Williams & Sons last year reported sales of $45 million, cost of goods sold (COGS) of $35 million, and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 7 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 million should be entered as 1,230,000,000. Round your answer to the nearest dollar.

Answers

Answer 1

This reduction in inventory leads to a freeing up of $2,000,000 cash.

Given, Williams & Sons reported sales of $45 million, COGS of $35 million, and an inventory turnover ratio of 5.

The inventory turnover ratio is the number of times the inventory is sold and replaced over a particular period.

Thus, the formula for inventory turnover is:

Inventory turnover = COGS / Average inventory

Therefore, Williams & Sons' average inventory = COGS / Inventory turnover

= $35 million / 5

= $7 million

If the inventory turnover ratio increases to 7, the new average inventory would be:

New average inventory

= $35 million / 7

= $5 million

Therefore, by reducing inventory levels, Williams & Sons would free up:

Change in inventory = Old inventory - New inventory

= $7 million - $5 million

= $2 million

This reduction in inventory leads to a freeing up of $2,000,000 cash.

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Related Questions

Activity: Critical Thinking Questions

1. Research is clear that charismatic power is the most impactful for a manager. Make your case for which of the other four is most useful.

2. The manager needs to create a safe environment and build credibility to get team members to follow them. What else should they do to elicit followership?

3. How can the leading function of management be leveraged within the context of Corporate Social Responsibility?

How to Answer the Critical Thinking Questions

For each of these answers you should provide three elements:

1. General Answer: Give a general response to what the question is asking or make you arguments to what the question is asking.

2. Outside Resource/s: Provide a quotation from a source outside of this textbook. This can be an academic article, news story, or popular press. This should be something that supports your argument. Use the sandwich technique explained below and cite your source in APA in text and then a list of full-text citations at the end of the homework assignment of all three sources used.

3. Personal Story: Provide a personal story that illustrates the point as well. This should be a personal experience you had, and not a hypothetical. Talk about a time from your personal, professional, family, or school life. Use the sandwich technique for this as well, which is explained below.

SANDWICH TECHNIQUE

Step 1: Provide a sentence that sets up your outside resource by answering who, what, when, or where this source is referring to.

Step 2: Provide the quoted material or story.

Step 3: Tell the reader why this is relevant to the argument you are making.

Please answer ALL and follow the instructions. Nonsense answer = Report ​

Answers

1. The most useful power for a manager depends on various factors, such as the specific situation, goals, and the personality and preferences of the manager.

2. To elicit followership, a manager should also:

Lead by example and demonstrate ethical and moral behaviorCommunicate a clear vision and set of goals for the teamProvide opportunities for growth and development for team membersFoster a positive and inclusive team cultureEmpower and delegate responsibilities to team members effectively

3. The leading function of management can be leveraged within the context of Corporate Social Responsibility by:

Communicating and implementing the organization's CSR goals and policies throughout the teamEncouraging and supporting team members to engage in CSR initiatives and volunteer workIntegrating CSR into the team's day-to-day operations and decision-making processesMeasuring and reporting on the team's impact and progress towards CSR goals.

What is Corporate social responsibility?

Corporate social responsibility is a type of international private business self-regulation that tries to support philanthropic, activist, or charitable societal goals by participating in or promoting volunteer work or morally upstanding behaviors.

Corporate social responsibility is a corporate strategy that involves a company's monitoring and assurance of compliance with legal, ethical, environmental, societal, national, and international norms.

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On the Debt Financing tab, which option should be selected in the "How Input" field to model a refinance?

Answers

Debt financing takes place when a company raises money by selling debt instruments to investors.

What is debt financing?

Your information is incomplete. Therefore, an overview of debt financing will be given. Debt financing simply occurs when a firm sells fixed income products, like bonds, bills, or notes.

Debt financing is the opposite of equity financing. The main advantage of debt financing is that the business owner doesn't give up any control of the business.

