Answer:
The answer is 3.5
Explanation:
Inventory turnover ratio is:
Cost of goods sold / Total or average inventory
Cost of goods sold is $322,000
Total Inventory in this question comprises work-in- process, finished goods and even raw materials.
So total inventory equals:
Production materials on hand $42,500 Work-in-process inventory $37,000
Finished goods on hand $12,500
Total inventory. $92,000
Therefore, inventory turnover ratio is
$322,000 / $92,000
= 3.5
<span>One way to answer this is to say it is a trade surplus </span>
Answer:
$3,400 Increase
Explanation:
Computation to determine what will be the effect on net income
Using this formula
Effect on net income = Units ordered * (Special price - Variable cost)
Let plug in the formula
Effect on net income = 1700 * [$15- ($12+$1)]
Effect on net income = 1700 * ($15 -$13)
Effect on net income = 1700 *$2
Effect on net income = $3,400 Increase
Therefore If the special order is accepted, what will be the effect on net income will be $3,400 Increase
Answer:
a. Marketable securities
Explanation:
A(correct one). Capital assets are able to cover all marketable securities unless the taxpayer becomes a dealer.
B -incorrect. The inventory is not such as capital although it is asset. It is fixed asset type
C-incorrect. The assets which are depreciable must be excluded from capital assets group. Because they will be fixed ones again.
D-incorrect. Accounts receivable of a business are excluded from the definition of capital assets. because they are the other section of accounting elements and not considered as asset at all.