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seraphim [82]
3 years ago
12

Cost of Goods Sold Allyson Ashley makes jet skis. During the year, Allyson manufactured 94,000 jet skis. Finished goods inventor

y had the following units: January 1 6,800 December 31 7,200 Required: 1. How many jet skis did Allyson sell during the year? units 2. If each jet ski had a product cost of $2,200, what was the cost of goods sold last year? $
Business
1 answer:
Romashka [77]3 years ago
7 0

Answer:

1. Number of Jetskis sold = 93,600

2. cost of Jetskis sold = $205,920,000

Explanation:

First, let us lay out the information given clearly:

January 1  finished goods inventory = 6,800

December 31 finished goods inventory = 7,200

number of Jet skis manufactured = 94,000

1. Number of Jet skis sold:

let us calculate the total number of jetskis that were available throughout the year

Total number of Jet skis in stock during the year = number of Jet skis manufactured + January 1  finished goods inventory (beginning inventory)

Total number of Jet skis in stock during the year = 94,000 + 6,800

Total number of Jet skis in stock during the year = 100,800

Number of Jetskis sold = (Total number of Jet skis in stock during the year) - (December 31 finished goods inventory)

Number of Jetskis sold = 100,800 - 7,200 = 93,600

2. cost of good sold:

product cost of 1 Jetski = $2,200

Number of Jetskis sold = 93,600

∴ Cost of Jetskis sold last year = 93,600 × 2,200 = $205,920,000

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Answer: False

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Answer:

Explanation:

Sustainable Growth:

The maximum growth rate a firm can achieve with no external equity financing while maintaining  a constant debt-equity ratio is known as Sustainable Growth Rate. It is the maximum rate of  growth a firm can maintain without increasing its financial leverage.

The formula for finding out the sustainable growth rate is:

sustainable\, grwth\, rate=\frac{ROE \times b}{1-ROE \times b}

Where

ROE — Retum On Equity

b — plowback or retention ratio

ROE is the product of profit margin, total asset turnover and equity multiptier.

External Financing Needed (EFN) is the increase in assets minus the addition to retained

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EFN = Increase in assets - Addition to retained earnings

The increase in assets is the product of the beginning assets and the growth rate.

Increase in assets = Beginning assets x growth rate

The addition to the retained earnings next year is the product of current net income and the

retention ratio and one plus growth rate.

Addition to retained earnings = Current net income x retention ratio x(1+ growth rate)

The ROE of Rosengarten Corporation is 7.3%, plowback ratio is 67%. Then, the sustainable  growth rate is 5.14% only. The question is whether a growth rate of 25% can be used to calculate  the EFN (External Funds Needed).

The growth rate of 25% can be used to calculate the EFN. The sustainable growth rate formula is

based on two assumptions that the company does not want to sell new equity, and that the  financial policy is fixed. If the company rises outside equity, or increases its debt-equity ratio. it  can grow at a higher rate than the sustainable growth rate.

A firm's ability to sustain growth depends on the following four factors:

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internally and thereby increase its sustainable growth.

2. Dividend policy: A decrease in the percentage of net income paid out as dividends will

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sustainable growth.

3. Financial policy: An increase in the debt-equity ratio increases the firm’s financial leverage.

Since this makes additional debt financing available, it increases the sustainable growth rate.

4. Total asset turnover: An increase in the firm's total asset turnover increases the sales  generated for each dollar in assets. This decreases the firm’s need for new assets as sales grow  and thereby increases the sustainable growth rate. The increasing total asset turnover is the

same as decreasing capital intensity.

The sustainable growth rate illustrates the explicit relationship between the firm's four major  areas; its operating efficiency as measured by profit margin, its asset use efficiency as measured  by total asset turnover, its dividend policy as measured by the retention ratio, and its financial  policy as measured by the debt-equity ratio.

Thus, the company could also grow faster when its profit margin increases, it it changes its dividend policy, by increasing the retention ratio or by increasing its total asset turnover.

7 0
3 years ago
Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YT
IrinaVladis [17]

Answer:

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Explanation:

The computation of the current bond price is shown below:

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Here we assume the future value be $1,000

The formula is shown below:

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After applying the above formula, the current bond price is $1,147.20

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The best answer for this question would be A. :) 
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Answer:

$15,0000 is recorded as revenue

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