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What percentage of the world's intake of
calories is derived from plants?
A. 88%
B. 74%
C. 62%
D. 48%

Answers

Answer:

A

Explanation:

Just 15 crop plants provide 90 percent of the world's food energy intake, with three rice, maize and wheat - making up two-thirds of this.

Source: https://www.fao.org/3/u8480e/u8480e07.htm

What is a business opportunity?

Answers

Answer:

a packaged business investment that allows the buyer to begin a business.

Explanation:

does investing make you money

Answers

Answer:

YES IT DOES (My Mom's studying business)

Explanation:

The liberty of man in society is to be under no other legislative power but that established by consent in the commonwealth.

Answers

Answer: The liberty of man, in society, is to be under no other legislative power, but that established, by consent, in the commonwealth; nor under the dominion of any will, or restraint of any law, but what that legislative shall enact, according to the trust put in it.

Explanation:

What does health insurance cover? If you pass will they help with funeral cost?

Answers

Actually I’m pretty sure funeral insurance and health insurance are two totally separate types of insurance.

Answer:

Funeral or bereavement expenses aren't considered medical expenses and can't be paid for using funds from a Medical Savings Account plan. 

What decision did a London Court Reach In this case?

What decision did a London Court Reach In this case?
What decision did a London Court Reach In this case?

Answers

Answer:

A.

Explanation:

I did B from the person above and got it wrong and it said that A was the answer :)

Answer:

A. The writing of The Da Vinci Code did not violate copyright law.

Explanation:

Right on ED2021, goodluck!

Click this link to view O*NET’s Skills section for Accountants. Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are some common skills needed by Accountants? Check all that apply. mathematics reading comprehension equipment maintenance quality control analysis active listening writing

Answers

Answer:

mathematics reading comprehensionanalysis

Explanation:

Accountants work in the finance department of an organization. Their services are required in almost all sectors of the economy. Accountants revolve around keeping, updating, and interpreting financial records of a business.

Financial transactions are recorded and reported in numbers. Therefore accountants need to be good at mathematics.  They require analytical skills to interpret and evaluate financial information. Accountants also need reading and communication skills to work well with other departments.

Answer:

mathematics  

reading comprehension

active listening

writing

Price elasticity of demand is expressed as percentage change in ________ divided by the percentage change in ________. Multiple choice question. quantity demanded; total revenue total revenue; quantity demanded quantity demanded; price price; quantity demanded

Answers

Price elasticity of demand is expressed as percentage change in quantity demanded divided by the percentage change in price.

What is price elasticity?

It corresponds to the response of the demand for a product in relation to its price, that is, if the demand is elastic, the quantity of the demand will change, and if the demand is inelastic, the change in the price will not cause a change in the demand.

Therefore, the price elasticity of demand will depend on the type of product demanded and its characteristics and functionalities for the consumer, because even if the price of a good increases, there may be a range of consumers willing to pay the difference, thus not changing the demand.

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What would you like to know?

Answers

Why are we here. Just to suffer.

Answer:

I like these free points. Also Panic! At The Disco anyone?

Explanation:

On January 1, 2021, Hum Enterprises Inc. had 80,000 common shares, recorded at $560,000. The company follows IFRS. During the year, the following transactions occurred: Apr. Issued 4,000 common shares at $9 per share. June Declareda5\% stock dividend to shareholders of record on September 5, distributable on September 20 . 15 The shares were trading for $11 a share at this time. Sep. Announced a 1-for −2 reverse stock split. Shares were trading at $9 per share at the time. 21 . Nov. Issued 3,000 common shares at $20 per share. Dec. Repurchased 10,000 common shares for $18 per share. This was the first time Hum had repurchased its 20 own shares. Record each|the transactions, Keep a running balance of the average per share amount of the common shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round the average per share to three decimal places, e.g. 5.271 and final answers to 0 decimal places, e.g. 5.271.) Record the last transaction (Dec. 20) assuming the price to reacquire the shares was $13 per share. This is the first time Humhad repurchased its own shares. (Credit account tifles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round the average per share to three decimal places, e.g. 5.271 and final answers to 0 decimal places, e.g. 5.271.) Question Part Score −//3 Record the last transaction (Dec. 20) assuming the price to reacquire the shares was $16 per share. Also assume that Hum has a credit balance of $2,200 in its Contributed Surplus-Reacquisition of Common Shares account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter. O for the amounts. Round the average per share to three decimal places, e.g. 5.271 and final answers to 0 decimal places, e.g. 5,271).

