Josey Doakes was reading the balance sheet of Gogoldze Inc. when she spilled grape juice on it. After the juice spill, the balan
ce sheet looked like this:
($ millions) 12/31/2015
Cash 90
Accounts Receivable 210
Inventory 410
Other Current Assets grape
Current Assets juice
Net Property, Plant, & Equipment 1,080
Total Assets grape
juice
Accounts Payable 115
Other Current Liabilities 260
Current Liabilities 375
Long-term Liabilities 860
Common Stock 50
Additional Paid-in-Capital 300
Retained Earnings 285
Total Liabilities and SE 1,870
What was Gogoldze Inc.'s Other Current Assets at 12/31/2015?A. $710B. $120C. $370D. $80E. $790
($ millions) 12/31/2015
Cash 90
Accounts Receivable 210
Inventory 410
Other Current Assets grape
Current Assets juice
Net Property, Plant, & Equipment 1,080
Total Assets grape
juice
Accounts Payable 115
Other Current Liabilities 260
Current Liabilities 375
Long-term Liabilities 860
Common Stock 50
Additional Paid-in-Capital 300
Retained Earnings 285
Total Liabilities and SE 1,870
What was Gogoldze Inc.'s Other Current Assets at 12/31/2015?A. $710B. $120C. $370D. $80E. $790
2 answers:
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Answer:
Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.
Explanation:
For calculating the present value, all the cost and revenue will be considered.
Original revenue = Sale of 10 million chips
10 million $20 = $200 million
Less: Cost = 10 million $6 = $60 million
Net Revenue = $140 million
In case of introducing new chips
Revenue will be as follows
12 million $25 + 3 million
$20
= $300 million + $60 million = $360 million
Less: Costs 12 million $8 + 3 million
$6
= $96 million + $18 million = $114 million
Net Revenue = $360 - 114 = $246 million
Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.