Most companies lose money in their first few years of business. True False

If the cost of an item of inventory is $60, the current replacement cost is $65, and the selling price is $95, the amount includ

KATRIN_1 [288]

Answer:

The amount included in the inventory is $60

Explanation:

Lower of cost and net realizable value determine the value of closing inventory based on the cost incurred to produce or purchase a inventory unit or Market value of the inventory unit which ever is lower. In this question cost of unit of inventory is $60 and the replacement cost which market value of the item of inventory. The unit cost of an item of inventory is lower as compared to the replacement value.

5 0

3 years ago

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in uni

Reika [66]

Answer:

485,000 units

Explanation:

The computation of the number of units manufactured is shown below:

= Number of units sold + ending finished goods units - beginning finished goods units

= 515,000 units + 87,000 units - 57,000 units

= 485,000 units

Basically we added the ending finished goods units and deduct the beginning finished goods units to the number of units sold

7 0

4 years ago

The chart gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP

skad [1K]

Answer: Nominal GDP 2016 = $7,100

REAL GDP 2016 = $3,700

Nominal GDP 2017 = $4,500

Real GDP 2017 = $4,500

Explanation:

To calculate the Nominal and Real GDPs we use the following formulas,

Nominal GDP = Sum of (Current Year Price x Current Year Quantity)

Real GDP = Sum of (Base Year Price x Current Year Quantity)

We make the assumption that 2017 is the base year so calculating would be,

Nominal GDP, 2016 = [(7 x 600) + (70 x 20) + (300 x 5)]

= $(4200 + 1400 + 1500)

= $7,100

Remember for this we will use 2017 as the base year so we will use 2017 prices

Real GDP, 2016 = [(3 x 600) + (20 x 20) + (300 x 5)]

= $(1800 + 400 + 1500)

= $3,700

Nominal GDP, 2017 = [(3 x 400) + (20 x 90) + (300 x 5)]

= $(1200 + 1800 + 1500)

= $4,500

Now seeing as 2017 is the base year, it's nominal and real GDPs will be the same.

Real GDP, 2017 = $[(3 x 400) + (20 x 90) + (300 x 5)]

= $(1200 + 1800 + 1500)

= $4,500

I included the details part of question so it is clearer.

If you have need any clarification do react or comment.

3 0

3 years ago

The financial statements of Burnaby Mountain Trading Company are shown below. Income Statement 2017 Sales $7,000,000 Cost of Goo

vova2212 [387]

Answer:

d. 2.83

Explanation:

Note: The financial statement in the question are merged together. They are therefore sorted before answering the question. See the attached excel file for the full question with the sorted financial statement.

The explanation to the answer is now as follows:

The current ratio is a liquidity ratio that is used in measuring whether a company has adequate resources to meet its short-term obligations or pay its liabilities from its current assets.

The current ratio provides a comparison current assets to current liabilities of a company and it can be calculated using the following formula:

Current ratio = Total current assets / Total current liabilities ................. (1)

From the 2017 balance sheet of Burnaby Mountain Trading Company, we have:

Total current assets = $1,700,000

Total current liabilities = $600,000

Substituting the values for Total current assets and Total current liabilities into equation (1), we have:

Current ratio = $1,700,000 / $600,000 = 2.83

Therefore, The firm's current ratio for 2017 is 2.83. That is, the correct option is option d. 2.83.

This indicates that the firm has more than enough current assets to pay off 2.83 or 283% of its current liabilities.

Download xlsx

4 0

3 years ago

According to

defon

C.K. Prahalad was a teacher at the University of Michigan and very influential business thinker.
According to C.K. Prahalad, the first stage of globalization is when companies produce goods in one country and export them to other countries.
The second stage is when global businesses establish subsidiaries to handle the exports from their home country and at the third stage global firms set up operations in other countries.

7 0

3 years ago