Cost of inventory destroyed in fire is $1,140,000
<u>Explanation:</u>
The loss from fire to inventory can be calculated by finding the cost of the inventory on the may 4 , 2021.
Cost of sales = Sales – profit on sales
= 9000000-1800000
=$7200000
The value of inventory on the may 4 = opening inventory on January 1 + purchases + freight in – cost of sales
=1980000+5880000+480000-7200000
=$1,140,000
Cost of sales is referred to the amount that is incurred in producing the goods. Cost of sales is included in the sale price of the product to earn a profit beyond the cost. So sales includes cost and profit which can be used to find the cost of sales.
Answer:
hope it helps you ;)
Explanation:
Retail businesses can include grocery, drug, department and convenient stores. Service related businesses such as beauty salons and rental places are also considered retail businesses.
Answer:
The fixed overhead cost that can be eliminated if the bowls are purchased from an outside supplier is a relevant cost. The variable selling cost of the snack is also a relevant cost.
The correct answer is A
Explanation:
Relevant costs are costs that relate to future decisions. All variable costs are relevant for decision-making. Eliminated fixed overhead are also relevant for decision-making.
Answer:
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
Explanation:
WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt
16% = 45%* Cost of Equity + 55%*(1-40%)*9%
16%-55%*(1-40%)*9% = 45%*Cost of Equity
Cost of Equity = 28.9556%
Current price of Stock = D1/(Cost of Equity - Growth)
25 = 4/(28.9556%-Growth)
Growth = 28.9556%-4/25 = 12.96%
ROE = Net income/Equity = 1.4/(45%*9)
Growth rate = (1- Payout ratio)*ROE
12.96% = (1-Payout ratio)* 1.4/(45%*9)
Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%
