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3 years ago

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Horvath corporation had beginning inventory of 22,000 units and expects sales of 76,500 units during the year. desired ending in

ventory is 19,500 units. how many units should horvath corporation produce? 35,000 118,000 79,000 74,000

1 answer:

Soloha48 [4]3 years ago

6 0

Total needed
Sales 76,500− BI 22,000=54,500

Units should horvath corporation produce
54,500+ EI 19,500=74,000

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A famous quarterback just signed a contract for $16 mil, providing $3.6 million a year for 4 years. A less famous receiver signe

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Answer:

The PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

Explanation:

Present value (PV) refers to the valuation date value of a stream of income expected to be received in the future.

The PV for each of the two contracts can calculated by using the interest rate of 9%% (i.e. 0.12) as the discounting factor (r) to calculate the PV for each year. The discounting formula to use is (1+r)^n where n represents each relevant year. The calculations are done as follows:

1. For a famous quarterback

Step 1. Calculation of the PV for year

Year 1 PV = $3,600,000 ÷ (1.09)^1 = $3,302,752.29

Year 2 PV = $3,600,000 ÷ (1.09)^2 = $3,030,047.98

Year 3 PV = $3,600,000 ÷ (1.09)^3 = $2,779,860.53

Year 4 PV = $3,600,000 ÷ (1.09)^4 = $2,550,330.76

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $11,662,991.56.

2. For a less famous receiver

Step 1. Calculation of the PV for year

Year 1 PV = $3,000,000 ÷ (1.09)^1 = $2,752,293.58

Year 2 PV = $3,000,000 ÷ (1.09)^2 = $2,525,039.98

Year 3 PV = $3,000,000 ÷ (1.09)^3 = $2,316,550.44

Year 4 PV = $3,000,000 ÷ (1.09)^4 = $2,125,275.63

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $9,719,159.63.

In addition, the $3,000,000 is to receive now is added to the $9,719,159.63 as follows:

PV of less famous receiver = $9,719,159.63 + $3,000,000

= $12,719,159.63

Conclusion

Therefore, the PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

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3 years ago

Nutritional Foods reports merchandise inventory at the lower of the cost or market. Prior to releasing its financial statements

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Answer:

1. Debit Cost of goods sold $5,000

Credit Inventory account $5,000

Being entries to write down merchandise inventory to its realizable amount.

2. Revised partial Income statement

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Gross Profit <u> $67,000 </u>

Explanation:

According to IAS 2 inventories, Inventory is initially be recognized at the cost of purchase (which includes the cost of the item and other associated cost such as freight)

Subsequently, inventory would be measured at the lower of cost or net realizable value.

As such, whenever the cost is higher than the net realizable value, the cost of the inventory will be written down by

Since the current replacement cost of ending merchandise inventory is $16000 and the Cost is $21000.

Amount to be written down

= $21000 - $16000

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To adjust for this,

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Amount

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Cost of goods sold $54,000

Gross Profit $67,000

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last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable

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A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

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