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barxatty [35]
2 years ago
8

You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento

ry of $8000, an increase in Accounts payable of $2500, and an increase in property, plant, and equipment of $40,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is: Group of answer choices
a. $45,500
b. 10500c. 6500d. 5500
Business
1 answer:
scoray [572]2 years ago
6 0

Answer:

The answer is: D) $5,500

Explanation:

To calculate the change in working capital we use the following formula:

Change in working capital = change in current assets - change in current liabilities

Since we don't know the current assets or liabilities from previous years, we can consider them to be 0.

Change in working capital = current assets - current liabilities

Change in working capital = $8,000 (inventory) - $2,500 (accounts payable)

Change in working capital = $5,500

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Marion Industries has an average accounts receivable turnover ratio of 12 times per year whereas most of its competitors have a
deff fn [24]

Answer:

C. using more liberal credit terms to increase sales

Explanation:

According to the question  it is given that the ratio of account receivable turnover has measured that comes 12 times which means it took 30 days

= 365 ÷ 12

= 30.41

= 30 days

But according to the competition, the ratio of account receivable turnover is 8 times so the competitor took 45 days

Therefore the Management of marian would have more liberal credit terms that would increase the sales

5 0
2 years ago
The amount of oil that is economically feasible to extract from a deposit using current technology is known as ______ oil reserv
strojnjashka [21]

Answer: Proven oil reserves

Explanation:

Proven oil reserves are those that humans can extract oil from given our current technological and economic situations.

Under Proven oil reserves there are those that are Proven developed and those that are Proven Underdeveloped. Proven Developed ones can be extracted from as they come from already existing wells. Proven Underdeveloped however would need further investment to get them ready.

6 0
3 years ago
The law of variability says that​ "the greater the random variability either demanded of the process or inherent in the process
Aneli [31]

Answer:

C. the less productive the process​ is.

Explanation:

Variability refers to the property when the given substance are highly probable to change and that the results accordingly change.

In that condition there is no drawn pattern for such change, as it might or might not change according to the expected scale and level.

In this, if there is high variability, then the results can be that the resulting process will be least productive, as there are so many uncontrollable changes.

Accordingly, since no proper management of the related process is possible, the results will not be productive.

6 0
3 years ago
Suppose winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. one
DedPeter [7]

Economic profit is calculated as:

Economic profit = Total Revenues – Total Cost

Total cost both includes explicit and implicit cost. In this case, the explicit cost is $8,000 while the implicit cost is $64,000. Explicit cost is a direct payment made to run the business while implicit cost is the opportunity as accountant that is lost. Therefore,

Economic profit = $150,000 – ($8,000 + $64,000)

<span>Economic profit = $78,000</span>

6 0
3 years ago
Ten-year-old sarah and 5-year-old haley were making a special birthday card for their grandmother. by patiently showing haley ho
Helga [31]

Answer:

This is true

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Sarah illustrated scaffolding for Haley by supporting her through learning when putting lace around the card's edge.

4 0
3 years ago
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