Answer:
PV= $2,749,494
Explanation:
Giving the following information:
Cash flow= $200,000
Number of periods= 25
Interest rate= 5.25%
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {200,000* [(1.0525^25) - 1]} / 0.0525
FV= $9,881,102.14
<u>Now, the present value:</u>
PV= FV/(1+i)^n
PV= 9,881,102.14 / (1.0525^25)
PV= $2,749,494
Answer:
Materials quantity variance = $1,750(U)
Explanation:
Standard quantity(SQ) = $2.5 * 6600 = 16500 Kg
Standard Price( SP) = $5
Actual quantity(AQ) = 16,850 Kg
Actual Price( AP) = $90,720 / 18,900 kg = $4.8
Materials quantity variance = SP * (SQ - AQ)
Materials quantity variance = 5 * ( 16500 - 16,850 )
Materials quantity variance = 5 * (350)
Materials quantity variance = $1,750(U)
The increase in transactions caused by inflation is the correct response when it comes to the shoe leather cost effect on inflation. Therefore, choice 3 is right.
<h3>What is the cost of shoe leather?</h3>
When there is significant inflation, the shoe leather cost refers to the time and effort people spend holding less cash in order to lower the inflation tax they must pay on their cash holdings.
The extra time and convenience that must be given up to keep less money on hand than would be necessary if there were less or no inflation is a substantial cost of reducing money holdings.
In light of the cost effect of inflation on shoe leather, option 3 is thus right.
Learn more about shoe-leather costs:
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Answer:C.
Account Titles Debit Credit
Inventory 200
Cost of Goods Sold 200.
Explanation: Cost of goods sold(COGS) is the total amount spent directly to produce the goods which was sold, it can be calculated as follows
COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.
Inventory is a term used to describe materials of value to an organisation that are in different stage such as RAW MATERIALS,WIP(WORK IN PROGRESS) AND FINISHED GOODS.
To show the inventory at the lower of cost or market the journal entry should be entered as follows; Account Titles Debit Credit
Inventory $200
Cost of Goods Sold $200.
The $200 represented the difference between $800 and $600 which is equal to $200. The $200 will be entered as the cost of goods sold.
