Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year? 90 days and 4.06 times 80 days and 4.06 times 70 days and 3.06 times 90 days and 3.06 times
Answers
Answer: 90 days and 4.06 times
Explanation:
Short term operating cycle = Average production process time + Days finished goods kept on hand + Days Accounts receivable outstanding]
= 40 + 15 + 35
= 90 days
Assuming a 365 day year, the cycle will turnover;
= 365/90
= 4.0556
= 4.06 times
Related Questions
New Venture Management (1)
1. Explain the below the process of financial management.
*. Importance of Financial Statements - Preparation of historic Financial statements
*. Forecasts - Preparation of Forecasts
*. Budgets - Preparation of pro forma financial statement
*. Financial Ratios - Ongoing analysis of financial results
Answers
The process of financial management involves the preparation and analysis of historic financial statements, forecasts, budgets, and ongoing monitoring of financial ratios.
The process of financial management involves several key components that contribute to effective financial decision-making and the overall financial health of a business. Here is an explanation of each component:
Importance of Financial Statements - Preparation of Historic Financial Statements:
Financial statements, such as the income statement, balance sheet, and cash flow statement, provide a historical snapshot of a company's financial performance, position, and cash flows. These statements are crucial for assessing profitability, liquidity, solvency, and overall financial stability. By analyzing past financial statements, management can identify trends, evaluate the impact of previous decisions, and make informed decisions for the future.
Forecasts - Preparation of Forecasts:
Forecasts involve projecting future financial performance based on historical data, market trends, and other relevant factors. This process helps businesses anticipate potential opportunities, challenges, and financial needs. Forecasts typically include projected income statements, balance sheets, and cash flow statements, providing insights into expected revenue, expenses, assets, liabilities, and cash flows. It enables management to plan and allocate resources effectively, set financial goals, and make strategic decisions.
Budgets - Preparation of Pro Forma Financial Statements:
Budgets are financial plans that outline anticipated income, expenses, and cash flows for a specific period, typically on a monthly, quarterly, or annual basis. Pro forma financial statements, including pro forma income statements, balance sheets, and cash flow statements, are created as part of the budgeting process. Budgets help in setting targets, allocating resources, and monitoring performance against the planned financial objectives. They serve as a roadmap for financial management and aid in identifying areas that require adjustment or improvement.
Financial Ratios - Ongoing Analysis of Financial Results:
Financial ratios are quantitative indicators that provide insights into a company's financial performance, efficiency, and profitability. Ratios compare different financial figures from the financial statements to assess liquidity, profitability, solvency, efficiency, and other key aspects. By monitoring and analyzing financial ratios on an ongoing basis, management can identify trends, compare performance against industry benchmarks, and make informed decisions to optimize financial performance. These components contribute to understanding a company's financial position, making informed decisions, and driving sustainable growth and profitability.
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The brothers who created The GFB early on began shopping the product to independent coffee shops and then expanded into grocery and natural food stores. These choices represent which core aspect of marketing?
Answers
Answer:
Marketing channels.
Explanation:
Marketing Channels is one of the core aspects of marketing which enables a company to marketize its products, services, and brand identity to it's customers.
The Gluten Free Bars (GFB) are the vegan bars created by Marshall and Elliot Rader (brothers). The brothers created the GFB in 2010, and heralded the gluten-free industry.
To marketize their products, they used the element of marketing channels. They first reached to their possible customers by shopping their products to independent coffee shops, then to grocery and natural food stores. They used the channels of independent coffee shops, grocery and natural food stores to marketize their products and services to their possible customers.
Thus the correct answer is that they used marketing channels aspect of marketing.
In its ads, Clorox touts the effectiveness of its Disinfecting Wipes by claiming that they disinfect better than those made by Windex, a competing brand. This is: 1. reminder advertising. 2. comparative advertising. 3. primary advertising. 4. selective advertising. 5. institutional advertising.
