Answer and Explanation:
The computation of the ending balance of the work in process is shown below:
For April month
= $6,100 + $5,900
= $12,000
For May month
= $5,900 + $5,800 + $5,100 + $6,800
= $23,600
For June month
= $6,800 + $4,600
= $11,400
In this way the ending work in process is to be calculated for each month and the same is to be considered
You also need to look at the variability of the machines. Less variation is more desirable to be purchased since it would not be expected to have many errors in cutting. The distinction of a certain output from other may affect the quality of your product therefore the less variations there is, the more desirable the machine would be.
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Answer:
Gamma
Explanation:
Current ratio is an example of a liquidity ratio. Liquidity ratios measure a firm's ability to honour its short terms obligations. the higher the current ratio, the higher the firm's liquidity and its ability to meet short term obligations
Current ratio = current asset /current liability
Alpha = $74,524 / $60,100 = 1.24
Beta = $207,536 / $152,600 = 1.36
Gamma = $60,125 / $32,500 = 1.85
Delta = $95,335 / $82,900 = 1.15
Gamma has the highest current ratio and the best short-term solvency position
Answer: $81.85
Explanation:
Additional Equity financing needed = Projected Assets - Projected liabilities - Projected increase in retained earnings - Current equity
Projected Assets = (Current Assets + Fixed Assets) * ( 1 + growth rate)
= ( 670 + 1,520) * ( 1.10)
= $2,409
Projected Liabilities = 360 * 1.1
= $369
Projected Increase in Retained earnings
= Sales * ( 1 + growth rate ) * profit margin
= 2,330 * 1.10 * 5%
= $128.15
Current Equity = Assets - Liabilities
= 670 + 1,520 - 360
= $1,830
Additional Equity financing needed next year= 2,409 - 369 - 128.15 - 1,830
= $81.85
