A company carries an average annual inventory of $4.3 million if it estimates the cost of capital is 13% so much costs are 9% and risk calls are 8%. What does it cost per year to carry this inventory? Financial Accounting

A company carries an average annual inventory of $4.3 million if it estimates the cost of capital is 13% so much costs are 9% and risk calls are 8%. What does it cost per year to carry this inventory? Financial Accounting

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

See similar textbooks

Related questions

Q: What is the return on equity on these financial accounting question?

A: To calculate the Return on Equity (ROE), we use the formula: ROE = (Net Income / Shareholders'…

Q: LION Tech leases equipment on January 1, Year One, for 8 years, while the equipment has a total…

A: Step 1: Introduction to leaseA lease is defined as a contractual agreement incorporated between two…

Q: given answer general accounting

A: Step 1: Definitions:Allowance for Doubtful Accounts: A contra-asset account that estimates…

Q: What was juniper natural dyes gross profit percentage for this period?

A: Step 1: Define Computing Gross Profit MarginThe gross profit represents the difference between the…

Q: Need answer the financial accounting question not use ai

A: Step 1: Define LiabilitiesLiabilities represent the financial obligations a company owes to external…

Q: Help this question

A: To compute the future value of the deposits, we'll use the future value formula:FV=PV×(1+r)…

Q: In standard costing, a. the standards are developed only for overhead costs. b. the standards are…

A: a). The standards are developed only for overhead costs.This is incorrect. In standard costing,…

Q: Need help with this general accounting question

A: Step 1: Define Contribution MarginThe contribution margin is the difference between sales revenue…

Q: Please give me true answer this financial accounting question

A: Step 1: Define Cost Of EquityThe cost of equity refers to the financing cost of acquiring and using…

Q: Problem? ? Accounting question

A: Step 1: Current Earnings Per Share Earnings Per Share = Net income/Outstanding sharesEarnings Per…

Q: Accurate Answer

A: To calculate the total assets, you can use the basic accounting equation: Total Assets = Liabilities…

Q: No incorrect answer

A: To determine the estimated net annual savings from implementing the lockbox system, follow these…

Q: What is the total sales volume variance in terms .

A: Explanation of Sales-Volume Variance:Sales-volume variance measures the difference between the…

Q: Need answer? ? Financial accounting question

A: Step 1: Calculation of Gross ProfitGross Profit = Revenue - Cost of goods soldGross Profit = $80,000…

Q: General accounting

A: The Payable Deferral Period (PDP) is calculated using the formula: PDP = (Accounts Payable) / (Cost…

Q: Green Grow Incorporated (GGI) manufactures lawn fertilizer. Because of the product’s very high…

A: 1: Total Fixed Manufacturing Overhead Costs for the PeriodStep 1: Break down the fixed manufacturing…

Q: A company has the following solve this question financial accounting question

A: Step 1: Define Return on Equity (ROE) Using DuPont AnalysisReturn on Equity (ROE) measures a…

Q: Provide answer general accounting question

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…

Q: Caldwell Industries manufactures a variety of products. Last year, the company's variable costing…

A: Explanation of Variable Costing:Variable costing is a method where only variable manufacturing…

Q: Carter, Inc. sold 4,200 units of its product at a price of $79.50 per unit. The total variable cost…

A: The manufacturing margin under variable costing is calculated as follows: 1. Compute Total…

Q: Answer? ? Financial accounting question

A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Q: Give true answer this financial accounting question

A: Step 1: Define New Issue of StockEquity financing is a costly source of funding and a company…

Q: What is the nominal cost of trade credit if the terms are 4/10, net 45 assuming that customers…

A: We are given the terms are 4/10, net 45. This means:Discount Percentage = 4% = 0.04Discount Period =…

Q: I need help with accounting

A: The DuPont identity states:Return on Equity (ROE)=Profit Margin× Asset Turnover× Equity…

Q: Turor, need your advice

A: Detailed explanation:Contribution Margin Analysis for Meadowbrook Health System The contribution…

Q: Given answer me accounting

A: Step 1: Define Gross ProfitGross profit refers to the amount of profit before indirect costs and…

Q: What is the sales growth rate ?

A: Solution By StepsWe need to calculate the sales growth rate using the Internal Growth Rate (IGR)…

Q: General Accounting

A: Step 1: Define High-Low MethodThe High-Low Method is a cost estimation technique used to separate…

Q: Which direction did it change ?

