Answer and Explanation:
The computation is shown below;
a) The In-house purchasing cost last year is
= Fixed costs + Variable costs
=$85,000 + Total number of purchase orders × cost per order
= $85,000 + 1400 × 15
= $106,000
b)
The outsourcing cost is
Outsourcing cost = Fixed costs +Variable costs
= $100,000 + Total number of purchase orders × cost per order
= $100,000 + 1400 × 5
= $107,000
c) Total number of purchase orders = 1600
In-house purchasing cost = 85,000 + 1600 × $15 = $109000
Outsourcing cost = $100,000 + 1600 × $5 = $108000
Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.
Answer:
C. $120.33
Explanation:
Div₀ = 2
Div₁ = 2.16
Div₂ = 2.333
Div₃ = 2.519
Div₄ = 2.721
Div₅ = 2.939
Div₆ = 3.09
we must first find the terminal value for year 5 (when growth rate stabilize)
P₅ = 3.09 / (7% - 5%) = $154.28
now we must discount all the future dividends + terminal value:
P₀ = 2.16/1.07 + 2.333/1.07² + 2.519/1.07³ + 2.721/1.07⁴ + 2.939/1.07⁵ + 154.28/1.07⁵ = 2.02 + 2.04 + 2.06 + 2.08 + 2.10 + 110 = $120.30 ≈ $120.33 (assuming a slight rounding error)
Answer:
$20,340
Explanation:
The amount of cash to be recognize is the adjusted amount after considering the transactions that were omitted from the bank statement and cash book and properly recognizing the erroneous entries into the two books.
Considering the reconciling items,
Checks outstanding $ 3,300 - This has been recognized in the company's Cash account and as such need no adjustment in the company's books
NSF check 110 - This has been deducted from the company's cash book but was not honored by the bank as such, it will be added back to the company's cash book balance
Note collected by bank for the Colt Company 1,650 - This has been recognized by the bank and as such will be added to the company's cash book balance
Deposits outstanding 2,800 - This has been recognized in the company's Cash account and as such need no adjustment in the company's books.
Bank service fees 220 - This has been recognized by the bank and as such will be deducted as a charge to the company's cash book balance
Hence the amount of cash that should be reported in the balance sheet as of August 31 will be
= $18,800 + $110 + $1650 - $220
= $20,340
Answer:
Cost of goods sold : $ 120.000
Explanation:
income before taxes : 63000 / 0.7 = 90000
(+) expenses 90.000
Total 180.000
(-) net sales 300.000
= cost of goods 120.000
5.55 years
I/Y: 8.5
PV: 899000
PMT: -210000
FV:0