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statuscvo [17]
1 year ago
11

The change in inventory value was created purely by accounting and exchange rate factors, because the subsidiary still has the s

ame inventory and assets in place. However, this change would affect Streep’s consolidated financial statements and ratios. Assuming no other changes occurred, what effect would this have on Streep’s current ratio?
Business
1 answer:
Alik [6]1 year ago
3 0

Answer:

It would decrease by $7,504.

Explanation:

The current ratio determines liquidity of a company. The current ratio is calculated by dividing total current assets from total current liabilities. The change in inventory will affect the current ratio of the company. In the consolidated financial statements the value of inventory is decreased due to exchange rate fluctuations. The change in value of inventory will affect the amount reported in the balance sheet of the parent and will ultimately result in reduction of current ratio.

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A recent income statement of McClennon Corporation reported the following data:
arsen [322]

Answer:

The correct answer is option b.

Explanation:

The number of units of output sold is 8,000 .

The sales revenue is $9,600,000 .

The variable costs are $6,000,000 .

The fixed costs are $2,600,000.

The price of the product

= \frac{Sales\ Revenue}{Q}

= \frac{9,600,000}{8,000}

= $1,200

The average variable cost is

= \frac{TVC}{Q}

= \frac{6,000,000}{8,000}

= $750

Profit =  TR - TC

Profit = Price\ \times\ Q - (AVC\ \times\ Q )\ +\ TFC)

$1,270,000 = $1,200Q - $750Q - $2,600,000

$3,870,000 = $450Q

Q = \frac{3,870,000}{450}

Q = 8,600 units

7 0
1 year ago
Which of the following suggestions for integrating graphics in a report is the most accurate?
Marat540 [252]

Answer: B. Mention the graphic in the text of the report.

The text of the report should describe or discuss the justifications of the graphics.

Explanation:

Graphics should be included inside the report, rather than only in the appendix, if they are important for discussions and presentations in the report.

Graphics can be created in colors in the report, especially if the reports are to be printed in colors version. However, if the report is to be printed in black and white only, the graphics should also be in black and white only so that the printing resolution is clear.

Titles of the graphs, x-axis and y-axis, together with the range should be clearer shown together with the graphics for the readers' understanding.

3 0
1 year ago
Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad
Paul [167]

Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

                           =$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

                              =$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

3 0
2 years ago
Whispering Corporation had income from continuing operations of $10,775,400 in 2020. During 2020, it disposed of its restaurant
pantera1 [17]

Answer:

                                   Whispering Corporation

                             Partial income statement for 2020

Income from continuing operations                           $10,775,400

Income from discontinuing operation:

Division operated loss                             ($321,500)

Division disposal Loss                            <u> ($200,100) </u>

                                                                                    <u>($521,600)</u>

Net Income                                                                  $<u>10,253,800</u>

8 0
2 years ago
Knowledge Check 01 Which of the following statements about valuation allowances are true? (Select all that apply.) Check All Tha
Alina [70]

Answer:

• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.

• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.

Explanation:

A deferred tax asset occurs when taxes are either been overpaid or there's an advance payment for them. In this scenario, they're not yet acknowledged in the income statement.

Valuation allowance is a reserve used by a business to offset the deferred tax asset. The statements that are true about the valuation allowance are:

• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.

• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.

7 0
2 years ago
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