Answers

Before recording each transaction, first of all, we need to calculate the average per share amount of common shares, which is done by dividing the total recorded amount of common shares by the number of common shares.

Average per share amount of common shares = $560,000 ÷ 80,000 shares= $7 per share Apr. Issued 4,000 common shares at $9 per share. Total recorded amount of common shares after the issuance = $560,000 + (4,000 shares × $9) = $596,000Total number of common shares after the issuance = 80,000 + 4,000 = 84,000Average per share amount of common shares after the issuance = $596,000 ÷ 84,000 shares = $7.095 per share. Cash: 4,000 shares × $9 = $36,000 Common shares: 4,000 shares × $9 = $36,000 June Declared a 5% stock dividend to shareholders of record on September 5, distributable on September 20. The shares were trading for $11 a share at this time. Total number of common shares after the stock dividend = 84,000 + (84,000 × 5%) = 88,200. Average per share amount of common shares after the stock dividend = $596,000 ÷ 88,200 shares = $6.758 per share. Stock dividend distributable: 84,000 shares × 5% = 4,200 shares. Common shares dividend distributable: 84,000 shares × 5% = 4,200 shares. Retained earnings: 4,200 shares × $11 × 5% = $2,310Sep. Announced a 1-for-2 reverse stock split. Shares were trading at $9 per share at the time. Total number of common shares after the reverse stock split = 88,200 ÷ 2 = 44,100 Average per share amount of common shares after the reverse stock split = $596,000 ÷ 44,100 shares = $13.510 per share. No entry required 21 Nov. Issued 3,000 common shares at $20 per share. Total recorded amount of common shares after the issuance = $596,000 + (3,000 shares × $20) = $656,000Total number of common shares after the issuance = 44,100 + 3,000 = 47,100. Average per share amount of common shares after the issuance = $656,000 ÷ 47,100 shares = $13.915 per share. Cash: 3,000 shares × $20 = $60,000. Common shares: 3,000 shares × $20 = $60,000Dec. Repurchased 10,000 common shares for $18 per share. This was the first time Hum had repurchased its own shares. Total number of common shares after the repurchase = 47,100 − 10,000 = 37,100Average per share amount of common shares after the repurchase = $656,000 ÷ 37,100 shares = $17.687 per share. Cash: 10,000 shares × $18 = $180,000Retained earnings: $656,000 − $560,000 − $180,000 = $−84,000 (Loss). No entry required. Record the last transaction (Dec. 20) assuming the price to reacquire the shares was $13 per share. This is the first time Hum had repurchased its own shares. The market price of the shares is $12 per share. Total number of common shares after the repurchase = 37,100 − 10,000 = 27,100Average per share amount of common shares after the repurchase = $469,200 ÷ 27,100 shares = $17.298 per share. Cash: 10,000 shares × $13 = $130,000. Contributed surplus – reacquisition of common shares: (10,000 shares × ($17.298 − $18)) + $2,200 = $−$38,980. Retained earnings: $469,200 − $560,000 − $130,000 − $38,980 = $−$259,780 (Loss)Note: Contributed surplus – reacquisition of common shares account is a new account that is used when a company repurchases its own shares.

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What is one disadvantage of using credit? A. It can be tempting to overspend. B. It is not convenient. C. It never offers special advantages. D. It is extremely difficult to find places that use credit.

