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erma4kov [3.2K]
3 years ago
8

In times of rising prices, inventory profits (or phantom profits) are said to occur under the FIFO cost flow assumption. This oc

curs because under FIFO, the release of older, lower costs to the income statement results in higher profits than if current costs were to be recognized. This creates a problem for the reporting company because:?
Business
1 answer:
mart [117]3 years ago
4 0

Answer:

The answer is overstate profits

Explanation:

FIFO is First in First out. It assumrs that the oldest goods purchased or manufactured are sold first and the newest goods purchased or manufactured remain in ending inventory. With this, the cost of sales shows the cost of sales shows the cost of goods in the beginning inventory and the value of ending inventory reflects the cost of goods purchased more recently.

Therefore, in the period of rising inventory ending inventory are higher, cost of sales are lower and this makes profit to be higher or being overstated

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Cardiogenic shock following ami is caused by:
stellarik [79]

Cardiogenic shock following ami is caused by:

  • Decreased pumping force of the heart muscle.

<h3>What is Cardiogenic Shock?</h3>

Cardiogenic shock is an aftermath of Acute Myocardial Infarction. It arises because of the body's sudden inability to pump a sufficient amount of blood to the vital organs of the body.

The mortality rate due to cardiogenic shock is above average.

Learn more about cardiogenic shock here:

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3 0
2 years ago
Concord Corporation had the following transactions during 2022: 1. Issued $190000 of par value common stock for cash. 2. Recorde
sergejj [24]

Answer:

The net cash provided by financing activities -$157,600.

Explanation:

Net cash provided by financing activities refers to the difference between the total cash inflows and total cash outflows from the financing activities section of the cash flow staement.

The net cash provided by financing activities can be calculated by preparing a partial cash flow statement as follows:

Concord Corporation

Net Cash Flow Statement (Partial)

As at December 31, 2022

<u>Details                                                                     Amount    </u>

Par value common stock issued for cash             190,000

Dividend declared and paid in cash                      (15,200)

6-year note payable repaid                                <u>  (334,400)  </u>

Net cash provided by financing activities      <u>   (157,600)   </u>

Therefore, the net cash provided by financing activities -$157,600.

Alternatively, the net cash provided by financing activities can be calculated as follows:

Net cash provided by financing activities = Par value common stock issued for cash - Dividend declared and paid in cash - 6-year note payable repaid = $190,000 - $15,200 - $334,400 = -$157,600

7 0
3 years ago
Sapphire sells two products: ordinary laptops and premium laptops. Ordinary laptops are priced at $650 each and premium laptops
stira [4]

Answer:

The break-even point in units for ordinary laptops is 2,100 units.

Explanation:

Contribution Margin per unit (ordinary) = Selling Price - Variable cost

                                                                 = $650 -$605

                                                                 = $45

Contribution Margin per unit (premium) = Selling Price - Variable cost                                        = $1,150 -$1,090

= $60

$45* 4x + $60x = Fixed Costs = $126,000

= 180x +60x = $126,000

=240x =$126,000 = 525 units

Ordinary computers = 4x

                                  = 4*525

                                  = 2,100 units

Therefore, The break-even point in units for ordinary laptops is 2,100 units.

6 0
3 years ago
calculate the unadjusted rate of return for an investment that has a net cost of $430,000 and should provide an average after-ta
Elden [556K]

9%, as the unadjusted rate of return is equal to the average yearly net income growth rate divided by the initial investment's net cost.

<h3>Calculation:</h3>

$40,090 divided by $430,00 is.093 * 100, or 9%.

<h3>If the needed rate of return is 6%, what is the present value of a cash inflow of $2,000 five years from now? Examine later?</h3>

$2600 will be given to the recipient after five years.

<h3>If the internal rate of return is 5% and the desired rate of return is 6%, should management accept the investment opportunity?</h3>

No, as the internal rate of return on the investment is lower than the intended rate of return.

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3 0
1 year ago
10 POINTS PLEASE HELP ASAP
saul85 [17]

Answer:

I wanna say D

Explanation:

hope that helps

3 0
3 years ago
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