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2 years ago

Consider the following income statement for the Heir Jordan Corporation:

Business

1 answer:

vivado [14]2 years ago

5 0

Answer:

HEIR JORDAN CORPORATION

The projected addition to retained earnings is $5,743.

Explanation:

a) Data and Calculations:

HEIR JORDAN CORPORATION

Income Statement Current Year Projected

Sales $ 49,000 $58,800 ($49,000 * 1.2)

Costs 40,300 48,360 (40,300 * 1.2)

Taxable income $ 8,700 10,440 (8,700 * 1.2)

Taxes (22%) 1,914 2,297 (1,914 * 1.2)

Net income $ 6,786 8,143 (6,786 * 1.2)

Dividends $ 2,400 2,400

Addition to retained earnings 4,386 5,743

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Answer:

1. Annual demand ( D) = 100,000 bags

Ordering cost per order (Co) = $15

Holding cost per item per annum (H) = 15% x $2 = $0.30

EOQ = √2DCo

EOQ = √2 x 100,000 x $15

0.30

EOQ = 3,162 units

2. Maximum inventory

= Safety stock + EOQ

= 1,500 + 3,162

= 4,662 units

3. Average inventory

= EOQ/2

= 3,162

= 1,581 units

4. Number of order

= Annual demand

EOQ

= 100,000

3,162

= 32 times

Explanation:

EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.

Maximum inventory is the aggregate of safety stock and EOQ.

Average inventory is economic order quantity divided by 2

Number of order is the ratio of annual demand to economic order quantity.

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2 years ago

An organization has experienced significant turnover among its creative writers. During exit interviews, the writers have expres

erica [24]

Answer:

Establish a work/life program that allows flexibility.

Explanation:

In the case when there is the exit interviews so the writer would shows the dissatisfaction also there is less recognition towards the work and the poor communication between the managers and employees

So the organization should incorporate the social well being in a way where it created the work or life program that permits the flexibility

So as per the given situation, the above statement should be the answer

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2 years ago

Diamonds and other jewels often carry a high price to convey an image of high quality or uniqueness. This type of pricing is kno

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Prestige pricing is a unique pricing method involving products which would actually generate less overall profit at lower prices than higher prices. As long as the product is views by the public as being "prestigious," it will be in greater demand at the higher price. If the price were lowered, the public opinion of the product would be lower and the product would be seen as less desirable. This results in the product selling less at the lower price than at the higher price.

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3 years ago

According to classical macroeconomic theory, changes in the money supply affect:a. variables measured in terms of money and vari

sweet [91]

Answer: The correct answer is " b. variables measured in terms of money but not variables measured in terms of quantities or relative price".

Explanation: According to classical macroeconomic theory, changes in the money supply affect variables measured in terms of money but not variables measured in terms of quantities or relative price.

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2 years ago

Orioles Company bought Special Products Division in 2017 and appropriately recorded $741,000 of goodwill related to the purchase

goldfiish [28.3K]

Answer:

No goodwill impairment should be recognized by Orioles in 2018

Explanation:

Data provided in the question:

Goodwill related to the purchase = $741,000

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Now,

Here, the fair value of division including the goodwill i.e $5,600,000 is lower than the fair value of division excluding the goodwill i.e $595,000

Hence,

There will be impairment loss

Hence,

No goodwill impairment should be recognized by Orioles in 2018

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3 years ago