Working capital turnover estimates how viable a business is at producing deals for each dollar of working capital put to utilize.A company's ability to generate more sales is indicated by a higher working capital turnover ratio, which is better.
What distinguishes working capital ratio from working capital?
The difference between a company's current assets and liabilities is referred to as working capital. These numbers are compared as a percentage using the working capital ratio. When determining a company's financial health, both metrics can be helpful.
The ratio of assets to liabilities, or how many times a company can pay off its current liabilities with its current assets, is shown by the working capital ratio. The calculation for the working capital ratio is: Current assets divided by current liabilities is the working capital ratio.
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Answer:
d. 18,570 pounds
Explanation:
The computation of the raw material purchased for the month of February is shown below:
= Production in units + ending inventory - beginning inventory
where,
Production in units = 19,200
Ending inventory is
= 17,100 × 30% × 1
= 5,130
And, the beginning inventory is
= 19,200 × 30% × 1
= 5,760
So, the raw material purchased for the month of February is
= 19,200 + 5,130 - 5,760
= 18,570 pounds
We simply applied the above formulas
Answer:
November 30
Explanation:
Based on Generally Accepted Accounting Principles,( GAAP) , revenue can be recognized once the goods/servicehas been delivered. whenever sales is made, may be the company has gotten the payment for the sale of has not gotten it. The revenue recognition principle can be regarded as basis of accrual accounting as well as matching principle, all these helps to know the accounting period that revenues as well as expenses can be recognized.
From the question, on 30th November, there was large sales made by the flower shop , though payment received on December 10, Therefore, the $1,000 considered to be recognized on November 30.
Answer:
Its important to diversify because it can help an investor manage risk and reduce the volatility of an asset's price movements. If his high risk investment backfires hes left with almost nothing, diversifying can give him a safety blanket just incase. The many ways he can diversify include, but aren't limited to, Use asset allocation or target date funds, Invest in a mix of mutual funds or ETFs, Customize with individual stocks and bonds, Vary company size and type, Invest abroad, and add complexity.
Explanation: