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ad-work [718]
3 years ago
13

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:

Business
1 answer:
eimsori [14]3 years ago
4 0

Answer:

A.selling common stock.

Explanation:

A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.

Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public.  Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights.  Shareholder earns dividends as a reward for providing capital to businesses.

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You work for an auto manufacturer and distributor. How could you use information systems to
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3 years ago
ABC Co. uses a perpetual inventory system and uses the FIFO cost flow assumption. During the month, it had two sales. Calculate
Free_Kalibri [48]

The cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is <u>$141</u>.

<h3>What is the FIFO method?</h3>

FIFO means First-in, First-out.  

The FIFO inventory method assumes that the Jan. 10 sales of 11 units were made from goods in stock on January 1 and the purchase on Jan. 5.

Using FIFO under the perpetual inventory system, the cost of goods sold on Jan. 10 is calculated as follows:

<h3>Question Completion Data and Calculations:</h3>

Jan 1 Beginning Inventory 8 at $12= $96

Jan 5 Purchase 12 at $15= $180

Jan 25 Purchase 10 at $18= $180

Jan 10 Sale 11 units x $50 each

Jan 30 Sale 3 units x $55 each

Cost of goods sold on Jan. 10 using FIFO = 141 (8 x $12 + 3 x $15)

Thus, the cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is <u>$141</u>.

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