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Anna71 [15]
2 years ago
7

Sheffield Corp. adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was

$1010000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date Inventory at Current Prices Current Price Index December 31, 2020 $1287000 106 December 31, 2021 1429000 124 December 31, 2022 1627000 129 What is the cost of the ending inventory at December 31, 2020 under dollar-value LIFO
Business
1 answer:
Solnce55 [7]2 years ago
6 0

Answer: $1226400

Explanation:

The cost of the ending inventory at December 31, 2020 under dollar-value LIFO will be calculated as:

= $1010000 + [($1287000/106 × 100) - $1010000] × 106/100

= $1010000 + ($1214151.4 - $1010000) × 1.06

= $1010000 + ($204150.94 × 1.06)

= $1010000 + $216400

= $1226400

Therefore, the cost of the ending inventory at December 31, 2020 under dollar-value LIFO is $1226400.

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Astro Co. sold 20,500 units of its only product and incurred a $67,750 loss (ignoring taxes) for the current year as shown here.
maksim [4K]

Answer:

Break even point in dollar sales = $1,050,000

Explanation:

Break Even Point in dollar sales = Fixed Cost/ Contribution margin percentage

Contribution margin percentage = (Contribution margin/ Sales) X 100

Here we have for the year 2017

Contribution margin = $194,750

Sales = $779,000

Contribution margin percentage = ($194,750/$779,000) X 100 = 25%

Break even point in dollar sales = Fixed Cost $262,500/25%

= $1,050,000

3 0
3 years ago
You want to buy a new sports coupe for $74,500, and the finance office at the dealership has quoted you a loan with an APR of 6.
Pachacha [2.7K]

Answer:

a) Monthly payments = $22,969.38

b) Effective rate of return= 7.12%

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest. </em>

The monthly installment is computed as follows:  

Monthly installment= Loan amount/annuity factor

Loan amount; = 74,500

Annuity factor = (1 - (1+r)^(-n))/r

r -monthly rate of interest, n- number of months

r- 6.9%/12 = 0.575 % = 0.00575, n = 36 =

Annuity factor = ( 1- (1+00575)^(-36)/0.00575= 32.434

Monthly installment = Loan amount /annuity factor

=  74,500/32.434= 22,969.38

Required monthly payments = $22,969.38

Effective annual interest rate

Effective rate of return = ((1+r)^n- 1) × 100

where r - monthly interest rate- 6.9%/12 = 0.575%

n- number of months= 12 months

Effective rate of return - (1+00575)^(12) - 1× 100=  7.12%

Effective rate of return= 7.12%

5 0
2 years ago
Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by
Art [367]

Answer:

$80 million

Explanation:

We know that

Multiplier = (1) ÷ (1 - marginal propensity to consume)

                = (1) ÷ (1 - 0.75)

                = (1) ÷ (0.25)

                = 4

Now the GDP would increase by

= Increase in  Investment spending × multiplier effect

= $20 billion × 4

= $80 million increase

We simply multiplied the investment spending increase with the multiplier effect

4 0
2 years ago
Determine the (a) working capital, (b) current ratio, and (c) quick ratio. Round ratios to one decimal place.The following data
kramer

Answer:

a. The working capital is $625,000

b. The current ratio is 2.82

c. The quick ratio is 2.08

Explanation:

In order to calculate the working capital first we need to calculate the Current Assets and the Current Liablities as follows:

Current Assets = Cash + Accounts receivable + Inventory + Prepaid Expenses + Temporary investments

= 154,000+210,000+240,000+15,000+350,000

=$969,000

Current Liablities = Accounts payble + Accrued liablities + Income tax payable + Notes payable,short term

= 245000+4000+10000+85000

=$344,000

a. Therefore, working capital = Current Assets - Current liabilities

= 969000 - 344000

= $625,000

b. To calculate the current ratio we have to use the following formula:

current ratio = Current Assets / Current liabilities

=969,000 /344,000

= 2.82

c. To calculate the quick ratio we have to use the following formula:

quick ratio = (Cash + Accounts receivable + Temporary investments ) / Current liabilities

= (154,000+210,000+350,000) / 344,000

= 2.08

7 0
3 years ago
In the perfectly competitive gadget industry there are 10 firms with identical costs given by C = 500 + 20q + q2, none of which
IgorC [24]

Answer:

The explanation is below

Explanation:

A.  Shutdown point is achieved when price equal AVC. when price lowers than the AVC, firm shutdown.

VC = q^2

AVC = q

So,

P = q is the shutdown point.

B.  For profit maximizing level of output,

P = MR = MC

500 = 20 + 2q

q = 240 units

So, profit maximization level of output = 240 units

C.  Firm level supply curve = MC curve above the shutdown point

Number of firms = 5

So,

Industry supply curve = 10*MC = 200+20Q

Industry supply curve = 200+20Q

It shows that MC curve above the shutdown point is supply curve.

4 0
3 years ago
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