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2 years ago

In a period of rising prices, the inventory method which tends to give the highest reported net income is:

Business

1 answer:

Blizzard [7]2 years ago

7 0

Answer:

b. first-in, first-out.

Explanation:

Generally, there are three methods for estimating the inventory shown below:

1. First-in-first, the company is selling the old products in this way than the new ones, which means first selling the old products and then selling the new ones

2. Weighted average method: Weighted cost is measured by considering the total revenue and total purchase

3. Last-in-first-out: Contrary to the first-in-first-out process, the first sale of new goods, then selling of old goods.

4. Base stock: The process by which the orders of the consumer are fulfilled by holding the less inventory

In the FIFO method, the highest ended inventory results in the lower cost of goods sold at the highest net profits.

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klasskru [66]

Answer:

Monthly rent of $345 would maximize revenue

Explanation:

Revenue = Price * Quantity

Quantity depends on price. We need to work out the relationship between price and quantity (that is, the demand function)

When the rent is $420, quantity demanded is 90 units:

When P = 420 we have Q = 90

Let x be the change in price. For every 3 dollar increase (decrease) in price demanded quantity will decrease (increase) 1 unit:

P = 420 + x (a) we have Q = 90 - x/3 (b)

To find the relationship between P and Q we seek to eliminate x.

Multiply both sides of (b) with 3 we have: 3Q = 270 - x (b')

From (a) and (b') we have: P + 3Q = 420 + x + 270 - x

=> P = 690 - 3Q

Revenue R = P * Q = (690 - 3Q) * Q = 690Q - 3Q^2

To find maximum set derivative of R to 0:

dR = 690 - 6Q = 0

=> Q = 690/6 = 115

To lease 115 the price should be P = 690 - 3Q = 690 - 3*115 = 345

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Tomas earned $89 in interest on his savings account last year and has decided to leave the $89 in his account this coming year s

mamaluj [8]

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Explanation:

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2 years ago

Lacey Company prepared the tabulation below at December 31, 2022. Net Income $310,000

valentinak56 [21]

Answer:

Net cash provided by operating activities is $325,000.

Explanation:

Lacey Company

Cash Flow Statement (Operating Activities Only)

December 31, 2022.

Details Amount ($)

Net Income 310,000

Depreciation expense 45,000

Increase in accounts receivable (55,000)

Decrease in inventory 12,000

Increase in accounts payable 6,000

Increase in prepaid expenses (4,000)

Decrease in income taxes payable 3,500

Gain on disposal of land 7,500

Net cash provided (used) by operating activities  325,000 

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2 years ago