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dolphi86 [110]
3 years ago
6

Industrialization Automation Company (IAC) has a quick ratio of 2.00; $24,750 in cash; $13,750 in accounts receivable; some inve

ntory; total current assets of $55,000; and total current liabilities of $19,250. In its most recent annual report, IAC reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales. How many times is Industrialization Automation Company (IAC) selling and replacing its inventory?
A. 0.35x
B. 30.30x
C. 19.70x
D. 21.67x
Business
1 answer:
Goshia [24]3 years ago
7 0

Answer:

The answer is 3.94x. There is no choice given is the correct choice.

Explanation:

We have Inventory turnover time = Cost of goods sold / Inventory balance. Thus, we need to find Cost of good sold and inventory balance as below:

Inventory balance = Current asset - cash balance - account receivable balance = 55,000 - 24,750 - 13,750 = $16,500.

Cost of goods sold = Annual sales x % of cost of goods sold over sales = 100,000 x 65% = $65,000.

Inventory turnover time = Cost of goods sold / Inventory = 65,000 / 16,500 = 3.94x

The answer is 3.94x. Thus, there is no correct answer in the multiple choice given out.

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(Ignore income taxes in this problem.) The management of Stanforth Corporation is investigating automating a process. Old equipm
solniwko [45]

The simple rate of return on the investment is closest to: <u>34.5%</u>

<u>Explanation</u>:

<em><u>Given</u></em>:

Current salvage value = $15,000

Cost of new machine = $408,000

Cash operating cost = $141,000

Simple Return on Investment is Calculated as follows:-

Simple rate of return on the investment = Net Operating Cost Saved/ Initial Investment X 100

So Simple Return = 141000/408000 X 100

= 34.5%

The simple rate of return on the investment is closest to: 34.5%

3 0
3 years ago
You have received a call from a processor that is having quality problems with their pork. They are noticing areas of product lo
const2013 [10]

Answer:

The investigating areas should be field, processing units and finished goods inventory.

Explanation:

The business units should be considered for quality control. The quality of the product is the main cause of concern for any business. When the poor quality products are processed customers will move away from the business. Total Quality Management or TQM approach is used to make the products best fit.

6 0
3 years ago
Solving for dominant strategies and the Nash equilibrium Suppose Nick and Rosa are playing a game in which both must simultaneou
slava [35]

Answer:

The only dominant strategy in this game is for <u>NICK</u> to choose <u>RIGHT</u>. The outcome reflecting the unique Nash equilibrium in this game is as follows: Nick chooses <u>RIGHT</u> and Rosa chooses <u>RIGHT</u>.

Explanation:

                                                  ROSA

                                     left                          right

                                    4 /                            6 /

                left                  3                              4

NICK                                                      

               right             6 /                             7 /

                                       7                               6

Rosa does not have a dominant strategy since both expected payoffs are equal:

  • if she chooses left, her expected payoff = 3 + 7 = 10
  • if she chooses right, her expected payoff = 4 + 6 = 10

Nick has a dominant strategy, if he chooses right, his expected payoff will be higher:

  • if he chooses left, his expected payoff = 4 +6 = 10
  • if he chooses right, his expected payoff = 6 + 7 = 13

The only possible Nash equilibrium exists if both Rosa and Nick choose right, so that their strategies are the same, resulting in Rosa earning 6 and Nick 7.

8 0
3 years ago
You have just purchased a car and, to fund the purchase, you borrowed $25,000. If your monthly payments are $402.18 for the next
Naya [18.7K]

Answer:

E) 4.96%

Explanation:

The computation of the APR could be determined by applying the RATE formula i.e. shown below:

Given that

PMT = $402.18

Present value = $25,000

NPER = 6 × 12 = 72

FUture value = $0

The formula is shown below:

=RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the annual percentage rate of the loan is

= 0.4135%  × 12

= 4.96%

hence, the correct option is E.

4 0
3 years ago
Tasty Tangerine is currently selling 50,000 boxes for $25 per box. Variable cost per box is $17 and fixed costs total $260,000.
Charra [1.4K]

Answer:

decrease by $16,000

Explanation:

We know that,

The net income = Sales - variable cost - fixed expense

The sales = Sales units × selling price per unit

                = 50,000 boxes × $25

                =  $1,250,000

The variable cost = Sales units × variable cost per unit

                             = 50,000 boxes × $17

                             =  $850,000

And, the fixed cost is  $260,000

So, the net income would equal to

= $1,250,000 - $850,000 -  $260,000

= $140,000

Since, the sales units are increased by $24,000 units, so new sales units is 74,000 units

And, the sales per unit is decreased by 2 So, new sales per unit is $23

So, the new sales

= Sales units × selling price per unit

= $74,000 × $23 = $1,702,000

The variable cost = Sales units × variable cost per unit

So, the new variable cost equals to

= 74,000 units × $17

= $1,258,000

And the fixed expense would increased by the $60,000 so new fixed cost is $320,000

So, the new net income would be equal to

= $1,702,000 - $1,258,000  - 320,000

= $124,000

If we compare these two net income, then the difference would be

=  $140,000 -  $124,000

= $16,000 decrease

5 0
2 years ago
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