Answer and Explanation:
1. Consumption = Kevin's purchase of wine + Rajiv purchase of laptop
= 30 × 50 + 1,500
= 1,500 + 1,500
= $3,000
2. Investment = 0
3. Government purchase = 0
4. Imports = Kevin's purchase of wine = 30 × 50
= 1,500
5. Exports = US company selling to Canada = 45 × 200
= $9,000
6. Net exports = Exports - Imports
= $9,000 - $1,500
= $7,500
7. GDP = Consumption + Investment + Government spending + Net exports
= 3,000 + 0 + 0 + 7,500
= $10,500
The manager of a firm believes that she would lose sales if she raised her prices by $2.00, but the revenue lost would be more than offset by higher revenues from the higher price. This indicates that the manager perceives demand to be:_______.
a. inelastic.
b. elastic.
c. unit elastic.
d. insufficient information.
Answer:
This indicates that the manager perceives demand to be:_______.
c. unit elastic.
Explanation:
Unit elastic demand describes a demand curve which is perfectly responsive to changes in price. This implies that the quantity supplied or demanded changes according to the same percentage as the change in price. For example, if the manager raises the price of her famous goods by $2.00, the unit elastic demand for that $2.00 increase would result in a decrease in the quantity demanded by one unit.
When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to
Answer: centralization
Explanation:
When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to centralize.
Centralization is simply when an organizational activities especially those that has to do with decision making, planning, framing policies and strategies are all concentrated in a particular location group.
If the branch office of a real estate firm maintains a separate clients' trust account, it must also
Answer: Maintain a separate bookkeeping system
Explanation:
A real estate firm is simply a firm that serves as facilitator for transactions involving vreal estate. They bring the buyers and sellers together and then paid a commission.
It must be noted that when the branch office of a real estate firm maintains a separate clients' trust account, it must also maintain a separate bookkeeping system
5. Describe a product you know of that has elastic demand. Why is the demand for this
product elastic? Explain. (1-3 sentences. 3.0 points)
Answer:
Dimond has elastic demand. Demand for this product is elastic because it is a luxury item. Since this item is not a necessity, as the price rises, the quantity demanded for the item falls drastically since it is not needed for survival.
Explanation:
Automobiles has elastic demand.
What is demand?Demand can be defined as them the Desire of a person to purchase a good or service and the customer of the consumer is ready to pay the price which is being asked for.
Demand is said to be elastic when there is a significant shift in the demand curve as a result of dynamic pricing. Whenever a good's supply curve is adaptable to price fluctuations, this is known as elastic demand.
Elastic demand for automobiles is an example. As automobiles are doing purchase frequent or after a long period of time as it is considered an investment.
The elasticity is measured when there is a change in the demand with respect to the change in price. In the automobile sector as it is certainly a luxury item there for the demand usually fluctuates and so is the price.
Learn more about demand, here:
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Each business day, on average, a company writes checks totaling $41,500 to pay its suppliers. The usual clearing time for the checks is six days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $52,500. The cash from the payments is available to the firm after four days.
Required:
a. Calculate the company's disbursement float, collection float, and net float (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
b. Calculate the company's disbursement float, collection float, and net float if the collected funds were available in two days instead of four (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g.. 32.).
Answer:
A.Collection Float ($208,000)
Disbursements Float $249,000
Net Float $41,000
B.Collection Float ($104,000)
Disbursement Float $249,000
Net Float $145,000
Explanation:
A. Calculation the company's disbursement float, collection float, and net float
Per Day Clearing Days Float
Collection Float ($52,000) ×4days = ($208,000)
Disbursements Float $41,500 × 6days = $249,000
Net Float $41,000
($249,000-$208,000)
B. Calculation for the company's disbursement float, collection float, and net float if the collected funds were available in two days instead of four
Per Day Clearing Days Float
Collection Float ($52,000) ×2 days =($104,000)
Disbursement Float $41,500 ×6 days= $249,000
Net Float $145,000
($249,000-$104,000)
Hence,
A.Collection Float ($208,000)
Disbursements Float $249,000
Net Float $41,000
B.Collection Float ($104,000)
Disbursement Float $249,000
Net Float $145,000
The private sector organization that is currently responsible for setting accounting standards in the United States is the
Answer:
Financial Accounting Standards Board.
