Answer:
E. 1.667
Explanation:
Current ratio is computed as;
= Current assets / Current liabilities
Current asset = Cash $200 + Marketable securities $400 + Accounts receivable $600 + Inventory $800
= $2,000
Current liabilities = Accounts payable $500 + Notes payable $700
= $1,200
Current ratio = $2,000 / $1,200
= 1.667
Answer:
Labor efficiency variance = $5,760 (Favorable)
Explanation:
We know,
Labor efficiency variance = (Standard hour - Accrual hour) × Standard rate
Given,
Accrual hour = 2,400
Standard hour = Budgeted direct manufacturing labor hours × Actual units produced
or, Standard hour = 0.22 × 12,000
Standard hour = 2,640 hours.
Standard rate = $24.
Putting the values into the formula, we can get
Labor efficiency variance = (2,640 - 2,400) hours × $24
Labor efficiency variance = 240 × $24
Labor efficiency variance = $5,760 (Favorable)
As standard hours is higher then actual hours, it is a favorable situation.
Answer:
Immoral
Explanation:
This is because instead of the company to follow environmental standards which are of course very important to health and safety, disregarded that and moved to a country where the environmental laws aren't as strict. It is not illegal because it is within their rights to set up business any where and also they aren't breaking the laws of the developing country. But the strategic move as earlier pointed is immoral because they aren't conforming to the standards of morality.
Answer:
c. $357,000
d. $733,000
e. $120,000
Explanation:
As we know that
Total assets = Total liabilities + Shareholder equity
The computation is shown below:
c. Updated assets would be
= $720,000 - $168,000
= $552,000
And, the updated liabilities would be
= $180,000 + $15,000
= $195,000
So, the updated capital would be
= $552,000 - $195,000
= $357,000
d. Updated assets would be
= $720,000 - $175,000
= $895,000
And, the updated liabilities would be
= $180,000 - $18,000
= $162,000
So, the updated capital would be
= $895,000 - $162,000
= $733,000
e. The opening capital would be
= Total assets - total liabilities
= $720,000 - $180,000
= $540,000
And, the ending capital would be
= Total assets - total liabilities
= $880,000 - $220,000
= $660,000
So, the gain would be
= Ending capital balance - opening capital balance
= $660,000 - $540,000
= $120,000
Answer:
Purchases = 2100 shovels
Explanation:
given data
ending inventory = 500 shovels
Budgeted sales = 1,950 shovels
inventory = 320 shovels
to find out
How many shovels should Benson Stores purchase for December
solution
we know here ending inventory formula that is express as
Ending inventory = Beginning inventory + Purchases - Sales .......................1
put here value we will get Purchases
so that
500 = 320 + Purchases - 1950
Purchases = 500 + 1950 - 350
Purchases = 2100 shovels
