Select Page

Scenario 2: ddd company ddd manufactures 3d-printers.

by | Sep 26, 2022 | Finance | 0 comments

For This or a Similar Paper Click To Order Now

Scenario 1 : Bernie’s Socialist Boat Store (BSBS) BSBS is a dealer of J/boat sailboats in Berkeley, CA. They purchase j/boats from the manufacturer, place them in inventory, mark them up and sell them to sailors. At the beginning of the year they had 10 sailboats in inventory. They paid $50k for these 10 sailboats. For 2021, the manufacturer raised the price of sailboats to $55k. BSBS bought 6 boats at the new price and added them to their inventory. During the year they sold 7 boats in total for $70k each. They started the year with no debt and $100k in cash. They pay 30% cash taxes on the profit every time they sell a boat. Bernie believes in fairness. Since all the j/boats are the same, he sees no reason why the boats should be marked at different prices in his inventory and/or anywhere else for that matter. Scenario 2: DDD Company DDD manufactures 3D-Printers. They bought a factory to make the printers 6 years ago for $100k. The factory has another 5 years worth of use before it becomes obsolete. They spent $5000 on the first day of the year to upgrade the factory’s electrical panel. This upgrade will extend the life of the factory by 6 months. It costs them $500 in labor and materials to build one 3D printer. They keep no inventory. Each printer is made to order. They sell the 3D printers for $1000 each. They offer their customers a 30-day grace period before invoiced payment is due. During the year they sold 100 3D printers and had fixed administrative expenses of $5000. They have a 25% effective tax rate, have no debt and started the year with $5k in cash and $25k in accounts receivable.


Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates

For This or a Similar Paper Click To Order Now

Our confidential essay writing service protects your privacy

We cherish your trust and do our best to protect you. Anything that you share with our private essay writing service is never misused as the access to your personal data is very limited. Your payment details and credit card number also fall under strict protection when you buy a custom essay online from us.