Answer:
A.3.63 times
B.95.5 days
C.21.0 times
D.13.5 days
Explanation:
a.
Inventory turnover = Cost of goods sold / Average inventories
Hence:
= $602,250 / $166,000
= 3.63 times
b.
Number of days’ sales in inventory = Inventory at year-end / Average day’s cost of good sold
= $157,575 / $1,650
= 95.5 days
Average day’s cost of goods sold
= Annual cost of good sold / 365
= $602,250 / 365 = $1,650
c.Accounts receivable turnover
= Sales / Average accounts receivable
= $821,250 / $39,100
= 21.0 times
d.
Number of days’ sales in accounts receivable
= Accounts receivable at year-end / Average day’s sales
= $30,400 / $2,250 = 13.5 days
Average day’s sales = Annual sales / 365
= $821,250 / 365
= $2,250
The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>
<h3>What do you mean by elastic demand?</h3>
When the price of a product has a massive effect on the quantity purchased is called Elastic demand. A product is stated to have an elastic demand if sales drop sharply in reaction to a growth in price, or sales spike whilst prices are decreased.
Thus, The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>
Learn more about elastic demand:
brainly.com/question/5078326
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Answer:
$117500
Explanation:
Taxable loss = $140000 for 2018
Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017
tax rate = 30%
Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )
first calculate taxes on taxable incomes for 2016 and 2017
$35000 * 30% = $10500
$40000 * 30% = $12000
hence taxable profit = 10500 + 12000 = $22500
Net loss to be reported on 2018 income statement
= $140000 - $22500 = $117500
Answer:
Note: <em>The complete question is attached as picture below</em>
1a. The one year spot rate can be calculated using the one year zero bond.
PV * (1 + S1) = FV
1 + S1 = 1000 / 900
S1 = 1.1111 - 1
S1 = 0.1111
S1 = 11.11%
1b. PV of the 2 year bond = $950
Annual coupon = 1000 * 5% = $50
950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2
950 = 50 / 1.1111 + 1,050 / (1 + S2)^2
1,050/ (1 + S2)^2 = 950 - 45 = 905
(1 + S2)^2 = 1050 / 905
1 + S2 = 1.160221/2
S2 = 7.714%
1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2
Price of the 2 year zero bond = 1,000 / 1.1602
Price of the 2 year zero bond = 861.9203586
Price of the 2 year zero bond = $861.92
