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fomenos
3 years ago
8

Without prejudice to your solution to part (a), assume that you computed the June 30, 2020, inventory to be $60,480 at retail an

d the ratio of cost to retail to be 68%. The general price level has increased from 100 at January 1, 2020, to 108 at June 30, 2020. Compute the June 30, 2020, inventory at the June 30 price level under the dollar-value LIFO retail method.
Business
1 answer:
nataly862011 [7]3 years ago
3 0

Answer:

The June 30, 2020, inventory at the June 30 price level under the dollar-value LIFO retail method:

$65,318.40

Explanation:

a) Data and Calculations:

June 30, 2020 Inventory = $60,480 at retail

Ratio of cost to retail = 68%

Inventory at cost = $41,126.40 ($60,480 * 68%)

General price level increase from 100 to 108

Inventory at the June 30 price level under the dollar-value LIFO retail method:

Inventory at cost = $44,416.50 ($41,126.40 * 108/100)

Inventory at retail = $65,318.40 (44,416.50/68%)

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Answer:

Pelican's debt ratio        9%

Timberland's debt ratio 50%

The times interest earned ratio for Pelican  57.5

The times interest earned ratio for Timberland 10.45

C is correct as Pelican has 57.5 times interest earned ratio while Timberland only 10.45 times.in other words,earnings of Timberland is more volatile.

D is also correct ,since it has financial leverage of 50.46% as against Pelican financial leverage of 9.17%

The operating margin for Pelican is 14.76%  while the operating margin for Timberland is 13.8%

Return on total assets for Pelican is 36.9%  and that of its competitor is 34.5%

The return on equity for Pelican 40.6%  and  that of Timberland is 69.6%

C is correct as Pelican is more profitable than Timberland as shown by the higher net profit margin and return on assets

B is correct, even though Pelican is more profitable​ (higher net profit​margin), Timberland has a higher ROE than Pelican due to the additional financial leverage risk.

Explanation:

All of the ratios requested for are found in the attached spreadsheet.

Download xlsx
3 0
4 years ago
The law of variability says that​ "the greater the random variability either demanded of the process or inherent in the process
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Answer:

C. the less productive the process​ is.

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In this, if there is high variability, then the results can be that the resulting process will be least productive, as there are so many uncontrollable changes.

Accordingly, since no proper management of the related process is possible, the results will not be productive.

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Who focuses on project interdependencies and helps to determine the optimal approach for managing and realizing the desired bene
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