Answer:
The BCWS is also known as Planned Value (PV).
So, in this way, <em>PV = 3.125.000</em>
Explanation:
With the data we can obtain the PV as follows:
First, let's calculate EV as EV = CV + AC.
EV = -500.000 + 4.000.000 = <em>3.500.000</em>
After this, we can calculate PV with this formula: SPI = EV/PV
PV = EV/SPI
PV = 3.500.000/1.12 = <em>3.125.000</em>
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<em>We can conclude, with these results, that the project actually is forward about the schedule but with an overcost about the budget. In other words, the project advance must be 41% but now is on 36% due to the negative variance on the costs (CV).</em>
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Answer:
January 1, 2021, building purchased
Dr Building 420,000
Cr Cash 100,000
Cr Notes payable 320,000
Explanation:
The building account (asset) must be recorded at the purchase cost. The mortgage is considered a note payable (long term liability), while the cash account (asset) decreases, therefore, it must be credited.
Answer:
Increasing total sales by targeting more customers
Explanation:
When a company has a product that can satisfy various segments of customers, they will target as many customers as possible.
This will increase the number of sales that the company makes and in turn will increase revenue.
Targeting a wider customer base is the strategy being used by In-N-Out Burger. They decided to target both the college student community and the artisan build-your-own burger segment.
This startegy can however be more expensive if different advertisements are required to target different segments. Promotion expense will increase.
Answer:
yield to maturity = 7.06%
Explanation:
yield to maturity (YTM) is calculated using the following formula:
YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]
- FV = $2,000
- PV = $1,902.14
- C = $2,000 x 6.48% x 1/2 = $64.80
- n = 12 x 2 = 24
YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually
Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.
Answer:
True
Explanation:
LIFO is in fact, only allowed to be used in the United States, because under the new IFRS (International Financial Reporting Standards), the used of LIFO has been prohibited.
The reason for this, is that LIFO inflates the value of inventory, because the (usually) lower cost of old inventory is what is reported.
This is why companies using LIFO are obliged to report the hypothetical value of the inventories had they used FIFO.