Answers

Answer:

A. It can be tempting to overspend.

Explanation:

This spreadsheet was created to track the money different employees earned in bonuses. The creator used
numbers and formulas to make the document efficient so that it could change as the bonus amounts changed.


What is most likely appears in the formula bar when B6 is selected?
A $total
B $112
C=MAX(B2:B5)
D =AVERAGE(B2:B5)

This spreadsheet was created to track the money different employees earned in bonuses. The creator usednumbers

Answers

c sorry if i am wrong

The formula that most likely appear in the formula bar of the spreadsheet when B6 is selected is =AVERAGE(B2:B5). Thus, the correct answer is option (D).

What is a spreadsheet?

A spreadsheet is a computer programme for organizing, calculating, and storing data in tabular form. Spreadsheets were created as digital counterparts to traditional paper accounting spreadsheets.

The central tendency of a bunch of numbers in a statistical distribution—which is where the center is located—is measured by the AVERAGE function. The following are the top three central tendency measures:

Average: The arithmetic mean is determined by adding a collection of integers, dividing by their count, and then taking the result.The middle number in a set of numbers is called the median. The values of half the numbers are higher than the median while the values of the other half are lower than the median.The number that appears the most frequently among a set of numbers is the mode.

Therefore, option D is correct.

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Which of the following provides the best explanation for how consumer credit can exacerbate inequality?

Answers

Answer:

people with lower wealth and income may have less access to credit and pay higher interest rates when they are approved

Explanation:

Answer:the answer is A

Explanation:

people with lower wealth and incomes must scrifice more capacity and capital in order to acquire credit.

A person has income $1000 for goods F and S. The price of F is $4, and the price of S is $200. Which of the following bundles is in the opportunity/budget set (i.e., attainable)?
Select one:
a.
150 units of food, 3 units of shelter
b.
100 units of food, 10 units of shelter
c.
200 units of food, 2 units of shelter
d.
200 units of food, 1 unit of shelter
e.
250 units of F and 1 unit of shelter

Answers

The bundle that is attainable is option e. 250 units of F and 1 unit of shelter.

Option e is the only bundle that falls within the person's budget constraint. The person has an income of $1000, and the price of F is $4. Therefore, the person can afford a maximum of $1000/$4 = 250 units of F. Additionally, the person can afford 1 unit of shelter since its price is $200, which is within their budget.

Option a is not attainable because the person cannot afford 150 units of food and 3 units of shelter within their budget. Option b is also not attainable because the person cannot afford 100 units of food and 10 units of shelter. Option c exceeds the person's budget since they cannot afford 200 units of food and 2 units of shelter. Option d also exceeds the budget as the person cannot afford 200 units of food and 1 unit of shelter.

Therefore, the only option that falls within the person's budget constraint and is attainable is e. They can purchase 250 units of F and 1 unit of shelter.

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A child is riding the carousel at a county fair. The distance, d, in meters, that the child is from a fence is modeled by the trigonometric function d (t) = 4.5+ 2.5 sin (Ft), where t represents time, in seconds. Determine whether each statement regarding the graph of this function is true or false. Select True or False for each statement. Statement True False The period of the graph is 6. О. The amplitude of the graph is 5. o The midline of the graph is at 4.5. O o The y-intercept of the graph is at 4.5. O o The minimum value of the graph is 2.5. O O

Answers

Looking at the given trigonometric function, d(t) = 4.5 + 2.5 sin(Ft), we can make the following observations:

The coefficient of the sine function is 2.5, which represents the amplitude of the graph. Therefore, the statement "The amplitude of the graph is 5" is false since the amplitude is only 2.5.

The constant term in the function is 4.5, which represents the midline of the graph. Hence, the statement "The midline of the graph is at 4.5" is true.

