Answer:
The inventory would be valued at $75 each
Explanation:
From a market approach to valuation,we need to first of all compare the replacement cost and net realizable in order to pick the lower of both values,hence the replacement cost of $75 is lower than net realizable value of $82.50.
As a result, we can then compare the lower of replacement cost and initial cost,such that inventory can then be valued at the lower of both.
From the foregoing analysis,the replacement of $75 each per item is lower than the initial cost $76.50,invariably our inventory is valued at $75 each.
Answer:
(a) = $468
(b) = 52%
(c) = $144
(d) = 28%
(e) = $1150
(f) = $920
Explanation:
selling price variable cost contribution margin contribution ratio
1. $900 $432 (a) $ (b)%
2. $200 $ (c) $56 (d)%
3. $ (e) $(f) $230 20%
contribution = selling price - variable costs
Margin contribution ratio = contribution / sales
Variable cost = selling price - contribution
Selling price = contribution / margin contribution ratio
Answer:
D. Cash flow statement
Explanation:
A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.
