yes I definitely affirm that the switch of Chrysler from LIFO to FIFO was beneficial to the stockholders mainly because the profit figure was increased.
In several ways, the change improved Chrysler's financial results in 1970. In addition to cutting the 1970s loss by $20 million, it improved Chrysler's working capital. The change also made the comparison with 1969 earnings appear slightly more favorable because, after restatement, Chrysler's 1969 profit was only raised by $ 10.2 million from the original figures.
Finally, the change aided Chrysler's balance sheet by increasing inventories and thus current assets by $150 million at the end of 1970 compared to LIFO. As Chrysler's profit has plummeted in the last two years and its financial position has tightened, auto analysts have been wary of the company's shrinking current asset to current liability ratio. Chrysler, on the other hand, paid to improve its balance sheet and results. The primary benefit of LIFO is that it reduces profit and thus tax liabilities.
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Answer: Variable cost pricing
Explanation:
Marianne wants to sell in Mexico by setting the selling price in such a way that she adds the total variable cost to the markup. This way she would meet her cost and gain some level of profit.
Answer:
a. $92,000
Explanation:
Journal Entries
Dr. Cr.
Purchase of Inventory
Raw Material Inventory $76,500
Cash / Account Payable $76,500
Transferred to production
Work in Process $88,700
Manufacturing overhead $3,300
Raw Material Inventory $92000
So, Raw Inventory account is credited By $92,000.
Answer:
Answer for the question.
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:Activity Cost Pool Activity Measure Expected Overhead Cost Expected ActivityLabor-related Direct labor-hours $254,800 36,400 DLHsPurchase orders Number of orders $8,785 251 ordersParts management Number of part types $72,680 92 part typesBoard etching Number of boards $54,900 1,830 boardsGeneral factory Machine-hours $170,000 17,000 MHsRequired:Compute the activity rate for each of the activity cost pools.
is given in the attachment.
Explanation:
Answer:
Counterclaim
Explanation:
Counterclaim is a way to rebut an accusation against you. If one is charged with not paying back a debt and the defendant in turn sues for fraudulent activities for the bank, that is a counter claim.
In this instance after Jane was charged to court she now revealed that Greg let air out of her tire and she is now suing him for criminal action.
