Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current
period.
| Units | Unit Cost | |
|---|---|---|
| Beginning Inventory | 100 | $ 26 |
| Purchases: #1 | 650 | 22 |
| #2 | 550 | 18 |
| #3 | 200 | 16 |
Ending inventory is 350 units. Compute the ending inventory and the
cost of goods sold for the current period using (a) first-in, first
out, (b) average cost, and (c) last-in, first out.
| (a) First-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (b) Average cost | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (c) Last-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
In: Accounting
Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current
period.
| Units | Unit Cost | |
|---|---|---|
| Beginning Inventory | 100 | $ 46 |
| Purchases: #1 | 650 | 42 |
| #2 | 550 | 38 |
| #3 | 200 | 36 |
Ending inventory is 350 units. Compute the ending inventory and the
cost of goods sold for the current period using (a) first-in, first
out, (b) average cost, and (c) last-in, first out.
| (a) First-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (b) Average cost | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (c) Last-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
In: Accounting
Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current
period.
| Units | Unit Cost | |
|---|---|---|
| Beginning Inventory | 100 | $ 46 |
| Purchases: #1 | 650 | 42 |
| #2 | 550 | 38 |
| #3 | 200 | 36 |
Ending inventory is 350 units. Compute the ending inventory and the
cost of goods sold for the current period using (a) first-in, first
out, (b) average cost, and (c) last-in, first out.
| (a) First-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (b) Average cost | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (c) Last-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
In: Accounting
At a price of $7.75 per ticket, a musical theater group can fill every seat in their 1800 seat performance hall. For every additional dollar charged for admission, the number of tickets sold drops by 100.
a) What ticket price maximizes revenue? Round your answer to the
nearest cent.
price = $
equation editor
b) How many seats are sold at that price? Round your answer to the
nearest whole number.
number of seats sold =
equation editor
In: Math
Looner Industries is currently analyzing the purchase of a new machine that costs $165,000
and requires $19,800in installation costs. Purchase of this machine is expected to result in an increase in net working capital of $30,400to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (see the table
LOADING...for the applicable depreciation percentages) and expects to sell the machine to net
$10,400 before taxes at the end of its usable life. The firm is subject to a 40 % tax rate.
|
Rounded Depreciation Percentages by Recovery Year Using MACRS
for First Four Property Classes |
||||
| Percentage by recovery year* | ||||
| Recovery year | 3 years | 5 years | 7 years | 10 years |
| 1 | 33% | 20% | 14% | 10% |
| 2 | 45% | 32% | 25% | 18% |
| 3 | 15% | 19% | 18% | 14% |
| 4 | 7% | 12% | 12% | 12% |
| 5 | 12% | 9% | 9% | |
| 6 | 5% | 9% | 8% | |
| 7 | 9% | 7% | ||
| 8 | 4% | 6% | ||
| 9 | 6% | |||
| 10 | 6% | |||
| 11 | 4% | |||
| Totals | 100% | 100% | 100% | 100% |
a. Calculate the terminal cash flow for a usable life of (1) 3 years, (2) 5 years, and (3) 7 years.
b. Discuss the effect of usable life on terminal cash flows using your findings in part a.
assuming a 5-year usable life, calculate the terminal cash flow if the machine were sold to net (1) $9,240
or (2) $170,500(before taxes) at the end of 5 years.
d. Discuss the effect of sale price on terminal cash flow using your findings in part c.
In: Finance
Terminal cash- Various lives and sale prices. Looner Industries is currently analyzing the purchase of a new machine that cost. $164,000 and requires $19,800
in installation costs. Purchase of this machine is expected to result in an increase in net working capital of $30,100 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period .for the applicable depreciation percentages) and expects to sell the machine to net $10,300 before taxes at the end of its usable life. The firm is subject to a 40 % tax rate.
a. Calculate the terminal cash flow for a usable life of (1) 3 years, (2) 5 years, and (3) 7 years.
b. Discuss the effect of usable life on terminal cash flows using your findings in part a.
c. Assuming a 5-year usable life, calculate the terminal cash flow if the machine were sold to net (1) $9,190 or (2) $169,600 (before taxes) at the end of 5 years.
d. Discuss the effect of sale price on terminal cash flow using your findings in part c.
|
Rounded Depreciation Percentages by Recovery Year Using MACRS
for First Four Property Classes |
||||
| Percentage by recovery year* | ||||
| Recovery year | 3 years | 5 years | 7 years | 10 years |
| 1 | 33% | 20% | 14% | 10% |
| 2 | 45% | 32% | 25% | 18% |
| 3 | 15% | 19% | 18% | 14% |
| 4 | 7% | 12% | 12% | 12% |
| 5 | 12% | 9% | 9% | |
| 6 | 5% | 9% | 8% | |
| 7 | 9% | 7% | ||
| 8 | 4% | 6% | ||
| 9 | 6% | |||
| 10 | 6% | |||
| 11 | 4% | |||
| Totals | 100% | 100% | 100% | 100% |
In: Finance
1. The representative consumer (the consumer that his basket of goods is the same as the "average" basket consumed by city dwellers) consumes two goods: Apple and oranges. The price of oranges is 1 dollar per unit and the price of apples is 2 dollars per unit. In year 1 the representative consumer consumed 10 units of oranges and 10 units of apples. The basket in year 1 is used to compute the CPI.
