Answer: $1,600
Explanation:
The company would have to report the inventory at its current market value and not the one that it bought it at so that the cost of goods sold can accurately reflect the reduced value of the inventory.
Current market value is:
= 200 units * 8
= $1,600
Answer:
The computation is shown below:
Explanation:
The computation is shown below:
1. Selling price per component unit
Particulars Quantity Selling price per unit Total per composite unit
Windows 7 $105 $735
Doors 3 $255 $765
Selling price per component units $1,500
2. Variable cost per component unit
Particulars Quantity Variable cost per unit Total per composite unit
Windows 7 $65 $455
Doors 3 $177.50 $532.50
Variable cost per component units $987.50
Now the Contribution margin per composite unit is
= Selling price per component units - Variable cost per component units
= $1,500 - $987.50
= $512.50
And, the break-oven point in Break Even Units is
= Fixed cost ÷ Contribution margin per composite unit
= $640,625 ÷ $512.50
= 1,250 units
We need to applied the above formulas
Answer:
Working capital is ($98.7) in millions
Current ratio is 0.51:1
Explanation:
Working Capital is the difference between current assets and current liabilities. So, $102.5 (in milions) less $202.2 (in millions) equals ($98.7) in millions. This means, the company's short-term obligation exceeds its current asset for the period.
Current ratio also known as liquidity ratio. It measures the company's capacity to pay short-term obligation. To compute current ratio we simply divide current assets over current liabilities.
Current Assets / Current Liabilities
$102,500,000 / $201,200,000
0.509443 or 0.51 : 1
Answer:
Initial validation of the business
Explanation:
The proper time to determine a company's business model is following the Initial validation of the business of the business idea and prior to fleshing out the operational details of the firm. This is because without knowing exactly what they company wants to accomplish you cannot create a model/blueprint to try and accomplish that goal, and only once you have the blueprint can you iron out the operational details of the company.
Answer:
All the figures are provided in the table in picture attached. Taxpayers are allowed itemized deduction for local, state and other foreign tax paid during the year.
Explanation:
See the attached picture for detailed explanation.
