Frederick’s Farm Factory (FFF) currently maintains anaverage inventory valued at $3,400,000. Th e company estimatesits capital cost at 10 percent, its storage cost at 4.5 percent, and itsrisk cost at 6 percent.(a) Calculate the annual holding cost rate for FFF.(b) Calculate the total annual holding costs for FFF

Frederick’s Farm Factory (FFF) currently maintains anaverage inventory valued at $3,400,000. Th e company estimatesits capital cost at 10 percent, its storage cost at 4.5 percent, and itsrisk cost at 6 percent.(a) Calculate the annual holding cost rate for FFF.(b) Calculate the total annual holding costs for FFF

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
Calculate the overall capitalization rate: sale price: $973, 639 potential gross income: $ 199, 188 vacancy and collection losses: $29,912 operating expenses: $47, 400 Report your answer as %. Given the following information, calculate the net operating income assuming above-line treatment of capital expenditures: property: 6 office units contract rents per unit: $2, 250 per month vacancy and collection losses: 17% operating expenses: $ 49,000 capital expenditures: $4, 500 Your Answer:
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Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's gross profit is equal to Select one: a. 1,070,000 b. $1,100,000 c. $1,500,000 d. $770,000
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From the following information prepare a statement showing the estimatedworking capital requirement:(1)Projected annual sales 36,000 units(2)Analysis of salesRaw materials Rs. 6 per unitLabour Rs. 4 per unitOverhead Rs. 3 per unitProfit Rs. 2 per unitSelling price Rs. 15 per unit(3)Additional Information :(a) Raw material in stock 1 month(b)Production process 2 months(c) Finished goods in store 3 months(d)Credit allowed to debtors 4 months(e) Credit allowed by suppliers 2 months(f) Monthly wages and expenses are paid twice on 1st and 16th of each month.(g)Production is carried on evenly during the year and expenses and wages accruesimilarly.(h)Cash is to be kept at 10% of the net working capital.
Below is given the data for the assembly division of Charles Corporation: Sales Cost of Sales Operating Expenses $10,000,000 $15,000,000 Average Operating Assets $250,000,000 $310,000,000 2020 2021 $100,000,000 $165,000,000 $22,000,000 $28,000,000 Minimum Required Rate of Return Actual Cost of Capital Income Tax Rate Instructions 1. Compute the margin and turnover ratios for each year 2. Compute the ROI for each year 3. Compute the residual income for each year 4. Compute EVA for Charles Corporation for each year (Note: Round to 2 decimal) MacBook Air 9% 6% 30%
Or The cost and revenue information of India Company for the last year (2022) is provided below: Sales units - 200 units, Selling price per unit - 1500 dollars, Number of units produced 200 units, DM - $850 per unit, DL - $115 per unit. Var MOH- $20 per unit. Fixed MOH- $45,000, Var Selling and Adm Exp = $15 per unit, Fixed S&A Exp = $15.000, A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio of India Co.? D.) Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and decrease 10%.
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