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2 years ago

The most rigorous test of a firm's ability to pay its short-term obligations is its?

1 answer:

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The working capital ratio is a measurement of a company's short-term capability of paying its financial obligations.

The working capital turnover ratio measures how efficaciously a business makes use of its operating capital to supply sales. A better ratio indicates greater efficiency. In preferred, an excessive ratio can assist your employer's operations to run greater easily and limit the want for added funding.

The working ratio measures a corporation's potential to recover running expenses from annual sales. It's miles calculated by taking general annual fees, aside from depreciation and debt-related charges, and dividing it by the yearly gross income.

The current ratio, also known as the working capital ratio, gives a short view of an enterprise's financial health. You could calculate the current ratio by taking contemporary assets and dividing that discern by means of current liabilities. A ratio above 1 way current belongings exceed liabilities.

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2 years ago

In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the le

taurus [48]

Answer:

245 units reduction.

Explanation:

What is safety stocks?

Safety stocks can be defined as the extra stock that is been kept by business organizations in order to minimize their risk. One can not successfully say that an amount of a material will be need at a particular period of time by the consumers and this is the reason many companies or industries or business organizations do keep safety stocks in their inventory.

So, let us proceed in to solving the question.

The parameters given in the question are; lead time = 5 weeks, standard deviation of demand during the lead time = 85 units, desired cycle-service level = 99%.

We can calculate the value of units for the Reduction in safety stocks by using the formula below;

Reduction in safety stocks=safety stocks - revised safety stocks.

Reduction in safety stocks = 443 - (2.33 × 85 units × 1 week lead time)

Reduction in safety stocks = (443 - 198) units = 245 units.

Note that 2.33 is from the 99% service level) and the 443 is from the 5 weeks lead time which can be Calculated using; (maximum daily usage × maximum lead time in days) - (average daily usage) × average lead time in days.

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3 years ago

Your new team is working hard, but they are all less experienced than you and don't complete their tasks as quickly

hammer [34]

Answer:

I would personally try to teach them myself since I have more experience and help them get better at their work environment.

Explanation:

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3 years ago

At the start of the month, Oak Inc. had 58,000 units of beginning work in process that were 65% complete. Over the course of the

KIM [24]

According to these figures, Oak has more equivalent units of production for materials and fewer equivalent units of production for conversion costs than Maple.

Explanation:

The equivalent production unit is an indication of a manufacturer's work on the produced units, which are partially finished at the close of the accounting period. In addition the completely loaded units and the partially filled units are entirely fitted out.

The number of partially completed units x percentage of completion = equivalent units of production.

Oak : 58,000 x 65% = 37,700

Oak Equivalent units of production = 37,700

Maple: 61,200 x 60% = 36,600

Maple Equivalent units of production = 36,600

So, Oak has more equivalent units of production for materials and fewer equivalent units of production for conversion costs than Maple.

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3 years ago

Sheffield Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 a

Sphinxa [80]

The journal entry to record the purchase of the raw materials by Sheffield Company is as follows:

Debit Purchases $1,031,600

Credit Accounts Payable $1,031,600

To record the purchase of the raw materials in 2021.

The December adjusting entry can be revised with:

Debit Estimated Liability $53,300

Credit Unrealized holding Loss $53,300

To reverse the December 31 adjusting entry.

<h3>What is an unrealized holding loss?</h3>

In this instance, the unrealized holding loss arose from the fact that the market value of the raw materials is less than the purchase amount because of the noncancelable commitment.

Thus, the unrealized holding loss arose as the difference between the market value and the purchase amount.

<h3>Data Analysis:</h3>

Purchases $1,031,600 Accounts Payable $1,031,600

Estimated Liability $53,300 Unrealized holding Loss $53,300

Thus, the entry to record the purchase is a debit to the purchases account and a credit to accounts payable.

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2 years ago