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Nataliya [291]
3 years ago
5

In 2005, Cobb adopted the dollar-value LIFO inventory method. At that time, Cobb's ending inventory had a base-year cost and an

end-of-year cost of $300,000. In 2006, the ending inventory had a $400,000 base-year cost and a $440,000 end-of-year cost. What dollar-value LIFO inventory cost would be reported in Cobb's December 31, 2006, balance sheet?
Business
1 answer:
kherson [118]3 years ago
6 0

Answer:

$410,000

Explanation:

The computation of the ending inventory under the LIFO method is shown below:

= Year end cost + difference of amount  × price level index

where,

Year end cost = Beginning cost

Difference of amount = $400,000 - $300,000 = $100,000

Price level index = $440,000 ÷ $400,000 = 1.1

So, the inventory cost is

= $300,000 + $100,000 × 1.1

= $300,000 + $110,000

= $410,000

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ankoles [38]

Answer:

The payback period is more than 5 years

Explanation:

Net present value is the Net value of all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

Year  Cash flow    PV factor   Present Value

0       ($490,000)       1              ($490,000)

1         $40,000       0.909         $36,360

2        $10,000        0.826         $8,260

3        $120,000      0.751          $90,120

4        $90,000       0.683         $61,470

5        $180,000      0.621        <u> $111,780 </u>

Net Present Value                   ($182,010)

NPV of this Investment is negative so, it is not acceptable.  

Payback period

Total Net cash inflow of the investment is $440,000 and Initial investment is $490,000. This investment will take more than 5 years to payback the initial investment.

6 0
3 years ago
A company's bond has a coupon rate of 4.00% and has 16 years remaining until maturity. The company's bonds pay interest semi-ann
kipiarov [429]

Answer:

I used an excel spreadsheet to calculate the bond's value (see attached image). the bond's intrinsic value using a 11% discount rate is $452.08

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3 years ago
Using an example, explain the relationship between human resources and business objectives.
Phoenix [80]

Answer:

Human resources are critical in achieving business objectives. The humans carry out the actions and strategies to achieve business objectives. An example would be a baseball team needing players to achieve its goals.

Explanation:

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Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it dec
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B. Strategic alliance

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Carla Corporation engaged in the following cash transactions during 2020. Sale of land and building $181,050 Purchase of treasur
bulgar [2K]

Answer:

the net cash used (provided) by financing activities is $ 84,600

Explanation:

<em>Under GAAP, the Dividends payment is accounted as a financing Activity.</em>

<u>Cash flow from Financing Activities</u>

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Net Cash flow from financing Activities              (84,600)

3 0
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