yes I definitely affirm that the switch of Chrysler from LIFO to FIFO was beneficial to the stockholders mainly because the profit figure was increased.
In several ways, the change improved Chrysler's financial results in 1970. In addition to cutting the 1970s loss by $20 million, it improved Chrysler's working capital. The change also made the comparison with 1969 earnings appear slightly more favorable because, after restatement, Chrysler's 1969 profit was only raised by $ 10.2 million from the original figures.
Finally, the change aided Chrysler's balance sheet by increasing inventories and thus current assets by $150 million at the end of 1970 compared to LIFO. As Chrysler's profit has plummeted in the last two years and its financial position has tightened, auto analysts have been wary of the company's shrinking current asset to current liability ratio. Chrysler, on the other hand, paid to improve its balance sheet and results. The primary benefit of LIFO is that it reduces profit and thus tax liabilities.
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Answer:
Zero Increase in Real GDP between 2004 and 2005.
Explanation:
Nominal value of GDP in 2004
Nomina Value = $100 x 500,000
Nominal Value = $50,000,000
Nominal value of GDP in 2005
Nominal value = $200 x 500,000
Nominal value = $100,000,000
We can find Real GDP amount by multiplying base year price by current year quantity.
Real GDP = Base year price x Current year quantity
Real GDP = $100 x 500,0000
Ral GDP = $50,000,000
Answer:
d. Minimize the number of times a product is handled
Explanation:
Material handling is the process by which products are passed from different stages of production and delivery before getting to the consumer.
Since material handling is an essential activity in production businesses plan to reduce cost on this activity.
The best way to reduce handling cost is to reduce the number of time a product needs to be handled.
That is reducing to the barest minimum the touch points in process like sorting, moving, preparing, and storing products
Answer:
How will these two transactions affect the control and subsidiary accounts?
Explanation:
the control, account.
Accounts Receivable, will be increased with debit of $7,700
the last one a manicurist who works from home or at a clients house
