Answer:
1. estimate the quantity of raw materials to be purchased.
2. ending raw materials inventory for the last period.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.
The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
1. The purpose of preparing a direct materials budget is to estimate the quantity of raw materials to be purchased. This includes the raw materials that would be used for the manufacturing of finished goods.
2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ending raw materials inventory for the last period.
Answer
The answer and procedures of the exercise are attached in the images below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a 2 sheets with the formulas indications.
Answer:
The answer is $115.38
Explanation:
Solution
Given that
The annual dividend on preferred stock = $7.50
Required return on preferred stock+= 6.5%
The next step is to find at what price should the preferred stock sell which is given as follows:
The rice of preferred stock = 7.50/6.5%
= $115.38
$115.38 is the price at which the stock preferred was sold.
Answer:
conduits
Explanation:
A mortgage-backed security is one in which is similar to bonds but that usually consists of home loans ought from banks that issued them. It is a type asset-backed security which can be sold through brokers.
investment in mortgage-backed assets means the investor is lending out his money to people that intend to get a home.
A mortgage-backed security can be bought directly from banks or through brokers. These brokers are also called conduits.
Cheers
Answer:
B. False
Explanation:
Capital Asset Pricing Model (CAPM) is an indicator that shows the relationship between the expected return and the risk of investing in a particular security.
This model is used to examine securities and their given prices, haven stated the expected rate of return and cost of capital involved.
CAPM is used by investors to make wise decision before investing their funds in a particular security.
