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3 years ago

Opera Corp. uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows:

Business

1 answer:

Mandarinka [93]3 years ago

4 0

Answer:

(A) $390,000

Explanation:

Under LIFO method as the name suggests "Last In First Out"

the goods purchased in Last that is latest are sold first, that is goods purchased in 2015 will be sold first, therefore in the given case at the end of 2014 using LIFO we have,

Balance = $390,000

Because balance of goods purchased in 2014 i.e. $756,000 is sold first in 2014 remaining inventory at year end will be of 2013

Correct option is

(A) $390,000

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You are the IT director at Attaway Airlines, a small regional air carrier. You chair the company's systems review committee, and

Masja [62]

Explanation:

Been the IT director at Attaway Airlines, it will be important to prepare a draft of the advantages and the level of difficulties the new computerized reservation system from an IT perspective.

However, the ultimate goal is not to simply win arguments, but to explain and consider the facts from both the Vice president of finance and the Marketing Manager.

4 0

3 years ago

Effie plans to save $100 every six months for the next 5 years. If her account earns 14 percent, compounded semi-annually, how m

lina2011 [118]

Answer:

$1,381.64

Explanation:

For this question, we determine the Future value. By applying the future value formula that is shown on the spreadsheet. Kindly find it below:

Data provided

Future value = $0

Rate of interest = 14% ÷ 2 = 7%

NPER = 5 years ××2 = 10 years

PMT = $100

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $1,381.64

6 0

3 years ago

You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. You are required to post a 50% margin on

Paraphin [41]

Answer:

b. 57.69

Explanation:

Calculation for what price that you will get a margin call

First step

200 shares *$25 per share=$10,000

Second step

Based on the information given we are required to post a 50% margin on the short sale.

Now let find the 50% margin

50% margin =50%*$10,000

50% margin=$5,000

Hence,

$10,000+$5,000=$15,000

Third step

Based on the information given we were told that the broker requires a 30% maintenance margin.

.30=($10,000-200p)/200p

60p=$15,000-200p

260p= $15,000

Hence

$15,000/260

Price= $57.69

Therefore the price that you will get a margin call will be $57.69

7 0

3 years ago

Because of the free-rider problem,

Nookie1986 [14]

Answer:

c. private markets tend to undersupply public goods

Explanation:

Because of the free-rider problem, private markets tend to undersupply public goods

6 0

3 years ago

The expected return on Simmons Co's common stock is 14.63 percent and the yield to maturity in the firm’s bonds is 7.6 percent.

Gwar [14]

Answer:

D. 12.61%

Explanation:

The weight average cost of capital (WACC) is calculated as below:

WACC = After-tax cost of debt x Weight of debt = Cost of equity x Weight of equity.

Note: In this exercise, we will yield to maturity of company's as before-tax cost of debt.

Putting all the number together, we have:

WACC = 7.6% x (1 - 34%) x 21% + 14.63% x 79% = 12.57%, which is closet to option D (12.61%)

8 0

3 years ago