Questions
For each of the following, calculate the cost of inventory reported on the balance sheet. (a)...

For each of the following, calculate the cost of inventory reported on the balance sheet.

(a) The total inventory on hand at the end of the year as determined by taking a physical inventory is $62,000.  Of the $62,000, $8,000 has been sold FOB destination and is awaiting pickup by the carrier.
(b) The total inventory counted at the end of the year was $63,000. Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms.
(c) The total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms.

In: Accounting

Discuss the various components that are included in the cost of an EHR. Give a list...

Discuss the various components that are included in the cost of an EHR. Give a list and description of each.

In: Operations Management

How to estimate the DCF cost of equity if dividends are not growing at a constant...

How to estimate the DCF cost of equity if dividends are not growing at a constant rate? (detailed explanation needed)

I found short answer on Internet for this as: "We will find the PV of the dividends during the nonconstant growth period and add this value to the PV of the series of inflows when growth is assumed to become constant. " But I'm looking for a detailed explanation.

In: Finance

What are flotation costs and why they must be included in the initial cost of a...

  1. What are flotation costs and why they must be included in the initial cost of a project? Explain in detail.

2. Tell me the differences between the standard deviation and beta in the measurement of risk in the capital market.

In: Finance

Explain effectiveness of Cost Model Data Set in your examples.

Explain effectiveness of Cost Model Data Set in your examples.

In: Advanced Math

Can increasing revenue overcome an increase in the percentage of food cost?

Can increasing revenue overcome an increase in the percentage of food cost?

In: Finance

Discuss the three common methods for allocating joint product cost.

Discuss the three common methods for allocating joint product cost.

In: Accounting

A residence was constructed in 1986 for $72,000 on a lot that cost $14,000. Before the...

A residence was constructed in 1986 for $72,000 on a lot that cost $14,000. Before the property was converted to rental use in the current year, a finished porch costing $8,000 was added and a $3,000 casualty loss was claimed. If the fair market value on the date of conversion to rental use was $84,000 ($74,000 for the house and $10,000 allocated for the land), what is the depreciable basis?

  • A.$84,000
  • B.$74,000
  • C.$72,000
  • D.$77,000

During the current year, Liquid Corporation, a calendar-year taxpayer, purchased and placed in service the following assets on the following dates:

Machine

$   6,400

February 1

Truck

20,000

October 15

Computer

8,000

December 1

The three assets are all 5-year property under MACRS. The Sec. 179 and bonus depreciation deductions were not elected. What is Liquid’s depreciation deduction?

  • A.$1,720
  • B.$3,440
  • C.$6,880
  • D.$3,640

In: Accounting

how you would measure the cost of equity for investment projects.

how you would measure the cost of equity for investment projects.

In: Finance

​(Individual or component costs of capital​) Compute the cost of the​ following: a. A bond that...

​(Individual or component costs of capital​) Compute the cost of the​ following:
a. A bond that has ​$1,000 par value​ (face value) and a contract or coupon interest rate of 6 percent. A new issue would have a floatation cost of 7percent of the ​$1,130 market value. The bonds mature in 6 years. The​ firm's average tax rate is 30 percent and its marginal tax rate is 36 percent.
b. A new common stock issue that paid a ​$1.80 dividend last year. The par value of the stock is​ $15, and earnings per share have grown at a rate of 9 percent per year. This growth rate is expected to continue into the foreseeable future. The company maintains a constant​ dividend-earnings ratio of 30 percent. The price of this stock is now ​$32​, but 8 percent flotation costs are anticipated.
c. Internal common equity when the current market price of the common stock is ​$49. The expected dividend this coming year should be ​$3.50​, increasing thereafter at an annual growth rate of 9 percent. The​ corporation's tax rate is 36 percent.
d. A preferred stock paying a dividend of 9 percent on a ​$140 par value. If a new issue is​ offered, flotation costs will be 14 percent of the current price of ​$175.
e. A bond selling to yield 9 percent after flotation​ costs, but before adjusting for the marginal corporate tax rate of 36 percent. In other​ words, 9 percent is the rate that equates the net proceeds from the bond with the present value of the future cash flows​ (principal and​ interest).

a. What is the firm's after-tax cost of debt on the bond?

____% (Round to two decimal places)

b. What is the cost of external common equity?

____% (round to two decimal places)

c. What is the cost of internal common equity?

____% (Round to two decimal places)

d. What is the cost of capital for the preferred stock?

____%

e. What is the after-tax cost of debt on the bond?

____%

In: Finance