Answer: The risk of stock out = 2.94%
Explanation:
Reorder point is calculated as: Lead time*demand per unit time=45*9=405
While the amount on-hand reaches 422 pounds, the manager was reordering lubricant.
During the lead time, Standard Deviation of Demand =Daily S.D*(Lead time)^0.5=3*(9^0.5)=9
Risk of Stock Out=(422-405)/9 S.D=1.89 S.D
From Normal distribution curve 1.89 S.D=0.0294=2.94%
Therefore, the risk of stock out=2.94%
Answer:
$638,000
Explanation:
The number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2013:
= [(Shares issued at December 31, 2012 × (6 ÷ 12)]
+ [(Shares issued at December 31, 2012 + Additional Shares issued at July 1, 2013) × (6 ÷ 12)]
+ {Purchase common stock × [(Market price - Purchase price) ÷ Market price]}
= [(610,000 × (6 ÷ 12)] + [(610,000 + 40,000) × (6 ÷ 12)] + {32,000 × [($20 - $15) ÷ $20]}
= 305,000 + 325,000 + 8,000
= $638,000
Answer:
$4,100
Explanation:
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
Net income is the difference between the sales and the cost incurred by an entity.
hence the net income of Warren enterprises
= $17,000 + $6,000 - $13,000 - $900
= $9,100
The amount of retained earnings as at end of December 31, Year 1
= $9,100 - $5,000
= $4,100
It takes ur money out and away