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mr Goodwill [35]
2 years ago
11

Kamath-Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years,

to forecast inventory requirements: Inventories = $22.0 + 0.125(Sales). The company expects sales of $300.0 million during the current year, and it expects sales to grow by 32% next year. What is the inventory forecast for next year? All dollars are in millions.
Business
1 answer:
charle [14.2K]2 years ago
7 0

Answer:

$71.5

Explanation:

Inventory forecast is a way of predicting the volume of inventory required to fulfill future orders based on the existing production capacity and other plans relating to production

equation for forecasting inventory = $22 + 0.125 sales

Current sales = $300 million

Annual sales growth rate =32%

sales for next year = 300 + (300*32%)

300 + 96= $396 million

Applying the equation

Inventory = $22 + (0.125*396)

$22 + $49.5 = $71.5 million

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Eugene Co. has inventory it purchased for $6,000. It sells the inventory to a customer for $10,000, including installation. Inst
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Answer:

The necessary entries would be:

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Explanation:

Revenue should be recognized in the books of account where the selling party has performed its obligation of delivering goods or rendering services as contained in the sales contract.

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3 years ago
One day, a local theme park charges $40 per person for admission, and 10,000 people visit the park. On another day, the park cha
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Answer:

Both will charge $6,904 when they transport 16 tons of sugar.

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since both companies will charge the same total amount, then

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