Answer:
$0.6 per pounds
Explanation:
The computation of the standard unit materials cost per pound is shown below:-
Whole Tomatoes = 5,000 × $0.75
= $3,750
Vinegar = 350 × 0.90
= $315
Corn syrup = 40 × 7.50
= $300
Salt = 125 × 1.80
= $225
Total cost = Whole Tomatoes + Vinegar + Corn syrup + Salt
= $3750 + $315 + $300 + $225
= $4,590
Standard Unit Materials cost per pound = Total cost ÷ ketchup pounds
= $4,590 ÷ 7,650 pounds
= $0.6 per pounds
Answer:
10.88%
Explanation:
The computation of the weighted average cost of capital is shown below:
But before that first we have to determine the after tax cost of debt and the total value which is shown below:
After tax cost of debt is
=7% × (1 - tax rate)
= 7% × (1 - 0.3)
= 4.9%
And,
Total value is
= $250,000 + $50,000 + $750,000
= $1,050,000
Now WACC is
WACC = Respective costs × Respective weights
= ($250,000 ÷ 1050000 × 4.9%) + ($50,000 ÷ $1,050,000 × 9)+($750,000 ÷ $1,050,000 × 13%)
= 10.88%
We simply applied the above formula
Answer:
Barkley Company
Change of Useful Life of Equipment:
Depreciation calculation should now be based on 7 years (10 - 3).
Explanation:
The useful life of an asset is an accounting estimate of the number of years it is likely to remain in service for the purpose of generating cost-effective revenue for the entity.
As an estimate, it is based on judgement, and can be changed to reflect reality. When a change in the useful life is considered necessary, the new useful life is determined and the number of years the asset had been used is subtracted from the new estimated useful life to determine the remaining useful life of the asset. This remaining useful life is now used to calculate the depreciation expense.
Assuming the entity uses the straight-line method, the book value less salvage value, if any, is divided by the new useful life to determine the depreciation charge for each remaining year.
Answer:
Value of the company = $124,019.61
Explanation:
<em>The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return. </em>
<em>In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity</em>.
The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.
And the value of the company would be determined as follows
Value of the company = Earnings after tax/Cost of equity
Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975
Cost of equity = 15.3%
Value of the company = 18975
/0.153= 124,019.6078
Value of the company = $124,019.61
