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scoray [572]
3 years ago
11

The Wheat Company has used the LIFO method for inventory valuation since the start of business 15 years ago. The current year en

ding inventory is $375,000. If the FIFO method of inventory had been used, the inventory would be $450,000. If Wheat Company had used the FIFO inventory method, income before income taxes would have been 6 P Flag question Select one 0 A, $75,000 higher over the 15 year period B. $75.000 lower over the 15 year period. c. $75,000 higher in the current year. 0 . D. S75000 lower in the current year. Question 28 Other things held constant, which of the following will NOT affect the current ratio, assuming an initial Not yet current ratio greater than 1.0? Select one: O A. Fixed assets are sold for cash Points out of 5.00 Flag question B. Long-term debt is issued to pay off current liabilities C. Accounts recelvable are collected in cash D. Cash is used to pay off accounts payable is book Question 29 General information applicable to Phoenix Company is provided below.
Business
2 answers:
konstantin123 [22]3 years ago
5 0

Answer:

If Wheat Company had used the FIFO inventory method, income before income taxes would have been?

  • A) $75,000 higher over the 15 year period

Income would have been higher since cost of goods sold would have been lower. Net income = total revenue - total costs (COGS are included here)

Question 28: Other things held constant, which of the following will NOT affect the current ratio, assuming an initial Not yet current ratio greater than 1.0?

  • C) Accounts receivable are collected in cash

Current ratio = current assets / current liabilities

Since cash and accounts receivable are both current assets, it doesn't matter if sales increase cash or accounts receivable.

yulyashka [42]3 years ago
3 0

Answer:

Explanation:

Question 27

If Wheat Company had used the FIFO inventory method, income before income taxes would have been $75,000 higher in the current year. As inventory is an asset to the company. Therefore the $75,000 in inventory would have increased the company's asset and increasing the income before taxes.

Question 28

Other things held constant, which of the following will NOT affect the current ratio, assuming an initial Not yet current ratio greater than 1.0?

C. Accounts receivable are collected in cash.

Current ratio measures a company's ability to pay short-term obligations as at when due. It indicates that a company can manage its debts and other payable when their current assets is well managed.

It is calculated as Current Asset/ Current Liability. A ratio of 1 and above is the best meaning that a company an manage its debts obligations well.

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A(n) _____________ questionnaire measures what it was intended to measure in the population being assessed.
irinina [24]
The answer in the space provided is the valid questionnaire. It is because a valid questionnaire is a type of questionnaire in which it measures   a particular quantity, group or a particular thing that is related to their research. This type of questionnaire enables to promote the validity and reliability. It could be seen above that it is considered to be a valid questionnaire as it tries to measure something that is related to their research in which they will measure the population.
8 0
3 years ago
Your Company makes and sells a single product. Each unit sells for $32 dollars and has a unit variable cost of $20. The company
andre [41]

Answer:

Your Company

The cash that must be borrowed to cover all cash disbursements and to obtain the required November 30 cash balance is:

= $18,000.

Explanation:

a) Data and Calculations:

Selling price per unit = $32

Variable cost per unit = $20

Contribution margin per unit = $12 ($32 - $20)

Beginning cash balance on November 1 = $45,000

Cash disbursements = $1460,000

Depreciation expense = $35,000

Minimum required cash balance on November 30 = $75,000

Budgeted sales units for November = 46,000

Sales revenue (cash) = $1,472,000 (46,000 * $32)

Variable costs =                920,000 (46,000 * $20)

Contribution margin =   $552,000 (46,000 * $12)

Cash Budget

For the month of November

Beginning cash balance    $45,000

Total cash collections =   1,472,000

Cash available                $1,517,000

Cash disbursements      (1,460,000)

Cash balance                     $57,000

Cash to borrow                     18,000 ($75,000 - $57,000)

Minimum cash balance     $75,000

3 0
2 years ago
Merle Industries had been selling its product for $24 per unit, but recently lowered the selling price to $17 per unit. The comp
Lana71 [14]

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.

7 0
2 years ago
Suppose that Jeremiah was unfairly terminated before his employment contract expired, and he had to spend $500 to find another j
ad-work [718]

Answer:

<u>Incidental</u> damages

Explanation:

In a situation where an employer doesn't fulfill a contract agreement with an employee, just like in the question above, where Jeremiah was unfairly terminated before his employment contract expired, he has the right to collect "damages" which is legal compensation for financial losses caused by the termination of his employment contract before it expired. Incidental damage is the answer because Jeremiah incurred expenses where he had to spend $500 to find another job as a result of the employer's breach of the contract.

4 0
2 years ago
The ratio of a country's exports to its total output (GNP or GDP) Select one: a. is known as the index of openness. b. provides
AlexFokin [52]

Answer:

1. d. All of the above are true.

2. c. GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located.

Explanation:

1. The ratio of country's exports to GDP is known as trade-to-GDP ratio or the index of openness. This ratio main objective is to measures the importance of international trade in an economy and its usually remain high for developing countries.

2. The only difference between GDP and GNP is that of net factor income from abroad. While GDP only takes into account production of goods and services within the country's borders; GNP takes into account production of all economy owned identities, no matter where they are located.

5 0
3 years ago
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