Answer: a. ($85,000) ; b. $18500
Explanation:
a. What amount should Superfine report as net cash used in investing activities?
Sale of equipment = $5,000
Less: Purchase of bond = ($90,000)
Net cash used in investing activities = ($85,000)
b. What amount should Superfine report as net cash provided by financing activities?
Proceeds from treasury sold = $37500
Less: Dividend paid = ($19,000)
Net cash provided by financing activities will be: = $18500
Answer:
The answer is: C) Low efficiency and high effectiveness.
Explanation:
The company Kiddy Toys made a great product (High effectivness) but they couldn´t produce it a reasonable cost, so it was very expensive to sell (Low efficiency). As a result they had a great toy that very few customers could afford to buy.
Sometimes a company is able to manufacture a great product, they had a terrific idea that lots of people will like and want. The problem is that if they can not manufacture that product at a low cost then they will never have high sales volumes. This is the very exact reason why most toys nowadays are created in the US but mass produced in China.
Answer:
Ke = Rf + β(Rm - Rf)
Ke = 4.3 + 1.12(13.2 - 4.3)
Ke = 4.3 + 1.12(8.9)
Ke = 4.3 + 9.968
Ke = 14.268%
Explanation:
In this question, there is need to calculate cost of equity based on capital asset pricing model. Cost of equity is a function of risk-free rate plus beta multiplied by the difference between market return and risk free rate.
Answer:
c) $5,000
Explanation:
Kansas Plating Company
Cost of Goods Manufactured.
DM used $40,000
Add Direct labor $70,000
Add Overhead $180,000
Total Manufacturing Costs 290,000
Work in Process Inventory
Add Begin. Inv. 5000
Avail. for mfg. 295,000
Less End. Inv. 3,500
0
Cost of goods mfg 260,000
As the beginning balances of materials direct labor and FOH are given we add these to get total manufacturing costs and also the ending balances are given of Cost of Goods Manufactured and ending Inventory we calculate backwards to get to the Work In Process opening Inventory.
Answer:
The LCNRV basis is justified because of a decline in the selling price of the inventory item
Explanation:
The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.
These costs includes cost of purchase, freight, Insurance cost during transit etc.
Subsequently, inventory is to be carried at the lower of cost or net realizable value.
This is justified where there is a decline in the selling price of inventory as it ensures that the amount stated in the books is fairly representative of the amount that may be realized from the sale of the inventory items.