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kvv77 [185]
3 years ago
6

Triple Creek Hardware Store currently uses a periodic inventory system. Kevin Carlton, the owner, is considering the purchase of

a computer system that would make it feasible to switch to a perpetual inventory system.Kevin is unhappy with the periodic inventory system because it does not provide timely information on inventory levels. Kevin has noticed on several occasions that the store runs out of good-selling items, while too many poor-selling items are on hand.Kevin is also concerned about lost sales while a physical inventory is being taken. Triple Creek Hardware currently takes a physical inventory twice a year. To minimize distractions, the store is closed on the day inventory is taken. Kevin believes that closing the store is the only way to get an accurate inventory count.Icon Will switching to a perpetual inventory system strengthen Triple Creek Hardware’s control over inventory items? Will switching to a perpetual inventory system eliminate the need for a physical inventory count? Explain.
Business
2 answers:
Gemiola [76]3 years ago
7 0

Answer:

Yes, switching to a perpetual inventory system strengthen Triple Creek Hardware’s control over inventory items.

No, switching to a perpetual inventory system will not eliminate the need for a physical inventory count

Explanation:

<em>Perpetual Method</em>

Perpetual Method is the method of recalculating the value of goods held after each transaction.

This will  strengthen Triple Creek Hardware’s control over inventory items as high detail of purchase and sale of goods is maintained.

<em>Physical Count</em>

Goods stolen and damaged do not get scanned and noticed by perpetual method, thus a physical count is necessary and important over and above the perpetual method.

marin [14]3 years ago
3 0

Answer:

Will switching to a perpetual inventory system strengthen Triple Creek Hardware’s control over inventory items?

  • Yes, a perpetual inventory system provides updated information about inventory levels and costs. Since it is updated immediately, many of the company's problems could be solved, e.g. you can place an alert for minimum inventory levels on certain products and you can determine if the stocks of low sellers are too high.

Will switching to a perpetual inventory system eliminate the need for a physical inventory count?

  • It will not completely eliminate the need to carry out a physical inventory, but it should reduce it substantially. Also, you can carry out a random physical inventory for certain products only. If the physical count shows that there are problems with the registered inventory, then you can carry out a complete physical count.

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This is what i found  Answer 1
Risk-Adjusted Asset Base
The calculation of the risk-adjusted asset base for a bank is as below-
Risk-adjusted asset = (Cash × 0%) + (municipal security × 20%) + (home mortgages × 50%) + (Commercial loans × 100%)
= (20 × 0%) + (100 × 20%) + (500 × 50%) + (300$ × 100%)
= 0 + 20 + 250 + 300
= $570 million
The outcome shows that the risk-adjusted or weighted asset based for the bank will be $570 million.
Tier1 and Tier 2 Capital:
If the bank has no off-balance sheet activity then minimum required level of Tier 1 and Tier 2 capital will be-
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The addition of off-balance sheet activities might increase the capital requirement of the bank. It is because an off-balance sheet items is a financial contract that can create credit loss for the company due to credit risk. So, in case of adding off-balance sheet activities, a bank will require more capital to cover credit loss. Along with this, it can also increase the minimum ratio of capital to risk-weighted assets from 8% and in that situation; the bank will need more capital (Carmichael & Graham, 2012).
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If the rate on a one-year treasury bill is 6% and in case of loan default, no payments are expected on financial securities then the probability of repayment and the risk premium on 1 year AA-rated loan yielding 9 percent will be-
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An x-ray machine at a dental offi ce is MACRS 5-year property. The x-ray machine costs $6,000 and has an expected useful life of
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Depreciation for 1st year = 20%, for 2nd year = 32% and for 3rd year = 19.2%

So, Cost of machine after 1st year = $6,000 - 20% × $6,000 = $6,000 - $1,200

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3 0
3 years ago
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If we eliminate the product there would be no sales, no variable expenses and therefore, no contribution.

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contribution              = nil

- fixed expenses      = <u>56,000</u>

NET LOSS              = <u> (56000)</u>

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NOTE :-

Fixed expense = (140,000)*(40%)= 56,000

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