Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019.
2020 2019 2020 2019
(Duke Company) (Duke Company) (Lord Company) (Lord
Company)
Net sales $1,896,000 $561,000
Cost of goods sold 1,020,048 297,330
Operating expenses 257,856 79,662
Interest expense 7,584 3,927
Income tax expense 54,984 6,171
Current assets 322,500 $310,000 83,500 $78,000
Plant assets (net) 520,800 500,300 139,800 123,000
Current liabilities 64,200 75,600 34,400 29,600
Long-term liabilities 108,400 90,400 28,400 26,000
Common stock, $10 par 498,000 498,000 122,500 122,500
Retained earnings 172,700 146,300 38,000 22,900
Prepare a vertical analysis of the 2017 income statement data for duke company and Lord company.
Answers
Answer:
Please attached detailed solution.
Explanation:
• Prepare a vertical analysis of the 2017 income statement data for Luke and Lord company.
Please see as attached detailed solution to the above question.
Related Questions
Daisy, Inc., hopes to report a total book tax expense of $160,000 in the current year. This $160,000 expense consists of $240,000 in current tax expense and an $80,000 tax benefit related to the expected future use of an NOL by Daisy. If the auditors determine that a valuation allowance of $30,000 must be placed against Daisy's deferred tax assets, what is Daisy's total book tax expense
Answers
Answer:
$190,000
Explanation:
Calculation for total book tax expense
Using this formula
Total book tax expense=Total book tax expense+Valuation allowance
Let plug in the formula
Total book tax expense=$160,000+$30,000
Total book tax expense=$190,000
Therefore Daisy's total book tax expense will be $190,000
Which of the following assets held by a manufacturing business is a §1231 asset?
A. A factory building used in the business and held more than one year.
B. Inventory.
C. Office furniture used in the business and held less than one year.
D. Accounts receivable.
E. All of these choices are correct.
Answers
Answer:
A factory building used in the business and held more than one year.
Explanation:
According to Section 1231. property are assets that are used in your trade or business and are held by the Taxpayer for more than one year.
The factory building has serve the purpose of the section. It is used for a trade and has been held by the taxpayer for more than a year, hence, the property can be termed an assets by a manufacturing business
With yearly inflation of 8 % , prices are given by P = P 0 ( 1.08 ) t , where P 0 is the price in dollars when t = 0 and t is time in years. Suppose P 0 = 1 . How fast (in cents/year) are prices rising when t = 1 0 ? Round your answer to two decimal places.
Answers
Answer:
by 16.61 cents per year
Explanation:
P = Po(1.08)^t
How fast are prices increasing?
The rate of increase:
dP/dt = d/dt(Po(1.08)^t)
= d/dt((1.08)^t)
We use derivative formula of exponential function as we continue solving this problem
dP/dt = (1.08)^t x ln(1.08)
dP/dt = ln(1.08)x(1.08)^t
Now t value = 10,
P'(10) = ln(1.08)x(1.08)^10
= 0.07696x2.1589
= 0.1661 dollars and 16.61 cents per year
In conclusion, prices are rising by 16.61 cents per year.
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
Answers
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
uh hi . . . . . . . . BANNNA BANNNABANNNA BANNNABANNNA BANNNA BANNNA BANNNA :) B)
Answers
Answer:
banannanannanannanannananan
Answer:
BANNNA BANNNA BANNNA BANNNA BANNNA BANNNA
Explanation:
When the supply of a product increases but the demand for the product remains unchanged, the equilibrium price of the product will __________.
Answers
Answer:
The equilibrium price is expected to decrease
Explanation:
Here, we want to state what will happen to the equilibrium price when the supply go a product increases but the demand stays the same
What will happen is that the equilibrium price is expected to fall since in this particular case the supply of the product will actually exceed the demand for it
So all things being equal, the demand for the product at increased supply will drive a decrease in equilibrium price
Answer:
Fall to a lower price and equilibrium quantity will increase
Explanation:
The principle of demand and supply shows the relationship between the quantity of goods consumers are willing to buy and the quantity suppliers are willing to sell.
When supply is higher than demand prices tend to fall. This is because there is now a surplus of goods for the consumer to buy. They will have the choice of buying at lower prices from suppliers willing to let go of the excess goods.
On the other hand when supply is less than demand prices will rise. This is because goods will be scarce and consumers are willing to pay higher for the scarce goods
Retepson, Inc. has been in business for over 50 years. Retepson is best known for its Guide to Colleges line of books designed for high school students seeking admission to undergraduate programs. Basic information about a program is included in the books at no charge to the colleges, but colleges may purchase additional advertising space in the books for a fee. Traditionally, Retepson has made money by selling advertising in its books and by charging students for the books themselves. Recently, however, profits are down, and the company is considering whether it needs to change its corporate culture. Which of the following, if true, supports the conclusion that Retepson's culture should emphasize innovation?
a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.
b) At the time that Retepson was founded, there was no easy way for students to find out basic information about a wide range of undergraduate programs.
c) Most large colleges have found that the wide circulation of the Guide to Colleges line of books makes it worthwhile to purchase additional advertising space.
d) Retepson's sales force has been able to prevent imitators from duplicating its success.
e) Students seeking admission to selective colleges often adopt innovative approaches to their application essays in order to stand out from the group of applicants.
