Answer:
$2,600
Explanation:
Calculation of the value of the company's inventory at the lower of cost or market.
Current FIFO inventory ×Net realizable value
Where,
Current FIFO inventory= 200 units
Net realizable value $13 per unit
Therefore,
200 units *$13 per unit = $2,600.
Lower cost of market can be said to mean that the inventory cost at either the purchase cost or replacement value .
Bases on the information given in the question, replacement cost is lower or lesser than the purchase cost which is why the inventory units are been cost at the replacement value of $13 each.
The return on investment for this division is (B) 20%.
<h3>
What is the return on investment (ROI)?</h3>
- Return on investment (ROI) or return on costs (ROC) is a ratio of net income to investment over time (costs resulting from an investment of some resources at a point in time).
- A high ROI indicates that the benefits of the investment outweigh the costs.
- ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.
- It is one method of connecting profits to capital invested in economic terms.
<h3>To find the return on investment for this division:</h3>
= income/average invested assets
= $40,000/$200,000
= return on investment
= 20%
Therefore, the return on investment for this division is (B) 20%.
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Correct question:
The Midwest Division of Grainger Company has an investment center average invested assets of $200,000 and an investment center income of $40,000. What is the return on investment for this division?
(A) 500%
(B) 20%
(C) 25%
(D) 80%
Answer:
The company's debt ratio at the end of the current year is 66%
Explanation:
For computing the debt ratio, we need to apply the formula which is shown below:
Debt ratio = (Total liabilities) ÷ (total assets) × 100
= ($182,200 ÷ $276,000) × 100
= 66%
The other information which are given in the question is of no use. That's why we do not consider it. Hence, ignored it.
Answer - A (7 years)
WORKINGS
To calculate how long it would take for the new refrigerator to pay for
itself in lower utility costs, the cost of new refrigerator will be divided by lower utility cost per
year
Cost of new refrigerator = $598
TO CALCULATE LOWER UTILITY COST PER YEAR
At a cost of only 12 cents per day
Annual cost will be 12 X 365 = 4380 Cents ($43.8)
Cost saved annually = Cost of old refrigerator – Cost of new
refrigerator.
Lower utility cost per year = $132 – $43.8
Lower utility cost per year = $88.2
How long would it take for the new refrigerator to pay for
itself in lower utility costs?
$598 ÷ $88.2
= 6.78 years
Approximately 7 years
<span> </span>
In a command economy, it is the b) government who decides what goods will be produced.
