Answer:
the average cost for inventory is $11.40
Explanation:
The computation of the average units for cost is shown below:
= Total purchase ÷ total purchase units
= (150 units × $10 + 350 units × $12) ÷ (150 units + 350 units)
= ($1,500 + $4,200) ÷ (500 units)
= ($5,700) ÷ (500 units)
= $11.40
Hence, the average cost for inventory is $11.40
We simply applied the above formula and the same is to be considered
Net income $4,000 $100,000 $72,000
Depreciation expense 30,000 8,000 24,000
Accounts receivable increase (decrease) 40,000 20,000 (4,000)
Inventory increase (decrease) (20,000) (10,000) 10,000
Accounts payable increase (decrease) 24,000 (22,000) 14,000
Accrued liabilities increase (decrease) (44,000) 12,000 (8,000)
For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Answer: Please see answers in explanation column
Explanation:
Using the indirect method.
Balance Sheet Accounts Case X Case Y Case Z
Net Income $4,000 $100,000 $72,000
Adjustments to reconcile net income to net cash provided by operations:
Depreciation $30,000 $8,000 $24,000
Account Receivables $-40,000 $-20,000 $4,000
Inventory $20,000 $10,000 -$10,000
Account Payable $24,000 -$22,000 $14,000
Accrued Liability -$44,000 $12,000 -$8000
Cash Flows from operating
activities -$6,000 $88,000 $96,000
Year Mileage
1 3000
2 4000
3 3400
4 3800
5 3700
a) Forecast the mileage for next year using a 2-year moving average.
b) Find the MAD based on the 2-year moving average forecast in part (a), (Hint: You will have only 3 years of matched data.)
c) Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year's mileage. (The weight of .6 is for the most recent year.) What MAD results from using this approach to forecasting? (Hint: You will have only 3 years of matched data.)
d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a = .5.
Answer:
Explanation:
A) using 2-year moving average :
Year 6 : (3800 + 3700) = 7500 / 2 = 3750
2) Mean absolute deviation based on the forecast above :
(3000 + 4000) = 7000/2 = 3500
(4000 + 3400) = 7400/2 = 3700
(3400 + 3800) = 7200/2 = 3600
3000
4000
3400 __3500__100
3800__3700__100
3700__3600__100
Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100
C) weight of 0.4 and 0.6
(0.4*3000 + 0.6*4000) = 3600
(0.4*4000 + 0.6*3400) = 3640
(0.4*3400 + 0.6*3800) = 3640
3000
4000
3400 __3600__200
3800__3640__160
3700__3640__60
(200 + 160 + 60) = 420 / 3 = 140
b. How large a gain or loss in aggregate dollar terms do market signaling studies suggest existing FARO shareholders will experience on the announcement date?
c. What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss?
d. At what price should FARO expect its existing shares to sell immediately after the announcement?
Answer:
a. Market signaling studies suggest that the price of existing FARO shares will fall.
b. $60,000,000
c. 8.403%
d. $38.471
Explanation:
Given
New Shares: $200,000,000
Existing Shares: $17,000,000
Price per Share: 42
a.
Because the stock of the FARO Technologies is overvalued at the current price
b.
Expected Loss: 30% * New Shares Size
New Shares Size = $200,000,000 (given)
Expected Loss = 30% * $200,000,000
Expected Loss = $60,000,000
c.
Percentage of the value of FARO’s existing equity = Ratio of New Expected Share Value to Existing Share Value
Expected Share Value = $60,000,000
Existing Share Value = Price per Shares * Existing Shares
Existing Share Value = 42 * $17,000,000
Existing Share Value = $714,000,000
Percentage of FARO's Existing Equity = $60,000,000 ÷ $714,000,000
Percentage = 8.403%
d.
The price FARO should expect its existing shares to sell
= Price per Share (1 - Percentage of Existing Equity)
Price per Share = 42
Percentage Existing Equity = 8.403%
The price FARO should expect its existing shares to sell = 42(1-8.403%)
The price FARO should expect its existing shares to sell = 42(1-0.08403)
The price FARO should expect its existing shares to sell = 42 * 0.91597
The price FARO should expect its existing shares to sell = $38.47074
The price FARO should expect its existing shares to sell = $38.471 ----- Approximated
The announcement of FARO technologies to sell new shares might decrease their share price as it might signal overvaluation to investors. Existing shareholders may thus experience a loss. The new selling price would be the original price minus the decrease caused by the announcement.
a. The market signaling theory suggests that the announcement of FARO Technologies selling new shares to raise capital could lead to a decrease in the company's share price. This is because it signals to investors that the company may be overvalued, leading them to sell their shares, thereby driving down the price.
b. For existing FARO shareholders, the aggregate dollar loss could be estimated by multiplying the decrease in share price by the number of existing shares.
c. To calculate the percentage of the value of FARO's existing equity that this represents, we could divide the total dollar loss by the company's market capitalization before the announcement, and then multiply by 100 to get a percentage.
d. After the announcement, the price that FARO should expect its shares to sell at would be the original price minus the decrease due to the announcement.
#SPJ11
A. Kevin will have earned $5.39 more than Jeremy after 3 years.
B. Jeremy will have earned $5.39 more than Kevin after 3 years.
C. Kevin will have earned $18.10 more than Jeremy after 3 years.
D. Jeremy will have earned $18.10 more than Kevin after 3 years.
Answer:
A
Explanation:
Answer:
First blank: Consumers
Second blank: GDP
Third blank: CPI
Explanation:
The Consumer Price Index is used to measure the basic basket of services and goods that a normal person often buys in order to have a decent quality of life, the GDP includes all goods and services produced, for example all the office equipment, or farm equipment that was produced by a countries economy, the average customer doesn´t need farm equipment nor office equipment that is why it is not taken into account in the Costumer Price Index.
Inflation is measured using the Consumer Price Index (CPI) and the GDP deflator. The CPI measures price changes for a specific basket of goods and services bought by the typical consumer, while the GDP deflator considers all domestically produced final goods and services.
Inflation is typically measured using two indices known as the Consumer Price Index (CPI) and the GDP deflator. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Not all goods and services are included in the CPI, it primarily focuses on those sold to typical urban consumers.
On the other hand, the GDP deflator is a measure of the price of all domestically produced final goods and services in an economy including items like farm equipment, which are not included in the CPI. The GDP deflator takes a broader approach and doesn't restrict itself to a fixed basket of goods and services, rather reflects the current composition of output and the prices of all the goods and services currently produced domestically.
#SPJ12
Answer:
a. Physical appearance
Explanation:
The Physical appearance of a person is as a result of the genetic make up of the individual. This factor barely has an influence on an individual’s core belief system.
Religious background is a key element of individual’s core belief system as it forms the basis of one's belief about God, life, fate and destiny.
Family upbringing forms the basis of one's belief as the individual grows. The influence of the members of a family forms a part of the individual's core belief.
Life experiences as well forms a key part of our belief system and the same goes for personality.