The Valenti Company uses flexible budgeting for cost control. Valenti produced 10,800 units of product during October, incurring
1 answer:
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Answer:
Average annual rate of return should Louis expect to earn over the next four years is 10.7%
Explanation:
The formula we are going o use is:
Where:
R is the number of years over which Louis expect to earn.
N is the number of years of average arithmetic return.
i_{g} is the average geometric return=10.50%=0.105.
i_{a} is the average arithmetic return =11%=0.11.
Solution:
Average annual rate of return should Louis expect to earn over the next four years is 10.7%
Answer:
$3,115,770
Explanation:
Given:
Current ratio = 3.60
Current liabilities = $401, 000
Quick ratio = 1.50
Inventory turnover = 3.70
Current ratio is calculated by dividing your current assets by your current liabilities.
Current Assets = 3.60 × 401,000
= $1,443,600
1.50 × 401,000 = 1,443,600 - Inventory
601,500 = 1,443,600 - Inventory
Inventory = 1,443,600 - 601,500
= $842,100
Cost of Goods Sold = 3.70 × 842,100
= $3,115,770