Answer:
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Explanation:
Current Ratio = Current Assets/ Current liabilities
An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.
Acid test Ratio= Current Assets - Inventory / Current liabilities
If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.
If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Answer:
In order to reduce taxable income and at the same time meet the customer's need for a large cash down payment, you should advice him to invest in stocks. The stock market generally yields high returns and since the customer is young, he can afford the risk. Also, and probably most important, capital stock gains are taxed at a much lower rate than interest income (vs investing in bonds).
Answer:
Ending inventory = $227
Cost of good sold = $1,333
Explanation:
Note: The data in the question are merged together and they are first sored before answering the question as follows:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 20 $55 $1,100
Sep. 8 Purchase <u>10 26 260 </u>
Total <u>30 $1,360</u>
The explanation to the answers are now as follows:
Weighted cost per unit = $1,360/30 = $45.3333
Ending inventory = (30 - 25) * $45.3333 = $227
Cost of good sold = 25 * $45.3333 = $1,333
Passion
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desire to become the best at what you do
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constantly keep your ideas flowing
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