Explanation:
The private sector organization that is currently responsible for setting accounting standards in the United States is the Financial Accounting Standards Board (FASB).
FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).
The aims and objectives of FASB, is to establish and improve Generally Accepted Accounting Principles (GAAP) in the United States of America.
Based on the following information from Scranton Company's balance sheet, calculate the current ratio. Current assets $ 126,000 Investments 57,800 Plant assets 380,000 Current liabilities 52,000 Long-term liabilities 103,000 Retained earnings 408,800
Answer:
2.42
Explanation:
The current ratio is a type of liquidity ratio. Liquidity ratios calculate the ability of a firm to meet its short term obligations
Current ratio = current assets / current liabilities = $ 126,000 / $52,000 = 2.42
You are writing the financial analysis for a snowboarding apparel business you are hoping to open in Topeka. Which tips should you follow?
a. Discuss market characteristics.
b. Describe how your service will benefit customers.
c. Outline a realistic start-up budget.
d. Present an operating budget that projects costs.
Answer:
The correct answer are the option C and D: Outline a realistic start-up budget and Present an operating budget that project costs.
Explanation:
To begin with, due to the fact that the principal matter is a financial analysis then the person must focus on a realistic start up budget and also in projecting costs in an operating budget because those will be the most important matters when it comes to financial terms, the costs and all that they represent at the time of starting the business and the production. Therefore that in terms of finances, the costs of the future business is the matter that the person will have to have in mind at first.
Assume that a tire company sells four tires to an automobile company for $400, another company sells a compact disc player for $500, and the automobile company puts all of these items in or on a car that it sells for $20,000. In this case, the amount from these transactions that should be counted in GDP is:
Answer:
$20,000
Explanation:
Gross domestic product is the sum of final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export
Only final goods are included in the calculation of GDP.
The tires and compact are intermediate goods and would not be included in GDP. If they are included it would be regarded as double counting
Company uses the weighted-average method in its process costing system. The Packaging Department started the month with units in process, started units, and had units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are % complete with respect to conversion costs. The department incurred the following costs: Beginning WIP Added this month TotalTransferred in $600 $13,400 $14,000Direct materials 700 3,400 4,100Conversion costs 350 6,490 6,840Total $1,650 $23,290 $24,940For conversion costs, the equivalent units of production are:_____a. 1,710 unitsb. 1,610 unitsc. 1,460 unitsd. 1,620 units
Answer:
the numbers of the first part are missing here, so I looked for a similar one:
"The Packaging Department started the month with 300 units in process that were 70% complete, receiving 2,000 units from the Cutting Department. The Packaging department had 200 units in process at the end of the period that are 40% complete.
All materials are added at the beginning of the process and conversion is added uniformly.
From the Packaging Department, units are transferred to Finished Goods."
Since we are not asked to calculate costs, we are told to calculate equivalent units for conversion costs, the formula would be:
total units finished and transferred out = 300 + 2,000 - 200 = 2,100
equivalent units of ending WIP = 200 x 40% = 80
total equivalent units = 2,100 + 80 = 2,180 equivalent units
Hare, Inc., had a cost of goods sold of $45,021. At the end of the year, the accounts payable balance was $8,583. How long on average did it take the company to pay off its suppliers during the year
Answer:
70 days
Explanation:
For computing the number of days first we have to determine the credit turnover ratio which is shown below:
Credit turnover ratio is
= (Cost of Goods Sold ÷ Average accounts payable)
= ($45,021 ÷ $8,583)
= 5.245 times
Now the number of days is
= Total number of days in a year ÷ credit turnover ratio
= 365 ÷ 5.245
= 70 days
An investment company that issues a fixed number of shares which can only be resold in the open stock market is called a(n) _____ fund.
