0.5 - 1
0.09 + 1 = ($1,000 ÷ value in 1 year)^0.5
1.09 = ($1,000 ÷ value in 1 year)^0.5
1.09^2 = $1,000 ÷ value in 1 year
So,
value in 1 year is
= $1,000 ÷ 1.09^2
= $1,000 ÷ 1.1881
= $841.68
≈ $842
Lottery. Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $6 comma 000 comma 000 advertised jackpot. You can take annual payments of $150 comma 000 at the end of the year for the next 40 years or $1 comma 466 comma 858 today. a. If your investment rate over the next 40 years is 11%, which payoff will you choose? b. If your investment rate over the next 40 years is 9%, which payoff will you choose? c. At what investment rate will the annuity stream of $150 comma 000 be the same as the lump-sum payment of $1 comma 466 comma 858?
Answer:
A=1466858
B=$150000
C=10%
Explanation:
A)
Present value of $150000 at 11% for 40 years;
Using excel PV function: PV(11%,40,-150000) = $1342657.623
Therefore, 1466858 should be selected.
B)
Present value of $150000 at 9% for 40 years
= PV(9%,40,-150000) = $1613604.03
Therefore payment of $150000 should be selected
C)
Using excel rate function: RATE(40,-150000,1466858)
= 10%
Current interest rates are 8%. You want to buy a long-term bond with a face value of $1000 that pays a coupon rate of 10%. Which of the following prices is feasible?
a. $888.88
b. $1,000.00
c. $1,111.11
d. Not enough information to answer.
e. None of the above is feasible.
Answer: c. $1,111.11
Explanation:
When a bond's coupon rate is higher than the prevailing interest rate, the bond will be more sought after because it is paying more than the market is paying. As a result, the price of the bond will be higher than its par value to reflect the increased demand for it.
In other words, when a bond coupon rate is higher than the interest rate, the price will be higher than par. This is the case here so the bond will be selling at a higher price than $1,000 and the only option higher than $1,000 is option c at $1,111.11.
Recycling is Primarily an example of a issue facing businessess.
a. human resource
b. natural resource
c. ethical
d. social
Q1. What is recruitment? Explain 5 commonly used recruitment sources companies’ use?
Answer:
The top five most popular recruitment sources used by employers include (indicated by percentage of employers): General online job boards and websites (89%) Employee referrals (81%) Staffing agency or third-party recruiter (58%)
Explanation:
choose me to brainlist
Explain the concept of a Pereto Chart - provide an example - explain how the concept of the Pereto Chart might be used in making decisioins about handling negative risks which could impact a project or organization.
Answer:
a. A Pareto Chart is a graph that shows the frequency of flaws and their overall impact.
b. For instance, by using Pareto Charts, you might discover that putting in 13% of the effort yields 87% of the results. Alternatively, 30% of underlying causes might be addressed to solve 70% of problems.
c. Pareto charts are important for deciding which defects or negative risks should be prioritized in order to achieve the best overall results.
Explanation:
a. Explain the concept of a Pereto Chart
A Pareto Chart is a graph that shows the frequency of flaws and their overall impact. A Pareto chart is a fundamental quality tool that can be used to identify the most common problems, complaints, or any other countable and categorizeable factor. A Pareto chart is a form of graph that includes both bars and a line graph, with bars representing individual values in descending order and a line representing the cumulative total.
b. Provide an example
The Pareto Principle explains how there is frequently a lack of symmetry between the labor you do and the outcomes you get. For instance, by using Pareto Charts, you might discover that putting in 13% of the effort yields 87% of the results. Alternatively, 30% of underlying causes might be addressed to solve 70% of problems.
b. Explain how the concept of the Pereto Chart might be used in making decisioins about handling negative risks which could impact a project or organization.
A Pareto diagram is used to distinguish between the important and inconsequential components of a problem. It frequently shows the most common sources of defects, the most common type of fault, the most common grounds for customer complaints, and so on in quality control.
Therefore, Pereto Chart might be used in making decisioins about handling negative risks which could impact a project or organization as it allows a project team or an organisation to know where to focus their improvement efforts by graphically distinguishing the parts of an issue. Pareto charts are therefore important for deciding which defects or negative risks should be prioritized in order to achieve the best overall results.
