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2 years ago

Do you think the chrysler decision to switch from lifo to fifo was beneficial to its stockholders?

1 answer:

5 0

yes I definitely affirm that the switch of Chrysler from LIFO to FIFO was beneficial to the stockholders mainly because the profit figure was increased.

In several ways, the change improved Chrysler's financial results in 1970. In addition to cutting the 1970s loss by $20 million, it improved Chrysler's working capital. The change also made the comparison with 1969 earnings appear slightly more favorable because, after restatement, Chrysler's 1969 profit was only raised by $ 10.2 million from the original figures.

Finally, the change aided Chrysler's balance sheet by increasing inventories and thus current assets by $150 million at the end of 1970 compared to LIFO. As Chrysler's profit has plummeted in the last two years and its financial position has tightened, auto analysts have been wary of the company's shrinking current asset to current liability ratio. Chrysler, on the other hand, paid to improve its balance sheet and results. The primary benefit of LIFO is that it reduces profit and thus tax liabilities.

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If a cash basis business owner pays 18 months of rent expense in advance during the last month of the tax year, how is this trea

borishaifa [10]

Answer:

Check the following consideration

Explanation:

Since the business owner follows cash basis of accounting the treatment is amount expensed during the financial year can be shown as expenses. hence in the current case rent for 18months can be shown as expenses for that financial year and it can be shown as a deduction while computing tax liability.

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3 years ago

John is researching the job of a quality control inspector. He thinks it would be fun to monitor the production process and test

klio [65]

<span>Quality Control Inspectors need to keep accurate records of products checked, sometimes carrying out a statistical analysis. They often produce written reports for the production team and have regular meetings to discuss how quality standards can be maintained, or highlight problem areas that require review.</span>

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4 years ago

Best Buy does not play loud music in its stores, based on feedback that women don’t like it. A woman who arrived at Best Buy aft

ivanzaharov [21]

Answer:

D) Problem removal

Explanation:

Since it has been discovered that women don't like loud music, a woman who just left a loud music technology store for Best Buy stores that doesn't play loud music will have her 'problem removed'.

Best Buy store can be regarded as a problem removal store by helping women to solve their problem of listening to loud music.

Women Will have a good and problem removal experience in Best Buy Store.

Best Buy store has had an advantage against other stores because they don't play loud music and more women will patronise them, thereby, increasing their profits.

7 0

3 years ago

Read 2 more answers

In its income statement for the year ended December 31, 2022, Whispering Winds Corp. reported the following condensed data. Oper

vagabundo [1.1K]

The Multiple Income Statement is $127,000.

<h3>Multiple Income Statement</h3>

Multiple Income Statement For the Year Ending Dec. 31, 2022

Particulars Amount ($)

Net sales 2,199,000

Less: Cost of goods sold 1,255,000

Gross profit 944,000

(2,199,000-1,255,000)

Less: Operating expenses 719,000

Operating income 225,000

(944,000-719,000)

Other revenue:

Interest revenue 32,000

Other expenses and losses:

Interest expense 70,000

Add: Loss on disposal of plant assets 16,000

Total other expenses and losses 86,000

(70,000+18,000)

Income before tax 171,000

(225,000+32,000-86,000)

Less: Income tax expense 44,000

Net income 127,000

(171,000-44,000)

Therefore the Multiple Income Statement is $127,000.

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5 0

2 years ago

Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles fr

kiruha [24]

Answer:

Option (E) is correct.

Explanation:

The opportunity cost refers to the benefits that are sacrificed by choosing some other alternative.

In our case, there are two restaurants as follows:

One is 2 miles away from home with higher prices

Second one is 15 miles away from home with lower prices

But Melissa chooses the first one by comparing the opportunity cost associated with each option relative to the other option.

This is because of the higher opportunity cost associated with second restaurant offsets the higher monetary cost of the first restaurant.

4 0

3 years ago