Answer:
$916.35
Explanation:
For this question we use the Present value function that is shown on the attachment. Kindly find it below
Provided that,
Future value = $1,000
Rate of interest = 6.5% ÷ 2 = 3.25%
NPER = 22 years × 2 years = 44 years
PMT = $1,000 × 5.78% ÷ 2 = $28.9
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the market price of the bond is $916.35
b. first-in, first-out.
c. last-in, first-out.
d. weighted-average.
Answer:
b. first-in, first-out.
Explanation:
Generally, there are three methods for estimating the inventory shown below:
1. First-in-first, the company is selling the old products in this way than the new ones, which means first selling the old products and then selling the new ones
2. Weighted average method: Weighted cost is measured by considering the total revenue and total purchase
3. Last-in-first-out: Contrary to the first-in-first-out process, the first sale of new goods, then selling of old goods.
4. Base stock: The process by which the orders of the consumer are fulfilled by holding the less inventory
In the FIFO method, the highest ended inventory results in the lower cost of goods sold at the highest net profits.
In a period of rising prices, the first-in, first-out (FIFO) inventory method gives the highest reported net income because it records the oldest, less costly inventory as cost of goods sold, leaving the more expensive recent inventory on hand.
The inventory method which tends to give the highest reported net income in a period of rising prices is first-in, first-out (FIFO). The FIFO method assumes that the earliest goods purchased are the first to be sold. During a period of rising prices, the oldest inventory, which cost less, is recorded as cost of goods sold, leaving the newer, more costly inventory on hand. As a result, the cost of goods sold (an expense) would be lower, and, therefore, net income would be higher. Contrarily, the Last-in, first-out (LIFO) method would tend to show a lower net income in a period of rising prices because the more expensive recent inventory would be recorded as cost of goods sold first.
Similarly, the base stock and weighted-average methods may not reflect the highest net income in a period of rising prices as they take different approaches in calculating inventory and cost of goods sold.
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Answer:
$323,500 shares
Explanation:
A stock split is a practice carried out by a company where stocks are split into multiples of its existing shares to boost liquidity.
There is no actual increase in the value of the shares, just an increase in the number. For example if a shareholder has 100 share and there is a 3-1 split, the shareholder will now have 3 shares for every one held before.
In this scenario total outstanding shares was 64,700 shares. The company offers a 5 for 1 stock split. Each share is now five, so new outstanding shares is 64,700 * 5= 323,500 shares
Answer:
77,640 shares
Explanation:
Stock split occur when new shares of a company are issued to existing shareholders in proportion to their current holdings.
The share outstanding after the stock split is the addition of the existing shares and the new share issued. For this question, this can be calculated as follows:
New shares to be issued = 64,700 ÷ 5 = 12,940
Number of outstanding shares after stock split = 64,700 + 12,940 = 77,640 shares
Answer:
6.93 years
Explanation:
For computing the number of years we use the NPER formula i.e to be shown in the attachment
Given that
Present value = $8,000
Future value = $0
Rate of interest = 9%
PMT = $1,600
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the number of years is 6.93 years
If Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots:
a. Additional annual cost
Annual demand (D) =$750 x 12= $9,000
Ordering cost=$20 per order
Annual carrying costs(H)=0.30 ×$2.00 = $0.60
Order Quantity(Q) = 1,500
Find TC for Q
TC=Q÷2×H + D÷Q × S
TC=1,500÷2 × $0.60 + $9,000÷1,500×$20
TC=$450+$120
TC=$570............. (1)
Now find Qo
Qo=√2DS÷H
Qo=√2×$9,000×$20÷0.60
Qo=√600,000
Qo=$774.596
Qo=$774.60 (Approximately)
Find TC for Qo
TC=Q÷2×H + D÷Q ×
TC=774.60÷2 × $0.60 + $9,000÷774.60×$20
TC=$232.38+$232.38
TC=$464.76................(2)
Now let determine the additional annual cost
Additional annual cost=$570-$464.56
Additional annual cost=$105.24
b. Benefit would using the optimal order quantity yield (relative to the order size of 1,500)
Benefit=Qo÷Q
Benefit=$774.60÷1,500×100
Benefit=51.63%
The benefit is that about 51.63% of the storage space would be needed.
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Answer:
Additional cost= $570
Explanation:
Monthly demand = 750
Annual demand (D) = Monthly Demand x Number of months in a year
Annual demand (D) = 750 x 12 = 9,000
Cost (C) = $2.00 each
Annual carrying costs (Cc) = 30 percent of cost
Annual carrying costs (Cc) = 30% of $2.00 = $0.60
Ordering costs (Co) = $20
Current order quantity (Q1) = 1,500
Solution:
(a) Current cost is calculated as,
Current cost = Annual carrying costs + Annual ordering costs
Current cost = [(Quantity / 2) x Carrying cost] + [(Annual demand / Current Quantity) x Ordering cost]
Current cost = [(1500 / 2) x $0.60] + [(9000 / 1500) x $20]
Current cost = $450 + $120
Current cost = $570
Answer: D inflation adjusted, real
Explanation:
The GDP calculation acquired in the flow chart of $5,000 billion were all done after adjusting for inflation which means that they were in real dollars.
Inflation adjusted GDP enables more effective comparison between different periods as inflation tends to inflate the prices of goods and services and can make one think that the economy has grown more than it actually has.
When the value of GDP is inflation adjusted, it can then be seen just how much the economy improved or shrank.