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Darya [45]
3 years ago
9

‏( Z ) Company has beginning inventory of 15,000 units and expected sales of 23,000 units . If the desired ending inventory is 1

8,000 units , how many units should be produced ?
Business
1 answer:
devlian [24]3 years ago
4 0

Answer:

the  number of units should be produced is 26,000 units

Explanation:

The computation of the number of units should be produced is as follows:

Units to be produced is

= Expected sales units + ending inventory units - beginning inventory units

= 23,000 units + 18,000 units - 15,000 units

= 26,000 units

Hence, the  number of units should be produced is 26,000 units

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The phrase "invisible hand" means that:
never [62]

Answer:

The correct answer is letter "B": The tendency of competition to cause individuals and firms to unintentionally promote the interests of society.

Explanation:

In his book "<em>An Inquiry into the Nature and Causes of the Wealth of Nations</em>" (1776), British economist Adam Smith (1723-1790) introduced the term "invisible hand" to refer that economic factors (buyers and sellers) naturally influence in the fluctuations of supply and demand without the need for the intervention of the government.  

According to Smith, buyers and sellers interactions act as an "invisible hand" arranging proper levels of competition between businesses and promoting the best interest of societies.

4 0
3 years ago
David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding
Marrrta [24]

Answer:

Cost of equity = 14.43%

Explanation:

Weigheted Average cost of capital is computed using the formula below:

WACC = (Wd×Kd)  + (We×Ke)

           Kd= aftre tax cost of debt= 12%× (1-0.4)= 7.2%

           Wd =Proportion of debt= 40%

           We = proportion of equity = 60%

            Ke= cost of equity.

let the cost of equity be "y"

WACC = 11.54

11.54 = (40%× 7.2%) + (60% × y)

0.1154  = 0.0288 + 0.6y

0.1154 - 0.0288 = 0.6y

y =(0.1154 - 0.0288)/0.6

y = 0.1443 × 100

y =14.43%

Cost of equity = 14.43%

         

8 0
3 years ago
Mills Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. Company management
Evgen [1.6K]

Answer:

investment on bonds   200 millions

premium on bonds         40 millions

                        cash                            240 millions

to record the purchase of bonds

cash                             7 millions

      interest revenue             6 millions

      premium on bonds         1 million

interest proceeds of december 31th

Balance sheet:

bonds      200

premium    39

net            239

cash                                             250 millions

              investment on bonds                         200 millions

              premium on bonds                               39 millions

              gain on sale of invesment                    11   millions

to record the sale of bonds

                       

Explanation:

<u>recording the bonds:</u>

acquisition             240

bonds face value (200)

premium                  40

It is a premium, as the bonds where purchased at higher price than face value

<u>Interest at December 31th</u>

To calculate the interest, we will calcualte the interest per payment:

7% annual coupon rate /2 payment per year = 3.5% semi-annual rate

5% market rate /2 payment per year = 2.5% semi-annual market rate

cash proceeds: 200 x 3.5% = 7

interest revenue:

carrying value x market rate

240 x 2.5% = 6

amortization 7 - 6 = 1

<u>Value in the balance sheet:</u>

the net value of the bond will be the face value plus the carrying value of the premium

<u>Sale of the bonds:</u>

selling price                           250

carrying value of the bonds (239)

gain on sale of bonds              1 1

It is a gain, as the bonds are being sold at a higher price than his carrying value.

7 0
3 years ago
Let's say we could teach a dolphin to understand the difference between the sentences "the parrot kissed the dolphin" and "the d
zepelin [54]
The dolphin might understand comprehension. Knowing the placement of words, the tones of the words and the letters they consist is one thing. But understanding what the phrase or sentence means is comprehending. Knowing that if you change the placements of words within the sentence, it would give different meanings, is a manifestation of comprehension.
5 0
3 years ago
The board of directors of Nash's Trading Post, LLC declared a cash dividend of $1.00 per share on 30000 shares of common stock o
Novay_Z [31]

Answer: debit to Dividends Payable.

Explanation:

When the dividend was declared in July 15, the dividend amount was debited to the Retained earnings to show that it was being taken from Retained earnings. It was then credited to Dividends payable to show that the company owed dividends to its shareholders.

On August 15, this liability will be paid off when the dividends are paid and so the Dividends Payable account will be debited to reflect this.

3 0
3 years ago
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