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larisa [96]
3 years ago
11

The balance sheet of Flo's Restaurant showed total assets of $560,000, liabilities of $184,000 and stockholders’ equity of $426,

000. An appraiser estimated the fair value of the restaurant assets at $665,000. If Alice Company pays $905,000 cash for the restaurant, what is the amount of goodwill?
Business
1 answer:
ololo11 [35]3 years ago
7 0

Answer:

$424,000

Explanation:

Data provided as per the given question as below

Liabilities = $184,000

Fair value of the restaurant assets = $665,000

Cash = $905,000

The computation of amount of goodwill is shown below:-

Amount of goodwill = Cash - (Fair value of the restaurant assets - Liabilities)

= $905,000 - ($665,000 - $184,000)

= $424,000

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kaheart [24]

Answer:

The inventory TO is 3.6875

Explanation:

\frac{Sales}{Average Inventory} = $Inventory Turnover

​where:

$$Average Inventory=(Beginning Inventory + Ending Inventory)/2

Considering there is not sufficient information to calculate the begining inventory <u>we are going to work only with the ending inventory </u>so:

\frac{59,000,000}{16,000,000} = 3.6875

The inventory TO is 3.6875 This means the company sales their inventory almost 4 times per year.

4 0
3 years ago
A company that manufactures and sells kitchen scrubbing sponges has significantly lower cost structures than its competition. Th
chubhunter [2.5K]

Answer:

The correct answer is “Pricing below competitors”.

Explanation:

It is given that the organization is operating with a lower cost structure as compared to its competitor and it is also enjoying the economies of scale. Since lower cost structure makes the organization capable to keep the price of its product lower as compared to its competitor. Moreover, the lower price of a commodity will attract new customers. Consequently, its sales volume will increase.

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2 years ago
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.
avanturin [10]

Answer:

$335,428

Explanation:

The computation of the plane operating cost is shown below:

Plane Operating Cost = Fixed cost + (Variable cost per unit × quantity) + (Variable cost per unit × quantity)

= $41,490 + ( $2,839 × 101 flights) + ($23 × 313 passengers)

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We only considered the planned activity as we have to compute the plane operating cost for the planning budget

8 0
3 years ago
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Lina20 [59]

Answer:

A. The demand curve will shift to the left, decreasing the price of beef.

Explanation:

  • As due to the changes in the tastes and preferences of the consumers the change in the demands of the beef and prices will also decrease and the curve will shift to the left and so does the price of the good.
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Because it didn’t have a standard weight and it was average
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