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maw [93]
4 years ago
10

CMN Inc. uses LIFO and has experienced increasing costs since its founding. CMN disclosed that the LIFO reserve (also known as t

he LIFO allowance) at the end of 2018 was $3 million. The balance sheet showed ending inventory of $17 million at the end of 2018. What would the ending inventory have been if CMN had always used FIFO?Multiple Choicea. $20 million.b. $17 million.c. $14 million.d. None of these answer choices are correct.
Business
1 answer:
Neporo4naja [7]4 years ago
7 0

Answer:

$20 million

Explanation:

The computation of the ending inventory if FIFO is used

= LIFO reserve + Ending inventory based on LIFO inventory

= $3 million + $17 million

= $20 million

We simply added the LIFO reserve and LIFO ending inventory so that FIFO ending inventory can be computed. Hence, we take all the items for the computation part.

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What is the expected constant growth rate of dividends for a stock currently priced at Php 50, that is expected to pay a dividen
Anettt [7]

Answer: 10%

Explanation:

Using the Gordon Growth Model, the price of a stock can be calculated as follows:

Price = Next dividend / (Required return - growth rate)

Notice that we are provided with all the figures in the formula above except the growth rate so we can calculate the growth rate with these figures:

50 = 5 / (20% - growth rate)

50 * (20% - growth rate) = 5

20% - growth rate = 5 / 50

-growth rate = 10% - 20%

-Growth rate / -1 = -10% / -1

Growth rate = 10%

4 0
3 years ago
The following happened in a recent M&A transaction:
MAVERICK [17]

Answer: D. A deferred tax asset equal to $52.5 million

Explanation:

Original book basis of PP&E = $650 million

Fair market value = $800 million

Then, we calculate the difference between the fair market value and the original book value which will be:

= $800 million - $650 million

= $150 million

Then, the deferred tax liabilities will be:

= 35% × $150 million

= $ 52.5 million

Therefore, assuming a corporate tax rate of 35% for book purposes, the company should record a deferred tax asset equal to $52.5 million.

3 0
3 years ago
Explain the monopolist Describe and/or analyze graphically the firm’s profit-maximizing,Break-even, and shut-down conditions Des
Lina20 [59]

Answer:

The overview of the given scenario is described in the explanation segment below.

Explanation:

The monopoly seems to be the owner and manager of the sole business that operates on either the marketplace (Industry).

The monopolist becomes making an extraordinary income. Balance requirements become MC = MR, MC reductions MR from underneath the.

The breakeven point would be where the expense of Average is equivalent to the value (Average Revenue-AR)

Closing down portion would be when the company is unable to cover the AR Cost i.e.

⇒  AR < AVC.

The normal monopoly would be when it has a large competitive edge over all the future entrants as either a barrier to the entrance of just about any new company, which prohibits any new installment including its company into the sector. It may even be attributable to someone's power over manufactured goods or perhaps the possession of environmental assets.

The limits of monopoly power are given below:

  • This power is limited to something like the possibility of competitors.
  • If alternatives are present mostly on the market, it's been difficult to retain the monopoly.
  • Law facilitates the possibility of monopoly power.

7 0
3 years ago
The introduction of a third variable in cross-tabulation can result in which of the following possibilities? a. Refined associat
denis23 [38]

Answer:

The correct answer is d) All of the above.

Explanation:

Research with a descriptive design generally uses surveys as a method of data collection, which processes the information in cross-tabulations.

Cross-tabulation is characterized by the relationship of two variables in the table, this variable can be quantitative and the other qualitative. Variables may have a weak association or have no association, but this does not affect the cross-tabulation of the data. These tables are also known as dynamic tables because of their easy use and because they can be integrated into spreadsheets.

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<em>I hope this information can help you.</em>

7 0
3 years ago
The equilibrium price is: unstable because at this price the quantity demanded is less than the quantity supplied. stable becaus
Makovka662 [10]

Answer:

stable because at this price the quantity demanded equals the quantity supplied.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Generally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.

6 0
3 years ago
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