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3 years ago

Why is it important to keep your own financial records?

Business

1 answer:

Serhud [2]3 years ago

4 0

Answer:

You need good records to prepare accurate financial statements. These include income (profit and loss) statements and balance sheets. These statements can help you in dealing with your bank or creditors and help you manage your business

Explanation:

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Your firm is considering opening a branch office in Kyle. The office would cost $485,000 to build the office. During the office

wariber [46]

Answer:

The NPV from opening the branch office is negative ( -$106668.08). Thus the branch office should not be opened.

Explanation:

The decision to open the branch office will be taken based on the NPV provided by opening of the branch office. If the NPV of a project is positive based on the required rate of return used as a discount rate fro cash flows, the investment is worth undertaking.

The net present value (NPV) for a project can be calculated as,

NPV = CF1 / (1+r) + CF2 / (1+r)² + ... + CFn / (1+r)^n - Initial Outlay

Where,

r is the appropriate discount rate
Initial Outlay is the Initial cost of the project
CF represents cash flows from the project

As the required return is 16%, we will take this as the appropriate discount rate.

NPV = 45000 / (1+0.16) + 120000 / (1+0.16)² + 150000 / (1+0.16)³ +

150000 / (1+0.16)^4 + 150000 / (1+0.16)^5 - 485000

NPV = - $106668.08

As the NPV from project is negative at a required return of 16%, the project should not be under taken and the branch office should not be open.

7 0

2 years ago

During the year, Trombley Incorporated has the following inventory transactions.

Furkat [3]

Answer:

a. Ending inventory = $162, Cost of Sales = $593, Gross Profit = $478

b. Ending inventory = $227, Cost of Sales = $528, Gross Profit = $543

c. Ending inventory = $492.30, Cost of Sales = $557.94 , Gross Profit = $513.06

d. FIFO

Explanation:

FIFO

Ending inventory = 18 units × $9 = $162

Total = $162

Cost of Sales = 11 units × $13 = $143

16 units × $12= $192

21 units × $11 = $231

3 units × $9 = $27

Total = $593

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $593

= $1,071 - $593

= $478

LIFO

Ending inventory = 11 units × $13 = $143

7 units × $12 = $84

Total = $227

Cost of Sales = 9 units × $12 = $108

21 units × $11 = $231

21 units × $9 = $189

Total = $528

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $528

= $1,071 - $528

= $543

Weighted-average cost

First determine the average cost.

Average cost = Total Cost / Total units

= $ 755 / 69

= $10.94

Ending inventory = Units Remaining × Average Price

= 45 units × $10.94

= $492.30

Cost of Sales = Units Sold × Average Cost

= 51 units × $10.94

= $557.94

Gross Profit = Sales less Cost of Sales

= (51 units × $21) - $557.94

= $1,071.00 - $557.94

= $513.06

8 0

2 years ago

Economists expect the firm to maximize __________, the laborer to accept the best __________, and the consumer to find the combi

algol13

Answer:

The correct answer is option d.

Explanation:

The firms are expected to maximize profits, the laborers are expected to accept the best offer and the rational consumer is expected to choose the bundle of good that maximizes utility.

Firms will produce the output level where their profits are maximized. The consumer will consume at the level where their total utility is maximized and the laborer will accept the best offer to maximize his benefit.

7 0

3 years ago

Read 2 more answers

Which phrase best completes the list?

Jobisdone [24]

Answer:a

Explanation:

8 0

2 years ago

A cosmetics company is conducting a second-year review of one of its newest products. The marketing department expects that the

-BARSIC- [3]

Answer:

sensitivity analysis

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question the senior management is undertaking sensitivity analysis. This is a study of what kind of relationship exists between the inputs and outputs of a system and how much uncertainty exists between them. This is what the senior management is undertaking when determining different factors which might lead to different profit projections.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0

3 years ago