Answer:
Option B is the correct answer.
Explanation:
The sale of finished goods worth $54000 for an amount of $150000 will require us to recognize a revenue of $150000 and a reduction in inventory of finished goods worth $54000.
Option a is incorrect as the gross profit is not recognized on balance sheet. The gross profit is an income statement item.
Option c is incorrect as the sale of finished goods will cause a reduction in the finished goods inventory for the amount of goods sold.
Option d is incorrect as the sale will be recognized in sales revenue on the profit and loss statement and not on the balance sheet as revenue is a profit and loss statement account.
Thus, option b is the correct answer as the sale of finished goods will be represented by a reduction in finished goods inventory by the cost of the goods sold which is $54000.
Answer:
The fair price of stock today is $48.425 and that is the most one should be willing to pay today.
Explanation:
The company's dividend will grow at a constant rate of 4.3% which means that the constant growth model of Dividend Discount Model will be used to calculate the price of a stock today.
The formula for Constant growth model is,
P0 = D0 (1 + g) / r - g
Where,
- D0 is dividend today
- r is the required rate of return
- g is the growth rate in dividend
P0 = 1.95 * (1+0.043) / 0.085 - 0.043
P0 = $48.425
Answer:
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Answer and Explanation:
1. 5,000
2. 5,500
Working;
Machine Hour available : 4,000
Product P-4 Has higher contribution margin, so it must be produced maximum.
Maximum demand for Product P-4 = 5,500 Units
Time required by each Unit = 30 Min.
Total Hours required for 5,500 Units, 5500 / 2 = 2,750 Hours
Remaning hours will be alloted to K-3.
Each unit of K-3 require 15 Min. , So total of 4 Units in an hour.
Total units produced = 1,250 x 4 = 5,000 Units.
The Correct option is Stocks !
Stocks are part of net worth of a company, and person who owns stocks of a particular company gains part ownership of that company.
