Answer:
C. $125,550
Explanation:
Given that
At beginning = 7200unit at $12 each
During = 3000unit at $13
= 12000 unit at $13.50
Sold = 12900 unit.
Therefore, USING FIFO
Unit sold
= (7200 × 12) + (3000 × 13) + (2700 × 13.50)
= 86400 + 39000 + 36450
= $161850.
Thus, inventory remaining
= (12000 - 2700) × 13.50
= 9300 × 13.50
= $ 125,550
Ending inventory = $125,550
Answer:
Explanation:
The cost of equity can be estimated using two (2) different models:
- <em>The Dividend Valuation Model</em>
- <em>The capital asset pricing model (CAPM)</em>
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
The model is stated below as follows
P = D(1+g)/ke-g)
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
</em>
<em>This model is considered superior to DVM. Hence, we will use the CAPM</em>
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 2.86%, Rm-Rf - 7.00 β- 1.23
E(r) = 2.86% + 1.23× 7%
= 2.86% + 8.61%
= 11.47
%
Cost of equity= 11.47
%
Convenience products like Coke are available almost everywhere in the United States. Thus, Coke uses intensive distribution, which is related to the strategy of making the product available at many different retailers.
This is a marketing strategy widely used by companies that supply non-durable consumer goods, which are those that are consumed quickly, such as food, beverages and medications.
Therefore, non-durable goods such as Coke need to be replenished quickly, justifying the company's intensive distribution strategy, which makes its products easily available to consumers, increasing its profitability and positioning.
Learn more here:
brainly.com/question/3520708
Answer: a). Firm's growth rate = 10.5%
b). Next year's earnings = $30,940,000.00
Explanation: Earnings growth rate is the percentage change in earnings given specific variables.
The firm's earnings growth rate g = Return on equity (ROE) × Retained earnings (b) = 0.15(0.70)
g =0.105 or 10.5%
In finding next year's earnings, we multiply the current earnings times one plus the growth rate.
Next year's earnings = Current earnings(1 + g)
Next year's earnings = 28,000,000(1 + 0.105)
Next year's earnings = $30,940,000.00
Answer:
Instructions are below.
Explanation:
Giving the following information:
Units Produced 20,000
Units Sold 17,000
Unit Sales Price $ 240
Full Manufacturing Cost Per Unit $97
<u>Under the absorption costing method, the fixed manufacturing overhead is part of the product cost.</u>
Income statement:
Sales= (17,000*240)= 4,080,000
Cost of goods sold= (17,000*97)= (1,649,000)
Gross profit= 2,431,000
Variable Selling Expenses= (71,000)
Fixed General and Administrative Costs= (88,000)
Net operating income= 2,272,000
