Answer
The answer and procedures of the exercise are attached in the following archives.
Notes: All working are part of answer and provided as an ‘Equation Column’
BOLDED portion is the part of required answer
Requirement 1: Budgeted Production in Sq. yards
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
4.89%
Explanation:
Real rate of return = 3.37%
Inflation rate = 1.47%
The nominal rate of return is computed as shown below:
= [ (1 + real rate of return) x (1 + inflation rate) ] - 1
= [ (1 + 0.0337) x (1 + 0.0147) ] - 1
= (1.0337 * 1.0147) - 1
= 1.04889539 - 1
= 0.04889539
= 4.889539%
= 4.89% approx.
168,000 is amount of the gain is Ethan allowed to exclude from his gross income
Solution:
Ethan's post 2009 non-qualified use is 2 years.
He owned the property for 10 years so he is not allowed to exclude 20% of the gain
= $210,000 × 20% = $42,000
He is allowed to exclude = ($210,000 - $42,000)
= $168,000
The answer to this question is Variable cost.
As the level of production increase , the total variable cost is increased and vice versa.
Examples of variable cost are the cost of sugar in condensed milk factory, the cost of leather in bag manufacturing, the cost of coffee beans in starbucks, etc.
Some of the challenges of this company include lack of control over financial reporting in all branches, and inaccurate data to make decisions for next years.
DEF Ltd's main problem is the inaccuracy regarding the recognition of revenue and other inconsistencies in financial reporting. This problem includes:
- Inaccuracies related to revenue and deferred revenue.
- Lack of documentation of some transactions.
Moreover, these problems are intended to be solved through a review process and training seminars. These two ideas are useful for the problem; however, the company might face some challenges and problems such as:
- Lack of control in all branches: DEF Ltd seems to be a big company with multiple branches around the world. This makes it difficult for the company to control all financial records even if employees are educated about the process through seminars.
- Inaccurate data for next periods: Considering there are lots of inconsistencies and some of the reports are incomplete, it is likely even after the review process the company does not have complete information about the previous transactions or revenues. This can affect future projections and decisions.
Note: This question is incomplete; here is the missing part:
Using the disclosures above as a starting point, brainstorm about the challenges regarding internal controls and that a company may face in doing business internationally?
Learn more in: brainly.com/question/10916805
