Answer:
c) 3.28.
Explanation:
Computation for the company's inventory turnover for Year 2.
Using this formula
Inventory Turnover = Cost of Goods Sold / Average Inventory
Let plug in the formula
Inventory Turnover=$390,000/[($121,000+ $117,000)/2]
Inventory Turnover=$390,000/$238,000/2
Inventory Turnover=$390,000/119,000
Inventory Turnover=3.277
Inventory Turnover= 3.28 (Appropriately)
Therefore the company's inventory turnover for Year 2 is 3.28
Answer:
$730,000
Explanation:
In the given question, the building was purchased and it repairs also. Plus, annual taxes are applicable to the property. The current market value and the book value of the building is also given in the question
For including the amount in the initial cash flow for the building project we consider the current market value of the building i.e $730,000. No other cost should be recognized
Answer:
Option (d) is correct.
Explanation:
P0 = D1 ÷ (ke - g)
Where,
P0 is the price = ?
Currently dividend paid, D0 = $1.62 a share
ke is the required return = 15.70%
g is the growth rate = 2.10%
D1 is the dividend at end of year:
= D0 × (1 + g)
= $1.62 × (1 + 0.021)
= $1.62 × 1.021
= $1.65402
Therefore,
P0 = 1.65402 ÷ (15.7% - 2.1%)
= 1.65402 ÷ (13.6%)
= $12.16
Therefore, the price of one share of this stock is $12.16
The answer is net income
Net income is the amount of capital that the Company's made during an operational year after all relevant expenses have already been deducted.
Some amount of the net income will be shared to shareholders according to the percentage, and some of it will be put in company's capital to expand the operation.
