Evaluate whether entity should buy EOQ or 1,500 units of goods per order?
Evaluate whether the company should order at EOQ level.
Boo acquired 80% of Goose's equity shares for $300,000 on 1 January 20X8. At the date of acquisition Goose had retained earnings of $190,000. On 31 December 20X8 Boo dispatched sold goods which cost $80,000 to Goose, at an invoiced value of $100,000. The two companies' draft financial statements as at 31 December 20X8 are shown below.
STATEMENTS OF PROFIT OR LOSS AND
Following are the statement of profit or loss for Oracle and Java for the year ending 31 March 2016.
Following are the statement of profit or loss for Pizam and Plutka for the year ending 31 December 2016.
Following is the trial balance of Xemco for the year ending 30 September 2013.
Grabbit Quick Co achieves current annual sales of $1,800,000. The cost of sales is 80% of this amount, but bad debts average 1% of total sales, and the annual profit is as follows.
|Less bad debts||($18)|
Rubic with export sales of $480m pa has an average collection period of 3 months, bad debts are 2% on sales.
A factoring company will provide non-recourse factoring for a fee of 5% of revenue. As a result of this, administration savings will be made of £8m p.a. and the credit period will fall to 2 months.
Rubic has a cost of capital of 10%, and the exchange rate is currently 2 $/£.
Pips Limited is considering offering a cash settlement discount to its customers.
Currently its annual credit sales are $10m and its normal payment terms are 90 days.
Customers will be able to take a 2% discount for payments after 10 days.
Pips anticipates that sales will increase by 10% after the discount offer and approximately 20% of customers will take the discount.
After the offer bad debt will reduce from 2.5% of sales to 1% of sales.
Pips has a CS ratio of 40%.
Currently Pips has an overdraft on which it is paying 10% interest.