Answers
Answer: I would say 2. Comparative advertising
Explanation: In terms of comparing Clorox is saying, “yeah we disinfect better than windex over there.”
Which company has a controlling interest in other companies in other industries?
Answers
Answer:
Parent Company
Explanation:
operations management course concept
Answers
The operations management course concept refers to the systematic design, direction, and control of the processes that transform inputs such as raw materials, energy, and labor into outputs such as goods and services that satisfy customer needs.
This management process includes inventory management, scheduling, supply chain management, quality control, and more. The goal of operations management is to create efficient processes that maximize productivity while minimizing costs.
Students taking an operations management course learn about these concepts and how to apply them to real-world situations in various industries. They also study topics like process design, project management, lean principles, and decision-making models.
The course is usually offered as a part of business administration, engineering, or industrial technology programs. Graduates of the course may go on to careers as operations managers, logistics managers, supply chain analysts, process improvement specialists, or manufacturing engineers, depending on their areas of focus and interests.
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explain briefly the negative impact of lack of information by workers to Exxon Mobil
Answers
Information is an abstract concept that refers to that which has the power to inform. At the most fundamental level, information pertains to the interpretation of that which may be sensed, or their abstractions.
Information is a stimulus that has meaning for the recipient in a particular situation. Data is the broad term used to describe information that is entered into and stored in a computer.
Information is a fact, idea, or piece of data that is conveyed or described through different forms of communication, including written, oral, visual, and audio.
Information is processed data. Processing raw data produces information. Information is a processed type of data, whereas data is raw and unedited. Information can be stored in many forms, such as text, images, sound, and videos.
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what is the difference between general and applied ethics
Answers
Answer:
The answer is below
Explanation:
Both General ethics and Applied Ethics are part of philosophical knowledge in understanding humans and their society.
Hence, the difference between general and applied ethics is:
General ethics is a philosophical term that is used to describe the theory of values in human activities. It deals with answering the controversial questions of human morality by establishing the idea of good and evil, right and wrong.
On the other hand, Applied Ethics is a term used in philosophy to describe a branch of ethics that is established to answer the issue of moral dilemmas, strategies, and operations in individuals' life, organizations, technology, and state.
4.2 Prepare the general journal entries to account for all the transactions that took place from the date that the order was placed on 15 October 2020, up until 1 February 2021. Include dates when preparing the general journal entries. (12 marks)
Answers
To account for all transactions that took place from 15 October 2020 to 1 February 2021, several general journal entries need to be prepared.
On 15 October 2020, the company placed an order for inventory, which is recorded as a purchase on account. The journal entry would be:
Date: 15 October 2020
Inventory (debit) $X
Accounts Payable (credit) $X
On 20 October 2020, the company received the inventory and recorded it in the books. The journal entry would be:
Date: 20 October 2020
Inventory (debit) $X
Accounts Payable (credit) $X
On 1 November 2020, the company made a sale and recorded it as revenue. The journal entry would be:
Date: 1 November 2020
Accounts Receivable (debit) $X
Revenue (credit) $X
On 15 November 2020, the company paid for some of the inventory it purchased on 15 October 2020. The journal entry would be:
Date: 15 November 2020
Accounts Payable (debit) $X
Cash (credit) $X
On 1 December 2020, the company made another sale and recorded it as revenue. The journal entry would be:
Date: 1 December 2020
Accounts Receivable (debit) $X
Revenue (credit) $X
On 31 December 2020, the company realized that some of the inventory was damaged and could not be sold. The journal entry would be:
Date: 31 December 2020
Cost of Goods Sold (debit) $X
Inventory (credit) $X
On 1 January 2021, the company paid for rent for the next six months. The journal entry would be:
Date: 1 January 2021Prepaid Rent (debit) $XCash (credit) $XOn 1 February 2021, the company recorded depreciation expense on its equipment. The journal entry would be:
Date: 1 February 2021Depreciation Expense (debit) $XAccumulated Depreciation (credit) $X
By preparing these general journal entries, all transactions from 15 October 2020 to 1 February 2021 are accounted for in the books.