The period of a sine function is given by p = 2π/F, where F is the coefficient of the independent variable (in this case t). So, for the given function, the period is p = 2π/F = 2π/1 = 2π seconds. However, the statement "The period of the graph is 6" is false because it's not equal to 2π.

The y-intercept of a function is the value of the dependent variable when the independent variable is zero. For the given function, when t=0, we have d(0) = 4.5 + 2.5sin(0) = 4.5. So, the statement "The y-intercept of the graph is at 4.5" is true.

Finally, the minimum value of a sine function is -A, where A is the amplitude. So, for the given function, the minimum value is -2.5. Therefore, the statement "The minimum value of the graph is 2.5" is false.

In conclusion, out of the five statements provided, three are false and two are true.

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Politically speaking, which party is more apt to engage in regulatory practices over the business?

Answers

In the United States polity, the political party that is likely to wield more regulatory practices over the business is the Democratic party.

Why should the Democratic Party be more rigorous with regulatory practices over the business?

The Republican Party is noted for its support of right-wing beliefs such as libertarianism, social conservatism, and economic libertarianism, among others. As a result, Republicans typically advocate for conservative values, little government intervention, and strong support for the private sector.

In contrast, the Democratic Party prefers a mixed economy and typically supports a progressive tax structure, increased minimum wages, Social Security, universal health care, public education, and subsidized housing. It also encourages infrastructure development and sustainable energy investments in order to spur economic growth and employment creation.

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what are some additional creative non-wage items that you think could be interesting to include in a contract? how could this be of benefit to the employee?

Answers

Some additional  non-creative wage items are Profit sharing and Employee stock ownership plan , Sincere thank you, Performance-Based Raises and Bonuses, Corporate Days Out etc.

How does an employee stock ownership plan operate?

Employees have the option of owning all or a portion of the company they work for through employee stock ownership plans, or ESOPs. Unless the shares are traded publicly at fair market value. Because of this, the trust normally pays the employee in cash the value of his or her shares.

Is an ESOP preferred to pay wages?

There are no discernible negative effects from receiving ESOPs in addition to at-market compensation. You run the risk of losing the value of the time and effort you have put in over the years if it is in exchange for a higher salary.

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What does indigenous technology mean?​

Answers

Answer: I hope this is helpful mark brainlist if right then no if wrong

Explanation:

Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.Technologies employed by the native inhabitants of a country and which constitute an important part of its cultural heritage and should therefore be protected against exploitation by industrialized countries; the problem of indigenous knowledge has been discussed during the Rio Conference but it does not receive much ...Types of indigenous technology in India are; (i) Generic Drugs. (ii) Thorium based Nuclear Reactors. (iii) Plastic RoadsIndigenous Technology is created within a sensory environment that builds on our sense of relationship, meaning, balance, feeling, memory and place as well as sight, sound, smell, taste and touchIndigenization is the process by which Indigenous ways of knowing, being, doing and relating are incorporated into educational, organizational, cultural and social structures of the institution.One example of Indigenous Technologies in action today can be witnessed in differential approaches to medicine. Medical technologies in the Western Scientific sense of the term might conjure images of biomedical research labs, electromagnetic monitors or imaging systems such as CT or MRI scans.Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.

Claire opened her own Starbucks franchise in her community. She is pleased with how quickly she was able to open her franchise and that she
was able to establish a good customer base from the start because of name recognition. However, since she started this business to be her
own boss, Claire is likely to

A. Invest in his own capital and national and local advertising programs
B. Take sole responsibility for all the decisions in the business
C. Embrace the franchisors restrictions because they lead to a greater chance for success
D. Resent the management training and support the franchiser provides
E. Get frustrated with the restrictions of the franchise

Answers

C. Embrace the franchise restrictions

Claire is likely to Embrace the franchisors restrictions because they lead to a greater chance for success option(c) is correct.

Who was Claire?

Claire was a person who gradually opened her Starbucks actually in her community she established a good customer base merely of her name in that organization.

