What I the probably going to charge you’re the highest interest rate in per year?

Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31,2017, Bri

Pachacha [2.7K]

Answer:

The Foreign exchange gain is $10,000.

Explanation:

The amount of gain that should be reported as the foreign exchange loss is the excess of dollar equivalent over reported local currency units (LUCs), so the Foreign exchange gain is calculated as follows:

Foreign exchange gain = dollar equivalent - local currency units

= $120,000 - $110,000

= $10,000

Therefore, The Foreign exchange gain is $10,000.

6 0

3 years ago

A chemical manufacturer is setting up capacity in Europe and North America for the next three years. Annual demand in each marke

Yuri [45]

Answer:

Explanation:

The two choices under consideration are building 4 million units of capacity in North America

YEAR 1 2 3

Production and Sales 4,000,000.00 4,000,000.00 4,000,000.00

Variable cost @ 10 40,000,000.00 40,000,000.00 40,000,000.00

Divide by:

Conversion Factor 1.33 1.33 1.33

Multiply by:

Growth(.1*.5)+(-.05*.5) 1.025 1.025^2 1.025^3

NET CASHFLOWS 30,827,068.00 31,597,744.00 32,387,688.00

DCF @ 10% 0.909090909 0.83 0.75

Present Values 28,024,607.27 26,113,838.02 24,333,349.36

NET TOTAL COST 78,471,794.65

or building 2 million units of capacity in each of the two loca-tions. Building two plants will incur an additional one-time cost of $2 million.

YEAR 0 1 2 3

Production and Sales 4,000,000.00 4,000,000.00 4,000,000.00

Variable cost @ [(10+9)/2] 38,000,000.00 38,000,000.00 38,000,000.00

Additional cost 2,000,000.00

Conversion Factor 1.33 1.33 1.33 1.33

Growth(.1*.5)+(-.05*.5) 1.025 1.025^2 1.025^3

CASHFLOWS 1,503,759.40 29,285,714.29 30,017,857.00 30,768,304.00

DCF @ 10% 1 0.909090909 0.826446281 0.751314801

Present Value 1,503,759.40 26,623,376.62 24,808,146.28 23,116,682.19

NET TOTAL COST = 76,051,964.50

DECISION: The manufacturer should build 2 plants in 2 different locations because it gives a lower net present cost

At what initial cost differential from building the two plants will the chemical manufacturer be indifferent between the two options?

The difference in both options came from the fact that variable cost is lower in Europe and building the plant is more expensive. If there is no increase in cost and variable cost is same everywhere, then both options will be same.

5 0

3 years ago

Fisher Company has 1,000,000 share of common stock with a par value of $10. Additional paid-in capital totals $10,000,000 and re

aleksley [76]

Answer:

B. $300,000

Explanation:

The computation of the reduction of retained earning amount is shown below:

= Number of shares of common stock × stock dividend percentage × market value

= 1,000,000 shares × 6% × $5

= $300,000

Since the dividend amount is adjusted while computing the ending balance of retained earning balance and the same is to be considered in the computation part.

All other information which is given is not relevant. Hence, ignored it

8 0

3 years ago

Why did a division of labor occur when people started to produce a surplus of food

Aneli [31]

Simple answer is efficiency.

More output can be produced if labour specialised and focused on a particular activity.

One due to the time saved from switching tasks and secondly getting better (and faster) at what they do.

This leads to two outcomes.
1. Lower average costs of production
2. Greater output.

7 0

3 years ago

Jasper Company provided the following information for last year:

sdas [7]

Answer:

Explanation:

1. Jasper Company

Income Statement

Sales (280000 x $12) $3360000

Less: Cost of goods sold

Add: Direct Material $180000

Add: Direct Labor $505000

Add: Manufacturing Overhead $110000

Cost of goods sold ($795000)

Gross Profit $ 2565000

Less: Expenses

Selling expense $437000

Administrative expense $854000

Total expenses ($1291000)

Net income $1274000

Percentage of sales for each line item

Sales = 100%

Cost of goods sold: $\frac{795000}{3360000}$ x 100= 23.7%

Selling expense : $\frac{437000}{3360000}$ x 100 = 13%

Administrative expense: $\frac{854000}{3360000}$ x 100 = 25.4 %

2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.

Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.

7 0

2 years ago