Answer:
The equilibrium point
Explanation:
The equilibrium point is where there is an exact quantity of production output that perfectly satisfies the total demand of the market.
They need to have work related knowledge.
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Answer: 15%
Explanation:
IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.
Use Excel to find the IRR.
= IRR(-328325,115000,115000,115000,115000)
= 15%
As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.
Answer:
a. $103,400
Explanation:
As we know that
Cost of goods sold = Beginning inventory + purchases - ending inventory
And,
Gross profit = Sales revenue - cost of goods sold
Since in the question it is given that
The ending inventory and beginning inventory had been overstated by $11,200 and $6,600 respectively
Since overstatement in the initial inventory raises the cost of the goods sold and decreases by that amount the gross profit & net income
And, overstatement in ending inventory reduced cost of goods sold and raised gross profit & net income by that amount.
So for overstated ending inventory the amount should be deducted and for overstated beginning inventory the condition would be reverse
So, the correct amount is
= incorrect pretax net income + overstatement in beginning inventory - overstatement in ending inventory
= $108,000 + $6,600 - $11,200
= $103,400
Answer:
$60,000
Explanation:
The movement in finished goods balance between the beginning and end of a period is due to the cost of goods sold and goods manufactured. This may be expressed mathematically as;
Opening balance + manufactured goods - cost of goods sold - other write-offs = closing balance.
where there are no other write-offs,
$10,000 + $200,000 - cost of goods sold = $150,000
Cost of goods sold = $10,000 + $200,000 - $150,000
= $60,000
