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Appliance for Less is a local appliance store. It costs this store $23.61 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 585 units. Each order costs $82. The company is using Economic Order Quantity model in placing the orders.
Problem 1: It takes approximately 3 day to receive an order after it has been placed. If the store insists on a 4 days safety stock (assume 365-days a year), what should the inventory level be when a new order is placed?
Tungsten Company, Inc., sells heavy construction equipment. There are 10,000 shares of capital stock outstanding. Find the annual fiscal period ends on December 31.
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On January 1, Guillen Corporation had 95,700 shares of no-par common stock issued. Prepare the entries, if any, on each of the three dividend dates.
On January 1, 20X8, when the book value of Snoopy% net assets was equal to $300,000. Peanut uses the equity method to account for investments.
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Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenues of $135,000 per year. Direct production costs are $45,000, and the fixed costs of maintaining the lawn mower factory are $17,500 a year. The factory originally cost $0.9 millio..
What are the NAL and IRR of the lease and assume now that the bank loan would cost 15 percent, but all other facts remain the same. What is the new NAL? The new IRR?
Which is capitalizing costs may result in higher earnings over an extended period because? Capitalizing costs does not affect earnings over an extended period.
From the following figures calculate the closing inventory-in-trade that would be shown using FIFO, LIFO, AVCO methods.
Allowances are made for significant increases in costs and volume if any. 2014 actual overhead costs included $1,500,000 of fixed costs and $600,000 of variable costs.Compute the overhead rate to be used for 2015.
Video Streaming Services (e.g., Netflix and Hulu) provide internet subscription. How do you think these firms should recognize subscription revenues?
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