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siniylev [52]
3 years ago
10

Eric's Used Book Store prepares its financial statements in accordance with IFRS. Inventory was purchased for €6 million and lat

er marked down to €4 million. One of the books, however, was later discovered to be a rare collectible item, and the inventory is now worth an estimated €7 million. The inventory is most likely reported on the balance sheet at:
Business
1 answer:
andrew-mc [135]3 years ago
4 0

Answer:

€6 million

Explanation:

As we know that

According to the International Financial Reporting Standards, if the net realizable value of the inventory increases then the written down of reversal value is required

And according to the GAAP, the inventory should be valued at lower of cost or net realizable value

So in the given case, the inventory is purchased at €6 million and now it is estimated value is  €7 million so the lower value i.e €6 million should be reported on the balance sheet.

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Ortions of the financial statements for Myriad Products are provided below.
bonufazy [111]

Answer:

Net cash provided from Operating Activities $301

Explanation:

MYRIAD PRODUCTS COMPANY

Cash flow from Operating Activities:

Net Income $150

Adjustment for non cash effects:

Depreciation $84

Amortization $5

Loss on sale of land $4

Total $243

Changes in operating assets and liabilities :

Decrease in Accounts receivable $17

Decrease in Inventory $18

Increase in Accounts Payable $14

Decrease in Salaries Payable ($14)

Increase in Interest Payable $13

Increase in Income tax Payable $10

Net cash provided from Operating Activities $301

5 0
3 years ago
According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is
dimaraw [331]

Answer:

The answer is true

Explanation:

The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

8 0
3 years ago
Rydell Inc. is evaluating a proposed capital budgeting project that will require an initial investment of $168,000. The project
Inessa [10]

Answer:

-$15,315.21

Reject the project

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The NPV can be found using a financial calculator.

Cash flow in year zero = -168,000

Cash flow in year 1 = $44,800

Cash flow in Year 2 = $51,700

Cash flow in Year 3 = $48,600

Cash flow in Year 4 = $47,900 

Interest rate = 10%

NPV = $-15,315.21

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

The decision rule with NPV is to accept the project if the npv is positive. Since the NPV calculated above is negative, the project should be rejected.

I hope my answer helps you

6 0
3 years ago
What is the term for something that is produced by the mind, such as new invention that was commercial value?
mr_godi [17]
I just got a great idea?
6 0
3 years ago
Pressure from consumer groups is encouraging some producers to develop more ______________ products. deficient. desirable. accep
klio [65]
Pressure from consumer groups is encouraging some producers to develop more desirable products.  The desirable products are products that take care of both the objectives are called desirable products. For example, body shop products are named desirable products because they offer short term gratification and also support the society.
6 0
3 years ago
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