Answer:
Profit= $5200
Explanation:
let the short sleeved shirt be x and long sleeved shirt be y then according to the given conditions 30x+45y=240(60) minutes---A
also x+y=400------B
multiplying b with 30 gives
30x+30y=12000------C
subtracting C from A 15y= 2400
y= 160 long sleeved shirts and x= 240 short sleeved shirts are made
Profits= 240*11+160*16=$5200
Answer:
It is a relatively easy method to apply.
Explanation:
When accounting for a subsidiary, equity method is followed, whenever the shareholding percentage is equal or more than 20%.
But here, the parent company uses, initial value method for internal reporting.
Under initial value method the value of investment in subsidiary is recorded at cost, and then adjusted at year end at fair value, this clearly shows the gain or loss at each year end from such investment as per market norms.
There is no statutory requirement to follow such initial value method for internal reporting.
The correct reason therefore, is:
It is a relatively easy method to apply.
Answer:
a. $2,200,000
Explanation:
We solve considering the inventory identity:
the difference during the year means the difference between ending and beginning inventory was of 200,000
So we plug that into the formula and solve
Purchase 2,200,000
<span>Assume
that Jocelyn is comparing two fixed-rate loan options, a 15 year and a
30 year mortgage. Both options have the same interest rate and amount
borrowed. The 30 year, when compared to the 15 year loan will have a lower monthly payment and a higher total cost when
repayment is completed.
The longer the spread of an annuity payment the lower the monthly payment and the higher the total cost of the loan.
</span>
Answer:
a. Compute the cost of retained earnings (Ke)
$60 = $3 / (Ke - 8%)
Ke - 8% = $3 / $60 = 5%
Ke = 13%
b. If a $5 flotation cost is involved, compute the cost of new common stock (Kn).
$60 (1 - $5/$60) = $3 / (Kn - 8%)
$55 = $3 / (Kn - 8%)
Kn - 8% = $3 / $55 = 5.45%
Kn = 13.45%
Flotation costs reduce the amount of money that the company receives for every new stock that it issues, therefore, it increases the cost of new stocks.
