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 and description of each.
In: Operations Management
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
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.
In: Advanced Math
Can increasing revenue overcome an increase in the percentage of food cost?
In: Finance
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 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?
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?
In: Accounting
In: Finance
(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