Determine the amount of credit available

Assignment Help Accounting Basics
Reference no: EM132105958

Question - The chief financial officer for Cast In Stone concrete products had previously established a line of credit with a local bank that enables Cast In Stone to borrow 80% of the company's inventory balance. The company currently has 1,000 units in stock, and is performing "on budget." The budget anticipated that direct labor cost would be $15 per hour, and factory overhead is applied to production based on $7.50 per direct labor hour. Each unit requires 2.5 labor hours and 800 pounds of direct material. The direct material costs $0.10 per pound.

Determine the amount of credit available under the borrowing agreement.

Reference no: EM132105958

Questions Cloud

Who has power in the marketing channel : Who has power in the marketing channel? What are the sources of power and potential ways of using power?
Describe the employee involvement : Describe the Functional Structure and its strengths and weaknesses - Describe the employee involvement and how it relates to performance
By what factor have you reduced the sound intensity : You live on a busy street, but as a music lover, you want to reduce the traffic noise. If you install special sound-reflecting windows that reduce.
Does your state have a form and when can you honor it : Health care durable power of attorney: Does your state have a form, and when can you honor it?
Determine the amount of credit available : The company currently has 1,000 units in stock, and is performing "on budget." Determine the amount of credit available under the borrowing agreement
By what factor have you reduced the sound intensity : If you install special sound reflecting windows that reduce the sound intensity level by 20.0 dB, by what factor have you reduced the sound intensity?
What do they suggest about being american : Think about the impact of the two propaganda videos- what do they suggest about being "American"?
Security screening area before proceeding to boarding area : All airplane passengers at the Lake City Regional Airport must pass through a security screening area before proceeding to the boarding area.
How much of these losses may kate claim : During the year, kate sold the following assets: business auto for $1,000 loss, how much of these losses may Kate claim? Explain

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd