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3 years ago

Hull Company’s record of transactions concerning part X for the month of April was as follows.

Business

1 answer:

olga55 [171]3 years ago

4 0

Answer:1. $7720

2. $7945

3. $7758

Explanation: 1. First in First out method which means the first inventory to be purchased by company will be the first to be sold.

Total cost of Sales = Total number of units Sold * Total Cost of inventory sold

= 100units*$5+ 300units*$5.30+ 200units*$5.35 + 450units*$5.60

=$7720

Total units sold=1450 we started from first inventory which was the balance of inventory of 100 units downwards up to the 1450th unit sold that was purchased on the 26th of April by the company.

2. Last in first out method is where the last bought inventory is sold first.

Total cost of sales= Total number of units sold * Total cost of units sold =200units$*5.80+ 600units*$5.60+ 200units*$5.35+300units*$5.30+150units*$5.1

=$7945

Total units sold still 1450 but we calculated the cost from the last purchased unit from 30th April to the 1450th unit sold which was on the 12th of April.

3. Average Cost = (Sum of all costs/Total number of costs)* total units sold

= (($5+$5.1+$5.3+$5.35+$5.6+$5.8)/6)* 1450

=$7769.58

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Connie's next step should be

Not - go back and revisit her plan objectives

Maybe - Conduct primary research and analyze Fred's current customers.

<h3><u>Explanation:</u></h3>

It is very essential for an entrepreneur who decides to start a new business to have a business plan that helps him in setting up the businesses in the right track and usage of funds in an effective manner. A business plan acts as a blue print of a new business and the objectives and resource utilization.

In the scenario give, Fred decides to start a new boutique and has conducted researches geographic locations and the type of boutiques supported by the demography. She must not then go back and review her plan objectives as she has decided to start it with a good plan and she may conduct a primary research about the current customers of him.

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3 years ago

Toy Town is considering a new toy that will cost $49,100 in startup costs. The toy is expected to produce cash flows of $47,500

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Answer:

NPV with a 14.9% discount rate: 6,329.06

The toy should be produced as the NPV is positive.

IRR = 26.65%

Explanation:

First we calculate for the NPV using the given discount rate of 14.9%

We will calculate the present value of each year cash inflow:

$\frac{inflow}{(1 + rate)^{time} } = PV$

Year 1 cash inflow: 47,500.00

time 1.00

rate 0.149

$\frac{47500}{(1 + 0.149)^{1} } = PV$

PV 41,340.30

Year 2 cash inflow: 18,600.00

time 2.00

rate 0.149

$\frac{18600}{(1 + 0.149)^{2} } = PV$

PV 14,088.76

Then, we add them and subtract the investment to get NPV

NPV = 14,088.76 + 41,340.3 - 49,100 = 6,329.06

The toy should be produced as the NPV is positive.

Now for the IRR

That is the rate at which NPV equals zero we can solve for this using the quadratic equation as there are only two cash flow:

Year 1 will discount at (1+IRR)

Year 2 will be discount at (1+IRR )^2

So we can express and recreate the quadratic formula:

18,600 X^2 + 47,500 X - 49,500 = 0

A = 18,600

B = 47,500

C = -49,100

$x_1 = \frac{-b+\sqrt{b^{2} -4ac}}{2a}\\x_2 = \frac{-b -\sqrt{b^{2} -4ac}}{2a}$

We can solve and get:

x1 = 0.78957

x2 = -3.3433

We take the positive value.

and now solve for IRR

$\frac{1}{1+ IRR} = 0.78957\\IRR = \frac{1}{0.78957} -1$

IRR = 0,2665121 = 26.65%

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3 years ago

a company purchased supplies for cash, which will be consumed during future months. which of the following correctly describes t

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The answer choice that correctly describes the impact of the supplies purchase on the financial statements is A. total assets will remain unchanged.

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This refers to financial property owned by a company or individual that has some degree of value.

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1 year ago

Larry lives in Chicago and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of

OLga [1]

Answer:

1. Explicit cost

2. Implicit Cost

3. Implicit Cost

4. Explicit cost

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Economic Profit is -$3000. (a loss of $3000)

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Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.

Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.

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3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>

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4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>

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Accounting profit = Total Revenue - Total explicit cost

Economic profit = Total revenue - (Total Explicit Cost + Total Implicit Cost)

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