Answer:
The market value of Lotle Group is $ 83.53.
Explanation:
The market value of Lotle Group can be calculated by dividing the perpetual net operating income (EBIT) with company WAAC. Detail calculation is given below.
MW = EBIT/WAAC = $ 9/10.775% = $ 83.53
<u><em>WAAC Calculation</em></u>
WAAC = 14%*(50/80)% + 9%(0.60)(30/80)
WAAC = 8.75% + 2.025% = 10.775%
Answer:
Increase the allowance for doubtful accounts.
Explanation:
It would increase the allowance for doubtful accounts because, if you determine the necessary journal entries for reestablishment and to collect the account receivables, what we get is depicted below:
Reestablishment entry:
Account receivables = xx
Doubtful accounts allowance = xx
On the other hand, we get the record collection entry:
Record Collection Entry:
Cash = xx
Accounts receivable = xx
From the above, the net effect is simply an increase in current asset account; CASH, and a corresponding increase in the allowance for doubtful accounts.
Answer:
(a) a schedule of cost of goods manufactured
Purchases $ 92,000
Materials inventory, March 1 $ 6,000
Materials inventory, March 31 ($ 8,000)
Material Consumed $ 90,000
Direct labor $ 25,000
Factory overhead $ 37,000
Work in process, March 1 $ 22,000
Work in process, March 31 ($ 23,500)
COGM $ 150,500
(b) an income statement for the month
Sales $ 257,000
COGS
COGM $ 150,500
FG opening $ 21,000
FG closing ($ 30,000)
Total ($ 141,500)
Gross profit $ 115,500
Sales and administrative expenses ($ 79,000)
Net profit $ 36,500
Answer: Production budget
Explanation:
The production budget is basically permit the organization for tracking the cost and all the production details that is required for the inventory necessary requirement of an organization.
The production budget is also known as the financial plan of the company for estimating the overall production budget by proper scheduling.
The one of the main factor of the production budget is the sales target as it basically calculated the total number of products that are manufactured in an organization.
Therefore, Production budget is the correct answer.
Money in the account after four years= 23850.372
Given, P = 20,000
R = 4.5%
T = 1
n = 4
To calculate Compound interest, we will use formula A = P(1 + r/n)^nt
where p = principal amount,
r = rates of interest
n = number of times interest applied per time period
t = number of time periods elapsed
After putting values,
A = 20000(1 + 4.5/4 )^(4*1)
= 23850.372
To learn more about compound interest from the given link
brainly.com/question/24924853
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