Call the bank and have them cancel the card
Answer:
The company’s inventory be reported on the balance sheet as $3,150.
Explanation:
GAAP and IFRS requires that the inventory of the company should be recorded as Lower cost and Net realizable value of the inventory.
According to given data
Available Inventory = 210 units
Cost of Inventory = 210 units x $20 = $4,200
Net realizable value is the value of the inventory which can be recovered on the immediate sale. the current market value of the inventory is $15.
So,
Net realizable value is = 2,100 units x $15 = $3,150
As the Net realizable value is lower than the cost of the inventory, $3,150 should be reported as inventory on the balance sheet.
Answer:
C. optimal debt - equity ratio
Explanation:
Cost of capital is based on source of capital, and weights of capital, therefore major components include cost of equity, cost of debt, and their weight-age thus the debt to equity ratio plays an important role,
correct option is optimal debt - equity ratio, this ratio depicts the proportion of debt to equity.
