Answer and Explanation:
A. Current ratio= current assets/current liabilities
= 33900+158200+135600/113000 = 2.9
B. Account Receivable Turnover = Sales/ Average account receivables
= 379100 -28000/158200+135600/2) = 2.39
c) Average collection period =
365/ account receivable turnover
= 365/2.39 =
152.72 days
D. inventory turnover = cost of goods sold / average inventory
= 203800/135600+113000/2 = 1.64
E. Days in inventory = 365/inventory turnover=
365/1.64 = 222.561 Days
F. Cash debt coverage
= cash from operating activities - dividend / total debt
= (58000 - 19600 )/(226000) = 0.17
G. Current cash debt coverage = net cash provided by the operating activities / average current liabilities
=58000 /113000 + 135600/2) = 0.467
H. Cash flow available = cash flow from operating activities - Capital Expenditure- Cash Dividend
$(58000-27500-19600)
= $10900
Answer:
$20,800,000
Explanation:
The formula and computation is shown below:
Value of the firm = {(Firm's current profits) × (1 + firm’s opportunity cost of funds)} ÷ (firm’s opportunity cost of funds - constant growth annual rate)
= {($400,000) × (1 + 0.06) ÷ (0.06 - 0.04)
= $424,000 ÷ 0.02
= $21,200,000
Hence, we recognized all the information which is mentioned in the question.
Answer:
Overhead rate for ordering and receiving = $300 per order.
Explanation:
Given Activity costs and activity drivers
Activity Overhead Cost Driver Activity
Ordering & Receiving Order $150,000 500 orders
Machine Setup $324,000 450 setups
Machining $1,587,500 125,000 MH
Assembly Parts $1,260,000 1,000,000 parts
Inspection $330,000 500 inspections
Under activity based costing the rates are based on the nature of activity and the rates are based on number of those activities per driver. As for ordering and receiving there are total of 500 orders and total cost = $150,000 that is cost per order will be computed.
Overhead rate for ordering and receiving = $150,000/500 orders = $300 per order.
Answer:
$7.60 per unit of output
Explanation:
Budgeted output units 51,000 units
Budgeted machine−hours 10,200 hours
Budgeted variable manufacturing overhead costs for 51,000 units $387,600
budgeted variable overhead cost per unit of output = $387,600 / 51,000 units = $7.60 per unit of output
In this case, the applied variable overhead rate = 35,750 units x $7.60 = $271,700, which would have been under-applied since the actual variable overhead costs were much higher, $328,900.
Answer: Buy more of both rice and beans
Explanation: Marginal benefit refers to the additional benefit that a customer get by consuming one additional unit of a commodity.
In the given case, the marginal benefit for the customer is positive for both of the goods. Also if he chooses to but one more unit of anything in place of other than he will not able to use his budget properly.
Thus, from the above we can conclude that the correct option is C.