Answer:
closed-end
Explanation:
In a closed end fund, no new investment money is accepted into the fund. New investors have to buy existing shares from investors who are willing to sell their hares. One disadvantage of the closed-end fund is that it has a limited ability to expand.
A closed-end fund is in contrast to an open - end fund where new investment are accepted
You are a shareholder in a C corporation. The corporation earns $1.75 per share before taxes. Once it has paid its taxes it will distribute the rest of the earnings to you as a dividend. Assume the corporation tax rate is 35% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid
Answer:
$0.80.
Explanation:
We can find the remaining amount earned by just dedcuting he income tax. The corporation tax will be deducted from the earnings before tax at the rate of 35% and the personal tax will be deducted from the dividends distributed at the rate of 30%.
$
Earnings before taxes 1.75
Dividend distributed $1.1375
less:
Corporate tax ($1.75*35%) (0.6125)
Personal tax (1.1375 X 30%) (0.34125)
Amount remaining $0.80.
Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $5.10 per machine-hour and the denominator level of activity is 5,300 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $27,230 and the company actually worked 5,230 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,250 machine-hours. What was the overall fixed manufacturing overhead volume variance for the mon
Answer:
$357 Unfavorable
Explanation:
Fixed manufacturing overhead volume variance identifies the amount by which actual production differs from budgeted production.
Fixed manufacturing overhead volume variance = Actual Output at Budgeted rate - Budgeted Fixed Overheads
= (5,230 × $5.10) - ($5.10 × 5,300)
= $26,673 - $27,030
= $357 Unfavorable
Which of the following are included in current assets?a. Prepaid rent b. Taxes payable c. Automobiles d. Common stock e. None of the above
Answer:
The answer is A.
Explanation:
Current asset is an asset that has a life span of less than 12 months(a year). If its life span is more than a year or 12 months, then it is non-current asset.
Prepaid rent is a current asset. A rent usually lasts for a year. It is an advanced payment. The money has been paid but the service has not been fully enjoyed. So we treat it as a current asset
Option B is a current liability.
Option C is a non-current asset
Option D is an equity
A stock has had the following year-end prices and dividends:
Year Price Dividend
1 $ 43.31 -
2 48.29 $ .51
3 57.21 .54
4 45.29 .60
5 52.21 .65
6 61.29 .73
What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16))
Answer:
Year Price Dividend Return
1 43.31 - -
2 48.29 0.51 12.68%
3 57.21 0.54 19.59%
4 45.29 0.60 -19.89%
5 52.21 0.65 16.71%
6 61.29 0.73 18.79%
arithmetic returns basically refer to the mean (or average) of the returns = (12.68% + 19.59% - 19.89% + 16.71% + 18.79%) / 5 = 47.88% / 5 = 9.58%
geometric returns involves multiplying the returns and then squaring them = ⁵√(1.1268 x 1.1959 x 0.8011 x 1.1671 x 1.1879) - 1 = 1.0840 - 1 = 0.084 = 8.40%
Budgeted overhead for Waterway Industries at normal capacity of 32000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $321600 of overhead was incurred in working 33500 hours when 34000 standard hours were allowed. The overhead controllable variance is
Answer:
$10,400 Favorable
Explanation:
The computation of overhead controllable variance is shown below:-
Overhead controllable variance is
= Standard overhead - Actual
= ((34,000 × $6) + (32,000 × $4)) - $321,600
= ($204,000 + $128,000) - $321,600
= $332,000 - $321,600
= $10,400 Favorable
Therefore for computing the overhead controllable variance we simply applied the above formula.
Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 14,000. The annual holding cost per unit is $3.75, and the cost to place an order is $65.
a. What is the economic order quantity? The EOQ is 697 . Enter your response rounded to the nearest whole number)
b. Suppose demand for TricoFlexers doubles, to 28,000.
