The Average Inventory is set up by adding the Beginning
and Ending Inventory together, and then divide it by 2:
Avg Inv = (Beg Inv + End Inv) / 2
Avg Inv = (70,000 + 36,500) / 2
Avg Inv = 106,500 / 2
= $53,250
<span>Therefore, the average inventory is $53,250.</span>
Answer:
after tax gain at disposal: $ 7,187.78
Explanation:
book value at the end of second year:
<u>cost less depreciation of the previous years</u>
19,800 x ( 1 - .3333 - .4444) = 19,800 (0,2223) = 4.401,54
Now, we calculate the gain considering the difference in book value and sales price:
13,500 - 4,401.54 = 9,098.46 gain at disposal
Last, we calculate the value after-tax
9,098.46 x ( 1 - 0.21) = 7,187.7834
Answer:
The answer is "RECESSION"
Explanation:
Recession is a significant declined in the economy that lasts at least 6 months or more. It implies that some economic indicators such as employment drops. During that period, economic activities fall.
The current ratio for Vito Co. with respect to the period under review is 1.5
<h3>What is current ratio?</h3>
The current ratio, also known as the working capital ratio, measures the capability of a business to be able to meet its short term financial obligations.
The Current Ratio formula is
= Current Assets / Current Liabilities
= $9,000 / $6,000
= 1.5
Therefore, the current ratio for Vito Co. with respect to the period under review is 1.5
Learn more about current ratio here: https://brainly.in/question/45000916
Answer:
7,500 units
Explanation:
Given that,
Selling price = $25 per unit
Fixed expenses = $33,000 per year
Break even units sell = 5,500 units
Target profit = $12,000
Total break- even sale in Dollar:
= Selling price × Break even units sell
= $25 × 5,500 units
= $137,500
Break- even Point = Fixed Costs ÷ Contribution Margin per Unit
Therefore,
Contribution Margin per unit:
= Fixed Costs ÷ Break-Even points
= $33,000 ÷ $137,500
= 0.24 per unit
Sales amount:
= (Fixed costs + Target profit) ÷ Contribution margin per unit
= ($33,000 + $12,000) ÷ 0.24
= $187,500
Sales in units = Sales in amount ÷ Selling price per unit
= $187,500 ÷ $25
= 7,500 units
