Becoming aware of the techniques used in media to get your attention and to influence your decisions allows you to

Freeze Corporation uses the lower of cost or net realizable value method to write down inventory. Freeze determines that the inv

erica [24]

Answer:

The journal entry to record the write down is:

Dr Cost of goods sold 1,000

Cr Inventory 1,000

Since cost of goods sold increases, then net income (income statement) will decrease. A decrease in net income will also result in lower retained earnings (balance sheet).

7 0

3 years ago

A forklift will last for only 2 more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new lift that can last

Ray Of Light [21]

Answer:

The equivalent cost of owning and operating the forklift is $4,465.82

We should replace the forklift.

Explanation:

The Equivalent annual cost can be calculated using the following formula

Equivalent annual cost = PV of cost / Annuity factor

Old forklift

PV of Cost = Annual cost x 2 years Annuity factor at 4% / 2 years Annuity factor at 4%

Hence

PV of cost = Annual cost = $5,000

New forklift

10 years Annuity factor at 4% = 1 - ( 1 + 4%)^-10 )/4% = 8.11090

PV of cost = ( Annual Cost x 10 years Annuity factor at 4% ) + Initial cost

PV of cost = ( $2,000 x 8.11090 ) + $20,000

PV of cost = 16,221.79 + $20,000

PV of cost = 36,221.79

Placing values in the formula

Equivalent annual cost = $36,221.79 / 8.11090

Equivalent annual cost = $4,465.82

As the equivalent annual cost of the new lift is lower than the the old one, we should replace the forklift

8 0

3 years ago

While all members of the Federal Reserve Board of Governors vote at Federal Open Market Committee (FOMC) meetings, only______ of

goblinko [34]

Answer:

(i) 5

(ii) Option (A) is correct.

(iii) Open market operations; sell

Explanation:

(A) The Federal Open Market Committee consists:

(i) 7 members of the Board of Governors

(ii) 5 of the 12 regional bank presidents

Therefore, only 5 of the regional bank presidents are the members of FOMC.

(B) The fed is lender of last resort to the banks in the united states which don't have any other source of borrowing.

(C) Open market operations refers to the buying and selling of government securities to the public. The central bank of a particular nation uses open market operations as a monetary policy instrument for controlling money supply.

If the fed wants to decrease the money supply in the economy, then it must sell the government bonds to the public. Hence, there is a reduction in the money supply.

5 0

3 years ago

Sarah Salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. The problem is th

saw5 [17]

Answers: Value Analysis & lower Operating cost.

By conducting a value analysis that highlights her printer's lower operating cost, Sarah will then be able to show her buyers what returns they can get in the long run.

The value analysis will also entice the prospective buyers due to the cost savings and product quality of her printer. With all of these highlighted to the buyer, Sarah will then be able to compete with the other companies that sell their printers at a cheaper price.

4 0

3 years ago

Read 2 more answers

Pinnacle Corporation is a manufacturing company operating numerous machines. These require regular maintenance to keep them oper

N76 [4]

Answer:

B) $18,500

Explanation:

To calculate the total cost of maintenance for this month we can use the following formula:

total costs = fixed portion + variable set up costs + variable unit costs

total costs = $3,000 + ($5 x 800) + ($0.50 x 23,000) = $3,000 + $4,000 + $11,500 = $18,500

3 0

3 years ago