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Orlov [11]
3 years ago
10

Given the historical cost of product Dominoe is $22, the selling price of product Dominoe is $30, costs to sell product Dominoe

are $5, the replacement cost for product Dominoe is $20, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market?
Business
1 answer:
olga_2 [115]3 years ago
6 0

Answer:

Amount to be used to value inventory = $22

Explanation:

Inventories are generally valued at lower of cost or market value.

In that, cost is considered:

Net Realizable Value = Selling price less any cost = $30 - $5 = $25

Cost = $22

Since the Net Realizable Value is more than cost, replacement cost will not be considered.

Where NRV is less than cost, then replacement value is considered.

Here, Therefore inventory will be recorded as $22 at cost.

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Wild Flowers Express has a debt-equity ratio of .60. The pretax cost of debt is 9 percent while the unlevered cost of capital is
andre [41]

Answer:

0.1631 ; 16.31%

Explanation:

Given:

Cost of capital = 14% = 0.14

Debt to equity ratio = 60% = 0.6

Cost of debt = 9% = 0.09

Tax rate = 23% = 0.23

Cost of equity : cost of capital + debt - to - equity ratio * (1 - tax rate) * (cost of capital - cost of debt)

Cost of equity = 0.14 + 0.60 × (1 - 0.23) × (0.14 - .09)

Cost of equity :

0.14 + 0.60 * 0.77 * 0.05

0.14 + 0.0231

= 0.1631 ; 0.1631 * 100% = 16.31%

4 0
2 years ago
Analyse, using a production possibility curve (PPC) diagram, the effect of an increase in enterprise on an economy.
Scorpion4ik [409]

Answer:

i dont get it what pls perfect sentence

5 0
3 years ago
Read 2 more answers
Alexandra owns stock in a corporation, and she just received 100 additional shares of stock as part of the corporation’s distrib
Marina CMI [18]

Answer:

The correct answer is A

Explanation:

Dividend is the amount of money or a payment which is made through the corporation or business to its shareholders, mostly as a distribution of profits. When the business or corporation have profits or the surplus, then the business is able to re- invest the profit further and then pay the proportion of the profit as the dividend to the company shareholders.

So, in this case, Alexandra who received 100 additional on the stock is the distribution of profit, which is called as dividends.

7 0
3 years ago
Kassandra Young is a business manager at Weith Productions. Although she does not have a background in technology, her job requi
Vadim26 [7]

Answer:

D. Dashboard

Explanation:

Dashboard: It is a tool that allows the user to have a glance of multiple information in one platform, it helps to take insight and do performance analysis with the required key performance indicator. It is very powerful tool used in corporate management as it summarizes the complex data into easier and relevant information as required for a particular department or business. It makes a manager´s job easier and effective decision making.

6 0
3 years ago
The 2017 and 2016 balance sheets of Rabb Corporation follow. The 2017 income statement is also provided. Rabb had no noncash inv
sladkih [1.3K]

Answer:

I looked for the missing information (IS & BS) since the information was missing

Statement of cash flows

Cash flows from operating activities:

Net income                            $183,500

Adjustments to new income

Depreciation $5,900

Gain on sale of equipment ($4,600)

Increase in accounts receivable ($3,200)

Decrease in inventory $6,500

Increase in prepaid insurance ($700)

Decrease in account payable ($2,600)

Decrease in wages payable ($4,400)

Increase in interest payable $2,100

Increase in taxes payable $5,400

Decrease in accrued expenses payable ($4,000)

Total cash flow provided by operating activities $183,900

Cash flow from investing activities:

Cash provided by sale of equipment $15,100

Cash paid for investments ($117,000)

Cash paid for P, P & E ($27,500)

Total cash flow from investing activities ($129,400)

Cash flow from financing activities:

Cash paid for long term debt ($34,000)

Dividends paid ($22,300)

Common stocks issued $31,000

Total cash flow from financing activities ($25,300)

Net increase in cash $29,200

Beginning cash balance $20,500

Ending cash balance $49,700

5 0
2 years ago
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