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viktelen [127]
2 years ago
7

If Abrams Company has an inventory turnover of 7.3 and a receivables turnover of 9.6, approximately how long is its operating cy

cle?
Business
1 answer:
Leviafan [203]2 years ago
6 0

Answer:

It is 16.9

Explanation:

Operating cycle = Inventory turnover + Receivable turn over - payable turnover

Hence, Operating cycle = 7.3+9.6

=16.9

Operating cycle implies how long it takes us to convert entire production process to cash .

It has an direct relationship with the level of working capital required. The higher the operating cycle, the higher the working capital investment required to keep the operation running.

A cash driven businesses like restaurant which hardly sell on credit will certainly have shorter operating cycle compared to a manufacturing company.

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Samples Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $21
Anvisha [2.4K]

Answer:

$18.60

Explanation:

Target cost:

= Sales revenue - Profit

= (No. of units sold × Selling price per unit) - (Investment require × desired return on investment)

= (20,000 × $21) - ($400,000 × 0.12)

= $420,000 - $48,000

= $372,000

Target cost per unit:

= Target cost ÷ Number of units

= $372,000 ÷ 20,000

= $18.60

Therefore, the target cost per unit is closest to $18.60.

5 0
3 years ago
Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increas
evablogger [386]

Answer:

The level of saving =  $450 billion - $400 billion= $50 billion

Marginal propensity to save = 1- marginal propensity to consume (MPC)=0.5

Expected consumption

MPC=  change in Consumption/ change in income 200 billion * 0.5 = $100billion

Therefore consumption = 100 billion + 400 billion = $500 billion

Saving = $650 billion - $500 billion=  $ 150 billion

Explanation:

4 0
3 years ago
Which skills will be most beneficial for computer help desk technician
tester [92]
Here are five of the most advantageous soft skills for IT help desk technicians:<span>Critical Thinking. Oftentimes, help desk technicians have flow charts or predefined procedures they can follow to resolve known problems. ...Written Communication. ...Active Listening. ...Verbal Communication. ...Conflict Resolution.</span>
7 0
3 years ago
What is the first step in developing research-based business reports?
tatyana61 [14]

Answer: The first step in developing research-based business reports is identifying what decision makers want to accomplish.

Explanation: The establishment of the objective to be achieved is fundamental because it is what will guide the development of the commercial report.

6 0
3 years ago
Santana Industries purchased a supply of electronic components from ABC Corporation on October 1, 2020. In payment for the $5 mi
pshichka [43]

Answer: they will report an interest expense of $150000 in December 2020

Explanation:

firstly we calculate how much interest will be accumulated for the whole year so we are given a $5 million Dollar purchase which is the amount that will accumulate interest over time, then we have been told the company ha issued a 1 year installment note therefore we have a time frame.

so now we will calculate the yearly interest of $5 million :

$5 000000x12% = $600000 so the company will accumulate this interest yearly then we divide this amount by 12 to get the monthly interest.

$600000/12 = $ 50000 per month interest thereafter we will multiply the monthly interest of $50000 by 3 months which is months from October to December.

therefore the interest expense to be reported on the December 2020 income statement is $50000 x 3= $150000

6 0
2 years ago
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