In the Cleveland custom cabinets case, the owner of the company thought it was all right to manipulate the financial statement numbers primarily because he was the sole owner of the company and controlled the board of directors.
But, the sole owner is for my part answerable for all debts incurred by using the enterprise." Examples of sole owners encompass small corporations which include, a local grocery keep, local garments save, an artist, a freelance author, an IT representative, a freelance photo designer, etc.
A sole owner—additionally called a sole trader or a proprietorship—is an unincorporated business that has simply one proprietor who will pay private earnings tax on profits earned from the commercial enterprise.
Sole ownership manner distinct possession. it is a possession so entire that no other man or woman has any interest in the assets. someone's ownership is "sole" while no person apart from the character has any interest inside the belongings as owner.
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Answer:
$523,644
Explanation:
The computation of the market value of this firm is shown below;
Asset at realizable value amount ($)
Building appraised value $1,300,000
Equipment current value $327,000
Inventory Market value ($270000 ÷ 2) $135,000
Accounts receivables ($155,200 × 97%) $150,544
Cash $11,100
Total assets gross available $1,923,644
(-) Owings -$1,400,000
The Market value of the firm $523,644
Answer:
expansion should be undertaken as it has a positive net present value
Answer:
A. 12 units
B. 77 units
Explanation:
A. Calculation to determine What safety stock level do you recommend for BX-5
Using this formula
Safety stock = Z * Standard deviation of demand
Let plug in the formula
Safety stock= 1.65* 7
Safety stock= 11.55 units
Safety stock=12 units (Approximately)
Therefore The safety stock level recommended for BX-5 is 12 Units
b. Calculation to determine What is the appropiate reorder point
Using this formula
Appropriate re-order point = Mean lead time demand + Safety stock
Let plug in the formula
Appropriate re-order point = 65 + 12
Appropriate re-order point = 77 units
Therefore the appropiate reorder point will be 77 units
Answer:
c) $40,000 to buy the part
Explanation:
For computing the better off first we have to compute the per unit cost which is shown below:
= Direct material per unit + Direct labor per unit + variable overhead + applied variable overhead
= $12 + $25 + $13 + $30 × 30%
= $12 + $25 + $13 + $9
= $59
The difference cost would be
= $59 - $55
= $4
Now the better off would be
= Number of units × difference cost
= 10,000 units × $4
= $40,000