Answers
Answer:
a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.
Explanation:
when we say innovation what we mean is a new idea, a new method, or a new way of doing things.
option A is the answer because using the internet to search for information is a form of innovation that has would bring about immense amount of changes from the former way of doing things. the internet itself is an innovative medium and it serves different purposes.
if anyone with internet can easily access information, then such an innovative ideas should be emphasized
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]
Answers
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
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
Answers
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
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
Answers
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
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
Answers
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.What's the present value, when interest rates are 7.5 percent, of a $170 payment made every year forever
Answers
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.
A certain company has purchased new swivel chairs for its employees. The company made the purchase on a credit plan at Buy Right. Their monthly payments are $1,000 for 4 years. Buy Right will charge 2.25% per year compounded monthly. How much was the original total price of the furniture
Answers
Answer: $45,862.29
Explanation:
This question relates to the Present value of an Annuity.
The original price would be the present value of the payments and since the payments are constant over a period, they are an annuity
Interest/ r = 2.25/12 months = 0.1875%
Periods/ n = 4 * 12 months = 48 months
= Payment * (( 1 - ( 1 + r) ^ n)/ r)
= 1,000 * (( 1 - ( 1 + 0.1875%)^48) / 0.1875%)
= $45,862.29
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
Answers
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.
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.
Answers
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.
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%
Answers
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
"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?"
Answers
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:
list essential preparations when communicating to inform, to persuade, and
to argue
Answers
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
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?
Answers
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
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.
Answers
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.
4. Give two reasons why GDP is often not seen as the best measure of living standards.
Answers
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.
Calculate the annual cash flows of a $100,000, 10-year fixed-payment deferred annuity earning a guaranteed 3.6 percent per year if annual payments are to begin at the end of year 4 (beginning of year 5). (Hint: Grow the original investment for 4 years and then all payments are paid at the beginning of the year.)
Answers
Answer:
$13,437.53
Explanation:
Calculation for the annual cash flows
First step is to calculate the value of annuity after 3 years from today
Using this formula
Value of annuity = Present value*(1+Rate)^Time
Let plug in the formula
Value of annuity = $100,000*(1 +0.036)^3
Value of annuity = $100,000*1.111934656
Value of annuity = $111,193.4656
Second step is to calculate the present value annuity factor
Using this formula
PVIFA = [1 – (1 + Rate)-Number of periods]/ Rate
Let plug in the formula
PVIFA = [1 – (1 + 0.036)-10]/ 3.6%
PVIFA = 8.27484404349
Last step is to calculate the annual cash flows
Using this formula
Annual cash flows = Value of annuity/ Present value annuity factor
Let plug in the formula
Annual cash flows = $111,193.4656/ 8.27484404349
Annual cash flows = $13,437.53
Therefore the annual cash flows will be
$13,437.53
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?
Answers
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
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
Answers
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.
CEOs are limited in making policy changes regarding climate change by all of the following EXCEPT __________.
Answers
Answer: b. the necessity to think in the long term rather than the short term
Explanation:
There are policy changes that a company can make that will result in them having lower profits. For this reason, the CEO might face opposition or limitations from certain people or principles in implementing such changes.
The Board of Directors is one such limitation as they owe it to the shareholders to maximise their wealth and if climate change policy might hinder that, they might limit the policy. This reason is the same for any limitation from investor support which is linked directly to profits.
The CEO also has the same fiduciary responsibility to maximise shareholder wealth as well. The only option which is not a limiting factor therefore is the necessity to think in the long term rather than the short term.
A project that incurs costs in early years and yields benefits in later years has been estimated to have costs just equal to benefits, in present value terms and ignoring risk factors. The project would be reevaluated as having greater benefits than costs if
Answers
Answer:
The discount rates were lowered
Explanation:
Discount rate is the rate that is used to determine the present value of future cash flows that will be spent in a project.
This is different from the cost of capital which is the amount that just meets the incurred cost of executing a project.
Discount rate determines of the benefits of the project are greater than the cost.
In the given scenario where benefits balance the cost, the project will be worthwhile is discount rate is lower.
That is there will be a lower cost of execution of the project so revenue will be higher than the cost
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.
Answers
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.
Item18 Time Remaining 22 minutes 25 seconds00:22:25 eBookItem 18Item 18 Time Remaining 22 minutes 25 seconds00:22:25 Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $34. It was determined that the cost to sell is $22 per unit. Using the lower of cost or net realizable value rule, what amount should b
Answers
Answer:
$12
Explanation:
Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $34. It was determined that the cost to sell is $22 per unit. Using the lower of cost or net realizable value rule, what amount should be?
Cost per Unit = $20
Sale per unit = $34
Disposal cost = $22
Net realizable value per unit = Sale per unit - Disposal cost
Net realizable value per unit = $34 - $22
Net realizable value per unit = $12
Using the LCM method, $12 should be reported on the balance sheet for inventory.
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.)
Answers
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
How are the four areas of operations control interrelated?