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11Alexandr11 [23.1K]
3 years ago
6

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of

the inventory at the end of the year according to the average cost method?
Business
1 answer:
Degger [83]3 years ago
3 0

Answer: a. $1,380

Explanation:

Using average cost method, the price of all inventory is the same and this cost is calculated by dividing the total cost of the inventory by the total units.

= (5 * 61) + (15 * 63) + (10 * 74) + (10 * 77)

= 305 + 945 + 740 + 770

= $2,760

Average cost = 2,760/ (5 + 15 + 10 + 10)

= $69 per unit

Total units for the year = 5 + 15 + 10 + 10 = 40 units

Total units on hand = 20 units

Total sold = 40 - 20 units

Cost of goods sold = 20 * 69

= $1,380

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Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company. The before-tax dividend yi
Leni [432]

Answer:

5.37%

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the company’s after tax return on preferred by using following formula:-

Company’s After Tax Return = Before Tax Dividend Yield Rate on Preferred Stock × [1 - (1 - Dividend Exclusive) × (Tax Rate)]

= 6% × [1 - (1 - 70%) × (35%)]

= 0.06 × [1 - (1 - 0.70) × (0.35)]

= 0.06 × [1 - (0.30) × (0.35)]

= 0.06 × (1 - 0.105)

= 0.0537

= 5.37%

We simply applied the above formula to determine the company after tax return

8 0
3 years ago
Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipmen
Rom4ik [11]

Answer:

6.1 y

Explanation:

Diamond Company

New equipment÷(Annual net income +Depreciation expense)

New equipment$1,400,000

Annual net income $90,000

Depreciation expense $140,000

$1,400,000 ÷ ($90,000 + $140,000)

=$1,400,000÷$230,000

= 6.1 y

Therefore the cash payback period will be 6.1 years

5 0
3 years ago
Juliana purchased land three years ago for $50,000. She gave the land to Tom, her brother, in the current year, when the fair ma
Nadya [2.5K]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
The owner of a bicycle repair shop forecasts revenues of $212,000 a year. Variable costs will be $63,000, and rental costs for t
Nataly [62]

Answer:

Sales Revenue            212,000

Variable Cost               (63,000)

Rent Expense               (43,000)

Depreciation Expense (23,000)

Income before taxes     83,000

Income tax expense <u>    (16,600)   </u>

Net Income                    84,800

Cash from operating activities 107,800

tax-shield from depreciation 4,600

Explanation:

Cash flow from operations (indirect method)

net income 84,800 + depreciation expense = 107,800

The depreciation provides a tax shield as they are an accounting concept. The depreciation expense did not involve the outflow of cash but, it is a taxable deduction therefore generates a tax-shield.

23,000 x 20% = 4,600

7 0
3 years ago
Which of these guidelines helpful to maximizing the effectiveness of a brainstorming session is defined as, "Participants are en
astra-53 [7]

Answer:

The answer is a. Respectful communication.

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Respectful communication involves encouraging participants to exchange ideas, further develop those ideas during the session, and to respect the opinions of others

6 0
3 years ago
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