Answer:
FV= $7,435.74
Explanation:
Giving the following information:
Initial investment= $6,400
Interest rate= 1.5%
Number of periods= 10 years
<u>To calculate the value of the account in ten years, we need to use the following formula:</u>
FV= PV*e^(i*n)
FV= 6,400*e^(0.015*10)
FV= $7,435.74
Answer:
Capability index = 0.4444
Explanation:
Given:
lower specification limit = 22.8 mm
Upper specification limit = 23.2 mm
The standard deviation = 0.15 mm
Mean = 23 mm
Capability index = ?
Computation of Capability index:
Capability index = minimum of [ 
]
Capability index = minimum of [ 
]
Capability index = minimum of [ 
]
Capability index = minimum of [ 
]
Capability index = 0.4444
Answer:
Cost of goods manufactured= $350,700
Cost of goods sold= $372,000
Explanation:
The cost of goods manufactured can be calculated as follows
= Direct materials utilized + factory supplies utilized + direct labor + depreciation on plants + property taxes on plant + work in process. January 1 - work in process December 31
= 129,400 + 27,900 + 114,900 + 63,100 + 19,100 + 13,300 -17,000
= $350,700
The cost of goods sold can be calculated as follows
= finished goods on January 1 + cost of goods manufactured - finished goods on December 31
= 69,700 + 350,700 - 48,400
= $372,000
Answer:
1. Yes. Cash flows are able to illustrate liquidity.
2. Recommendations
a. Reducing levels of Inventory.
b. Negotiating Longer credit settlement period with suppliers.
Explanation:
One of the uses of a Cash flow Statement is its use in negotiating loans with bank and other lenders. Of interest to these parties is the liquidity of the entity.
Liquidity is the ability of an entity to honor its short-term obligations using its current assets. Liquidity is reflected in the Cash flow from Operating Activities of the Cash flow Statement.
<u>Recommendation</u>
Companies can maintain liquidity through reducing levels of inventory. Inventory ties up cash. Negotiating longer credit settlement period with suppliers can also increase liquidity.
Answer:
MedBit Inc. is a joint venture company.
Explanation:
A joint venture is an entity established by two or more existing entities for a purpose.
Medzone Inc. and Bit Corp will jointly share from the business outcomes of this third entity, which is legally separate from the two.
Reasons for forming joint venture companies include to combine expertise, reduce costs, and leverage resources. Medzone Inc. and Bit Corp must have considered these advantages in setting up MedBit Inc.
The purpose of all ventures is the creation of value for stakeholders. Where two or more entities consider that they can achieve more value creation, they can come together to do so.