Answer:
a)
economic order quantity (EOQ) = √(2SD/H)
S = order cost = 65D = annual demand = 14,000H = holding cost = 3.75EOQ = √[2 x 65 x 14,000) / 3.75] = 696.66 ≈ 697 units
b)
if demand increases to 28,000, then:
EOQ = √[2 x 65 x 28,000) / 3.75] = 985.22 ≈ 985 units
The economic order quantity when annual demand is 14,000units is 697 units and when the annual demand doubles, The EOQ becomes 985 units.
Economic order quantity shows the optimum batch quantity a company should purchase in order to minimize costs.
It is calculated as
Economic order quantity (EOQ) = √(2x D x S / H)
where
D = annual demand in units= 14,000units
S = cost per order = $65
H = holding cost = $3.75
Solving:
EOQ = √{2 x 65 x 14,000) / 3.75] = 697 units
b)
Suppose demand doubles to 28,000, Using same equation, we have
EOQ = √[2 x 65 x 28,000) / 3.75] = 985 units
See similar question here:https://brainly.com/question/22821211
Companies racing against rivals for global market leadership need strategic alliances and collaborative partnerships with companies in foreign countries in order to:_______
A. Combat the bargaining power of foreign suppliers and help defend against the competitive threat of substitute products produced by foreign rivals.
B. Help raise needed financial capital from foreign banks and use the brand names of their partners to make sales to foreign buyers.
C. Get into critical country markets quickly and accelerate the process of building a potent global presence, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.
D. Help pursue price wars against foreign competitors.
E. Exercise better control over efforts to revamp the global industry value chain.
Answer:
C. Get into critical country markets quickly and accelerate the process of building a potent global presence, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations
Explanation:
In a global market it is important for businesses to leverage international advantages such as lower production cost in a foreign country, more lucrative markets in certain locations, and access to cheap materials for production.
So when a company wants to gain global dominance it is important they form alliances with companies in foreign countries. This will help them access more lucrative markets, gain knowledge about particular markets, and gain competencies that are unique to a geographical area.
You write one AT&T February 50 put for a premium of $5. Ignoring transactions costs, what is the breakeven price of this position
Answer:
$45
Explanation:
Calculation for breakeven price of this position
Using this formula
Breakeven price = + AT&T February put - Premium
Let plug in the formula
Breakeven price= +$50-$5
Breakeven price=$45
Therefore breakeven price of this position will be $45
Data on fifth-grade test scores (reading and mathematics) for 420 school districts in California yield \bar{y} = 646.2 and standard deviation s_{y} = 19.5
a. Construct a 95% confidence interval for the mean test score in the population.
b. When the districts were divided into districts with small classes (< 20 students per teacher) and large classes (? 20 students per teacher), the following results were found:
Class Size Average (\bar{Y}) Standard Deviation (s_{y}) n
Small 657.4 19.4 238
Large 650.0 17.9 182
Is there statistically significant evidence that the districts with smaller classes have higher average test scores? Explain (set up your hypothesis, and clearly state your decision rule).
Answer:
a. At 95% confidence interval, the mean test score in the population =
[ 648.06 , 644.34 ]
b.
Null hypothesis;
[tex]H_o : \mu_1 - \mu_2 = 0[/tex]
Alternative hypothesis
[tex]H_1 : \mu_1 - \mu_2 > 0[/tex]
t [tex]\simeq[/tex] 4.048
P - value = 0.000003
Decision Rule: To reject the null hypothesis if P - value is less than the level of significance
Conclusion: We reject the null hypothesis and conclude that there is sufficient statistical evidence that smaller class sizes do give rise to higher test averages.
Explanation:
Given that:
sample size n = 420
mean [tex]\overline{Y} = 646.2[/tex]
standard deviation [tex]s_{y}[/tex] = 19.5
a. Construct a 95% confidence interval for the mean test score in the population.
