Answer:
See below
Explanation
1. Value of inventory sold
= $280 million in inventory + COGS $23,100 million
= $303,100 million
2. Cost of goods sold
From the above passage, we have been given the COGS , which is $23,100 million
3. Compute inventory turns
= Cost of goods sold / Average stock
= $23,100 million / $151,550
=
Answer: a). Firm's growth rate = 10.5%
b). Next year's earnings = $30,940,000.00
Explanation: Earnings growth rate is the percentage change in earnings given specific variables.
The firm's earnings growth rate g = Return on equity (ROE) × Retained earnings (b) = 0.15(0.70)
g =0.105 or 10.5%
In finding next year's earnings, we multiply the current earnings times one plus the growth rate.
Next year's earnings = Current earnings(1 + g)
Next year's earnings = 28,000,000(1 + 0.105)
Next year's earnings = $30,940,000.00
Answer:
Unit product cost = $107
Explanation:
<em>Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rate</em>
The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads
Fixed production overhead cost per unit
=Fixed manufacturing overhead/units produced
= $43,700/ 1,900 Units
=$23 per unit
Full cost per unit
= $42 + $31 + $11 + 23
= $107
Answer:
The correct answer is (E)
Explanation:
There are two major policies which can directly affect the economy of a country; fiscal policy and monetary policy. Monetary policy is generally controlled by federal or state bank which is used to increase or decrease the overall money supply in the economy. Some important tools of monetary policy are interest rate, discount rate and open market operations etc. The monetary policy is often used to target inflation
