Answer: Increase by $3,500
Explanation:
The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.
Raw materials are current assets and Accounts Payable are current liabilities.
The Net working capital resulting from accepting this project is;
= 12,000 - 8,500
= $3,500
Net Working capital investment would increase by $3,500.
Answer:
Csot of goods sold= $2700
Explanation:
A)
Variable:
Direct materials: $2,200
Factory overhead: $490
Direct labor: $900
Fixed:
Nono
Direct:
Direct materials: $2,200
Direct labor: $900
Indirect:
Factory overhead: $490
B)
The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.
COGS=Beginning Inventory+Production during period−Ending Inventory
We need to calculate the production during the period.
Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress
Cost of manufactured period=0+2200+900+490-540= $3050
COGS=Beginning Inventory+Production during period−Ending Inventory= 0 + 3050 - 350 = $2700
Answer:
the arithmetic average annual return on the large company stocks in terms of nominal terms is 15.3%
Explanation:
The computation of the arithmetic average annual return on the large company stocks in terms of nominal terms is shown below:
= Arithmetic mean of large company stocks
= 15.3%
hence, the arithmetic average annual return on the large company stocks in terms of nominal terms is 15.3%
The same is to be considered