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LenaWriter [7]
3 years ago
5

A company reports the following: Cost of goods sold $660,000 Average inventory 60,000 Determine (a) the inventory turnover and (

b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
Business
1 answer:
rusak2 [61]3 years ago
3 0

Answer:

the inventory turnover is 11

while the average days outstanding is 33 days

Explanation:

<u>inventory turnover:</u>

the amount of times the inventory rotetes (is being sold) during the period

\frac{COGS}{AVERAGE\: INVENTORY }

660,000/60,000 = 11

The company sold his invenotry 11 times

<u>days outstanding :</u>

time to sale the entire inventory

if it rotates 11 times per year and the year has 365 days then:

\frac{365}{inventory_{TO}}

365/11 = 33.18 = 33days

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8 0
3 years ago
The nominal exchange rate is .80 euros per U.S. dollar and a basket of goods in France costs 1,000 euros while the same basket c
lukranit [14]

Answer:

Australia has purchasing-power parity with the U.S.

Explanation:

A basket of goods costs $800 in the US. The same basket costs 1,000 euros in France and 960 Australian dollars in Australia.  

The nominal exchange rate for euros is .80 euros per U.S. dollar and for Australian dollars, it is 1.2 Australian dollars per U.S. dollar.  

The purchasing power parity theory compares the currency of two countries through a basket of goods. The currency of the two countries is in equilibrium or is at par if a basket of goods cost the same in both the countries.  

This method compares the economic productivity and standard of living in two countries.  

Converting the value of basket in France into US dollars,

= \frac{1,000}{0.80}

= $1,250  

Converting the value of basket in Australia into US dollars,

= \frac{960}{1.2}

= $800

The cost of the basket of goods is same in Australia. This indicates that Australia has purchasing-power parity with the U.S.

3 0
3 years ago
The student center on campus has burritos, bagels, or burgers for lunch, and they all cost the same. you decide to have a burger
Liula [17]

The correct option is your enjoyment of the bagel

The student center on campus has burritos, bagels, or burgers for lunch, and they all cost the same. You decide to have a burger today, but if they were out of burgers, you would have bought a bagel. Your opportunity cost is your enjoyment of the bagel.

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The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in t
Darya [45]

Answer:

c. make an accurate diagnosis of what is causing the problem

Explanation:

The manager of the fast-food restaurant should understand the underlying problem first. Working on the assumption that it's because of a competitor marketing campaign may not give the desired results.  A customer's preference may change due to many reasons.

The manager should make an accurate diagnosis of the problem first. With a precise reason as to why customers as fleeing, then he can develop a counter-strategy. Retaining the current member of the crew will not reverse the situation. Reducing prices may affect profitability, which is not the desired result. With low prices, some customers may question the quality of the breakfast.

7 0
3 years ago
The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $14,800. The fair value of the assets is
xxMikexx [17]

Answer:

The goodwill is $9,220

Explanation:

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Fair value of net assets acquired is the difference between the fair of assets acquired over the fair value of liabilities taken up which is shown below.

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The goodwill of $9220  represents the premium paid over the net assets of Catteman's Steakhouse as a compensation to the owners of the business in return for their efforts of running the business and see go through different phases of development since the establishment of the business.

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