Answer:
37.51 days
Explanation:
Use the following formula to calculate the Inventory Turnover ratio
Inventory Turnover ratio = Cost of goods sold / Average Inventory
Where
Cost of goods sold = $763,805
Average Inventory = ( Beginning Inventory + Ending Inventory ) / 2 = ( $93,000 + $64,000 ) / 2 = $78,500
Placing values in the formula
Inventory Turnover ratio = $763,805 / $78,500
Inventory Turnover ratio = 9.73
Inventory Days = Numbers of days in a year / Inventory Turnover ratio = 365 / 9.73 = 37.51 days
Answer:
$153,576,000
Explanation:
The reason is that the company has sold maximum number of units that it can in the year. If it desires to sell all of its stock then it will have to decrease the cost of the product to increase the demand of the product. The least level of cost that the company can charge will be its finished goods recorded value which is the price at which the company breakevens.
Hence the additional sales would be $153,576,000 which is the carrying worth of inventory.
Answer:
One feature of a corporation is that it can continue indefinitely beyond the lives of individual managers and stockholders of the corporation. This is called perpetual life or succession.
Explanation:
Perpetual life or succession of a corporation refers to the continuation of a corporation's or other organization's existence notwithstanding the death, bankruptcy, insanity, change in membership or exit from the business of any owner or member, or any transfer of ownership. This makes the corporation to be a safer and more stable platform for investors. The perpetual life of the corporation also raises the chances that the investors will receive returns on their money over an indefinite period of time.
Answer:
Depreciable cost per mile= $0.37
Explanation:
Giving the following information:
Purchase price= $38,800
Salvage value= $1,800
Expected to be driven 100,000 miles over its estimated useful life.
<u>To calculate the depreciable cost per mile, we need to use the following formula:</u>
Depreciable cost per mile= (original cost - salvage value)/useful life of production in miles
Depreciable cost per mile= (38,800 - 1,800)/100,000
Depreciable cost per mile= $0.37