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2 years ago

When reporting inventory using the lower of cost or market, market should not be less than:

Business

1 answer:

Natali5045456 [20]2 years ago

3 0

Answer:

Net realizable value less a normal profit margin.

Explanation:

Lower of cost or market rule of inventory states that cost of inventory recorded must be that at which cost is lower, and the original cost is the current market price.

This occurs when the inventory has become obsolete, market price has declined, or inventory has deteriorated

Net realisable value is defined as selling price minus estimated cost of completion.

So the market value should not be less than net realizable value less a normal profit margin.

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Cardinal Health bonds have an annual coupon rate of 3.4 percent and a par value of $1,000 and will mature in 7 years. If you req

Alex787 [66]

The answer is "$716.56", and the further calculation can be defined as follows:
Health care business, Cardinal Health Leading provider healthcare, and biopharmaceutical products and services that help pharmacists.
The healthcare providers impact on customer care whilst reducing costs, improving productivity, or increasing productivity.

Annual coupon to be paid $\bold{= \$1000 \times 3.4\%= \$1000 \times \frac{3.4}{100} = \$34}$

years = 7

Calculating the bond price:

$= \$1000 \times PVF(5\%, 7\ years) +\$34 \times PVAF(5\%, 7\ years) \\\\= \$1000 \times 0.71068 +\$34 \times 0.17282\\\\= \$710.68 + \$5.87588\\\\= \$716.55588\\\\= \$716.56\\\\$

So, the final answer is "$716.56".

Learn more:

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2 years ago

Ralph Watkins owns a large home on a two-acre lot in Tempe, Arizona. Watkins has much of the lot covered with tiff grass and is

kakasveta [241]

Answer:

Explanation:

The bugs and pests from Watkins grass clipping pile are a menace to his neighbour Brown.

Brown has tried extermination but the source of the problem, which is still there, makes his efforts futile.

Brown now has the right to seek an injunction - a court order controlling or restricting a person's behaviour - against Watkins on the basis of nuisance.

Watkins should comply

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2 years ago

Imagine that you are serving as the general manager of a hotel. What three aspects do you think would be most important to the s

Strike441 [17]

Answer:

1. Create and give innovative experience.

2. Brand and reputation operation

3. Improvement in workers general welfare

Explanation:

As a manager in an hotel, I would Improve the facets of the hotel by

1. Create and give innovative experience. As a manager, I would ensure the hotel create and delivers top notch service considering there are competition in the hospitality industry.

2. Brand and reputation operation. When customers receives a world class experience, reputation is being created here. I would then sustain this reputation by making it a brand upon which the hotel will be identified with subsequently.

3. Improvement in workers general welfare. This is very critical to the success of the hotel. Once workers are well paid , it would spur them to work and align with the vision I have for the hotel.

8 0

2 years ago

Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $3

Alexandra [31]

Question:

Graded assignment(towards 15% Hw grade) Saved Help Save& Exit Submit Check my work Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%. 10 points

What is the present value of the cost of leasing?

Answer:

Cost of lease = $37,179.01

Explanation:

Leasing is a finance arrangement where one party (the lessor) transfers the right to use an asset to another party (the leasse) in exchange for a rent.

The cost of a lease to the leasee is the present value of the future lease payment discounted at the cost of capital.

So using the present value of annuity formula, we can work out the cost of the lease arrangement as follow:

PV =A× (1- 1+r)^(-n)/r

PV- Present Value

r- interest rate

n- number of years

A- annual lease payment

PV -

A-7,800

r-7%

n-6

PV = 7,800× (1- (1.07)^(-6)/0.07 = 37,179.01

Present Value = $37,179.01

Cost of lease = $37,179.01

5 0

2 years ago

NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. NaviC

tekilochka [14]

Answer:

Direct foreign investment

Explanation:

Foreign direct investment (FDI) is done in the case when the company controls the ownership in the other country of the business entity

Here the foreign company would be directly linked with the day to day operations that done in the other country this means that here not only the contribution of money matters but also the knowledge, skills, capabilities, techonology is also matter

Therefore the above represent the answer

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2 years ago