As she is her own boss she accordingly embraces the franchisors restrictions which actually lead for more and more success of her.

Therefore Option(c) is correct.

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Which of the following groups advocates economies that neither grow nor shrink but remain stable?
a. classical economists
b. subsistence gatherers
c. ecological economists
d. neoclassical economists

Answers

The group that advocates economies that neither grow nor shrink but remain stable is c. ecological economists.

Ecological economists focus on the interdependence between the economy, society, and the environment. They recognize the limitations of natural resources and aim to promote sustainable economic growth that does not harm the environment. Ecological economists advocate for a steady-state economy, where the size of the economy is maintained through a balance of inputs and outputs and a stable population.

This approach is in contrast to neoclassical economists who believe that economic growth is necessary for progress and prosperity. Classical economists focused on the efficient use of resources, while subsistence gatherers aim to meet basic needs and live off the land. In summary, ecological economists advocate for a steady-state economy, where economic growth is balanced with the environment, natural resources, and societal needs. The correct option is c. ecological economists.

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Adjustment for accrued expense city realty co. Pays weekly salaries of $11,750 on monday for a six-day workweek ending the preceding saturday. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on friday. Round your answers to nearest whole dollar. If an amount box does not require an entry, leave it blank

Answers

the adjusting entry for salary expense and salary payable is $3,916 at weekly salaries of $11,750.

Calculation of accrued salaries:

The company pays weekly salaries of $11,750 for a six-day workweek, which means that daily salaries are $11,750/6 = $1,958.33. Since the accounting period ends on Friday, the company owes salaries for Saturday and Friday, which is 2 days x $1,958.33 = $3,916.66.

Salary expense refers to the amount of money a company pays to its employees in exchange for the services they provide. This includes not only the regular salary but also other forms of compensation such as bonuses, overtime pay, and benefits. It is an essential component of a company's operating expenses and is recorded on the income statement. Salary expense is often the largest expense for most companies, particularly those in labor-intensive industries. As such, managing salary expenses is critical to achieving profitability and ensuring the financial health of the business. Accurately tracking and budgeting for salary expenses can help a company to make informed decisions and improve overall performance.

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Demand for bikes has suddenly increased, and the
market price has risen from $50 to $60.
In three to five sentences, explain how this change will
affect profits.

Answers

When the demand for bikes has considerably increased with a rise in price by $10, then the profit also increases by $10 on every bike sold.

What is meant by profit?

Profit is an incentive earned by a company by selling its products at a price higher than the original cost.

From the provided situation, it has been analyzed that there is a direct relationship between price and demand, which means an increase in demand leads to a rise in prices also. This will ultimately raise the profits of a company in respect of goods sold.

Therefore, the profits are also raised by $10 in a similar way as the rise in price by $10 due to an increase in demand for bikes.

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Answer:

Sample response: If the market price of bikes rises from $50 to $60, then the company will want to produce a larger quantity of bikes. This is because the overall marginal revenue is now higher and will be maximized differently. Before profit was maximized at six bikes, now the profit will be maximized by producing more bikes, perhaps seven.

Explanation:

of the following statements, which is correct? a. when companies charge low prices for products sold in their home markets while selling the same products in foreign markets at high prices, the practice is known as dumping. b. when companies charge high prices for products sold in foreign markets while selling the same products in their home markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping. c. when companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping. d. dumping encourages competition and benefits workers in home countries. e. dumping is still legal under many international laws, even though it substantially reduces competition.

Answers

The following statements is correct When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping.

When agencies rate excessive costs for merchandise offered of their domestic markets whilst promoting the equal merchandise in overseas markets at low costs that don't cowl all of the prices of exporting the merchandise, the exercise is thought as dumping.

Ethical relativism is the idea that holds that morality is relative to the norms of one's culture. That is, whether or not an movement is proper or incorrect relies upon on the ethical norms of the society wherein it's far practiced. The equal movement can be morally proper in a single society however be morally incorrect in another.

