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3 years ago

The liquidity of a company with significant amounts of obsolete inventory is best measured by the ______ ratio.

Business

1 answer:

Mariulka [41]3 years ago

7 0

<u>Answer: </u>

The liquidity of a company with significant amounts of obsolete inventory is best measured by the inventory turnover ratio.

<u>Explanation: </u>

Depending on how functional the inventories are, the ratios of inventory turnover would bulk or shrink.

To have a clear picture of the amounts of obsolete inventory, an examination of the inventory turnover ratio would help greatly as it would dispense the necessary comparative data related to all the inventories.
The functionality of the inventories can thus be clearly devised from the inventory turnover ratio.

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A factory currently manufactures and sells 800 boats per year. Each boat costs $5,000 to produce. $4,000 of the per-boat costs a

spayn [35]

Answer:

Explanation:

Variable costs are incurred only when a boat is manufactured such as material and direct labor. Thus variable costs will remain unchanged since it will costs the exact same amount to manufacture another identical boat. If it costs $4,000 in material and direct labor to manufacture boat A it will cost $4,000 to manufacture boat B. Fixed costs are sunk costs that will be incurred whether they manufacture 800 or 1,000 boats per year. The rent and admin costs will remain unchanged no matter how many boats are manufactured. But the fixed cost per boat will change. The total fixed costs are $80,000 (800 boats x $1,000 per boat fixed cost). If the manufacturing rate is increased to 1,000 boats per year, the per boat fixed cost will decrease to $800. Fixed costs remain at $80,000/1,000 boats = $800.

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3 years ago

The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pound

horsena [70]

Answer:

d. $40 F

Explanation:

Calculation to determine what The variable overhead efficiency variance for June is

First step is to calculate the SH

SH = 2,500 units × 0.4 hour per unit

SH= 1,000 hours

Now let calculate the Variable overhead efficiency variance

Using this formula

Variable overhead efficiency variance = (AH - SH) × SR

Let plug in the formula

Variable overhead efficiency variance= (980 hours - 1,000 hours) × $2 per hour= (-20 hours) × $2 per hour

Variable overhead efficiency variance= $40 F

Therefore Variable overhead efficiency variance is $40 F

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3 years ago

If one worker produces 15 cones of ice cream in an hour, two workers produce 25 ice cream cones, and three workers produce 30 ic

Setler [38]

Answer:

The marginal return of production of the second worker or marginal product of the second worker is 10 cones.

Explanation:

One worker can make 15 cones of ice cream in an hour.

Two workers can make 25 cones in the same time.

While three workers can make 30 cones in an hour.

The marginal return of the production of the second worker is the contribution of the second worker in the total output.

Marginal return

= 25 cones - 15 cones

= 10 cones

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3 years ago

You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities,

kozerog [31]

Answer:

$240; $160

Explanation:

The computation is shown below:

As we know that

if there is 40% of money engaged in the risk portfolio is

= $1000 × 40%

= $400

Now amount in X is

= $400 × 0.60

= $240

And, the amount in Y is

= $400 × 0.40

= $160

hence, the last option is correct

All other valeus i.e. given in the question is not relevant. hence, ignored it

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4 years ago

Ollie Company experienced the following events during its first-year operations: 1. Acquired $72,000 cash from the issue of comm

SCORPION-xisa [38]

Answer and Explanation:

The preparation of the statement of changes in stockholders' equity is presented below:

Ollie Company

Statement of changes in stockholders' equity

Beginning common stock $0

Add: Common stock issuance $72,000

Ending common stock $72,000

Beginning retained earning $0

Add: Net income $16,000 ($59,000 - $43,000)

Less: cash Dividend paid -$7,000

Ending retained earning $9,000

Total stockholder equity $81,000 ($72,000 + $9,000)

4 0

3 years ago