Answer:
D. Cost of goods sold will be lower and ending inventory will be higher
Explanation:
If the price are falling means that:
price at moment n > price at n+k
because n+k is into the future, their cost is lower.
Using LIFO, means the COGS will use the lower price, and the Inventory the highest.
While FIFO will be the opposite. COGS will use the higher price and the Inventory the lower price.
COGS lifo < COGS fifo
Inventory lifo > Inventory fifo
<u>Option D is the only one which satisfies this</u>
Answer:
d. A credit to Prepaid Insurance for $680.
Explanation:
The computation of the prepaid insurance is shown below:
Given that
Four month prepaid insurance = $2,720
For one month, the prepaid insurance is
= $2,720 ÷ 4 months
= $680
Since we have to record the prepaid expenses for 1 month, we divided the total prepaid insurance by the 4 months due to that it decreases by $680 and that's why we credited this account
Answer:
The Money supply will decrease by $4,500
Explanation:
What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.
Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.
Hence, you can easily calculate the effect by using the simple money multiplier.
Answer:
Explanation:
For Navy contract, the total number of man hours put into production will be:
= 27 × 40 × 2
= 2160 man hours
Then, the units produced per labor hour will be:
= 2540 devices / 2160
= 1.176 units per labor hour.
For Army contracts, the total number of man hours put into production will be:
= 37 × 40 × 3
= 4440 man hours
Then, the units produced per labor hour will be:
= 5940/4440
= 1.338 units per labor hour.
Answer:
You are given the following information for Watson Power Co. Assume the company’s tax rate is 22 percent. Debt: 12,000 6.1 percent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. Common stock: 450,000 shares outstanding, selling for $63 per share; the beta is 1.14. Preferred stock: 19,500 shares of 3.9 percent preferred stock outstanding, currently selling for $84 per share. The par value is $100 per share. Market: 5 percent market risk premium and 4.9 percent risk-free rate.What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
