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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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klasskru [66]

Answer:

C. its operating income will be the same under absorption costing.

Explanation:

VARIABLE COSTING is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced. This addresses the issue of absorption costing that allows income to rise as production rises. Under an absorption cost method, management can push forward costs to the next period when products are sold.

Variable costing is a costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

4 0
4 years ago
Two identical firms that share a market and produce a homogenous good will find the Bertrand Oligopoly LEAST attractive because
inn [45]

Answer:

The correct answer that fills the gap is: Cartels generate the highest joint profit, they want to avoid a price war that leads to profit erosion and P=MC, a cournot oligopoly will generate more profit than a bertrand oligopoly

Explanation:

In Bertrand's model, consumers will buy the goods of the company that offers the lowest price. From this it can be intuited that the Nash equilibrium will be the one in which both companies set the same price. For this reason it is not attractive, since they are competition and for some of the two it may not be profitable to decrease the sale price of their products.

3 0
3 years ago
American General Company experienced the following accounting events during 2014:
12345 [234]

Answer:

1.  Operating Activities (OA)

2. Financing Activities (FA)

3. Financing Activities (FA)

4. Investing Activities (IA)

5. Operating Activities (OA)

6.  Operating Activities (OA)

7. Investing Activities (IA)

8. Financing Activities (FA)

9. Not applicable (NA)

10. Financing Activities (FA)

Explanation:

Statement of cash flows is one of the three major financial statements. The statement analyses the cash generated and cash expended by an entity in a given period. The statement collates the analysis under three categories

1. Operating Activities

2.Investing Activities

3.Financing Activities

Operating activities comprise of cash generated and expended by the entity on its normal business operation during the period. Examples of this are cash received from customers, cash paid to suppliers, rent paid to landlord, cash expenses paid etc.

Investing activities consist of cash activities involving acquisition and disposal of assets and investment. Examples of such are cash receipt from sales of equipment, cash spent on purchase of investment securities.

Financing activities are cash activities involving the entity and provider of capital, equity owner and debt holder. Example of such activities are cash generated from issuance of bond, cash dividend paid to equity owner.

4 0
4 years ago
3. The study of economics is best described as a study of...
laila [671]

D. coping with scarcity, and choices made as a result of scarcity in a society.

<h2>Economics</h2>
  • Economics is a social science that studies how products and services are produced, distributed, and consumed.
  • It investigates how individuals, businesses, governments, and nations make resource allocation decisions.
  • The study of economics is best described as a study of D. coping with scarcity, and choices made as a result of scarcity in a society.

For more information:

brainly.com/question/17408105?referrer=searchResults

3 0
2 years ago
Read 2 more answers
A share of stock is now selling for $90. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What do
zubka84 [21]

Answer:

$96.20

Explanation:

A share of stock is now selling for $90. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 4% and the expected rate of return on the market is 18%

Find complete question above:

The cost of equity=risk-free rate+beta*(market return-risk-free rate)

cost of equity=4%+1*(18%-4%)=18.00%

The price of the stock today is the present value of the price in a year's time and the expected dividend.

Share price today=(dividend+future share price)/(1+r)^n

share price today=$90

dividend=$10

future share price is the unknown

r=18%

n=1( 1 year from now)

90=(10+FP)/(1+18%)^1

90=(10+FP)/1.18

90*1.18=10+FP

FVP=(90*1.18)-10=$96.20  

8 0
3 years ago
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