Answer:
Anne Traylor Inc.
Calculating Lower-of-Cost-or-Net Realizable Value
The inventory cost to report on the balance sheet on June 30, 2020, assuming that the company applies the lower-of-cost-or-net realizable value rule to each individual inventory item is:
= $8,990.
Explanation:
a) Data and Calculations:
Inventory Quantity Selling Cost NRV Inventory Lower-of-Cost-or-
Item Price to Sell Cost Net Realizable Value
#100 70 $24 $5 $19 $16 $1,120 ($16 * 70)
#101 100 22 4 18 17 1,700 ($17 * 100)
#115 50 35 6 29 31 1,450 ($29 * 50)
#118 120 40 6 35 29 3,480 ($29 * 120)
#120 25 18 4 14 10 250 ($10 * 25)
#128 45 30 8 22 26 990 ($22 * 45)
Total $8,990
Answer:
Petra,a plant manager ,received an e-mail from the CEO stating that the company will now be focusing on customer service.The e-mail also stated that all plant managers need to implement this policy and coordinate the activities related to this strategy for their lowest level mangers.Petra is a <u>middle level manager.</u>
<u>Explanation</u>: Middle level managers extract the information from top level managers who are above them and supervisors who are below them.They give data and facts back in the organisation.They act as a connecting link between top and lower level of management.
Middle level managers are responsible for making any changes needed in an organisation.They look after day to day routines and make sure everything is in accordance with the requirements of the concern.
Middle level managers needs to have following skills:
- They must have ability to hire good individuals for concern
- Very good communication skills
- They must have ability to delegate
- They must be capable of making strong decisions.
Calculation of Cost of Sales for Mattel for the year 2016:
It is given that Mattel had sales of $5,456,650, and gross profit of $5,456,650for the year 2016. The cost of sales can be calculated with the help of following formula:
Cost of Sales = Sales – Gross Profit
Cost of Sales = 5,456,650-5,456,650
Cost of Sales = 2,902,259
Hence the Cost of Sales is 2,902,259 ($ in thousands).
Answer:
9.635%
Explanation:
We shall use a table to compute different values as shown below.
<u>Investment</u> <u>Return</u> <u>Taxable amount</u> <u>Tax Rate</u> <u>After-tax return</u>
Dividend 9.8% 30% (n1) 18% 9.2708% (w1)
Municipal bond 8.8% 0% 18% 8.8%
Corporate bond 11.75% 100% 18% 9.635% (w2)
The after tax return with on the best investment alternative is 9.635% for corporate bonds
<u>Workings</u>:
W1
9.8 *0.3*0.18 = 0.5292%
Return after tax = 9.8% -0.5292% = 9.2708%
w2
18.75*0.18 =2.115%
Return after tax = 11.75% -2.115% = 9.635%
<u>Notes:</u>
n1 : 70% of the dividends are excluded from taxation. Only 30% is to be taxed
Answer:
True
Explanation:
A partnership is a type of business owned by two or more individuals known as partners. The partners join forces to exploits their talents and resources and profit from the business. A partnership may comprise of general and limited /silents partners.
The general partner participates in the day to day activities of the business. He or she makes business decisions on behalf of the partnership. Because a general partner is actively involved in managing the business, he has unlimited liability to its obligations. Should the partnership fail to meet its obligation, the assets of a general partner sold to settle the debts. He or she need not have been involved in creating the liability.
