Answer:
a. The value of inventory declines below cost.
Explanation:
- The inventory values are the total cost of the value calculated at the ends of the inventory accounting period and the market value is compared by the lowering of the inventory costs.
- For each type of the item the net realized values cause a loss in the values of the inventory which needs to be recognized.
Answer:
(D) Operating income will increase by $27,300.
Explanation:
The sales increase will also generate an increase in the variable cost
The fixed cost, remaing unchanged against the volume of production. they do not increase or decrease at the factory level.
So the operating income will increase by the diffrence between sales and variable cost
sales increase will be:
779,000 x 10% = 77,900
variable cost increase:
506,000 x 10% = 50,600
increase in operating income 77,900 - 50,600 = 27,300
Answer:
B) value of the levered company will exceed the value of the unlevered company.
The compound amount recieved by Jamie after 180 days is $1,466,844.98
Explanation:
We know that money in any sort of banking account earns interests in a compounding manner.
Amount at the end of time “x” is given by A= P(1+R/100)
ˣ
Where A= amount after the said time period
P= Principal
R= Rate
x= time period
One must note that “x” and “R” must be in same time-frame i.e. if the rate is compounded daily, time period must be considered daily and so on.
Substituting the values of P as $ 3000, R as 3.5%, and x as 180
Amount after 180 days= 3000 (1+3.5/100)
¹⁸⁰
Amount= $1,466,844.98
Thus, the amount is $1,466,844.98
Answer:
$1,369,200
Explanation:
Calculation for EBIT
Using this formula
Value of Equity= EBIT / WACC
Let plug in the formula
$16,300,000 = EBIT / .084
EBIT = .084($16,300,000)
EBIT = $1,369,200
Therefore EBIT is $1,369,200
