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2 years ago

Romeo Corporation reports the following for the year:

Business

1 answer:

Wewaii [24]2 years ago

3 0

Answer:

C. $15,000

Explanation:

Given that

Finished goods inventory, January 1 $ 3,200

Finished goods inventory, December 31 4,000

Total cost of goods sold 14,200

So the cost of goods manufactured is

As we know that

Cost of goods sold = Opening balance of finished goods + Cost of goods manufactured - ending balance of finished goods

$14,200 = $3,200 + Cost of goods manufactured - $4,000

So, the cost of goods manufactured is $15,000

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Firm X has declared a stock dividend that pays one share of stock for every five shares owned. After the stock dividend, earning

attashe74 [19]

Answer:

Option (b) Decline 20%

Explanation:

Data provided in the question:

Firm X has declared a stock dividend that pays one share of stock for every five shares owned

Therefore,

The increase in number of shares

= [ 1 ÷ 5 ] × 100%

= 20%

Thus,

The earnings per share will decrease by the amount of increase in number of shares i.e decrease by 20%

Hence,

Option (b) Decline 20%

8 0

2 years ago

In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 pe

garik1379 [7]

Answer:

What is the growth rate of nominal GDP?

the inflation rate?

the real interest rate?

Explanation:

money supply × velocity of money = price level × real GDP = nominal GDP

since velocity of money is constant, any change in the money supply will result in an equal change in nominal GDP. Since the money supply grows by 8%, the nominal GDP also grows at 8%

growth rate of the money supply + growth rate of the velocity of money = inflation rate + real GDP growth rate

8% + 0 = inflation rate + 3%

inflation rate = 8% - 3% = 5%

real interest rate = nominal interest rate - inflation rate

real interest rate = 9% - 5% = 4%

6 0

2 years ago

Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.) Indicate whether the variance is

ANTONII [103]

Answer:

The dollar variance is -$100.

The percent variance is -20%.

Since the actual income is less than the budgeted income, the variance is unfavorable (U).

We calculate Dollar Variance as : $Actual Amount - Budgeted Income$

$Dollar Variance = 400 - 500 = 100$

Next, we calculate percent variance as :

$Percent variance = \frac{Dollar Variance}{Budgeted Income} *100$

Plugging the values in we get,

$Percent Variance = \frac{-100}{500} *100$

Percent Variance = -20%

6 0

2 years ago

Which financing option has the highest overall costs?

katrin2010 [14]

<u>Equity financing has the highest overall cost. </u>

Further Explanation:

The financing options that are available to the company are equity and debt. Equity Financing refers to the issue of equity shares to the public. Debt refers to the loan taken by the company from the public or any financial institutions. The equity shareholders have the right to vote in general meetings while the debt holder does not have any such rights.

The equity shareholders are also entitled to receive dividends while debt holders are entitled to receive the interest regardless of whether the company is having a profit or not. The interest paid to debt-holders is deducted from the net profit before any tax is charged. The interest reduces the taxable income while the dividend is calculated on net profit after tax. Thus, the cost of using debt finance is lower as the amount which is paid as the interest is charged against the tax.

<u>Therefore, Equity financing involves a higher cost than Debt financing. </u>

Learn more:

1. Learn more about raising the equity

brainly.com/question/7854996

2. Learn more about the problem related to equity theory

brainly.com/question/3771927

3. Learn more about the short-term financial goals

brainly.com/question/2451748

Answer details:

Grade: Senior School

Subject: Financial Management

Chapter: Cost of Capital

Keywords: Equity financing, the highest overall cost, debt financing, financing options, capital, business, shareholder’s fund, loan, financial management, raise, issue.

4 0

2 years ago

Read 2 more answers

Emerald Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the s

Inessa05 [86]

Answer:

a) Sales volume variance = $1496000 unfavorable

flexible-budget variance = $192000 favorable

b) For direct materials

Price variance = `$135000 unfavorable

efficiency variances = $527920 favorable

For direct manufacturing labor

Price variance = `$36600 unfavorable

efficiency variances = $914815 favorable

Explanation:

a) Sales volume variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit = (4800 - 7000) × $680 = $1496000 unfavorable

flexible-budget variance = (Actual price - Budgeted price) x Actual units sold= ($720 - $680) × 4800 = $192000 favorable

b) For direct materials

Price variance = (Actual cost - standard cost) x Actual quantity of units purchased = ($5.95/ pound - $8/pound) × 66000 pound= `$135000 unfavorable

efficiency variances = (Actual unit - Standard unit) x Standard cost per unit = (66000 pound - 10 pound) × $8 per pound= $527920 favorable

For direct manufacturing labor

Price variance = (Actual cost - standard cost) x Actual hours = ($48/hour - $50/hour) × 18300 hours = `$36600 unfavorable

efficiency variances = (Actual hours - Standard hours) x Standard cost per hour= (18300 hour - 3.7 hour) × $50/hour = $914815 favorable

4 0

2 years ago