Answer:
Cost of goods sold = $270,000
Explanation:
Given:
Cost of goods manufactured = $860,000
Beginning work-in-process = $40,000
Ending work-in-process = $60,000
Beginning finished goods = $400,000
Ending finished goods inventory = $990,000
Computation:
Cost of goods sold = Cost of goods manufactured + Beginning finished goods - Ending finished goods inventory
Cost of goods sold = $860,000 + $400,000 - $990,000
Cost of goods sold = $270,000
Answer and Explanation:
The classification is shown in the attachment. Please find the attachment below:
As we know that
Operating activities refers to the activities in which the changes with respect to the working capital is recorded
Investing activities refers to those activities in which the purchase and sale of long term assets are recorded
And, the last one is financing activity which deals with the stockholder equity account i.e issuance of the stock, cash dividend paid, etc
Answer:
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Explanation:
From the question,
It is given:
FOR STOCK Y
Stock expected return = 14.7%
Stock beta = 1.4
risk-free rate is 5.2%
The Reward-to-risk ratio is given by the difference between the stock expected return and risk free rate divided by the stock beta.
Therefore
Reward-to-risk ratio for stock Y = (14.7% - 5.2%)/1.4
= 6.79%
FOR STOCK Z
Stock expected return = 8.7%
Stock beta = 0.7
risk-free rate is 5.2%
Therefore
Reward-to-risk ratio for stock Z = (8.7% - 5.2%)/0.7
= 5%
FOR SML
market risk premium = 6.2%
Risk rate = 5.2
Therefore
Reward-to-risk ratio for SML = (6.2%)/6.2 - 5.2
= 6.20%
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Answer: Purchase intent
Explanation:
Purchase intent refers to the likelihood that customer will purchase a certain good or service in future. It enables the company using this model to advertise goods that have a higher purchase intent to the customer which would go a long way in persuading them to buy the product.
Amazon uses this strategy as well as others that track demand and price goods optimally which is one of the main reasons for their success.
Answer:
The answer is A.
Explanation:
Net assets of the acquired company are revalued to their fair values and any excess of consideration transferred over fair value of net assets acquired is allocated to goodwill is correct.
This is also the calculation of goodwill. Goodwill is calculated by subtracting fair value of net identifiable net asset o the company that is about to be acquired from its purchase price. If purchase price is higher than net assets of the acquired, then it is a positive goodwill but if the purchase price is lesser than the net assets of the acquired, it is a negative goodwill.
