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kenny6666 [7]
3 years ago
7

The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-yea

r project that will increase sales from its current level of $279,000 to $308,000 the first year and to $314,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?
Business
1 answer:
mylen [45]3 years ago
0 0

Answer:

$56,520

Explanation:

As per given data

Year     Sales          Working Capital 18%

   0      $279,000   ($50,220)

   1       $308,000   ($5,220)

   2      $314,000    ($1,080)

   3      $314,000    $0

   4      $314,000   $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

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Hermansen Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company
timurjin [86]

Answer:

Variable overhead efficiency variance =  $2,212unfavorable

Explanation:

variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance  

                                                                                       Hours

5,400 units should have taken (5,400×3.8 hours)   20,520

but did take                                                                <u> 20,800</u>

Labour hours variance                                                280 unfavorable

Standard variable overhead rate                         ×     <u>$ 7.90</u> per hour

Variable overhead efficiency variance                     $2,212  unfavorable

Variable overhead efficiency variance =  $2,212unfavorable

8 0
3 years ago
At year end, CurlZ, Inc.'s inventory consists of 370 bottles of CleanZ at $3 per bottle and 270 boxes of DyeZ at $10 per box. Ma
sasho [114]

Answer:

$3,270

Explanation:

Inventory should be value at lower of cost and market value.

Bottles of CleanZ:

Cost of inventory = Bottles of CleanZ × Price per bottle

                             = 370 × $3

                             = $1,110

Market value of inventory:

= Bottles of CleanZ × Market value per bottle

= 370 × $3.20 per bottle

= $1,184

Lowest of cost and market value of inventory is $1,110.

Boxes of DyeZ:

Cost of inventory = Boxes of DyeZ × Price per box

                             = 270 × $10

                             = $2,700

Market value of inventory:

= Boxes of DyeZ × Market value per box

= 270 × $8 per box

= $2,160

Lowest of cost and market value of inventory is $2,160.

Therefore, the DyeZ. CurlZ should report its inventory at:

= Lowest of cost and market value of inventor for (CleanZ + DyeZ)

= $1,110 + $2,160

= $3,270

3 0
3 years ago
Of the types of U.S. compliance laws, there are a number of laws that are designed to provide confidence in the markets. _______
Gala2k [10]

Answer:

The correct word for the blank space is: Shareholders.

Explanation:

A Shareholder is a person company or other entity that owns at least one share of company stock. Another word for <em>shareholder </em>is <em>stockholder</em>. When a shareholder buys a company stock provide them with funds to run and grow a business. The government is in charge of providing regulations to promote a safe environment in the market to promote investments from stockholders.

5 0
3 years ago
Janis just won a scholarship that will pay her $500 a month, starting today, and continuing for the next 48 months. Which one of
ExtremeBDS [4]

Answer:

B. Annuity due

Explanation:

Annuity Due

This is the repetition of money paid that is made at the beginning of each defined period. Period could be monthly, quarterly, yearly and so on. A common example used in explaining this is Rent paid at the beginning of each month. Annuity due have all payments in the same amount, like in this case, Janis is going to be paid $500 a month for 48 months. Meaning the amount tonbe paid doesnt changes. Also another characteristic of annuity payments is that all payments are paid at thesame time interval. Again, here, Janis is being paid every month at the same time interval NOT, today monthly and the next payment weekly.

It is a series of payments that is made or received over a predetermined period of time.

6 0
3 years ago
The term means to record an expenditure as an asset.
Novosadov [1.4K]

Answer:

Capitalize

Explanation:

3 0
3 years ago
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