The 95% confidence interval for the mean test score can be expressed as:
[tex][ \overline Y \pm Z \times SE( \overline Y)][/tex]
Z value at 95% C.I = 1.96
The level of significance = 1 - 0.95
The level of significance = 0.05
[tex]SE(\overline Y ) = \dfrac{s_y}{\sqrt{n}}[/tex]
∴
⇒ [tex][ 646.2 \pm 1.96 \times \dfrac{19.5}{\sqrt{420}}][/tex]
= [tex][ 646.2 \pm 1.96 \times \dfrac{19.5}{20.4939}][/tex]
= [tex][ 646.2 \pm 1.96 \times 0.9515][/tex]
= [tex][ 646.2 \pm 1.86494][/tex]
= [ 646.2 + 1.86494 , 646.2 - 1.86494 ]
= [ 648.06494 , 644.33506 ]
[tex]\simeq[/tex] [ 648.06 , 644.34 ]
Thus at 95% confidence interval, the mean test score in the population =
[ 648.06 , 644.34 ]
b. When the districts were divided into districts with small classes (< 20 students per teacher) and large classes (? 20 students per teacher), the following results were found:
Class Size Average (\bar{Y}) Standard Deviation (s_{y}) n
Small [tex]\overline{Y_1}[/tex]= 657.4 19.4 238
Large [tex]\overline{Y_2}[/tex]= 650.0 17.9 182
The null hypothesis and the alternative hypothesis for this given data can be computed as follows:
Null hypothesis;
[tex]H_o : \mu_1 - \mu_2 = 0[/tex]
Alternative hypothesis
[tex]H_1 : \mu_1 - \mu_2 > 0[/tex]
The t- test statistics score can be expressed by using the formula:
[tex]t = \dfrac{\overline Y_1 -\overline Y_2 }{SE( \overline Y_1 - \overline Y_2)}[/tex]
where;
[tex]SE ( \overline Y_1 - \overline Y_2) = {\sqrt{\dfrac{s^2_y_1}{n_1} + \dfrac{s^2_y_2}{n_2}}}[/tex]
∴
[tex]t = \dfrac{\overline Y_1 -\overline Y_2 }{\sqrt{\dfrac{s^2_y_1}{n_1} + \dfrac{s^2_y_2}{n_2}}}[/tex]
[tex]t = \dfrac{657.4-650.0 }{\sqrt{\dfrac{19.4^2}{238} + \dfrac{17.9^2}{182}}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{\dfrac{376.36}{238} + \dfrac{320.41}{182}}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{1.581344538+ 1.760494505}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{3.341839043}}[/tex]
[tex]t = \dfrac{7.4 }{1.828069759}[/tex]
t = 4.04799
t [tex]\simeq[/tex] 4.048
To determine the P - Value; we have:
P - value = 1 - [tex]\mathtt{\phi}[/tex] ( t)
P - value = 1 - [tex]\mathtt{\phi}[/tex]( 4.048)
P - value = 1 - 0.99997
P - value = 0.000003
Decision Rule: To reject the null hypothesis if P - value is less than the level of significance
Conclusion: We reject the null hypothesis and conclude that there is sufficient statistical evidence that smaller class sizes do give rise to higher test averages.
Tell me about a time when you decided to sacrifice short-term gain for long term-success for your company?
Answer:
a good example of this is when we declined an equity investment offer.
Explanation:
In the short-term one may see an investment offer as a never to be missed opportunity. However, certain investments lead to loss of control, this was true in our own case. Thankfully, we avoided the short-term gain in other to realize a long-term gain.
A time I had to sacrifice a short term for a long term is when I had to buy a house I thought it was going to be a quick process but no it takes forever
Please reward me brainlist please
Generally, international trade laws in the last 60 years have served to:______.
Answer: lower barriers to trade
Explanation:
Barriers to trade are usually used by countries to protect their infant industries, prevent dumping and consumption of harmful goods.
Despite all the controversies with international trade, the trend for the last 60 years has been toward a lower barrier to trade and there has been tremendous improvement with regards to that as the average level of tariffs that were charged by the industrialized countries was about forty percent in 1946 but reduced to about five percent in 1990. Also several countries have minimized their trade barriers.
