Answer:
The Prestige Company's cash conversion cycle is 77.2 days which makes B the correct choice.
Explanation:
We have the cash conversion cycle is the average amount of time it takes for company to convert cash outflow for inventory purchasing to cash inflow for revenue generating, which is calculated as:
Cash conversion cycle = Days of inventory outstanding + Days of sales outstanding - Days of payable outstanding = 42.7 + 91.3 - 56.8 = 77.2 days.
So, B. 77.2 days is the correct choice.
Answer:
For the cost of goods sold, the company made around $42,435
Explanation:
Solve cost of goods for Jan. 1st:
2000 units × $8
$16,000
Solve for cost of goods during 2007:
5000 units × $10
$50,000
Use the formula for weighted-average cost:
WAC per unit = cost of goods available for sale / units available for sale
WAC per unit = 16,000 + 50,000 / 2000 + 5000
WAC per unit = 66,000 / 7000
WAC per unit = 9.42857..... I will round to a dollar value
WAC per unit = 9.43
For cost of goods <em>sold</em>:
4,500 × 9.43 (please keep in mind 9.43 is a rounded number)
$42,435
Answer:
The correct answer is d. physical facilities and procedures
.
Explanation:
The decisions that lead to the definition of the productive facilities of a company are planning decisions, that is, with a long-term horizon, since the objectives to be achieved are basically the definition of the investments to be made, and the foreseeable costs to incur, which will condition us, to some extent, such investments.
For this, it is necessary to have the most complete information (field work), not only of the market to which we intend to supply, but also, and in particular, of those data that can directly influence the design of our facilities and exploitation processes, such as:
- Technologies and processes used in this type of business
- Level of the qualities demanded by the market
- Raw material suppliers and their degree of concentration (associations)
- Product distribution channels
- Regulations and regulations in this type of activity, and particularly those related to Workplace Safety.
The methodology to be followed for the design of the facilities is set out in the following table, and constitutes the set of tasks that must be performed before the start-up of a business.
