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3 years ago

7

London Company hired some students to help count inventory during their semester break. Unfortunately, the students added incorr

ectly and the 2019 ending inventory was overstated by $5,000. What would be the effect of this error in ending inventory

1 answer:

Natalija [7]3 years ago

5 0

They have to recount each thing

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As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc

Natalija [7]

Answer:

Nursery Supplies at year-end 76,000,000

Gain on investment 12,000,000

Explanation:

Considering is considered a long-term investment for Florists International and the percentage of owership is significant we use equity method.

value of the investment at year end:

begining 67,000,000

income 60,000,000 x 20% = 12,000,000

cash dividends 10,000,000 shares x 1.5 x 20% = (3,000,000)

ending investment 76,000,000

8 0

3 years ago

Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a

Tomtit [17]

Answer:

Answer is 12.64%. Therefore,

Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least 12.64%.

Refer below for the explanation.

Explanation:

E - 4%= 0.5(3)(24%)2

E=12.64%

7 0

4 years ago

Read 2 more answers

New Age Electronics expects to earn $100,000 this year. Earnings will grow 3% indefinitely if the firm makes no new investments.

vampirchik [111]

Answer:

5.7 1

Explanation:

Given:

Earning expect: $100,000
Grow rate: 3% = 0.03 (g)
Discount rate: 10% = 0.1 (r)
Number of shares: 250,000

We need to find the EPS because all of the earnings are paid out as dividends

= $100,000/250,000 shares

= $0.4

=> Current price:

P = D1 / (r-g)

<=> P = 0.4 (0.1 - 0.03) = 5.7 1

So the price per share of stock is 5.7 1

Hope it will find you well

4 0

3 years ago

Read 2 more answers

How to plan for a turbulent environment surrounding the current pandemic

kompoz [17]

Explanation:

The long-running debate between the ‘rational design’ and ‘emergent process’ schools of strategy formation has involved caricatures of firms' strategic planning processes, but little empirical evidence of whether and how companies plan. Despite the presumption that environmental turbulence renders conventional strategic planning all but impossible, the evidence from the corporate sector suggests that reports of the demise of strategic planning are greatly exaggerated. The goal of this paper is to fill this empirical gap by describing the characteristics of the strategic planning systems of multinational, multibusiness companies faced with volatile, unpredictable business environments. In-depth case studies of the planning systems of eight of the world's largest oil companies identified fundamental changes in the nature and role of strategic planning since the end of the 1970s. The findings point to a possible reconciliation of ‘design’ and ‘process’ approaches to strategy formulation. The study pointed to a process of planned emergence in which strategic planning systems provided a mechanism for coordinating decentralized strategy formulation within a structure of demanding performance targets and clear corporate guidelines. The study shows that these planning systems fostered adaptation and responsiveness, but showed limited innovation and analytical sophistication

4 0

3 years ago

Shannon’s has developed a super-premium craft beer to be marketed as Shannon’s Irish Stout. The cost of production (brewing, can

Arte-miy333 [17]

Answer:

$4.48

Explanation:

If Shannon needs to make a 12% markup based on cost, to obtain her minimum selling price to her distributor Miller of Denton, simply multiply the production cost per unit by 100% plus the desired markup.

If it costs her $4.00 to produce a six pack, her selling price should be:

$P=1.12*\$4.00\\P=\$4.48$

She should charge $4.48 per six pack.

3 0

3 years ago