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3 years ago

Fifo reports higher gross profit and net income than the lifo method when

1 answer:

4 0

<span>FIFO (First in, First Out) reports higher gross profit and net income than the LIFO (Last In, First Out) method when prices are increasing. The FIFO method refers to an inventory system wherein the first items purchased are thought to be sold while the most recent purchases make up the ending inventory. On the other hand, the LIFO method assumes the opposite. The ones sold are the most recent purchases while the earlier purchases are included in the ending inventory. </span>

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At the beginning of 2017, your company buys a $34,000 piece of equipment that it expects to use for 4 years. The equipment has a

Elodia [21]

Answer:

32,000

8000

see below

.16

see below

Explanation:

I'm not really sure what the schedule is supposed to look like (im not good at accounting) exactly but i whipped up something real quick in excel and if you have any questions ask

the depreciable cost is just cost-salvage (the amount that's going to be depreciated) so for us its 34000-2000 or 32,000

the depreciation expense is just the depreciable cost divided by the useful live (32,000/4)=8000

see my attempt at a depreciation schedule below

The deprecation rate per unit is the depreciable cost divided by the total units

32000/200000= .16

and you can see below my attempt at the units of production schedule

4 0

2 years ago

What is the estimated economic profit in this example if the farmer plants watermelon on 500 acres??

Rzqust [24]

The economic profit is calculated by,

Economic Profit = Total Revenue (TR) – ( Explicit Cost + Implicit Cost)

Total Revenue $= 500 acre $6400 = $3200000$

Explicit Cost (Cost of land , Labor , capital) per acre = Machinery Ownership costs + Land Charge + overheads $= 155+120+350 = $625$

Explicit Cost for 500 acres $= 500 acres $625 = $ 312500$

Implicit Costs are not given

Economic Profit $= $3200000 - $ 312500 = $ 2887500$

Hence the economic profit is $$ 2887500$ .

<h3>Describe Economic Profit?</h3>

The difference between the revenue generated by the sale of an output and the prices of all inputs used, as well as all opportunity costs, is known as an economic profit. Possibility expenses and explicit costs are subtracted from earned revenues to establish economic profit. Economic profit is necessary because it helps examine an industry's financial and economic progress.

To learn more about Economic Profit, visit

Visit; brainly.com/question/7539101

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2 years ago

Elena is volunteering at a nonprofit organization. She notices that there doesn’t seem to be any network security at the office.

tiny-mole [99]

Network protection is vital to each domestic and enterprise network. Therefore, Whether it is a small organization or a big organization, Network Security is important.

<h3></h3><h3>What is the requirement for network security?</h3>

Many houses with high-velocity net connections have one or extra wi-fi routers, which may be used if now no longer nicely protected. A strong community protection machine allows lessening the chance of statistics loss, robbery, and vandalism.

hence, in this way, Elena can make her superiors realize the need for network security.

Learn more about Network security here:

brainly.com/question/26282951

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2 years ago

If you expect the target firm to grow at your calculated annual growth rate for the next four years (2021- 2024) and then beyond

frez [133]

Answer:

The question is incomplete, so I looked for a similar one:

FCF 2018 = ($4,923,478 - $1,033,930 + $605,752) - ($2,173,000 + $605,752) - ($8,501,348 - $7,600,543) = $4,495,300 - $2,778,752 - $900,805 = $815,743

FCF 2019 = ($5,960,124 - $1,251,626 + $1,239,239) - ($2,580,000 + $1,239,239) - ($7,210,800 - $5,905,791) = $5,947,737 - $3,819,239 - $1,305,009 = $823,849

FCF 2020 = ($5,998,321 - $1,259,647 + $239,895) - ($1,903,500 + $239,895) - ($5,975,324 - $4,116,364) = $4,978,569 - $2,143,395 - $1,858,960= $976,214

average annual growth rate 2018 - 2020 = {[(823,849 - 815,743)/815,743] + [(976,214 - 823,849)/823,849]} / 2 = (0.99% + 18.49%) / 2 = 9.74%

FCF 2021 = $976,214 x 1.0974 = $1,071,297

FCF 2022 = $1,071,297 x 1.0974 = $1,175,642

FCF 2023 = $1,175,642 x 1.02 = $1,199,154

first we must calculate the terminal value in 2022 = $1,199,154 / (10.5% - 2%) = $14,107,699

the firm's current value = $1,071,297/1.105 + $1,175,642/1.105² + $14,107,699/1.105² = $13,486,312