(a) In year 2 the price of oranges went up to 1.1 dollars per unit and the price of apples went up to 2.2 dollars per unit. What is the percentage change in the consumer price index (CPI)?
(b) Assume that income went up in year 2 and the income of the representative consumer is equal to the price of the basket that the consumer bought in year 1. What is the basket that is chosen by the representative consumer in year 2?
(c) Compare the welfare of the consumer in year 2 to his welfare in year 1.
2. Answer question 1 under the assumption that in year 2 the price of oranges went up to 1.2 dollars per unit but the price of apples did not change.
(a) What is the percentage change in the consumer price index (CPI)?
(b) Assume that the income of the representative consumer in year 2 is equal to the price of the basket that the consumer bought in year 1. Compare the basket chosen in year 2 to the basket chosen in year 1.
(c) Compare welfare in year 2 to welfare in year 1.
3. A consumer lives for two periods. His income in period 1 is !Y1 and his income in period 2 is Y . The consumer is free to lend and borrow at zero interest rate ( r =0
!
(a) What is the price of consumption in period 1 in terms of consumption in period 2? (How many units of period 2 consumption must the consumer give up to get an additional unit of consumption in period 1)?
(b) What is the maximum consumption that the consumer can have in the first period?
(c) Draw the budget constraint. In your graph have the endowment point, the slope and the intersections with the horizontal axis and with the vertical axis.
! 2 and!R=1+r=1).!Y1 =Y2 =10.
(d) The government introduces a tax of !T1 =5 in the first period. Use the graph in (c) to show the change in the budget line.
(e) How will the tax effect the consumer's consumption in the first period? How will it effect the consumer's consumption in the second period? (Assume that both goods are normal).
(f) Will the consumption in the first period change by more than 5 units? Why?
(g) Assume now that the government decides to impose the tax in the second period rather than the first. Will this change the budget line? Will this change the choice of consumption?
(h) Assume that initially government spending was zero in both periods. Then the government increased its spending in the first period to G =5 and financed it by
!
taxes of 5 units in the first period. What will happen to national
savings? Explain.
4. Answer question 3 under the assumption that !r =0.1 (and !R =1.1 ). To simplify the calculations assume: Y =Y =11 . The questions are repeated here with slight
changes.
!1 2
(a) What is the price of consumption in period 1 in terms of consumption in period 2? (How many units of period 2 consumption must the consumer give up to get an additional unit of consumption in period 1)?
(b) What is the maximum consumption that the consumer can have in the first period?
(c) Draw the budget constraint. In your graph have the endowment point, the slope and the intersections with the horizontal axis and with the vertical axis.
(d) The government introduces a tax of !T1 =5 in the first period. Use the graph in (c) to show the change in the budget line.
(e) How will the tax effect the consumer's consumption in the first period? How will it effect the consumer's consumption in the second period? (Assume that both goods are normal).
(f) Will the consumption in the first period change by more than 5 units? Why?
(g) Assume now that the government decides to impose the tax in the second period rather than the first. Will this change the budget line? Will this change the choice of consumption? (Hint: the tax remains 5 units and not 5.5)
(h) Assume that initially government spending was zero in both periods. Then the government increased its spending in the first period to G =5 and financed it by
!
taxes of 5 units in the first period. What will happen to national
savings? Explain.
In: Economics
Complete the following code segment that is intended to extract the Dirham and fils values from a price given as a floating-point value; for example, a price 2.95 yields values 2 and 95 for the dirham and fils. as per the following description:
Assign the price to an integer variable named dirham to get the dirhmas part of the price
Subtract dirham from price then multiply the difference by 100 and add 0.5
Assign the result to an integer variable named fils
Display both of dirham and fils values each in a separate line
In: Computer Science
Question 8
A non – dividend – paying stock with a current price of £104, the strike price is £100, the volatility is 30% pa, the risk-free interest rate is 12% pa, and the time to maturity is 3 months?
a) Calculate the price of a call option on this stock?
b) Calculate the price of a put option price on this stock?
c) Is the put-call parity of these options hold?
If possible, please provide a detailed step by step and include an explanation as I would like to fully understand and not just copy answers. Thank you :)
In: Finance
BXP is currently trading at $91/share. You bought 6 CALL-option contracts on BXP with a strike price of $90 for $4.0 each and sold 6 CALL-option contracts on BXP with a strike price of $100 for $2.0 each.
a. What will be your total $ and % gain/loss if BXP price is $102 at the expiration date?
b. What will be your total $ and % gain/loss if BXP price is $85 at the expiration date?
c. What will be your total $ and % gain/loss if BXP price is $94 at the expiration date?
In: Finance