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How can camera footage help?
Answers
Answer:
camera footage are there not to invade a person's privacy but to protect the public by deterring criminal activity and by providing material evidence when a crime has been caught on film.
Explanation:
The US Senate overwhelmingly passed the 2022 Defense Authorization Act. The $768 billion "Defense Authorization Act" not only exceeds the defense spending proposed by the Biden administration by $25 billion, but also increases the US defense budget by about 5% compared to last year.
Answers
The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.
1. The US Senate passed the 2022 Defense Authorization Act.
2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.
3. The total amount allocated for the Defense Authorization Act is $768 billion.
4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.
5. The Act represents a 5% increase in the US defense budget when compared to the previous year.
6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.
7. The Act was passed overwhelmingly, indicating strong support from the Senate.
8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.
9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.
10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.
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Which of the followWhich of the following actions do not cause an impropriety in job costing?
Choosing an allocation method based on the results rather than choosing the method based on resource usage.
Misstating the stage of completion.
Choosing to use normal costing rather than actual costing.
Charging costs to the wrong job.
ing actions do not cause an impropriety in job costing?
Answers
Answer:
Choosing to use normal costing rather than actual costing.
Explanation:
The choice between normal costing and actual costing is not an ethical issue.
Explain the positive and negative aspects of entrepreneurship. Draw evidence to support your claim from two other sources.
Answers
Answer:
Advantage #1: A flexible schedule – both in terms of when and where you work. ...
Advantage #3: It's exciting and fulfilling. ...
Advantage #4: The salary makes sense. ...
Disadvantage #1: You wear a lot of hats. ...
Disadvantage #2: You are always at work.
Explanation:
The positive (advantages) and negative aspects (disadvantages) of entrepreneurship are enumerated below:
Control: Entrepreneurship offers the entrepreneur a sense of being in charge and being the captain of the ship. With freedom of control comes increased risk of business failure.Responsibility: The entrepreneur is responsible for her income for life sustenance. There is no more reliance on a period paycheck. The entrepreneur can decide to delight her customers or to scare them away.Flexibility: The entrepreneur enjoys flexibility in work schedule. She works at her own pace. The downside is that your customers dictate when you work. The workload may increase more than your capacity to handle. Thus, flexibility does not happen always until you have established the business properly.Profit-making: As the business makes profits, the entrepreneur is entitled to receive all. When it makes losses, the entrepreneur similarly bears all.Thus, there are numerous benefits in being an entrepreneur. But there are also negative aspects of entrepreneurship.
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According to the creditor hierarchy, list the following from high risk to low risk
1 Ordinary share capital 2 Preference share capital 3 Trade payables 4 Bank loan with fixed and floating charges A 1,2,3,4 B 2,1,4,3 C 1,2,4,3 D 4,1,2,3 2.
Answers
The correct order from high risk to low risk is: D) 4, 1, 2, 3 where trade payables are the lowest-risk creditors, followed by ordinary share capital, preference share capital, and bank loans with fixed and floating charges being the highest-risk creditors.
Bank loans are a common form of debt financing provided by financial institutions such as banks to individuals and businesses.
The terms and conditions of bank loans can vary depending on the lender and the borrower's creditworthiness, but typically include an interest rate, repayment schedule, and collateral or security requirements.
