Valley Markets has an inventory turnover of 3.2 versus an industry average of 3.5 and a capital intensity ratio of 1.9 versus an
1 answer:
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Answer:
Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.
Explanation:
Step 1 of 2
Calculate the amount of factoring fee.
Factoring fee = 5% ×Account Receivable
=5%×$75,000
=$3,750
Step 2 of 2. Journey record. Image attached.
Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.
Answer:
The right solution is "600000".
Explanation:
The given values are:
Cost of office furniture,
= $100,000
Cost of the computer system,
= $500,000
- The changed MACRS enables a company to reduce the mortgage balance of such deteriorating properties over time.
- Throughout the very first years, MACRS permits quicker depreciation although subsequently slows down depriving. This seems to be fantastic for corporations from a tax point of view.
Now,
The cost recovery deduction will be:
=
On substituting the values, we get
=
=
Answer:
a) 275,000 boxed per year
b) sales price of $ 11.04
c) <em> sale volume in dollars 4.830.967,74</em>
Explanation:
selling price: $ 9.60
Variable cost: $<u> 5.76</u>
Contribution: $ 3.84
Contribution Ratio: 3.84 / 9.60 = 40%
1,056,000 / 3.84 = <em>275,000</em>
<em />
<em>If Variable cost increase by 15%</em>
<em>To keep contribution ratio at 40% then selling price should be:</em>
(<em>X - 5.76 x 1.15) / X = 0.40</em>
<em>X = $ 11.04</em>
To keep the same income but without changing price:
current income: (sales x contribution less fixed cost)
(390,000 x 3.84 - 1,056,000) = 441,600
contribution: <em>(9.60 - 5.76 x 1.15) / 9.60 = 0.31</em>
<em>(1,056,000 + 441,600)/ 0.31 = </em>
<em>1.497.600 / 0.31 =</em><em> 4.830.967,74</em>