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A catering company reported the following financial statements and information for two successive years: Additional financial information: 1. In Year 0007, the building that was previously rented was purchased for $150,000. The company paid $10,000 cash and assumed a longterm mortgage for $140,000. Depreciation on the building is $7,500 for Year 0007. At the end […]
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Refer to information provided in preceding P10.3 and complete in good form an SC Fusing the indirect method. P10.3 You have the following comparative balance sheets for a restaurant for the years ending December 31, 0007, and December 31, 0008. Calculate the change in working capital and prepare the restaurant’s statement of sources and uses […]
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The economic order quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost, and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at […]
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Harry Markowitz received the 1990 Nobel Prize for his path-breaking work in portfolio optimization. One version of the Markowitz model is based on minimizing the variance of the portfolio subject to a constraint on return. The below table shows the annual return (%) for five 1-year periods for the six mutual funds with the last […]