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A comparative balance sheet for Carla Vista Corporation is presented below. December 31
Assets 2020 2019
Cash $80,240 $25,960 Accounts receivable 96,760 77,880 Inventory 200,600 223,020 Land 83,780 129,800 Equipment 330,400 236,000 Accumulated depreciation-equipment (87,320) (49,560) Total $704,460 $643,100 Liabilities and Stockholders' Equity Accounts payable $40,120 $55,460 Bonds payable 177,000 236,000 Common stock ($1 par) 193,520 193,520 Retained earnings 293,820 158,120 Total $704,460 $643,100
Additional information: 1. Net income for 2020 was $182,900; there were no gains or losses. 2. Cash dividends of $47,200 were declared and paid. 3. Bonds payable of $59,000 were retired. Compute each of the following: (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) 1. Net cash provided by operating activities $ 2. Net cash provided (used) by investing activities $ 3. Net cash provided (used) by financing activities $
Answers
Statement of cash flows for 2020 for marigold Corp.103,600 in profit. Depreciation (65,700 - 32,500) (65,700 - 32,500) 32,200 Receivables growth (86,500 - 70,700) (15,800) . The correct response is net cash provided by operating activities $
Reduction in inventories (170,200 -187,000) 16,800 decrease in obligations (35,400- 46,500). (11,100) 125,700 in net operating cash flow investment the Investment-related cash flows: equipment purchases ($260,700–$200,600) (60,100)
sales of land (100,700 -72,700)
28,000 sales of land (100,700 - 72,700)
28,000 Investment-related net cash flows (32,100) and
Flows of money used for financing activities Paid the dividends dividends (45,500) Renewed bond (53,500)
45,000 shares of common stock were issued. Net financing activity cash flow (54,000) Added to or subtracted from cash 39,600 33.200 is the initial cash balance. 72,800 in the final cash balance.
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scarcity forces people to
Answers
Answer:
Because we don't have enough resources to provide all of the goods/services in the quantities that are wanted, scarcity forces us to make decisions about which goods/services we value higher.
Explanation:
Answer:
make choices
Explanation:
Scarcity forces all of us to make choices by making us decide which options are most important to us. The principle of scarcity states that there are limited goods and services for unlimited wants.
Select the correct answer
Which factor increases the risk of is project delays?
Options on picture
Answers
Answer:
B. Shortage of technical staff
Explanation:
It's 100% not D. I took the test and got it wrong
A company wants to use the allowance method to account for bad debts. You are assigned to explain to the company the different methods it can use to estimate bad debts.
Answers
By debiting the allowance for doubtful accounts (ADA) and crediting the accounts receivable, the allowance method records the uncollectible and written-off amounts. The ADA is subtracted from the accounts receivable to arrive at the net realizable value (NRV).
What is net realizable value?A valuation approach called net realizable value (NRV), which is popular in inventory accounting, takes into consideration the total amount of money an asset can bring in from sales less an estimate of the charges, fees, and taxes related to that sale or disposal.
NRV is calculated as expected selling price minus total manufacturing and selling expenses. Use $35 for the value and the projected selling price, for instance, if a business lists things for $50 but anticipates that they will only sell for a discount of $35.
The cash sum that a corporation anticipates receiving is known as net realizable value (NRV). Consequently, net realizable value is also known as cash realizable value. The terms "net realizable value" and "current assets" are frequently used in relation to inventory and accounts receivable.
Inventory should be recorded at the lower of its cost or the amount at which it can be sold, according to the lower of cost or net realizable value principle.
The predicted selling price of an item less the costs associated with its completion, sale, and transportation is its net realizable value.
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protect the fundamental rights and liberties of citizens.
O Legislation and common law
O Equivalent branches of the government
The legislative branch of the government
The executive office of the United States
Answers
Answer:
I believe your answer is Awhats a good job for me A. nail artist B.GameDev C. Aesthetic photography D.Anime Actor idc They all sound good
Answers
Answer:
C. Aesthetic photography
Explanation:
Answer: it really depends on what you're good at !!
