The prizes that can be won in a sweepstakes are listed below together with the chances of winning each one:$5200 (1 chance in 89
1 answer:
Answer:
$0.68
Explanation:
Multiply each possible prize by its likelihood and add the results in order to obtain the expected value (Note that there is a 100% of losing 0.57 cents since that is the cost of entry):
The expected value of the amount won for one entry if the cost of entering is 57 cents is $0.68
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A new income statement for August for Swift company is shown below.
Also, since the president has asked you to check over the income statement and make a recommendation as to whether the company should look for a buyer for its assets.
My recommendation would be to not buy.
Swift Company
Income Statement
For the Month Ended August 31
Particulars Amount (in $) Amount (in $)
Sales .............................................................. 450,000
Cost of goods sold:
Finished goods inventory, August 1 ............... 40,000
Add: Cost of goods manufactured ................. <u>310,000 </u>
Goods available for sale ................................ 350,000
Deduct: Finished goods inventory, August 31..<u> 60,000</u> <u> 290,000 </u>
Gross margin .................................................. 160,000
Selling and administrative expenses ................. <u>142,000</u>
Net operating income...................................... 18,000
Sam failed to distinguish between product costs and period costs when preparing the August income statement, and he also failed to recognize changes in inventories between the beginning and end of the month.
Once these errors are corrected, the company's financial situation looks much better, and selling the company may not be a good idea.
Hence, my recommendation would be not to buy.
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