Answer:
f. $615
Explanation:
The standard cost for 2,850 pounds is $18,328.5 (=$6.45 * 2,850)
Materials purchase-price variance–favourable $855; it means standard price is higher and actual material price. Then we have actual cost for purchased 2,850 pounds is $17,527.5 (=$18,328.5-$855)
Then the actual price per pound $6.15 (=$17,527.5/2,850)
The difference between purchased and actual quantity used is 100 pounds (= 2,850 pounds - 2,750 pounds)
The direct materials usage variance for the period is $650 (= $6.15 * 100 pounds)
1. The Party ordered to pay a draft is the <u>drawee</u>
2. Instruction that directs a bank not to pay a check that has been lost or stolen is a <u>stop payment order</u>.
3. Party to whom commercial paper is made available is the <u>payee</u>.
4. Unconditional written order by one person that directs another person to pay money to a third person is a <u>bill of exchange.</u>
5. Type of draft by which a bank depositor orders the bank to pay money, usually to the order of a third party or to the bearer of the instrument is a <u>check</u>.
6. Person who executes or draws the draft and orders payment be made is the <u>drawer</u>.
7. The drawee's promise to pay the draft when due is called <u>acceptance</u>.
8. Unconditional written orders or promises to pay money are called <u>commercial paper.</u>
9. To refuse to pay when due is called <u>dishonor</u>.
10. The person who executes a promissory note is the <u>maker</u>.
Answer:
The net present value of the machine = $ 1590
Explanation:
Solution
The first step is to compute the present value of annual cash inflows as shown below:
The present value of the inflow of cash = (Annual inflow of cash * PVIFA rate, period)
which is
= $11,000 * PVIFA 12%, 4
= $11,000 * 3.0373
= $ 33,410
Note: the present value of inflow of cash has been computed by multiplying Annual cash inflows and Cumulative factor of 12% and 4 years. Annual cash inflow is $11,000 and from the table of PVIFA rate for a 4 periods at 12% discount rate is 3.0373.
Next step is to compute the Net value as shown in the equation below:
Net present value = (present value of inflow of cash - Investment)
which is
=$ 33, 410 - $ 35,000
= $1590
The net present value is = $ 1590
Note: Net present value has been computed be subtracting investment from the present value of inflow of cash.
The opening investment is $35,000 and the present value of inflow of cash is $33,410. since the initial investment is more than the present value of cash inflows, the net present value is seen as negative.
Answer: . liquidity ratios
Explanation:
Liquidity ratios : These are the ratios that measure the capability of a company to meet its short term debt commitments .They show the number of times the short term debt obligations are covered by the cash and liquid assets. The following are examples of liquidity ratios
a) current ratio
b) cash ratio
c) quick ratio
d) working capital ratio .
Current ratio : This ratio juxtapose current assets to current liabilities.
Cash ratio : This ratio juxtapose just cash and investments which are readily convertible to current liabilities.
He should lease the car he is not going to need it for a long tme