1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anyanavicka [17]
3 years ago
15

What is the inventory turnover ratio for ABC Corp. if cost of goods sold equals $5,000, current ratio equals 3, quick ratio equa

ls 1.5, and the firm has $1,800 in current assets
Business
1 answer:
soldi70 [24.7K]3 years ago
6 0

Answer:

Inventory turnover= 5.5 times

Explanation:

Current ratio is given as 3

Cost of goods sold = $5,000

Current assets = $1,800

Quick ratio= 1.5

Current ratio= current assets/ current liabilities

3= 1,800/ current liabilities

Current liabilities= 1,800/3

Current liabilities= $600

Quick ratio= Cash and Receivables/ Current liabilities

1.5= Cash and Receivables/600

Cash and Receivables= 600* 1.5= $900

Current asset= Cash and Receivables + Inventory

1,800= 900+ Inventory

Inventory= 1,800-900

Inventory= $900

Inventory turnover= Cost of goods sold/ Inventory

Inventory turnover= 5,000/900

Inventory turnover= 5.5 times

You might be interested in
What explanation might an economist provide why some people overeat when such behavior can lead to health​ consequences? Some pe
LiRa [457]

Answer:

Utility overvalued

Explanation:

According to economists, such people over value the utility they are meant to get in the future. They only want to get the entire satisfaction at a go because of the fear of not getting that food again in the nearest future.

3 0
3 years ago
Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average cos
erastovalidia [21]

Answer:

a. $142,500

b. $86,250

Explanation:

a. The computation of the total direct manufacturing cost is shown below:

= (Direct material per unit + direct labor per unit)  × number of units manufactured

= ($7.20 + $4.20) × 12,500 units

=  $142,500

b. The computation of the total indirect manufacturing cost is shown below:

= (Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit)  × number of units manufactured

= ($1.70 + $5.20) × 12,500 units

=  $86,250

8 0
3 years ago
Scenario 14-4 The information below applies to a competitive firm that sells its output for $40 per unit.
Dominik [7]

The average revenue has the same value at Q = 150 and Q = 151.

Further explanation:

Average fixed cost: The fixed cost per unit is termed as the average fixed cost. The fixed cost does not change with the level of output. However, the average fixed cost changes along with the level of output.

Total revenue: The total revenue refers to the amount of revenue generated during a particular period of time. The total revenue is the total of the revenues.

Total cost: The total cost is the sum total of the variable and fixed cost during the year. The total cost represents all the direct, and indirect costs occurred on a product.

Average total cost: The total cost per unit is also termed as the average total cost. The average total cost represents the cost, which is computed by dividing the total cost with the number of units manufactured during the year.

Calculate the total revenue when the quantity of output is 150 units:

It is given that the output is sold at $40 per unit.

\text{Total revenue at 150 units}=\text{Number of units produced}\times\text{Sales price per unit}\\ =150\times\$40\\=\$6,000

Therefore, the total revenue when the quantity of output is 150 units is <u>$6,000.</u>

Calculate the average revenue when the quantity of output is 150 units:

\text{Average revenue}=\dfrac{\text{Total Revenue}}{\text{Number of units}}\\=\dfrac{\$6,000}{150\text{units}}\\=\$40

Therefore, the average revenue when the quantity of output is 150 units is <u>$40.</u>

Calculate the total revenue when the quantity of output is 151 units:

It is given that the output is sold at $40 per unit.

\text{Total revenue at 151 units}=\text{Number of units produced}\times\text{Sales price per unit}\\ =151\times\$40\\=\$6,040

Therefore, the total revenue when the quantity of output is 151 units is <u>$6,040.</u>

Calculate the average revenue when the quantity of output is 151 units:

\text{Average revenue}=\dfrac{\text{Total Revenue}}{\text{Number of units}}\\=\dfrac{\$6,040}{151\text{units}}\\=\$40

Therefore, the average revenue when the quantity of output is 151 units is <u>$40.</u>

Justification for correct and incorrect answer:

a.

Average fixed cost: The average fixed cost changes along with the change in output level. The average fixed cost is different from that of fixed cost. Hence, this choice is incorrect.

b.

Average revenue: The average revenue is $40 at Q = 150 units and Q = 151 units. The average revenue is equal at both the levels of the output. Hence, this choice is correct.

c.

Total cost: The total cost is not the same at both the levels of the output. The total cost is different for Q = 150 units, and Q = 151 units as the average total cost is also different for both output levels. The total cost increases when the output level changes. Hence, this option is incorrect.

Learn more

1. Breakeven point and contribution margin brainly.com/question/12989446

2. Direct materials efficiency variance brainly.com/question/12987884

3. Cost of materials

brainly.com/question/4783765

Answer details  

Grade: Senior School

Subject: Cost Accounting

Chapter: Cost Behavior

Keywords: Scenario 14-4, the information below applies to, competitive firm, scenario 14-4 the information below applies to competitive firm, when the firm produces, which of the following magnitudes, average fixed cost, average revenue, average cost per unit, average total cost, at Q = 150 and Q = 151, represent the quantity of output, refer to scenario 14-4, when the firm produces and sells 150 units of output.

6 0
3 years ago
Read 2 more answers
A credit rating (score) of ________ would normally allow you to have easy approval for credit.
NikAS [45]
500 <<<<<<<<<<<<<<<<<<<<<<<<<<
7 0
3 years ago
Marginal revenue:
natima [27]

Answer:

A. is the change in total revenues resulting from a change in output.

Explanation:

  • The marginal revenue is the additional revenue that can be generated by the addition of the sales of one more unit and by selling those additional units of the gods that will lead to change in the output and increase in the demand values of the product and services. And is equal to the price the company charges form the buyers.
5 0
3 years ago
Other questions:
  • Cheyenne is the manager of a local small hotel. just today cheyenne received word that a major convention will be coming to town
    14·1 answer
  • ​_____ pricing means that the firm charges a​ high, premium price for its new product with the intention of reducing it in the f
    7·1 answer
  • Fred is thinking of starting a bowling alley near a college campus. Fred is an expected utility maximizer with utility function:
    7·1 answer
  • Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale c
    13·1 answer
  • Production Budget
    15·1 answer
  • Given these observed times (in minutes) for four elements of a job, determine the observed time (OT) for each element. Note: the
    12·1 answer
  • If total spending rises from one year to the next, then which of the following could not be true?A. the economy is producing a l
    12·1 answer
  • Eassy on important of computer education​
    12·2 answers
  • 1988
    13·1 answer
  • ________ is a term for men who are keenly interested in fashion, home design, gourmet cooking, and personal care.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!