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3 years ago

Explain what lower of cost or market means in regards to reporting merchandise inventory on the balance sheet.

Business

1 answer:

Degger [83]3 years ago

4 0

Answer and Explanation:

Inventory is an asset and is posted on the asset side of the balance sheet. As per accounting standards regarding inventory valuation, it can be either valued at historical cost or at market price, whichever is lower.

Historical cost is the cost at which asset was acquired. Market price is the price which would be received if the asset is replaced as on the date on which balance sheet is prepared. Inventory is valued at lower of the above mentioned costs.

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A firm’s stock is expected to pay a $2 annual dividend next year, and the current $50 stock price is expected to rise to $60 ove

pochemuha

Answer:

Expected rate of return will be 24%

So option (b) will be correct option

Explanation:

We have given dividend in next year will be $2

So dividend $D_1=2$ $

Current stock price $P_0$ = $50

And it is given that in next year stock price is $60

So growth rate $=\frac{60-50}{50}=0.2$ = 20%

We have to find the expected return after 12 month, that is after 1 year

We know that current price is given by $P_0=\frac{D_1}{R_e-g}$

$50=\frac{2}{R_e-0.2}$

$50R_e-10=2$

$50R_e=12$

$R_e=0.24$ = 24%

So expected rate of return will be 24%

So option (B) will be correct option

3 0

3 years ago

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate

Strike441 [17]

Answer: See explanation

Explanation:

Sales = 747300

Less: Costs = 582600

Less: Depreciation = 89300

EBIT = 75400

Less: Taxes at 22% = 22% × 75400 = 16588

Net income = EBIT - Taxes = 75400 - 16588 = 58812

a. Calculate the OCF.

OCF will be calculated as:

= Net income + Depreciation

= 58812 + 89300

= 148,112

b. What is the depreciation tax shield?

Depreciation tax shield will be:

= Depreciation × Tax rate

= 89300 × 22%

= 89300 × 0.22

= 19646

5 0

3 years ago

______ factors are things in the global environment that may impact a firm’s operations or success, examples are a rise in inter

castortr0y [4]

Answer:

External.

Explanation:

The external factors in an organization, are all factors of its macroeconomic environment, and which directly or indirectly influence the results of its business, some of these factors can be: capital, inflation, technological changes, political changes, social changes, etc.

It is essential that managers establish in their strategic plans the external environment, so that there is security and control to deal with unexpected changes that can affect the profitability of a company, it is necessary to have control of capital, assets and liabilities, in addition to consider the changes that may occur and are not controllable.

5 0

3 years ago

In the field of personal selling, persuasion:

asambeis [7]

Answer:

d. Is an acceptable strategy once a need has been identified and a suitable product has been selected.

Explanation:

A face to face selling of a product directly to business is one of the best example of personal selling e.g. cars, photocopier, office equipment etc.

5 0

3 years ago

Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be

bekas [8.4K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 12,000,000/320,000= $37.5 per direct labor hour

In April, Sykora incurred actual overhead costs of $1,050,000 and used 30,000 hours.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 37.5*30,000= $1,125,000

Over/under allocation= real MOH - allocated MOH

Over/under allocation= 1,050,000 - 1,125,000= 75,000 overallocated

6 0

3 years ago