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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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miskamm [114]

Answer:

<em>It will take me </em>= <em>30.99 years</em> to pay-off the borrowed amount paying $60.00 every month

Explanation:

SOLUTION:

Using the Formula: A = P(1+r/n){nt}

Where:

A= $60.00;

P = $3,200.00;

r = 12.9%;

n = 12

t =?

Substituting the values into the Formula =

$60 = $3,200(1 + 12.9%/12){12t}

= $60 = $3,200(1 + 12.9%/12){12t}

= $60.00 = $3,200.00 (1 + 0.129/12){12t}

= $60.00 = $3,200.00 (1 + 0.01075 ){12t}

= $60.00 = $3,200.00 (1.01075 ){12t}

= $60.00/$3,200.00 = $3,200.00 (1.01075 ){12t}/$3200.00

= 0.01875 = (1.01075)12t

= Using the law of logarithm

= logA^{N} = Nlog A

=12tlog(1.01075) = log0.01875

= 12log(1.01075)/(1.01075) = log0.01875/log(1.01075)

=  12t = log(0.01875)/log1.01075

= 12t = 1.7270/0.04644

Divide 12 by both sides

=12t/12 = 371.88774/12

t= 30.9898

<em>∴ 30.99 years</em>

<em>It will take me </em>= 30.99 years to pay-off the borrowed amount paying $60.00 every month

3 0
3 years ago
A change in the asset turnover ratio from 1.3 to 1.6 would indicate a. a decrease in the effectiveness of assets in producing sa
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Answer:

a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.

Explanation:

Assets turnover ratio = \frac{Net Sales}{Average assets}

Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.

Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.

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3 years ago
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,700, $10,700, and
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Answer:

Total PV= $26,176.63

Explanation:

Giving the following information:

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Cf1= $5,700

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2 years ago
What are some arguments in favor of raising the minimum wage? On the other hand, what are some arguments against raising the min
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Answer:

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Minimum wages lead to the reduction in the entry-level jobs that are available, and reduces the change of entry level graduates to get training, and lifetime income. According to Economists, minimum wages will result into decrease in the employment opportunities that are available for the youths and thereby create unemployment. Potential employees will miss out on the training that should have been done at the initial stage one is entering an organization.

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