Problem 1 IBC's annual profits of P23,500 was going down the drain while DCC's has an annual profit of P349,600 and was rising sharply. IBC's average inventory was P995,000 whereas, DCC's was P49,500. Inventory costs are estimated to be around 2% per month. If IBC had DCC's level of inventory, its annual profits would have been Profit Average Inventory Inventory Costs IBC 23500 995000 2% DCC 349600 49500 2% per month

Problem 1 IBC's annual profits of P23,500 was going down the drain while DCC's has an annual profit of P349,600 and was rising sharply. IBC's average inventory was P995,000 whereas, DCC's was P49,500. Inventory costs are estimated to be around 2% per month. If IBC had DCC's level of inventory, its annual profits would have been Profit Average Inventory Inventory Costs IBC 23500 995000 2% DCC 349600 49500 2% per month

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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c. HUW Imaly Uluers SIIuulu De placed eacI ycur ! d. What is the total inventory cost? e. What is the reorder point? Problem 7 Dama de Noche Corporation is considering a change in credit policy. The current policy is cash only, and sales per period are 2,000 unit: at a price of P110. If credit is offered, the new price will be P120 per unit, and the credit will be extended for one period. Unit sales are not expected to change, and all customers are expected to take credit. Dama de Noche anticipates that 4 percent of its customers will default. If the required return is 2- percent per period, is the change a good idea? What if only half the customers take the offered credit? Problem 8
Platinum Taco Shell Inc. uses a retail inventory method. Below is last year's data: Cost Retail Beginning inventory 347,900 784,000 Purchases 730,100 980,000 Freight in 39,200 Mark ups 98,000 Mark downs 116,375 Sales 686,000 Inflation factor: 1.1 What is the Ending Inventory under Dollar value LIFO, conventional retail, and average cost? What is the COGS under Dollar value LIFO, conventional retail, and average cost?
e? Explain the financial statement effect of inventory cost flow assumptions. BE6.6 (LO 2), AP In its first month of operation, Hoffman Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Explain why this amount is referred to as phantom profit. The company uses the periodic system. Determine correct income statement amounts.
1 A firm uses an inventory item with the following characteristics. Cost per-item $ 6.00 Annual consumption 1,000 Fixed cost per order placed $30.00 Carrying cost of inventory (as a % of dollar value) 25% How many times should the product be reordered each year and what are the related ordering and carrying costs of inventory?
1- Your CFO gives you this data and asked you to help him by calculating the Inventory Carrying Rate: Inventory Costs = $40,000 Inventory Value = $310,000 Opportunity Cost = 10% Insurance = 4% Taxes %3D 7% Show your Calculation: 2- Calculate the Total Annual Cost knowing the following data: Total annual cycle-inventory cost (C) : Lot Size (Q) : 560 Holding Cost per unit per year (H) : 20$ Annual Demand (D) : 35 600 Ordering cost per Lot : 55 $
Provide Answer with calculation and explanation
5) Day Company, which uses the FIFO inventory method, had 254,000 units in inventory at the beginning of the year at a FIFO cost per units of $30. No purchases were made during the year. Quarterly sales information and two sets of end of quarter replacement cost figures follow: Quarter Unit Sales Case A Case B S $ 1 2 3 4 100,000 29 25 30,000 22 27 42,500 18 19 30,500 22 27 The market decline in the first quarter under Case A was expected to be temporary, whereas under Case B the decline was expected to be non temporary. Declines in other quarters were expected to be permanent. Required: Determining cost of goods sold for the four quarters under each case and verify the amounts by computing cost of goods sold using the lower of cost or market method applied on an annual basis.
26
Please provide solution
15. Farrell's Window Supply has seen an increase in sales, but the company is concerned with its inventory management. Has the increase in sales caused the company's ability to manage inventory effectively to decrease? Support your answer by finding the changes in inventory turnover and number of days' sales in inventory. Round ratios to one decimal place. Inventory: Beginning of year End of year Purchases of inventory 20Y6 2015 $350,900 $352,300 325,400 350,900 330,600 325,200 shulpsins, of woted notandin YOS has 2Y02 dina
M6

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