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allsm [11]
3 years ago
9

The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a

constant level. Assume that both the cost per unit and the selling price per unit also remained constant. This accomplishment will be reflected in the firm's financial ratios in which one of the following ways?
Decrease in the inventory turnover rate
Decrease in the net working capital turnover rate
Increase in the fixed asset turnover rate
Decrease in the days sales inventory
Decrease in the total asset turnover rate
Business
1 answer:
Alisiya [41]3 years ago
3 0

Answer:

The answer is: Decrease in the days sales inventory

Explanation:

Days Sales in Inventory (DSI), represents on average how many days does a business need to convert its inventory into sales.

Its formula is:

                               Inventory

DSI  =              _________________         x       number of days in the period

                               Cost of sales  

For example at the end of year 1, Corner Hardware had $10,000 in inventory. Its total COGS for year 1 were $500,000. We can calculate the DSI  ($10,000 / $500,000) x 365 days = 7.3 days

This means that it took Corner Hardware a little over a week (7.3 days) to sell its inventory.

Now during year 2, Corner Hardware was able to increase its sales by 20% while maintaining the same inventory levels as before. We can calculate de DSI for year 2 ($10,000 / $600,000) x 365 days = 6.08 days.

This means that it took Corner Hardware approximately 6 days (6.08) to sell its inventory.

So if the total sales of a company increases and their inventory remains the same, then their DSI will decrease.

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Mary was recently hired at Marshall Industries as a repairperson. Upon starting her new job, she was informed that if she chose
Elena-2011 [213]

Answer:

D.agency shop agreement

Explanation:

Agency shop agreement is one where a company or employer is allowed to employ both union and non-union workers. This does not affect existence of the Union.

The employees who are non-union members however need to pay a fee for collective bargaining cost. This fee is called agency fee.

In the given scenario Mary chose not to join the union representing her fellow repair workers, she would still have to pay a fee to the union.

She is part of a agency shop agreement

8 0
3 years ago
Flavio, CEO of Fabulous Frozen Custard believes that alternate plans are almost as important as the primary operational plans be
Tanzania [10]

Answer:

D. contingency planning

Explanation:

A contingency plan is a plan that is made to take account of a future occurence or event that might affect the workability or effectiveness of the current plan.

A very simple example of contingency plan is keepin an umbrella with you at all times just incase it starts to rain.

cheers.

5 0
3 years ago
On January 1, 2021, Gundy Enterprises purchases an office building for $151,000, paying $41,000 down and borrowing the remaining
Nataly_w [17]

Answer:Gundy Enterprise journal $

Date

Jan 31 2021

Income statementl Dr 641.67

Mortage Interest. Cr. 641.67

Recognition of interest payable on mortgage loan for December 2021

Jan 31 2021

Mortgage principal Dr 635.52

Mortgage interest Dr. 641.67

Bank Cr. 1277.19

Narration.payment of principal and interest Interest due on mortgage loan as at January 31 2021.

Explanation:

The monthly installment payments of $1277.19 consist of both the principal sum and accompanying monthly interest.

The interest needs to be first recognized as an expenses into the income statement and increase in the mortgage loan. This will prevent an over deduction on the mortgage loan.

4 0
3 years ago
How do corporate bonds affect the economy
zheka24 [161]

Answer:

Bonds affect the U.S. economy by determining interest rates, which affect the amount of liquidity and determines how easy or difficult it is to buy things on credit or take out loans for cars, houses, or education

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7 0
3 years ago
In 1924, the famous novelist F. Scott Fitzgerald wrote an article for the Saturday Evening Post entitled ?How to live on $36,000
Maksim231197 [3]

Answer:

$4,267,059

Explanation:

to determine the equivalent amount of money between 1924 and 2008, we must divide the 2008 CPI by the 1924 CPI, and then multiply by $36,000:

= (2015 / 17) x $36,000 = 118.53 x $36,000 = $4,267,059

The consumer price index measures the weighted price of basket of goods . It is useful for calculating inflation and comparing how the purchasing value of the US dollar has decreased in time. Basically what this shows us, is that $1 in 1924 would purchase the same amount of goods as $118.53 in 2008.

8 0
3 years ago
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