If the stock price of a target company jumps up when the acquisition of the company is announced, the market _____.
Answer:
The market cannot be strong form efficient.
Explanation:
A market seems to be a real or conceptual location wherever production and consumption forces work, and also where market participants compete for capital or transact to exchange products or arrangements or equipment.The market now also needs to illustrate all of the documentation or details available in the individual's domain in case of an increase form effective and cheaper. That won't be giving you any chance of an increase in price.What would be the marginal and average tax rates for a corporation with an income level of $100,000?
Answer:
Marginal tax rate = 34%
Average tax rate = 22.25%
Explanation:
The marginal tax rate is the rate of tax income earners incur on each additional dollar of income. As the marginal tax rate increases, the taxpayer ends up with less money per dollar earned than he or she had retained on previously earned dollars.
DATA
Income level = 100,000
Corporation Tax rates
0-50,000 = 15%
50,000 - 75,000 = 25%
75,000 - 100,000 = 34%
Marginal tax rate = 34%
Solution
Income tax owed = (15% x 50000)+(25% x 25000)+(34%*25000)
Income tax owed = 22,250
Average tax rate = 22,250/100000
Average tax rate = 22.25%
What is the differential revenue from the acceptance of the offer? a. $300,000 b. $420,000 c. $120,000 d. $240,000
Answer:
a. $300,000
Explanation:
Calculation
Calculation for the differential revenue from the acceptance of the offer
Using this formula
Differential revenue= Units of offer received× Amount per unit
Let plug in the formula
Differential revenue=20,000 units× $15 per unit
Differential revenue=$300,000
Therefore the differential revenue from the acceptance of the offer will be $300,00
In a periodic inventory system, the entry at the time of a sale to record the cost of inventory sold includes a:
Answer:
Debit : Cost of Sales and Credit : Inventory
Explanation:
The periodic method recalculates the value of goods held after each and every transaction made involving inventories.
Inventory records are updated electronically to record the sale by reducing the inventory balance (a credit entry) and increasing the cost of sale (debit entry)
Taylor's Theory of Scientific Management proposes that time and motion studies can determine the most time-efficient way to do a job.
A. True
B. False
Answer:
True
Explanation:
Taylor's time and motion studies is premised on the fact that certain people work efficiently when compared to others. This study is as a result of experiments carried out by him inorder to know the optimal performance of workers. He came to a conclusion that an important part of workplace efficiency is for managers to select and hire the right people for a job - people who work efficiently more than others, i.e people who are more productive when compared to others.
Starbucks reports net income for 2015 of $2,634.4 million. Its stockholders' equity is $5,605 million and $6,151 million for 2014 and 2015, respectively. Required:a. Compute its return on equity for 2015. b. Starbucks repurchased over $1.4 billion of its common stock in 2015. Did this repurchase increase or decrease Starbucks’ ROE? 1. ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). 2. ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity). 3. ROE usually increases since the repurchase of shares increases the denominator (avg. stockholders' equity). 4. ROE usually decreases since the repurchase of shares increases the denominator (avg. stockholders' equity). c. If Starbucks had not repurchased common stock in 2015, what would ROE have been?
Answer:
a) return on equity (ROE) = net income / average shareholders' equity
average shareholders' equity = ($5,605 + $6,151) / 2 = $5,878
ROE for 2015 = $2,634.4 / $5,878 = 44.82%
b) 2. ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity).
This is simple math, e.g. 1/2 > 1/3, if stockholders' equity decreases, while net income remains the same, ROE will increase.
Andrews Corp. ended the year carrying $89,674,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.? Select: 1Save Answer $137,558,000 $25,156,000 $174,698,660 $89,674,000
Answer:
$89,674,000
Explanation:
As it is mentioned that the inventory cost is already incurred in the last year so in this case the cost price would be zero and the same price should be equivalent to the closing value of the inventory i.e. carrying value of $89,674,000 and hence the same is to be considered
Therefore the last option is correct