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trasher [3.6K]
3 years ago
12

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the b

alance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold?
Business
1 answer:
faltersainse [42]3 years ago
5 0

Answer: 4.16 weeks.

Explanation:

To calculate this we will use the Weeks of Supply formula as well as an assumption of a 52 week year. There are a couple of variants to the formula but for the purpose of the details given here we shall use the following,

Weeks of supply = (Average inventory/ Cost of goods sold) * 52 weeks

= (2/25)*52

= 4.16

The weeks of supply the firm holds is therefore 4.16 weeks.

If you have any questions or need any clarification, please do react or comment. Thank you.

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A business' last line of defense against risks that cannot be controlled or avoided by other risk management practices is this t
natima [27]

Answer: A business continuity plan

                           

Explanation: Business continuity planning refers to the procedure involved in creating a risk reduction and recovery scheme for a corporation from possible hazards.

The strategy helps to ensure the protection of management and resources and the ability to operate rapidly in the event of an emergency. The BCP is usually designed in ahead of time and includes insight from relevant parties and staff.

BCPs are an essential part of any undertaking. Threats and disturbances result in revenue shortfall and increased costs, resulting in a decline in productivity. And companies can not rely solely on insurance since it does not cover all the costs and the clients that move to the contest.

5 0
3 years ago
Hill Co. can further process Product O to produce Product P. Product O is currently selling for $60 per pound and costs $42 per
Elina [12.6K]

Answer:

(A) True

Explanation:

Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce

So the statement “The differential cost of producing Product P is $13 per pound” is true

4 0
3 years ago
If your average is an 83 and you took a test and made a 80 on it what is your average then?
Ierofanga [76]
The correct answer would be 81
7 0
3 years ago
Which of the following practices are not considered essential for a comprehensive JIT implementation: Uniform production (also k
bogdanovich [222]

Answer:

False ( "Large lot sizes" is not considered essential for JIT )

Explanation:

Just in time is an arrangement and alignment of raw material supply with the production process of the business. It minimizes the holding cost, lead time required for delivery of raw material, the setup times and sizes of orders.

The Large lot sizes is not a characteristics of JIT because it may requires the storage facility to place the large orders until used in production which might increase the holding cost.

So, Large Lot Sizes are not considered essential for a comprehensive JIT implementation.

4 0
3 years ago
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as f
malfutka [58]

Answer:

Explanation:

journal entries in the books of AXE

jan 6   purchased goods from Green worth $1200 term 2/10 , n/30

                                      Inventory a/c $1200

                               Accounts Payable - green $1200

jan 6    purchased goods from munoz worth $900

                                                          inventory a/c$900

                                         Accounts Payable - munoz $900

jan 14   Payment being made to green. Since payment is made within 8 days so discount will be recieved by Axe( note term 2/10 means if payment is made within 10 days axe will recieve discount @2%)

                                       Accounts payable - green $1200

                                                                         Cash                  $1,176

                                                         discount recieved              $    24

( being discount recieved [email protected]% = $24)

Feb 2 payment made to munoz , since it is paid after 10 days no discount will be recieved

                          Accounts payable- munoz $900

                                                      Cash                $900

feb 28                  purchased goods worth $350 from reynold

                                                   Inventory $350

                                                          Accounts payable - reynold $350

5 0
3 years ago
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