Answer:
The answer is "353281.88".
Explanation:
In this question, the total present value for cash flow was its notion which states the today's currency is worth more than tomorrow. In other terms, money received by tomorrow is not as large as today.
Using formula:
Total present value of cash inflow
Answer:1. Maximum transfer price is $60 and it's to be set by the Motel division.
This is the maximum price they will need to get it in the market if they are not buying in-house and it needs to be set by them because it determines the maximum profit it can make from the transaction.
2. The minimum transfer price is $29 and it's to be set by the Furniture division.
This is the production cost and it's still profitable since it has meet his fixed cost at 40,000 unit and the variable cost is $15. The Furniture set the price because it determines the maximum profit it makes from the transaction.
3. Benefit to Motley division is additional profit of $16 per unit for 10,000 units ($31-$15)
Benefit to Furniture division is a reduction in cost of $29 per units on 10000 unit ($60-31)
Benefit to company is the combination of the benefits from both Motly and Furniture division.
Answer:
Process flexibility.
Explanation:
The ease with which resources can be adjusted in response to changes in demand, technology, products and services, and resource availability is known as process flexibility.
Process flexibility simply refers to the ability of a firm or company to respond to changes in the production line or manufacturing process of goods to meet the needs of their customers.
For instance, when there is a new technology in the industry, the ability of a company to switch with ease is its process flexibility.
Answer:
Correct answer is 12.11%
Explanation:
expected dividend =$3.2*60%
=$1.92
Hence cost of equity from new common stock=(D1/Current price(1-Floatation cost)+Growth rate
=1.92/(30(1-0.1))+0.05
=(1.92/27)+0.05
which is equal to
=12.11%(Approx).
Answer: 12.11%
Explanation:
GIVEN THE FOLLOWING ;
Earning per Share = $3.20
Expected dividend pay out ratio.(proportion of earning paid out as interest.)
Cost of stock per share = $30
Dividend growth rate = 5%= 0.05
Floatation cost = 10% = 0.1
Cost of equity=(dividend/(Current price(1-Floatation cost)) +Growth rate
Cost of Equity =[ (1. 92÷(30(1 - 0.1)) + 0.05
Cost of equity = [ (1.92 ÷ (30(0.9)) + 0.05
Cost of equity = (1.92 ÷ 27) + 0.05
Cost of equity = 0.07111111 + 0.05 = 0.121111
0.12111 × 100 = 12.11%
Raw materials inventory $26,000 $30,000
Work in process inventory 13,500 22,200
Finished goods inventory 30,000 21,000
Materials purchased $170,000
Direct labor 220,000
Manufacturing overhead 180,000
Sales 800,00
Required:
Compute cost of goods manufactured $____________________
Answer:
The cost of goods manufactured is $557,300
Explanation:
In order to calculate the cost of goods manufactured we would have to make the following calculation:
cost of goods manufactured=Work in process inventory 1/1+Total manufacturing costs-Work in process 12/31
Work in process inventory 1/1)= $13,500
Total manufacturing costs=Direct materials used+Direct labor+Manufacturing overhead
Total manufacturing costs=166000+220000+180000=$566,000
Work in process 12/31=$22,200
Cost of goods manufactured=$13,500+$566,000 -$22,200
Cost of goods manufactured=$557,300
The cost of goods manufactured is $557,300
Answer:
D. recorded as an indefinite-lived intangible asset, and annually tested for impairment.
Explanation:
In-process research and development acquired in a business combination is recorded as an indefinite-lived intangible asset, and annually tested for impairment.
In-process research and development costs are essential part of the financial income statement, it assist investors to make good, well-informed and tangible investment decisions in a newly acquired company.
D. Recorded as an indefinite-lived intangible asset, and annually tested for impairment, consistent with accounting standards for intangible assets.
In-process research and development (IPR&D) acquired in a business combination is accounted for as follows:
D. Recorded as an indefinite-lived intangible asset, and annually tested for impairment.
Here's why:
1. Indefinite-Lived Intangible Asset: IPR&D represents the value associated with ongoing research and development projects that have not yet reached the point of commercialization or technological feasibility. It is recognized as an indefinite-lived intangible asset because its future benefits are not constrained by a specific time period. This is in contrast to definite-lived intangible assets, which have a finite useful life and are subject to amortization.
2. Annual Impairment Testing: While IPR&D is initially recognized as an indefinite-lived asset, it is subject to annual impairment testing. This means that, at least annually, the company must assess whether there has been any impairment in the value of the IPR&D asset. If there is an indication that the asset's value has decreased (e.g., the research project is no longer viable or promising), an impairment charge is recorded to reduce the asset's carrying value to its recoverable amount.
3. Consistency with Accounting Standards: The accounting treatment of IPR&D acquired in a business combination is consistent with international accounting standards (e.g., IFRS) and generally accepted accounting principles (GAAP) in many jurisdictions. It reflects the economic reality that IPR&D represents valuable intellectual property that can contribute to the company's future profitability once successfully developed.
In summary, IPR&D acquired in a business combination is initially recognized as an indefinite-lived intangible asset, and it is subject to annual impairment testing to ensure its carrying value accurately reflects its recoverable amount based on its expected future benefits. This accounting treatment aligns with the treatment of other intangible assets and financial reporting standards.
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Explanation: