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4 years ago

Goods a company acquires to use in making products are called:

Business

1 answer:

Afina-wow [57]4 years ago

6 0

Answer:

b. Raw materials inventory.

Explanation:

There are basically three cycles to make a product ready to sale

1. Raw material

2. Work in process

3. Finished goods

The raw material is the part of the product. In the work in process, the products parts are in process to combine all the parts of the products. And, in the finished goods cycle, after processing the product, the product is finished and then the product is ready to sale.

The costs of goods sold and the conversion cost are the cost which are related to the product

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A firm has a capital structure with $7 in equity and $1 of debt. The cost of equity capital is 0.16 and the pretax cost of debt

nlexa [21]

Answer:

0.147 or 14.7%

Explanation:

Equity (E) =$7

Debt (D) = $1

Cost of equity capital (Ce) = 0.16

Pretax cost of debt (Cd) = 0.08

Tax rate (r) = 0.3

The weighted average cost of capital of the firm is given by the following relationship:

$WACC=\frac{E}{E+D}*C_e +\frac{D}{E+D}*C_d*(1-r)\\WACC = \frac{7}{7+1}*0.16 +\frac{1}{7+1}*0.08*(1-0.3)\\WACC= 0.14+0.007\\WACC =0.147 = 14.7\%$

The weighted average cost of capital of the firm is 0.147 or 14.7%.

5 0

4 years ago

TB MC Qu. 08-104 Marlow Company purchased a point of... Marlow Company purchased a point of sale system on January 1 for $3,400.

Fittoniya [83]

Answer:

$680

Explanation:

Calculation to determine What would be the depreciation expense for the first year of its useful life using the double-declining-balance method

Depreciation expense=3400*(100%/10 * 2)

Depreciation expense=3400*.2

Depreciation expense= 680

Therefore What would be the depreciation expense for the first year of its useful life using the double-declining-balance method is $680

3 0

3 years ago

A tax structured so that people with the same income pay the same percentage of their income in taxes is called a (an)__________

djyliett [7]

Answer:

c. progressive tax

Explanation:

Progressive tax can be regarded as one of the tax structure whereby the tax payer that receive higher incomes in the state pay a higher share of taxes from the income they made, which is different from those that receive Lower income. It is a tax system whereby when there is increase in tax rate then the taxable amount increases too. It should be noted that the tax structured where people with the same income pay the same percentage of their income in taxes is reffered to as progressive tax. wealth/property tax is one of the example of progressive tax.

4 0

3 years ago

Read 2 more answers

On December 15, 2018, the board of directors of Lomas Corporation declared a cash dividend, payable on January 8, 2019 of $0.80

Tom [10]

Answer: decrease retained earnings $1.60 million and increase liabilities by $1.60 million.

Explanation:

The dividend on common shares will be:

=2,000,000 × $0.80

=$1,600,000

Then, the journal entry will be:

Debit: Retained earnings $1.6 million

Credit: Dividend payable $1.6 million

The answer will be to decrease retained earnings $1.60 million and then increase liabilities by $1.60 million.

7 0

3 years ago

A hardware store makes a profit of $30,000 during its first year. The store owner sets a goal of increasing profits by $4000 eac

MrMuchimi

Answer:

$294,000

Explanation:

Data provided in the question:

Profit during the first year = $30,000

Increase in profit each year = $4,000

Now,

Profit for the current year = Profit for the previous year + $4,000

Therefore,

Year Current year profit

1 $30,000

2 $34,000 [$30,000 + $4.000]

3 $38,000 [$34,000 + $4.000]

4 $42,000 [$38,000 + $4.000]

5 $46,000 [$42,000 + $4.000]

6 $50,000 [$46,000 + $4.000]

7 $54,000 [$50,000 + $4.000]

Hence,

The total profit during the first 7 years of business = ∑ (Current year profit)

= $30,000 + $34,000 + $38,000 + $42,000 + $46,000 + $50,000 + $54,000

= $294,000

4 0

3 years ago