Answer: $1,075,000
Explanation: When a current or fixed asset is held in inventory, the worth at which it is recorded in accounting is called its net realizable value. In the given case, the net realizable value could be computed using following formula :-
Net realizable value = Balance of receivable on Dec 31 - expected uncollectibles
Putting the values into equation we get :-
Net realizable value = $1,200,000 - $125,000
= $1,075,000
Answer:
4.83 times
Explanation:
The computation of the inventory turnover is shown below:
= Cost of goods sold ÷ average inventory
where,
Average inventory = Raw material inventory + work in progress inventory + finished goods inventory
= $740 + $320 + $1,010
= $2,070
And, the cost of good sold is $10,000
Now put these values to the above formula
So, the answer would be equal to
= $10,000 ÷ $2,070
= 4.83 times
Answer: The correct answer is <u>"c. decrease in demand".</u>
Explanation: Complementary goods are all those products that depend on each other. That is, they are so closely linked that the behavior of one inevitably affects the behavior of the other.
The classic example of complementary goods is that of cars and gasoline. The sale of the former may be affected by an increase in the price of the latter; and, at the same time, the consumption of the second depends on the sale of the first.
Answer:
c. The return on total assets
Explanation:
The inventory turnover deals with the turnover of inventory during the period i.e in how many times the inventory is sold or rejected or replaced, etc
The quick ratio checks the liquidity position of the company
The return on total assets refers to the profit gains on the total assets average
And, the fixed charge coverage ratio shows the payment of its all debts with the available earnings
So for earning profits, the return on total assets is a better option
Answer:
The correct answer is The value of a business as a whole, over and above the value of its net identifiable assets.
Explanation:
Goodwill is an intangible asset that reflects the connections of a customer service business, reputation and other similar factors.
It shows the value of a company's reputation, which can affect its market situation, both positively and negatively.
If it affects positively, it is called goodwill. This is a fixed asset, an element of the company with prolonged value, not generally intended for sale.
However, goodwill can be characterized as something that can generate future profits for the company.
