Answer:
It is cheaper to make the part. In three years the company will save $12,000.
Explanation:
Giving the following information:
Units= 40,000
Variable costs= $1.60 per unit
Fixed costs= $40,000 per year
Gilberto is considering buying the part from a supplier for a quoted price of $2.70 per unit guaranteed for three years.
We need to calculate the total cost of making and buying the part.
Make in-house:
Total cost= 1.6*40,000 + 40,000= $104,000
Buy:
Total cost= 40,000*2.7= $108,000
It is cheaper to make the part. In three years the company will save $12,000.
Answer: Option B
Explanation: In simple words, geographic departmentalization refers to the process under which an organisation separates its market operations on the basis of the geography such as country, state or district etc.
In the given case, company has separated its operations on the basis of different preferences of different countries.
Hence from the above we can conclude that the correct option is B .
Answer:
a. Revenues, expenses. and dividends - Temporary accounts
b. List of permanent accounts and their balances - Post-closing trial balance
c. Transfer of temporary balances to retained earnings - Closing entries
d. List of permanent and temporary accounts and their balances - Adjusted trial balance
e. Assets, liabilities, and stockholders' equity - Permanent accounts
Answer:
$52,000
Explanation:
Given the below data
Cash collected(Sales)
= $72,800
Expenses paid = $21,000
Depreciation expenses = $4,400
Increased in accounts receivable = $4,200
Molly's accrued net income is calculated as;
Sales
$72,800
Less expenses
($21,000)
Cash income
$51,800
Less depreciation
($4,400)
Add accounts receivable
$4,200
Less reduction in prepaid expense
($1,500)
Add reduction in Accrued liabilities
$1,900
Accrual basis net income
$52,000
Note*
We added depreciation because it is an expense hence reduces
Increase in accounts receivable means that some sale have been made but not yet paid for; meaning sales increases and was added.
Reduction in prepaid expenses means that some previously paid expenses were not recognized, hence needed to be recognized now. This will however be added to expenses.
Reduction in accrued liabilities means that expenses incurred in previous period have now been paid off hence must be reduced from cash expenses.
Answer:
$75.12 million
Explanation:
For computation of Valence's share price first we need to find out the share price which is shown below:-
Share price = (Paid earning of Valence × Ended year of expected earning) ÷ (Equity cost of capital - Expected growth rate)
= (40% × $800 million) ÷ (9% - 7%)
= (0.4 × $800 million) ÷ (0.09 - 0.07)
= $320 million ÷ 0.02
= $16,000 million
Now, Valence's share price
= Total value ÷ Outstanding total shares
= $16,000 million ÷ 213 million
= $75.12 million