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Deffense [45]
4 years ago
9

When inventory costs are rising, a company may prefer to use the __________ method in the perpetual system in order to pay the l

owest amount of taxes.
Business
1 answer:
mezya [45]4 years ago
8 0

Answer:

LIFO (Last-in-last-out)

Explanation:

Last in last out is the method of inventory valuation where the unit that was added in inventory last would be sold first. In case, of rising prices, the unit added in inventory would cost more than the one added first. So, if LIFO is used in case of rising prices, cost of goods sold would be higher. If COGS is higher, income will fall, thereby reducing tax liability.

So, if the firm wants to pay lower taxes during price rise, it should opt for LIFO method to value inventory.

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Suppose a firm has a retention ratio of 40 percent and net income of $5.5 million. how much does it pay out in dividends? (enter
poizon [28]

Total sales = $200,000. Net income = $20,000. Dividend payout ratio = 30%. Operating cash flow = $40,000. Price per share = $100. Shares outstanding = 1,000.

<h3>What is Dividend payout ratio?</h3>

Investors can get a sense of a company's dividend payout ratio by comparing it to the amount of money it maintains on hand for growth, debt repayment, and cash reserves.

Using the data available at the bottom of a company's income statement, this ratio can be determined quickly. The dividend yield, on the other hand, contrasts the dividend payment with the stock price of the company at the time of the comparison.

How much is paid out in dividends can be determined using the dividend payout ratio.

This computation enables businesses to determine how much cash is available (after dividends are paid) for debt repayment or reinvested.

The income statement of a corporation is used to compute this ratio.

To learn more about Dividend payout ratio from the given link:

brainly.com/question/16102531

#SPJ4

5 0
2 years ago
A manager invests $20,000 in equipment that would help the company reduce it's per unit costs from $15 to $12. He expects the eq
yKpoI14uk [10]

Since the cost of $20,000 has been incurred two years ago, the firm should check and see as to how many units of the product were produced in the two years. Did the firm produce enough items to break even the cost of acquisition. Additionally the business should also check the current market value of this two year old equipment. The business manager should weigh in the savings that is to be obtained from outsourcing along with the resale value of the old machine and then take a declension as to whether the company should go for outsourcing. Also, the business manager must examine whether the outsourcing can happen for the long run. This is because two years down the line, outsourcing may have increased the cost and again another process may look attractive. So a through cost benefit analysis should be made before taking a decision.

6 0
3 years ago
Based on his​ preferences, Bill is willing to trade 5 movie tickets for 1 ticket to a basketball game. If movie tickets cost ​$1
Leviafan [203]

Answer:

Bill shouldnt trade movie tickets for basketball​ tickets, since  MRS > Pb/Pm.

Explanation:

Price ratio = Pb/Pm

                 = $46/$10

                 = 4.6

MRS = 5/1

        = 5

MRS > Pb/Pm

Therefore, Bill shouldnt trade movie tickets for basketball​ tickets, since  MRS > Pb/Pm.

4 0
4 years ago
The following was paid out of the Petty Cash account: $400 for Store Supplies $200 for Postage Expense After counting the cash t
yKpoI14uk [10]

Answer:

Debit Office Supplies for $200.-

Delivery Expense for $100, and cash short and over for 20.Then credit cash for 320.-

3 0
3 years ago
James Krieg has finished law school but has unsuccessfully taken the bar exam twice. Krieg is running low on patience and cash.
katrin [286]

Answer:

B. Krieg's agreements are void

Explanation:

The bar examination, is the examination that is administered by a jurisdiction's bar association that a lawyer needs to pass before being admitted to the bar of that jurisdiction.

It is the Examination that Lawyers need to pass before they can be given license to practice law in a jurisdiction.

Since Kreig is yet to write his Bar Examination successfully, whatever documents he writes and signs as a Lawyer is void, because,he doesn't have the right to practice law in his Jurisdiction yet.

8 0
4 years ago
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