Explanation: seeing all the jobs you listed here, if you look more into the requirements and the education that is needed, see which one is either easier or what you're good in in that field, and go for that !!
i think that either a nail artist or an aesthetic photographer would be good for you :)
Completed Per Day
Flower Beds Weeded
Bags of Leaves Raked
Samantha
4
8
Adam
5
25
Samantha and Adam own a gardening business together. They each pull weeds from flower beds and rake up leaves for their neighbors. If each decides to specialize in what they are best at, Samantha will
a.weed and Adam will rake because these are the goods each has a comparative advantage in.
b.rake and Adam will weed because these are the goods each has a comparative advantage in.
c.weed and Adam will rake because these are the goods each has an absolute advantage in.
d.rake and Adam will weed because these are the goods each has an absolute advantage in.
Answers
Answer:
The correct option is A, Samantha weed and Adam will rake because these are the goods each has a comparative advantage in.
Explanation:
The opportunity formula comes handy in this case, which is given below:
opportunity cost formula=what one sacrifices/what one gains
If Samantha were to weed flower beds, opportunity cost is computed thus:
Opportunity cost of Samantha weeding flower beds=8/4= 2 bags of leaves raked
The opportunity of Adam weeding flower beds=25/5 =5 bags of leaves raked.
In a nutshell ,if Samantha weeds flowers they would lose 2 bags of leaves raked while if Adam were to do so same, they would lose 5 bags of leaves raked, conclusively Samantha should weed flower beds since she has lower opportunity, higher comparative advantage
An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n)
Answers
probably a relativist
✨✨✨✨✨✨
Write the steps in registering your business. Record them in the correct order. Do this in your answer sheet.
(LOOK AT THE PICTURE)
Answers
A business is anything which a person engages in that involves the buying and selling of products and/or services.
With this inn mind, if a business owner wants to legally register his business, then he has to follow the above steps so that it can be legally recognised and the government can also easily tax the business.
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According to Paula scher how was the 2001 palm beach ballot impacted by design?
Answers
According to Paula Scher how was the 2001 palm beach ballot impacted by design by combining the emotional or psychological parts of the typeface along with contextual elements.
What is the The Art of Design by Paula Scher?The famous Paula Scher who is known to be a Graphic Designer says that a person need to be in the “state of play” to be able to make any kind of design.
She was said to have emphasizes on the fact by telling that the design is better when it is said to be combining an emotional or psychological areas of the typeface and also that of contextual elements to make a great message tool.
Hence, According to Paula Scher how was the 2001 palm beach ballot impacted by design by combining the emotional or psychological parts of the typeface along with contextual elements.
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How can insurance help with meeting savings goals?
Answers
Answer:
Explanation:
PROVIDING FOR YOUR FAMILY IF YOU PASS AWAY. ...
PROTECTING YOUR INCOME FROM DISABILITY. ...
GROWING YOUR MONEY OVER TIME. ...
SAVING FOR AN EMERGENCY. ...
SAVING FOR COLLEGE. ...
LIVING COMFORTABLY IN RETIREMENT
My mom does insurance
Hope this helps
A quality control activity analysis indicated the following four activity costs of a hotel:
Inspecting cleanliness of rooms $49,300
Processing lost customer reservations 98,600
Rework incorrectly prepared room service meal 246,500
Employee training 98,600
Total $493,000
Sales are $2,900,000. Prepare a cost of quality report. Round percent of sales to one decimal place.
Answers
The Cost of Quality Report is as follows:
Quality Cost Quality Percentage of Percentage of
Classification Cost Quality Cost Total Sales
Prevention $98,600 20% ($98,600/$493,000) 3.4%
Appraisal 49,300 10% ($49,300/$493,000) 1.7%
Internal Failure 246,500 50% ($246,500/$493,000) 8.5%
External Failure 98,600 20% ($98,600/$493,000) 3.4%
Total Quality Costs $493,000 100% 17.0%
Data and Calculations:
Inspecting cleanliness of rooms $49,300 (Appraisal)
Processing lost customer reservations 98,600 (External failure)
Rework incorrectly prepared room service meal 246,500 (Internal failure)
Employee training 98,600 (Prevention)
Total $493,000
Sales $2,900,000
Percentage of Quality Cost = Quality Cost/Total Quality Cost * 100
Percentage of Total Sales = Quality Cost/Total Sales * 100
Thus, the cost of quality report is an appraisal of how the hotel uses its resources to prevent poor quality, including its internal and external failures.