A: 2. Determine the Change in Liabilities:We know:Change in Assets = +$9,600Change in Stockholders'…

Q: YardTech, Inc., has sales of $5,300, total assets of $3,400, and a debt-equity ratio of 1.25. If its…

A: Yes, we can determine YardTech, Inc.'s net income using the given information. Given:Sales =…

Q: Please answer me this accounting question

A: Concept of Net IncomeNet Income is the profit a company earns after deducting all expenses,…

Q: What is the account receivable turnover for Skyline Corporation ?

A: Explanation of Net Sales:Net sales refer to the total revenue a company generates from selling its…

Q: Hii expert please provide correct answer general Accounting question

A: Step 1: Define Marginal Federal-Plus-State Tax RateThe marginal federal-plus-state tax rate can help…

Q: Green Grow Incorporated (GGI) manufactures lawn fertilizer. Because of the product’s very high…

A: Step 1: Calculate Fixed Manufacturing Overhead Cost BreakdownWe know:Fixed manufacturing overhead…

Q: None

A: Here's how to calculate the total dollar amount you cleared on this investment:Calculate the total…

Q: Correct answer

A: Calculations:Step 1: Capital Gain per Share:Capital gain is the difference between the selling price…

Q: The applied manufacturing overhead for the year.

A: Explanation of Applied Manufacturing Overhead:Applied manufacturing overhead is the estimated amount…

Q: Need Answer

A: Step 1: Calculate the Purchase CostPurchase price per share = $38.20Number of shares = 100Total cost…

Q: What is the unit variable cost?

A: Step 1: Definition of Contribution MarginThe contribution margin is the amount remaining from sales…

Q: Given answer general accounting question

Q: General Accounting question

A: Step 1: DefinitionPrice-Earnings (P/E) Ratio: The P/E ratio measures how much investors are willing…

Q: Accounting 24

A: Explanation: The formula for calculating Return on Equity (ROE) using the DuPont equation is as…

Q: Tanner Corporation estimated that machine hours for the year would be 25,000 hours and overhead (all…

A: Estimated machine hours = 25,000 hoursEstimated overhead (all fixed) = $100,000Overhead application…

Q: General accounting question

A: To calculate the contribution margin ratio, you can use the following formula: Contribution Margin…

Q: NO WRONG ANSWER

A: 1. Calculate Total Debt:Debt-equity ratio = Total Debt / Total EquityTotal Debt = Debt-equity ratio…

Q: Richard has the following potential liabilities: William, a former employee, has sued Richard for…

A: First, we need to analyze each case separately to determine if it represents a liability or a…

Q: Give true answer this financial accounting question

A: Step 1: Define Full CostFull cost refers to the total cost incurred by a company in producing and…

Q: Give me fast answer general Accounting question

A: Step 1: Definitions:Transfer Price: The internal price at which one division of a company sells…

Q: What is the firm's weighted average cost of capital?

A: The Weighted Average Cost of Capital (WACC) is calculated using the formula:Where:D/V= proportion of…

Q: Calculate the labor variance?

A: Labor rate variance = (Standard rate - Actual rate) x Actual hours workedLabor rate variance = (9 -…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A company carries an average annual inventory of $4.3 million if it estimates the cost of capital is 13% so much costs are 9% and risk calls are 8%. What does it cost per year to carry this inventory? Please answer this financial accounting question
What does it cost per year to carry this inventory? (financial accounting)
What does it cost per year to carry this inventory?
A company carries an average annual inventory of $4.3 million if it estimates the cost of capital is 13% so much costs are 9% and risk calls are 8%. What does it cost per year to carry this inventory?
Provide answer
General Accounting
Financial Accounting Question please answer
Account questions: Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in inventory require?
You have the following data for a company. What is the return on assets (ROA)? Return on equity = 15%; Earnings before taxes = $150,000; Total asset turnover = 1.8; Profit margin = 10.5%; Tax rate = 30%.
What is the profit margin?
consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%. a. generate an income statement and show net income b. what is the company's operating cash flow? c. if there are 775.2 million shares outstanding, what is the EPS? d. if the company has a payout ratio of 20%, what is the dividends per share?
A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million Net income = 2 million Total Equity = 15 million Total Assets = 30 million Calculate the company’s net profit margin, asset turnover, equity multiplier and ROE