Answer:
c. Ending inventory will be lower if Blake uses weighted average than if FIFO were used
Explanation:
To check which answer is correct, we simply evaluate each option step by step.
<u>Option A</u>
Gross margin is the difference between selling price and cost.
Under FIFO gross margin is $14. (32 -18 =14)
Under LIFO gross margin is $13. (32-19 = 13)
Thus statement is incorrect as gross margin is higher if FIFO is used.
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<u>Option B</u>
If FIFO is used, the dollar amount of ending inventory will be $19 as ending inventory will contain product purchased later that is at $19. In contrast, if LIFO is used, the dollar amount of ending inventory will be $18. Thus the statement becomes incorrect that it will be the same.
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<u>Option C</u>
The ending inventory under FIFO is $19.
The ending inventory under LIFO is $18
The endng inventory under AVCO or weighted average will be, 18+19 / 2 = 18.5
Thus the statement is correct as the ending inventory under weighted average $18.5 is lower than ending inventory under FIFO $19. So, C is the correct Answer.
Answer:
$84,500
Explanation:
Data provided as per the question
Net income = $85,000
Depreciation expenses = $1,500
Accounts receivables = $3,000
Increase in accounts payable = $1,000
The computation of amount of cash provided by operating activities is given below:-
Amount of cash provided by operating activities = Net Income + Depreciation expenses - Accounts receivables + Increase in accounts payable
= $85,000 + $1,500 - $3,000 + $1,000
= $84,500
Therefore, for computing the Amount of cash provided by operating activities we simply applied the above formula.
Answer:
The correct answer is letter "A": True.
Explanation:
Central banks are the financial institutions in charge of the monetary policy of their country on behalf of the central government. They regulate the money supply and the interest rates to maintain a country's economy the closest to its equilibrium level. In the United States, the central bank is the Federal Reserve (<em>Fed</em>). Central banks also collect and replace the currency in circulation.
Answer:
The answer is: A) 0.6
Explanation:
First we will calculate the midpoint for units:
- change in units = 40 - 60 = -20
- average units = (40 + 60) / 2 = 50
- midpoint for units = 20 / 50 = 0.4 (we only use positive numbers)
Now we will calculate the midpoint for price:
- change in price = 40 - 20 = 20
- average price = (40 + 20) / 2 = 30
- midpoint for units = 20 / 30 = 0.67
Finally we divide 0.4 / 0.67 = 0.6