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Differences between savings account and current account

Answers

Answer:

A Savings account is where you put in money not to use right now but later on.

A Current Account is where you deposit your money to use for everyday uses like groceries, clothes, bills and other expenses.

Hope this helps!!

:D

In Ireland, a pint of beer costs 2.2 Irish pounds. In Australia, a point of beer costs 4 Australian dollars. If the nominal exchange rate is 2 Australian dollars per Irish pound, what is the real exchange rate from the Irish perspective?

Answers

Answer:

.91 pints of irish beer per pint of Australian beer

Explanation:

As we know that

The exchange rate of

1 AUD = 0.5 pound

Now

In Ireland, 1 beer cost = 2.2 pound

And, in Australia, 1 beer cost = 4 AUD

As 1 AUD = 0.5 pound

so 4 AUD is

= 0.5 × 4

= 2

Now the exchange rate is

= 4 AUD beer cost ÷ 1 beer cost in Ireland

= 2 ÷ 2.2

= 0.91

hence, the real exchange rate is 0.91

a parent buys 32 percent of a subsidiary in one year and then buys an additional 40 percent in the next year. in a step acquisition of this type, the original 32 percent acquisition should be

Answers

The acquisition type is adjusted to market value on the subsequent inception of the contract, with a gain or loss recorded.

Acquisition accounting is a set of formal guidelines that govern how a buyer must record a purchased company's assets, liabilities, non-controlling interest (NCI), and goodwill on its consolidated statement of financial condition.

On the buyer's balance sheet, the fair market value of the purchased company is distributed between the buyer's net tangible and intangible assets. Any resulting change is seen as goodwill. Acquisition accounting is also known as business combination accounting.

According to International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), all business combinations must be treated as acquisitions for accounting purposes, which means that one company must be identified as an acquirer and one company must be identified as an acquirer even if the transaction creates a new company.

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An investor thought that market interest rates were going to decline. He paid $19,000 fora corporate bond with a face value of $20,000. The bond has an interest rate of 10% per year payable annually. If the investor plans to sell the bond immediately after receiving the 4th interest payment, how much will he have to receive (sell it for) in order to make a return of 14% per year?

Answers

Answer:

$22,251

Explanation:

Coupon rate = $2,000

Now, we calculate the seired sale price of the bonds:

19,000 = 2,000[P/A, 14%, 4] + S[P/F. 14%, 4]

19,000 = 2,000(2.9137) + S(0.592)

S = (19,000 - 5,827.4) / 0.592

S = 22251.01351351351

S = $22,251

So, he have to receive $22,251.

When journal entries for payroll taxes are completed, they are posted to the ___ subsidiary ledger.
A. Accounts Payable
B. Accounts Receivable
C. Expenses
D. Cash

Answers

When journal entries for payroll taxes are completed, they are posted to the Expenses subsidiary ledger.Expenses subsidiary ledger is a classification system used by accountants to record, monitor and track various expenses incurred by a company. The correct answer is option-C.

As the name suggests, this ledger contains a record of all expenses incurred by the company. Examples of expenses that might be recorded in this ledger include rent, utilities, salaries, and wages, among others.The payroll tax is a tax imposed by the government on the wages and salaries of employees.

The employer is responsible for withholding the appropriate amount of tax from the employee's paycheck and remitting it to the government on their behalf. Once the payroll tax has been calculated and withheld from the employee's paycheck, it needs to be recorded in the accounting system.

The journal entry for payroll taxes would typically be recorded in the expenses subsidiary ledger. This allows the company to track the amount of payroll taxes it has paid over time and to ensure that it is complying with all relevant tax laws and regulations.

In conclusion, when journal entries for payroll taxes are completed, they are posted to the expenses subsidiary ledger.

Therefore, the correct answer is option-C.

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