Trident Manufacturing Company's treasurer identified the following cash flows during this year as significant. It had repaid exi
1 answer:
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Answer:
Written down value = $310
Explanation:
The lower of cost or market
The lower of cost or market rule states that a business must record the cost of inventory at whichever cost is lower – the original cost or its current market price. This situation typically arises when inventory has deteriorated, or has become obsolete, or market prices have declined.
The schedule of workings is attached.
<u>Aligator armories </u>
Cost = 15
Market value = $12
Therefore, Market value will be selected, and the cost will be written down by $3.
<u>Bear Bureaus:</u>
Cost = market value, therefore, no change.
<u>Cougar beds</u>
Cost is less than the market value, therefore, no change needed.
<u>Dingo cribs:</u>
Cost = market value, therefore, no change.
<u>Elephant dresser</u>
Cost = 10
Market value = $6
Therefore, Market value will be selected, and the cost will be written down by $4.
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The central bank decreases the money supply. The relationship between the unemployment rate and the rate of inflation is one of the key concepts in economics, and the short run Phillips curve illustrates this relationship.
The relationship between this shift in the aggregate demand curve in the short run and the emergence of unemployment and inflation is shown by the curve. Additionally, it displays the short-term shift in the economy's aggregate supply curve.When the economy shifts from its short-run equilibrium to its long-run equilibrium.
The following things will occur the cost will decrease.There will be less demand for money. Note that a decrease in the moment supply will cause the moment supply to move to the left. A smaller money supply will also result in a smaller overall demand. Therefore, the price level and money demand will both decrease as the economy moves from its short-run equilibrium to its long-run equilibrium.
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