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Total revenue minus total cost is equal to
Answers
This was not a necessarily an economically efficient move. The fact that it is scrap wood implies that it is not useful for the company's purposes, i.e., making furniture. It is presumptuous to associate a value of $150,000 or $29,000 to the scrap since there is no market for it and thus no market value can be assigned. There is no rational way to calculate the optimal amount of scrap wood. The manager did not go far enough. The most economically efficient outcome would be to reduce scrap altogether. Even at the reduced amount, the company is literally throwing away $29,000 per year when it could recoup that amount with greater diligence.
Answers
The manager's decision to reduce scrap wood is not economically efficient, and a more optimal outcome would be to aim for its complete elimination.
The manager's decision to reduce scrap wood, as mentioned in the provided excerpt, is deemed not economically efficient. While it is commendable, the most economically efficient outcome would involve completely minimizing scrap production. The fact that the wood is considered scrap implies its lack of usefulness for furniture manufacturing, making it inappropriate to assign a value of $150,000 or $29,000 to it since there is no existing market or ascertainable market value. Additionally, determining the optimal amount of scrap wood to maintain lacks a rational basis. Despite the manager's efforts, the company still wastes $29,000 annually, which could be salvaged through greater diligence. Thus, the recommended course of action is to aim for a total reduction in scrap production to achieve the utmost economic efficiency.In conclusion, while the manager's effort to reduce scrap wood is commendable, the most economically efficient outcome would be to strive for the complete elimination of scrap, minimizing waste and maximizing cost savings for the company.
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which of the following areas are not considered to be one of the building blocks of financial statement analysis? A.Market prospectsB.SolvencyC.Liquidity and efficiencyD.Ratio analysisE.Profitability
Answers
The areas listed below are not regarded as foundational to financial statement analysis. market potential.
What are the four components that make up financial statement analysis? What do they each serve for?Liquidity, salability, solvency, profitability, and all four of these are the foundational elements of financial statement analysis. According to a general rule, a business without discounts should keep its days of uncollected sales under 1 1/3 times the number of days in its credit term.
Which of the following factors is used to assess a business's profitability?One of the profitability or margin ratios that is most frequently employed is gross profit margin. The difference between revenue and production costs, also known as cost of products sold, is known as gross profit (COGS).
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Crocs Proprietary Limited “Crocs” was incorporated on 1 February 2021. Soon after its incorporation, Crocs entered into an agreement with the municipality to lease a vacant piece of land. As per the lease agreement, Crocs may erect a structure on the land, but the company is obligated to dismantle and remove the structure at the end of its useful life and restore the land to its original state.
The construction of the building, which will house the abattoir operations, started in February 2021. It was completed on 30 April 2021 and recorded in the accounting records with a total cost of R2 670 000.
The following journal entry was recorded on 30 April 2021
DR Property, plant, and equipment 2 670 000
CRPayables 2 670 000
The building was available for use on the same day. The management of Crocs estimated the future dismantling, removal, and restoration costs to be R750 000. An appropriate discount rate (after tax) of 9% was determined.
The estimated useful life of the building is 20 years. Included in the total construction costs of the building (R2 670 000), were the following costs:
• Light steel costing R50 100 which was damaged irreparably during the construction of the building.
• Cost of R30 023 incurred to advertise the date of the opening of the facility on 1 June 2021.
The 4 machines used on the production line, with a total cost of R880 000 were fitted and installed by 1 May 2021 and available for use on the same day. The machines were brought into use on 1 June 2021, on the day of the opening of the facility. The estimated useful life of machinery is 10 years.
