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3 years ago

The three inventory costing methods will normally each yield different amounts of net income

1 answer:

5 0

False due to the costing methods LIFO (last in first out), LILO ( last in last out), weighted average all yield the same amount

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Holly's is currently an all-equity firm that has 12,000 shares of stock outstanding at a market price of $36 a share. The firm h

vagabundo [1.1K]

Answer:

$31,104

Explanation:

EBIT / 12,000

= [EBIT - ($120,000 × .072)] / [12,000 - ($120,000 / $36)]

EBIT = $31,104

Therefore the minimum level of earnings before interest and taxes that the firm is expecting will be $31,104

8 0

4 years ago

Croft Company sold land costing $10,000 for $12,000. In the investing activities section of the statement of cash flows, the com

Nezavi [6.7K]

Answer:

The answer is: B) An inflow of $12,000

Explanation:

Croft Company's cash flow should include the total cash inflow (the company received money) of $12,000. Even if the company bought the land the day before, paying the $10,000 yesterday, the cash flows are independent one from another. It should have recorded the outflow of $10,000 "yesterday".

7 0

3 years ago

In the text, Curves is an example of which path? a. Looking across alternative industries b. Looking across strategic groups wit

Elena L [17]

Answer:

The correct option is D) Looking across complementary offerings

Explanation:

There are about 6 well-known paths to achieving a Blue Ocean Strategy.

Generally, the Blue Ocean Strategy (BOS) seeks to avoid locking horns with the competition by identifying niche areas that are critical to the attainment of a competition-free space. According to the BOS took kit, there are 6 paths to achieving a blue ocean strategy.

One of them is called looking across complementary offerings.

Another term for the Curve is Value Ramp. Value Ramp simply refers to a methodology for evaluating one's service/product offerings. It consists of a graph that plots a curve sloping upwards from left to right, showing the relationship between price and the value or perception of value being delivered by the business.

The principle offered here stated that the higher the perception of one's brand, the more one should be able to charge for their services.

Value is thought to increase as the business delivers more and more personalized services in a relationship-oriented fashion rather than generic products and services which are readily available off the shelf in most cases.

Cheers

7 0

3 years ago

Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,900 shares of its own common st

Nikitich [7]

Answer: See explanation

Explanation:

The journal entry to record the transaction for Sherman systems will be:

Oct-11

Debit Treasury Stock (5,900 × $34) =

$200,600

Credit Cash = $200,600

(To record repurchase of 5900 own shares)

Nov-01

Debit Cash (1,225 × $40) = $49,000

Credit Treasury stock (1,225 × $34) = $41,650

Credit Paid in capital-Treasury Stock = $7,350

(To record sale 1225 shares from treasury stock)

Nov-25

Debit Cash (5,900-1,225) × $29) = $135,575

Debit Paid in capital-Treasury Stock = $7,350

Debit Retained earnings = $16,025

Credit Treasury stock (5,900-1,225) × $34) = $158,950

(To record sale balance from treasury stock)

7 0

3 years ago

Bridge City Consulting bought a building and the land on which it is located for $175,000 cash. The land is estimated to represe

Darya [45]

Answer:

Part 1

D.E = $5,300

Part 2

a. Book Value = $61,900

b. Book Value = $122,500

Explanation:

Step 1 : Determine the Cost of Buildings

Separate the Cost of Land and the Cost of Building from the Purchase Price

Calculation of the Cost of Building

Purchase Price ($175,000 x 30%) $52,500

Building Renovations $20,000

Total $72,500

Step 2 : Depreciation calculation

Depreciation expense = (Cost - Residual Value) ÷ Useful Life

= ($72,500 - $19,500) ÷ 10

= $5,300

After Year 2

Buildings :

Accumulated Depreciation = $10,600

Book Value = $72,500 - $10,600 = $61,900

Land

Book Value = $175,000 x 70% = $122,500

Note : Land is not depreciated

5 0

3 years ago