Answer:
price of the payoff is -$19.01
Explanation:
The computation of the price of payoff is shown below:
But before that we have to do the following calculations
Equation of payoff is
= -$200 + 3 × current price
Now
price of payoff is
= -$200 ÷ (1.02)^(3 ÷ 12) + 3 × $60
= -$199.01 + $180
And, finally
The price of the payoff is -$19.01
The same is to be considered
Answer:
$56,520
Explanation:
As per given data
Year Sales Working Capital 18%
0 $279,000 ($50,220)
1 $308,000 ($5,220)
2 $314,000 ($1,080)
3 $314,000 $0
4 $314,000 $56,520
As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project
Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.
Answer:
$2,252,000
Explanation:
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
Answer:
out-of-pocket
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Generally, an out-of-pocket cost requires that an individual or business outlay their future cash-flow and it must be relevant for current and future decision making.
Answer:
c. will be able to make new loans up to a maximum of $9.50
Explanation:
If the reserve requirement is 5% it means that the bank is required to reserve(not loan out) 5% of it's reserves so in this case the bank is required to 5% of 10 (0.05*10) $0.50 as reserves and can loan out $9.50 (10-0.50). As the bank has no desire to hold on to excess reserves we can be sure that it will only hold 0.50 as reserve as it is required and loan out $9.50. So statement c is correct.
Statement A is incorrect because the bank does not need to increase required reserve by $10 but by just $0.50.
Statement B is incorrect a deposit of $10 cannot increase the total reserve by $10.50 as it is impossible mathematically.
Statement d is incorrect because 2 of the 3 statements are incorrect therefore all of the above statements cant be correct.
1. Define the data, uncontrollable inputs, and decision variables that influence total inventory cost.
2. Develop mathematical functions that compute the annual ordering cost and annual holding cost based on average inventory held throughout the year in order to arrive at a model for total cost.
3. Implement your model on a spreadsheet.
4. Use data tables to find an approximate order quantity that results in the smallest total cost.
5. Use Solver to verify your result.
6. Conduct what-if analyses to study the sensitivity of total cost to changes in the model parameters.
7. Explain your results and analysis in a memo to the vice president of operations.
Answer:
Annual Demand = 15,000 units
Cost of each unit = $ 80
Holding Cost = 18% of unit value
Ordering Cost = $ 220 per order
For implementation of a good decision model regarding inventory after considering all type costs assisted to it such as: holding cost and ordering cost, concept of EOQ is applied.
EOQ = ((2 * Annual Demand* Ordering Cost) / (Holding Cost))1/2
= ((2 * 15000 * 220) / (80*18%))1/2
= 677 units
Hence this quantity states that this manufacturing company should reorder the quantity when it has 677 units.
2)Mathematically, costs related to inventory are computed in the following manner:
1) Annual ordering cost = Ordering cost per order * Number of orders in a year
= 220 * 15000/677 = 220 * 22 = 4840
2) Holding cost = Holding cost per unit * Average inventory throughout the year
Average inventory throughout the year = 15,000/12 = 1250 units
Holding cost = 18%* 1250 = 225
Total cost = 4840 + 225 = 5065
Answer:
Return on investment = -0.07215 or -7.215%
Explanation:
The rate of return or percent return on the investment can be calculated by deducting the initial cost of the investment from the current value of the investment and dividing it by the initial cost.
The return provided by the investment can be calculated by adding the returns provided in form of dividend and capital gains both. Thus, the return can be calculated as follows,
Total dividend = 1.25 * 200 = $250
Total selling value = 35.4 * 200 = $7080
Total value = 250 + 7080 = $7330
Return on investment = (7330 - 7900) / 7900 = -0.07215 or -7.215%