On 29 March 2023, the engine of one of the machines sparked and caught alight due to unscheduled loadshedding on that day. The engine was replaced at a cost of R18 000. It was not identified as a significant component at initial recognition. Its estimated useful life is 3 years.
Required:
3.1.1 Critically discuss the accuracy of the initial measurement of the building recorded in the financial records of Crocs (Pty) Ltd for the year ended 30 April 2021. Show all calculations as marks are awarded. ( 10 marks)
3.1.2 Prepare the correcting journals due to your discussion in 3.1.1 for Crocs (Pty) Ltd for the year ended 30 April 2021. ( 5 marks )
3.1.3 Calculate the correct cost of the building.
3.2 Prepare the property, plant and equipment note to the financial statements of Crocs (Pty) Ltd for the year ended 30 April 2023. Show calculations as marks are awarded.The total column is not required. (16 marks)
3.3 Show the value at which property, plant and equipment will be reflected in the ( statement of financial position of Crocs (Pty) Ltd as at 30 April 2023. (2 marks)
Answers
3.1.1 Critically discuss the accuracy of the initial measurement of the building recorded in the financial records of Crocs (Pty) Ltd for the year ended 30 April 2021. Show all calculations as marks are awarded.
To assess the accuracy of the initial measurement of the building, we need to consider the relevant costs and adjust the recorded amount accordingly.
a) Light steel costing R50,100: This cost should be excluded from the initial measurement of the building as it was damaged irreparably during construction. Since it is a non-recoverable cost related to a separate asset, it should not be included in the building cost. Therefore, the building cost needs to be reduced by R50,100.
Adjusted building cost: R2,670,000 - R50,100 = R2,619,900
b) Advertising cost of R30,023: The advertising cost incurred for the opening of the facility is not directly attributable to the construction of the building. It should be expensed separately as a marketing or promotional expense rather than capitalized as part of the building cost. Therefore, it should not be included in the building cost.
Adjusted building cost: R2,619,900
3.1.2 Prepare the correcting journals due to your discussion in 3.1.1 for Crocs (Pty) Ltd for the year ended 30 April 2021.
To correct the initial measurement of the building, the following journal entry should be recorded:
DR Property, plant, and equipment (Building) - R50,100
CR Accumulated depreciation - R50,100
Adjusted building cost: R2,619,900
3.1.3 Calculate the correct cost of the building.
The correct cost of the building is R2,619,900.
3.2 Prepare the property, plant, and equipment note to the financial statements of Crocs (Pty) Ltd for the year ended 30 April 2023. Show calculations as marks are awarded. The total column is not required.
Property, Plant and Equipment Note
Year Ended 30 April 2023
Property, Plant, and Equipment:
Buildings:
Opening balance: R2,619,900
Additions: None
Disposals: None
Depreciation: Accumulated depreciation at the end of the year
Closing balance: Cost - Accumulated depreciation
Machinery:
Opening balance: R880,000
Additions: None
Disposals: None
Depreciation: Accumulated depreciation at the end of the year
Closing balance: Cost - Accumulated depreciation
3.3 Show the value at which property, plant, and equipment will be reflected in the statement of financial position of Crocs (Pty) Ltd as at 30 April 2023.
The value at which property, plant, and equipment will be reflected in the statement of financial position is the net carrying amount, which is the cost of the asset minus accumulated depreciation.
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Advantages to free-trade agreements (FTAs) are that they increase trade barriers (both tariff and non-tariff barriers), open up market to exporters, and increase jobs domestically. True orFalse
Answers
Answer:
False
Explanation:
Free trade agreements are economic cooperation deals between two or more countries. In the agreement, the countries agree to put in measures that will promote trade between them. Free trade agreements are mostly about tariffs and duties that countries impose on each other imports and exports.
The purpose of the free trade agreement is for participating countries to review the tariffs to increase trade among participating countries. In most cases, a free trade agreement resorts to reduced tariffs and duties.