Market Research Reading Quiz

On January 1, 2018, McHenry Manufacturing Corporation purchased a machine for $40,600,000. McHenry's management expects to use

bixtya [17]

Answer: The book value of the machine at the end of 2019 would be $26,717,712 calculated using units of production as method of depreciation.

Explanation: The first thing we have to do is to calculate the amortizable value for this we have to substract from the value of purchase the residual value. $40,600,000 - $45,000= $40,555,000

Then we have to calculate the hourly amortization so we must divide the amortizable value by the quantity of hoursexpected to be use by the machine: $40,555,000/26,000hrs= $1,559,81 per hour.

Then in 2018 the machine was used 3700 hours so it was depreciated $5,771,288.46 and in 2018, 5200 hours so it was depreciated $8,111,000

So the book value of the machine at the end of 2019 would be $40,600,000-$5,771,288-$8,111,000=$26,717,712

8 0

3 years ago

Analytical procedures are audit methods of evaluating financial statement accounts by studying and comparing relationships among

puteri [66]

Answer:

identify conditions to be explored all the more altogether

Explanation:

Analytical procedures are used in reviews and are generally an important part in comparing data. Analytical procedures include correlations of various monetary and operational data, to check whether authentic connections are proceeding ahead into the period under audit. It also helps to understand the client's business operations in detail, and it also assist in identifying the changes required.

7 0

3 years ago

On May 1st, Alpha Oil Company sends an electronic offer via the "cloud" to Zeno Refining Co. as follows: "Offer to sell 10,000 b

Softa [21]

Answer:

Alpha will win because there was no valid contract.

Explanation:

Alpha made a firm offer to Zeno, but the offer clearly stated that it was valid until July 1st and Zeno didn't accept the offer. Time limits matter, and Zeno didn't accept during the valid time limit. Zeno's acceptance can be considered a counteroffer but Alpha can decide to take it or not. Since Alpha didn't consider it a good offer then it can reject it. An offer does not constitute a contract, it must be accepted in order for a contract to exist and be enforceable.

7 0

3 years ago

If the American company Stryker builds and operates a new factory in France, a. it engages in foreign direct investment. By itse

Iteru [2.4K]

Answer:

(D) - It engages in Foreign Direct Investment, which by itself raises US net capital outflow

Explanation:

Foreign Direct Investments (FDIs) are investments in physical assets, infrastructures, etc and other long-term assets made in a foreign country. They differ from Foreign Portfolio Investments (FPIs) which are investments in stocks, bonds, treasury securities and other listed securities which can be sold easily in financial markets. For instance, when a US-based corporation invests in the stocks or bonds of a French company, this is FPI. Whereas, when the US-based corporation establishes a company in France by investing as plants and machinery, this is FDI.

FDIs requires cash commitment for investing in the foreign nation. However, because the assets created as a result of these investments are owned by the originating country, it increases the volume of assets the country has abroad leading to an increase in net capital outflow. Net Capital Outflow is the volume of capital investment made by a nation in other countries, less the capital investment made by other countries into the nation.

Therefore, when Stryker builds and operate a new factory in France, it engages in Foreign Direct Investment. By itself this action raises US net capital outflow.

4 0

4 years ago

In its first month of operations, Giffin Company made three purchases of merchandise in the following sequence: (1) 240 units at

alisha [4.7K]

Answer:

$1,395

Explanation:

Total cost of Inventory purchased

= (No. of units × Per unit price) + (No. of units × Per unit price) + (No. of units × Per unit price)

= (240 × 8) +(340 × 10) +(440 × 11)

= 1,920 + 3,400 + 4,840

= $10,160

Number of units purchased = 240 + 340 + 440

= 1,020

Average cost per unit = total cost /No. of units

= 10,160 /1,020

= $ 9.9608 per unit

Cost of ending inventory = 140 × 9.9608

= $1,395

8 0

3 years ago