Answer: $972,900
Explanation:
The cost of land consists of the actual purchase price, and all other expenses that are necessary to make the asset ready for its intended use. In terms of land, all these expenditures can include title fees, unpaid taxes from previous years only (i.e. not current taxes), and other expenses need to physically prepare the land for use. The current taxes figure of $4,600 is not included here, as it is only owed during the current year, therefore normal accounting rules for taxes will apply. This figure will thus be treated as a liability until it is paid. The back taxes were aqcuired when the asset was aqcuired, and thus form part of the cost.
Old buildings that were on the land, may need to be teared down so that land can be utilised. The costs used to demolish the building also forms part of the purchase price. On top of that, to fully prepare the land for use the land may need to be landscaped and leveled. All these costs contribute towards getting the land ready for use, and are thus included in the cost. Sales made on any item related to the land, during the process when the land was still being processed for its intended use, will reduce the cost of the asset, and deduct this figure. This figure will fall under sales, which is an income to the business. The full calculation of the cost is as follows:
Purchase price: $910,000
Title insurance: + $2,400
Unpaid property taxes: + $8,300
Cost of removing building: + $45,900
Sale of salvaged materials: - $4,000
Level the land: + $10,300
Cost of land: = $972,900
In order to predict future demand, a forecasting process combines data from the market, internal operations, and the wider business environment.
<h3>What really happens during a forecast?</h3>
The process of forecasting entails creating predictions based on historical and current data. These can then be contrasted (resolved) with what actually occurs. For instance, a business can predict its revenue for the following year and then contrast that prediction with the actual outcomes. A comparable but more broad phrase is prediction.
The five stages for forecast,
- Step 1 is to define the issue.
- Step 2: Information gathering.
- Step 3: First exploratory analysis.
- Step 4: Choosing and fitting models
- Step 5: Utilizing and assessing a forecasting model
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Answer:
B. one of only 2 factories that made the product shuts down.
Option C -Operating Cash Flow = Current Liabilities / Operating Cash Flow s not a correct way of calculating a liquidity ratio.
Liquidity ratios are a measure of a company's ability to settle its short-term payments. A company has the ability to quickly exchange its revenues and is using them to pay his obligations is dictated by its liquidity ratios. The potential to pay back debts and keep engaged on installments is simpler the better the ratio. Since this can vary by industry, and current ratio of 1.0 usually signals that a group's debt do not exceeding its liquid assets. In enterprises in which there is a quicker product changeover and/or shorter payment cycles, ratings below 1.0 may be acceptable.
Absolute liquidity ratio =(Cash + Marketable Securities)÷ Current Liability.
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The factory overhead allocated per unit of Product A in the Painting Department is $ .
Given,
Overhead Total direct DLH per product
Labour Hours A B
Painting dept. $241000 10500 8 11
Finishing dept. $69700 10500 5 6
Totals $311400 21000 13 17
Single overhead rate per hour = total overheads/ total labor hours
Now, substituting the values in the formula
Single overhead rate per hour = 311400/21000
= $14.83 per labor hour
Now, direct labor hours for product A for the Painting department = 16 hours
Overhead rate per unit of product A in the painting department = 16 hours × $14.83 per hour
Overhead rate = $237.28 per unit
Thus, Adirondak Marketing Inc. would allocate $237.28 to the painting department for 1 unit of Product A.
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