Answer:
The inventory should be registered as $2000
Explanation:
The inventory should be registered by it is acquisition cost. Once sold Inventory will go down bt $2000 and COGS will rise by $2000
Product screening reduce the number of new-product ideas being worked on at any one time. New products have to be compatable with the overall business.
Answer:
Year 1 ending inventory is overstated and year 1 cost of goods sold is understated
Explanation:
The amount of ending inventory is increased by $ 5000 so the ending inventory is overstated and the cost of goods sold is understated as an amount of additional $ 5000 is deducted from it. For better understanding we consider the following
Opening Inventory $ 15000
Purchases $ 50,000
<u>Ending Inventory $ 20,000</u>
Cost Of Goods Sold = $ 45,000
Suppose we write $ 20,000 as $ 25,000 we get
Opening Inventory $ 15000
Purchases $ 50,000
<u>Ending Inventory $ 25,000</u>
Cost Of Goods Sold = $ 40,000
So we see that Year 1 ending inventory is overstated and year 1 cost of goods sold is understated by an amount of $ 5000
This is an exit strategy when an entrepreneur sells his or her company to its managers a management buyout. Management buyout, MBO, is defined as a transaction where a company's management team will purchase assets and operations within the business that they manage. The can purchase from within their organization or from other parent company's. This technique gives the person/company a shortcut to having more financial freedom.
Answer:
= $53,463
Explanation:
To calculate the cash flow:
= (Interest paid over the past year + long-term debt paid ) + ( Cash paid in dividends - Equity Issued)
Cash flow from assets = ($29,193 + 21,490) + ($28,130 − 25,350)
= $50,683 + 2,780
= $53,463