What does 3 dots inside a silver ring mean??

If accounts receivable turnover (credit sales/receivables) was 7.1 times last year compared to only 5.6 times in the current yea

Levart [38]

Answer:

A. Fictitious Sales in the Current Year

Explanation:

The Accounts receivable turnover is used to access a company's ability to make it debtor pay what they owe or ability to collect on the debts owed the company by customers.

Since the formula is Credit sales/ Receivables, a reduction in the accounts receivable turnover will mean an increase in receivables. The implication of this is that the Company is claiming that it is making more sales but since no cash or revenue is coming in, it is increasing the receivables instead. Large receivables will drive down the receivables turnover in the current period compared to the last.

If there are no fictitious sales, then sales should go up without a very sizeable increase in receivables at the end of the period.

3 0

3 years ago

Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.

Gennadij [26K]

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

a)

($250,000 − $200,000)/$200,000 = 0.25 or 25%

b)

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

c.

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

7 0

4 years ago

A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's cur

Paha777 [63]

Answer:$2

Explanation:

A company normally is expected to value it's inventory at the lower of cost or net realisable value. The cost price is the price on purchase of the inventory while the net realisable value is selling price less cost of sales and cost to completion.

The amount of the lower cost of market adjustment the company must make, is the difference between the new selling price of $15 and net realisable value of $13 which is $2.

6 0

3 years ago

Read 2 more answers

2. Which of the following is not an accurate statement as concerns competing in the markets of foreign countries? A. A multi-cou

suter [353]

Answer:

A. A multi-country strategy is generally superior to a global strategy.

Explanation:

Foreign countries are the countries that are established in a foreign. Each and every foreign country has different consumer preference, buying power, taste and preferences.

Also there are no fixed exchanged rates plus the designs of the product are not fixed for another country as it depends on the customer demand which type of product they needed. Moreover, the growth rate is also different in different countries

Hence, option A is correct

4 0

4 years ago

1. Sam orders 40 cases of beer from a Dutch distributor at a price of $40 per case. 2. A U.S. company sells 200 transistors to a

yawa3891 [41]

Explanation:

The computation is shown below:

The consumption is

= 40 cases × $40 per case

= $1,600

The import is also same i.e $1,600 because the purchase from Dutch distributor represents the consumption and imports for the United states economy.

Now the exporter is

= 200 transistors × $ 15

= $3,000

Now the net exports is

= Exports - imports

= $3,000 - $1,600

= $1,400

And, the consumption value is $1,100

The total economy consumption is

= $1,600 + $1,100

= $2,700

Now the GDP is

= Consumption + investment + government spending + net exports

= $2,700 + $0 + $0 + $1,400

= $4,100

4 0

3 years ago