Answer:
18.24
Explanation:
Sustainable growth rate is the rate of growth a company can afford in the long term
sustainable growth rate = retention rate x ROE
b = retention rate. It is the portion of earnings that is not paid out as dividends
Retention rate = 1 - payout ratio =
payout ratio = dividend / net income
retention rate = 1 - $44,640 / 72,000 = 0.38
Return on equity = net income / average total equity
= 72,000 / 150,000 = 0.48
g = 0.48 x 0.38 = 18.24%
Answer:
The correct answer is True.
Explanation:
This statement, a cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease, is correct.
These terms are mostly used in activity based costing (ABC) system.
Examples of Cost Object are material procurement costs, quality control costs, materal handling costs, line set up costs e.t.c.
Example of Cost drivers are number of purchase orders, number of inspections, numbers of set-ups e.t.c.
Answer:
The Adjusted Cost of Goods Sold for the year is $926,000
Explanation:
The formula to compute COGS is:
Ending inventory = Opening inventory + Work in progress - Unadjusted COGS (Cost of Goods Sold)
$ 23,000 = $28,000 + 918,000 - COGS
COGS = $946,000 - $23,000
= $ 923,000
The formula to compute the Adjusted Cost of Goods Sold is:
Adjusted Cost of Goods Sold = Unadjusted Cost of Goods Sold + Under- applied overhead
= $923,000 + $3,000
= $926,000
Answer:
no option is correct, the correct answer is $12,630
Explanation:
after tax salvage value of old machine = $12,000 - [($12,000 - $15,000) x 21%] = $12,000 - (-$3,000 x 21%) = $12,000 - -$630 = $12,630
the tax shield generated by this loss (market value is lower than book value) = $630
the cash received form the sale = $12,000
the combined effect = $12,000 + $630 = $12,630
Dont think negative, think positive
