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2 years ago

The selection of an appropriate inventory cost flow assumption for an individual company is made by

Business

1 answer:

Butoxors [25]2 years ago

3 0

Answer: Management

Explanation:

The management is one of the type of organization that manage the various types of business activities for the purpose of achieving the goals and the following are some main function of the management are as follows:

Controlling the system
Planning the overall function
Organizing

According to the given question, the selection of the inventory cost flow in the system by the company then it is known as the management as it handles all the inventory business of the various types of products and the services in the management.

Therefore, Management is the correct answer.

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John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the sto

Marina CMI [18]

Answer:

Explanation:

Calculate maximum that should pay:

Compute present value of cash flows from the store, year 1 to 5 :

Annual cash flows are $70,000

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 1 to 5 years =

= $287,013.82

Compute present value of cash flows from the store for years 6 to 10

Annual cash flows are $70,000

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 6 to 10 years = annual cash flows x PVIFA (10%,5) x PVIF (7%,5)

= $70,000 x 3.79079 x 0.7130 = $189,198.33

Compute present value of cash flows from the store for years 11 o 20

Annual cash flows are $70,000

Desired rate of return on investment for 11 to 20 years is 12%

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 10

Present value of cash flows generated during 11 to 20 years = [annual cash flows x PVIFA (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

= $70,000 x 5.65022 x 0.62092 x 0.7130 = $175,100.98

Calculate present value of estimated sale amount to be received for sale of store

Present value of estimted sale amount to be received = [Estimated sale amount x PVIF (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

=$400,000 x 0.32197 x 0.62092 x 0.7130=

=$57,016.50

Calculate total maximum amount that should be paid

Particulars Amount ($)

Present value of cash flows during 1 to 5 years $287,013.82

Present value of cash flows during 6 to 10 years $189,198.33

Present value of cash flows during 11 to 20 years $175,100.98

Present value of estimated sale value $57,016.50

Maximum amount that C should pay to JD for store $708,329.63

Therefore, Maximum amount that should be paid $708,329.63

4 0

3 years ago

Identify and explain 2 reasons why a business such as AEC could not be successful without other firms providing natural resource

julia-pushkina [17]

Answer:

AEC needs rubber to make its seals too. Oil is needed to produce rubber and, like coal and iron ore, oil is a natural resource. Without oil, AEC would have no rubber for seals. Natural resources are declining over time + coal reserves, especially, are running out.

4 0

3 years ago

Read 2 more answers

For each of the following corporate formations, (1) write the amount of gain or loss that will be recognized by the shareholders

Maslowich

Answer:

Back Stop, Inc.

1. The amount of gain or loss that will be recognized by the company:

a. $30,000 gain

b. $80,000 loss

2. The corporation's basis in the property after the transfer:

a. $150,000

b. ($80,000)

Explanation:

1) Data and Calculations:

a. Building $150,000 Capital, Kelly $120,000 Unrealized gain $30,000

b. Unrealized loss $80,000 Capital, Kelly $80,000

2) The building contributed by Kelly is worth $150,000 for the corporation. However, the contribution by John is worth nothing in real terms. Instead, an unrealized loss is being suffered by the corporation.

3 0

2 years ago

Your cell phone plan costs $34.99 per month plus $0.14 for each text message you send or receive. You have at most $38 to spe

amm1812

21.5, so maximum 21 text messages

4 0

3 years ago

The mass marketing at the center of the undifferentiated approach to target marketing is the assumption that the customer segmen

Colt1911 [192]

Answer:

D. standardized marketing

Explanation:

The mass marketing at the center of the undifferentiated approach to target marketing is the assumption that the customer segments across the world will accept the same product regardless of their cultural, behavioral, or socio-economic differences. This is also known as standardized marketing.

Standardized marketing can be definition as the use of global standardization, which refers to when a company uses the same marketing strategy for various countries without minding their difference in culture.

6 0

3 years ago

Read 2 more answers