Answer:
INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million
Explanation:
Inventory turnover will be determined as :
Inventory turnover = Annual sales ( at cost ) / Inventory value
Annual sales this year = $72million
Inventory turnover = 8 times
Therefore , Inventory value of current year = $72/8 =$ 9 MILLION
If annual sales ( at cost ) increases by 25%, Inventory value also has to increase by 25% to maintain the same inventory turnover ratio next year
Therefore , increase in average inventory value required = 25% of $9 million = $2.25 million
INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million
The rise of the car culture led to the spread of fast-food restaurants and drive-in movie theaters based on the choices from the question above. The "the spread of fast-food restaurants and drive-in movie theaters" is the most suitable answer<span>. Because only this sentence has the relation with the car culture.</span>
The double entry<span> system of accounting or bookkeeping means that every business transaction will involve two accounts</span>
An annual rate of return is the amount of loss or gain made through an investment in a yaear based on the percentage of intial investment.
In this case, since the quarterly divident is $1, in one year it would be:
$1 x 4 = $4
So, the annual rate of return would be $4 / $80 x 100% = 2%
