Answer:
Explanation:
Net sales - $894,250
Cost of Goods - $ 616850
Average account receivable - $40,650
Account receivable at year end - $28200
Average inventory - $182000
Inventory at year end - $158,000
Inventory turn over
Cost of Goods sold / Average inventory for the period
616850/182000= 3.40 times
No of days sales in inventory = Ending inventory / Cost of Goods sold *365
158000/616850*365 = 93.5 days
Account receivable turnover = net credit sale / average receivable
894250/40650=21.9
No of days sales in account receivable -
Receivable at year end/total credit sales*365
28200/894250*365= 11.5 days
Answer: Inventories and cost of goods sold.
Explanation:
Standard costing is used in accounting and it simply has to do with the substitution of the cost that's expected for a product with an actual cost when preparing financial statements.
The difference that's then between the actual costs and expected costs are then recorded as variance. It should also be noted that when a company prepares financial statements using standard costing, the items that are reported at standard cost will be Inventories and the cost of goods sold.
Answer:
Annual contributions to the retirement fund will be $6,347.31
Explanation:
First find the Present Value of the Annuity giving payments of $32,000 annually for 25 years at the rate of 10%.
Using a Financial Calculator enter the following data
PMT = $32,000
P/y = 1
N = 25
R = 10%
FV = 0
Thus, the Present Value, PV is $290,465.28
At the time of retirement (in 20 years time) the Value of the annuity fund is $290,465.28.
Next we need to find the Payments PMT to reach this amount in 20 years time at the interest rate of 8%
Using a Financial Calculator enter the following data
FV = $290,465.28
N = 20
R = 8 %
PV = $0
Thus, the Payments, PMT required will be $6,347.3080
Conclusion :
Annual contributions to the retirement fund will be $6,347.31
Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
Answer:
D = 7980.55
Explanation:
Since the borrower pays in 6 months wich is half a year, we calculate the semi-annual rate = 
= 
= 0.0035 = 0.35%
The effective semi-annual rate is, [(0.0035)⁶- 1] = 0.02118461
![\frac{D[(1.02118461)^{16} - 1]}{1.02118461) - 1}](https://tex.z-dn.net/?f=%5Cfrac%7BD%5B%281.02118461%29%5E%7B16%7D%20%20-%201%5D%7D%7B1.02118461%29%20-%201%7D)
+ ![\frac{D[(1.02118461)^{10} - 1]}{1.02118461) - 1}](https://tex.z-dn.net/?f=%5Cfrac%7BD%5B%281.02118461%29%5E%7B10%7D%20%20-%201%5D%7D%7B1.02118461%29%20-%201%7D)
= 238000
+ 
= 238000
0.631744D = 238000 * 0.02118461
0.631744D = 5041.937
Therefore D = 7980.55
