The effects of depreciation to the entire domestic economy

The Wheat Company has used the LIFO method for inventory valuation since the start of business 15 years ago. The current year en

yulyashka [42]

Answer:

Explanation:

Question 27

If Wheat Company had used the FIFO inventory method, income before income taxes would have been $75,000 higher in the current year. As inventory is an asset to the company. Therefore the $75,000 in inventory would have increased the company's asset and increasing the income before taxes.

Question 28

Other things held constant, which of the following will NOT affect the current ratio, assuming an initial Not yet current ratio greater than 1.0?

C. Accounts receivable are collected in cash.

Current ratio measures a company's ability to pay short-term obligations as at when due. It indicates that a company can manage its debts and other payable when their current assets is well managed.

It is calculated as Current Asset/ Current Liability. A ratio of 1 and above is the best meaning that a company an manage its debts obligations well.

3 0

3 years ago

Read 2 more answers

Max is designing a symbol for Clean Glow, a company that produces cleaning supplies. Once it is completed, the symbol will be le

kaheart [24]

Answer:

The symbol designed by Max is an example of trademark. The correct answer is a.

Explanation:

Trademark is the symbol, sign, expression or design that signifes the products or services of particular company.

Trademarks that signifies particular company or service mark if it signifies services, is an intellectual property which no other source can use without permission.

Brand name is the name of the company that develops the product or service obtained which are also named with the same.

3 0

2 years ago

Wayco Industrial Supply has a pretax cost of debt of 7.6 percent, a cost of equity of 16.8 percent, and a cost of preferred stoc

Vanyuwa [196]

Answer:

14.88%

Explanation:

Market value of common stock outstanding = 220,000 * $27 = $5,940,000

Market value of preferred stock = 25,000 * $41 = $1,025,000

Market value of bond = $550,000 * 101.2% = $556,600

Wayco's total financing market value = $5,940,000 + $1,025,000 + $556,600 = $7,521,600

Weighted average cost of capital = [($5,940,000 / $7,521,600) * 16.8%] + [($1,025,000 / $7,521,600) * 9.1%] + [($556,600 / $7,521,600) * 7.6% * (1 - 34%)] = 0.1488, or 14.88%

8 0

3 years ago

Q 2.29: Val-Tek has current assets of $1,700,000 and current liabilities of $900,000. If they pay $100,000 owed to a creditor, w

irina1246 [14]

Answer:2 : 1

Explanation:

current ratio = current asset/current liability

If current liability was $900,000 less $100,000= $800,000

Therefore the current ratio=

$1,700,000/$800,000 =

2 : 1

3 0

3 years ago

Read 2 more answers

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asse

vichka [17]

Answer:

d. Mexico has nothing to gain from importing United States pork.

Explanation:

The principle of comparative advantage asserts that countries (in this case Mexico) are better off importing certain goods (in this case pork), given that the opportunity cost of importing such goods are less in comparison to the production costs of manufacturing them within the country.

By definition, a country is said to have a <em>comparative advantage</em> over another, when they can produce a certain good or service at a lower marginal or opportunity cost.

6 0

3 years ago

The effects of depreciation to the entire domestic economy​

The effects of depreciation to the entire domestic economy