During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $225,51
1 answer:
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Answer:
From zero to 33 boats option B would be best
Explanation:
Assuming the first alternative (A)is 250,000 fixed and 500 per boat
second (B) 2,500 cost per boat
and third (C) 50,000 fixed and 1,000 cost per boat
We want' to know at which level B would be the best option
we want to know when alternative C or A have a cost of 2,500 or lower:
A:
Q = 125
From this point, as fixed cost will be distribute among more units, the cost will decrease meaking C better than B
C:
Q = 33.33
From this point, as fixed cost will be distribute among more units, the cost will decrease meaking A better than B
From zero to 33 boats option B would be the best of the three options
Answer:
The solution as per the given problem is provided below throughout the explanation portion below.
Explanation:
The given values are:
Debt issued,
= 120
Pretax earnings,
= 80
Tax,
= 35%
All equity firm,
= $320
Number of common stock,
= 50
(a)
Balance sheet before the debt issue's announcement will be:
<u>Assets </u><u> 320</u>
<u>Debt </u><u> 0</u>
<u>Equity </u><u> 320</u>
then,
The total will be "320".
(b)
The per share price will be:
=
=
=
or,
After tax, the net income will be:
=
=
=
=
(c)
The return on equity will be:
=
=
=
or,
= (%)