Answer:
The correct option is c. Purchases assets at a cost of $25,000,000.
Explanation:
An emergency loan can be described as a loan that can obtained on short notice by a borrower in to cover unexpected costs.
From the options, purchasing assets at a cost of $25,000,000 will leave Chester in a serious liquidity position as the it will take 94.92% [i.e. ($25,000,000 / $26,337,000) * 100] of its current cash balance and leave the company with just $1,337 current cash balance.
Because the next period's Cash Flows From Operations are expected to be the same as this period's, purchasing assets at a cost of $25,000,000 puts Chester at the greatest danger of needing an emergency loan.
Therefore, the correct option is c. Purchases assets at a cost of $25,000,000.
Answer:
E) $2,400
Explanation:
optimal order quantity = sqrt{(2*D*S)/H}
= sqrt{(2*36,000*$80)/$4}
= $1,200
number of orders per year = $36,000/$1,200
= $30
total ordering cost = $30*$80
= $2,400
Therefore, The total ordering cost of inventory is $2,400.
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Answer:
59,700 units
Explanation:
The computation of the equivalent units for the conversion cost is shown below:
= Opening work in process units × completion percentage + units started and completed × completion percentage + ending work in process units × completion percentage
= 4,600 units × 100% + 36,500 units × 100% + 31,000 units × 60%
= 4,600 units + 36,500 units + 18,600 units
= 59,700 units
Answer:
$5,000 will be distributed to preferred stockholders and $45,000 will be distributed among common stockholders.
Explanation:
The accrued dividend on preferred stock based on predetermined rate or amount is known as preferred stock dividend. Preferred stock has priority over common stockholders, It means that dividend will be given to preferred stockholder first.
Preferred stock dividend = 4,000 shares x $25 x 5% = $5,000
Common stock dividend = $50,000 - $5,000 = $45,000