Swifty Corporation has beginning work in process inventory of $128000 and total manufacturing costs of $277000. If cost of goods manufactured is $280000, what is the cost of the ending work in process inventory?
a. $125000
b. $131000.
c. $140000.
d. $110000.
Answer:
a. $125000
Explanation:
Calculation to determine the cost of the ending work in process inventory
Beginning work in process inventory $128000
Add total manufacturing costs $277000
Less cost of goods manufactured $280000
Ending work in process inventory $125000
($128000+$277000-$280000)
Therefore the cost of the ending work in process inventory is $125000
The title is in the picture
Why does the Aggregate Demand Curve slope downwards?
a. GDP Effect
b. Exchange-RMC Effect
c. Turn-Rate Effect
d. Substitution Effect
e. Interest-Rate Effect
f. Marginal Effect
g. Wealth Effect
Answer:
b. Exchange - RMC Effect c. Interest-Rate effect d. Wealth effectExplanation:
When the exchange rate of the country falls, goods denominated in that currency will become cheaper and this would have the effect of making exports cheaper. Exports therefore rise with lower price levels.
A lower interest rate will mean that more companies will take loans to invest. Investment is a component of Aggregate demand so when investment increases, so does AD.
When prices are lower in the economy, the Aggregate Demand will increase because people will be able to afford more goods and services. This is the wealth effect.
Analyze and compare Amazon to Netflix Amazon, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United States. Amazon and Netflix compete in streaming and digital services; however, Amazon also sells many other products online. The cash, temporary investments, operating expenses, and depreciation expense from recent financial statements were reported as follows for both companies (in millions):
Amazon Netflix
Balance sheet year:
Cash $19,334 1,468
Short term investment 6647 266
Income Statement:
Operating expense 131,801 8,451
Depreciation expense 8,116 4,925
Required:
a. Determine the days' cash on hand for Amazon and Netflix.
b. Interpret the results
Answer:
a. We have:
Days' cash on hand for Amazon = 77 days
Days' cash on hand for Netflix = 180 days
b. The results show Amazon can keep up with its expenses for 77 days using the current cash reserves if it makes no sales, while Netflix can keep up with its expenses for 180 days using the current cash reserves if it makes no sales.
Explanation:
a. Determine the days' cash on hand for Amazon and Netflix.
Days' cash on hand = (Cash + Short term investment) / ((Operating expense - Depreciation expense) / 365) …………… (1)
Using equation (1), we have:
Days' cash on hand for Amazon = ($19,334 + $6,647) / (($131,801 - $8,116) / 365) = 77 days
Days' cash on hand for Netflix = ($1,468 + $266) / (($8,451 - $4,925) / 365) = 180 days
b. Interpret the results
The results show Amazon can keep up with its expenses for 77 days using the current cash reserves if it makes no sales.
However, the results show that Netflix can keep up with its expenses for 180 days using the current cash reserves if it makes no sales.
The units of Manganese Plus available for sale during the year were as follows:
Mar. 1 Inventory 22 units $29
June 16 Purchase 31units $20
Nov. 28 Purchase 46 units $39
There are 14 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the inventory cost in (a) FIFO, (b) LIFO, and (c) average cost methods.
Answer and Explanation:
The computation of the ending inventory by following methods are
a. Under FiFO
= 14 units at $39
= $546
b. Under LIFO
= 14 units at $29
= $406
c, Under average cost method
But before that the average cost per unit should be determined
= (22 units at $29 + 31 units at $20 + 46 units at $39) ÷ (22 units + 31 units + 46 units)
= ($638 + $620 + $1,794) ÷ (99 units)
= $30.83
Now the ending inventory is
= $30.83 × 14 units
= $431.62
= $432
A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The current forward price for the 4-month forward contract is $42.75. The 4-month risk-free interest rate (with continuous compounding) is 7.90%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92
Answer:
the value of the short forward contract is -0.49
Explanation:
the computation of the value of the short forward contract is shown below:
= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)
= ($42.25 - $42.75)× e^(-7.90% × 4÷12)
= -0.49
Hence, the value of the short forward contract is -0.49
Therefore the same should be considered
A 4 year maturity bond with a 14% coupon rate can bought for $1200. i- What is the yield to maturity if the coupon is paid annually? (4) ii- What if it is paid semiannually?
Answer:a
Explanation:b
